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Demand Response in Long Term Resource Planning In New York and Elsewhere Ruben S. Brown, President The E Cubed Company, LLC September 9, 2003 PLMA/IEA Conference New York City

Some strategic questions for DRR: 

Some strategic questions for DRR Demand response in long-term planning Can wholesale markets provide sufficient revenue for DRR to participate? How can we structure incentives for utilities to help facilitate DRR deployment? It’s a political rodeo…which bull should we ride, and how should we ride it?

Wholesale Markets : 

Wholesale Markets Existing Programs and Initiatives – a great start -(SCR, ALM, RAM, economic bidding programs) Other Opportunities: -Alternative to transmission expansion -Intrinsic value to competitive energy markets -_____ -Governance role -Ancillary services

Utility Incentives: 

Utility Incentives Barriers? -Standby Rates – spreading like the flu, but maybe an opportunity - Interconnection standards Retail Opportunities: - Avoided line losses on peak - Distribution investment offsets - Flatter load profiles - RFPs

Political Rodeo : 

Political Rodeo States: initiatives for retail integration, ___ - Blackout 2003 – are there really opportunities for us? - Homeland security - Transmission investment - We are dropping off the RADAR…  FERC has been educated, but DRR needs to re-enter the fray!

Demand Response as Medicine : 

Demand Response as Medicine - Band-Aid™? - Prosthesis? - New Growth?

Contact Info:: 

Contact Info: Ruben Brown The E Cubed Company, LLC 215 East 79th Street New York, New York 10021 212.585.1459 rsbrown@ecubedllc.com