Pennsylvania-Jersey-Maryland (PJM) PJM was the first Independent Service Operator (ISO) to fully open all of its wholesale markets to Demand Response resources back in 2006, and it continues to be one of NAPP's strongest markets. In 2008, PJM and its members delivered about 759 million megawatt-hours of electricity. In managing the grid, PJM dispatches about 163,500 megawatts (MW) of generating capacity over 56,350 miles of transmission lines to more than 51 million people in 13 states: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

NAPP has many customers in the PJM region. The majority of our current clients are active in the Capacity and Self-Scheduling and Spinning Reserves markets.

NAPP's PJM Program

• Curtailment Period is from June to September
• Maximum call events=10
• Typical # of calls = 0 to 3 during Program Period
• Total payments vary annually and by region
• Monthly revenue is paid quarterly, whether there is an event call or not.
• Standby generators may be restricted.

The NY ISO has almost 11,000 miles of transmission lines and manages 32,169 MW of peak demand (2007.) Market opportunities are in the year-round Capacity market and a dispatchable Self-Scheduling market. Early on, New York State allowed the use of backup generators to participate as Demand Response capacity resources and much of the states Demand Response relies on the ability to cover the cost of running a diesel or natural gas generator. NAPP manages sevaral customers in NYC with a Demand Response capacity of 2,500 KW.

NAPP's New York Program

• Curtailment Period is year round
• Client must be able to curtail for 8 hours per event
• Load drop may vary seasonally
• Total payments vary monthly and by region
• Monthly revenue is paid quarterly, whether there is an event call or not.
• Standby generators are eligible.

ISO New England (ISO NE) has over 8,000 miles of high-voltage transmission lines, and has more than 32,000 MW of total supply (includes 1,693MW of demand-resource capacity) in six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. The New England region implemented a Capacity market program for Demand Response that was heavily developed in 2004-2007.

NAPP's New England Program

• Curtailment Period is year round
• Client must be able to curtail for 6 hours per event
• Load drop may vary seasonally
• Monthly revenue is paid quarterly, whether there is an event call or not.

The Southern California market is unique and in the process of a significant restructuring. The California Energy Commission, in conjunction with the California PUC, have established significant utility mandates to develop Demand Response resources. The utility companies established their own Demand Response programs, but had limited success. Third party programs were approved in 2007, and is a fairly new market for third party Demand Response providers.

NAPP is one of just four providers for Southern California Edison (SCE) and we have negotiated a favorable contract that offers clients both Capacity and Self-Scheduling markets, offering significant payments with fewer call events than Southern California Edison (SCE) and other Demand Response Providers. There is great benefit of participation in a customer "pool" for call performance assessment.

NAPP's Smart Response^™ Utility Based Demand Response Program

• Unique to NAPP - a proprietary agreement between NAPP and SCE
• Allows customer to choose # of called events and monthly commitment levels
• Customers respond weekdays 11am-6pm (non-holidays) with minimum 2 hour notice
• Monthly payments are paid quarterly, whether or not an event is called

NAPP Utility Based Demand Response Program - Southern California Public Power Authorities (SCPPA)