GoodCents SELECT

Advanced Energy Management

Program

Gulf Power CompanyPensacola, Florida

Program Highlights

• 7200 Current Participants• 96% Customer Satisfaction

Rating• <4% Churn Rate• 2006 Goal – 3000

installations• Moving into Multi-Family

segment this year

•What is GoodCents® SELECT ?

• GoodCents® SELECT is a residential advanced energy management system that gives customers control over their energy purchases by allowing them to program their central heating and cooling system, electric water heater and their pool pump to automatically respond to varying prices.

– The “full cost” of responding to price changes is much more than the price difference.

• Customers must act in order to respond.• These actions require time and effort.

– Lowering the incremental “cost” of responding should increase the amount of price response.

– An in-home, customer-programmed, automated energy management system lowers this “cost” that customers must bear.

Overcoming Pricing Program Hurdles

Major ComponentsMajor Components

Communications Gateway

SuperStat

RSVP Rate

Rate (RSVP)

$0.10

$0.20

Price per kWh

5.9 7.1High11.7

Critical32.6

(Limited

To 87Hrs/Yr)

Standard Residential Rate 8.0 cents

GoodCents SELECTParticipation Charge $4.95/Month

Standard Residential Rate 8.0 cents/kWh

LOW 5.9 centsMEDIUM 7.1 centsHIGH 11.7 centsCRITICAL 32.6 cents

Price Per kWh*

* All prices are as of 04/01/05, excluding and/or participation charges and any applicable taxes. These prices are subject to change.

The MainGate® SystemWAN Architecture

Gulf Power Company

Telephone Line

VHF Paging Signal

Telephone Line Paging

Why is GCS good for Gulf ?• Innovative Rate Offering (More

Choice)

• Operational Benefits (Peak Shaving and Valley Filling)

• Customer Satisfaction

• FPSC/FEECA Rules

GoodCents Select – Program Economics

• Significant Real-Time Demand Reduction!– Over 2 kW per subscriber per critical event 100 event-hours per year is O.K.

• Event durations of 1 to 3 hours

– These demand responses are exactly like quickly dispatchable capacity

• CTs or Hour-Ahead Spot Market Purchases• 80 MW of available critical peak demand response will

displace the need for an 80 MW bank of CTs or the need for 80 MW of hour ahead capacity purchases

GoodCents Select – Program Economics

• Load reshaping can be profit preserving– Moving consumption from higher to lower

priced periods reduces revenues and reduces costs but profits can be preserved

• Program facilitates the promotion of the most economically efficient electric end-use loads and technologies– Off peak end-uses of electricity become

relatively more economic – sales can increase

GoodCents Select – Program Evaluation

• GCS provides other benefits too.– Customer Choice Not Utility Control

• Enhances Customer Satisfaction• Reduces Policing Requirements vs. Direct Load

Control• Produces Reliable Peak Demand Reductions

– Requires No Utility Paid Incentive• Customers Save by Acting and Reacting• Customers Unwilling to Change Will Not

Participate– GCS is Equitable

• Heaviest Electricity Users are the Target Market• Capacity Savings Benefit All Users

Choice, Control, Savings

• Utilizing rate and equipment menus allows customers choice over their energy purchases

• Provides customers with more control over their energy bills

• Customers want choice and control• Customers save up to 15% annually• Use 3.8% less energy

Consumer Pricing Safeguards

• Medium Tier Default

• Gateway programmed not to exceed 87 hours of Critical Pricing Annually

• 1 hour notification prior to Critical Price being Implemented (Indicator Light on T’stat)

GoodCents® SELECT

The Primary Motivators

GoodCents® SELECT

When Do We Call a Summer Critical?

• If Gulf Power interruptible load has been called

• If the RTP price for an hour exceeds a certain threshold OR if the daily forecast dry bulb temperature at the Pensacola Regional Airport is 95 degrees Fahrenheit or above for that day, call critical based on consultation with System Control

• If there is an expectation of an annual Gulf Power peak demand for the day

When Do We Call a Winter Critical?

• If Gulf Power interruptible load has been called

• If the RTP price for an hour exceeds a certain threshold OR if the daily forecast dry bulb temperature at the Pensacola Regional Airport is 32 degrees Fahrenheit or below for that day, call critical at either hour beginning 0700 or hour beginning 0800 based on consultation with System Control

• If there is an expectation of an winter Gulf Power peak demand for the day

Load Reductions

August 2005 – 2 Critical Days (3 hrs.)

Average Peak kW reduction – 14MW

February 2005 – 2 Critical Days (2 hrs.)

Average Peak kW reduction – 18.5MW

Load Research Results

AVG HOURLY DEMAND ON JAN 24 AT HOUR 7 AND 8, 2003

5.9645

6.3930

6.6515

6.0201

5.6898

5.0808

6.0456

5.5266

2.6395 2.7273

4.9718

5.3619

1.5000

2.0000

2.5000

3.0000

3.5000

4.0000

4.5000

5.0000

5.5000

6.0000

6.5000

7.0000

kwpre1 kwpre2 kwcrt1 kwcrt2 kwnxt1 kwnxt2

HOURS

KW

control

sample

Easy– Set it and Forget it…..

2/2/04 No Critical

0.0

1.0

2.0

3.0

4.0

5.0

1 5 9 13 17 21

Time

kW

GCS Multi Family

Meter Panel

Wir

ing

Acc

ess

Pan

el

FOCUSFOCUS

FOCUS FOCUS

FOCUS FOCUS

FOCUS FOCUS

FOCUS FOCUS

PCCM

LCR

LCR

LCR

LCR

LCR

PCCM

PCCM

PCCM

PCCM

MainGate/Mini CR

-

Questions?? Contact Me!!!

Brian White

Gulf Power Company

850-444-6438

BLWHITE@southernco.com