DOE Funding Announcement for Smart Grid Grants Opens Door for Smart Energy Pricing

SAN MATEO, Calif.--(Business Wire)--
According to eMeter Strategic Consulting, an experienced provider of utility
dynamic pricing programs, the Department of Energy`s Smart Grid grant funding
application rules announced yesterday strongly promote smart-dynamic-energy
prices as a component of Smart Grid projects funded under the American
Reinvestment and Recovery Act. Dynamic energy pricing is a key component in
increasing residential energy conservation and consumer satisfaction.

"The clear evidence from decades of successful pilot programs is that
residential power consumers love the ability to choose electricity price options
that empower them with more control over their bills," said Chris King,
President of eMeter Strategic Consulting, an arm of eMeter Corporation, the
global leader in Smart Grid management software. "We have partnered with
utilities to implement several dynamic pricing pilot programs, and have found
not only do consumers like smart prices, but also they consistently respond to
savings opportunities, reducing peak load by 10 to 20-percent."

Pilot programs have shown peak demand can be further reduced, to as much as
50-percent with the addition of automated response technologies, such as smart
thermostats that automatically adjust when power prices are high. These programs
have also shown customer satisfaction rates consistently in the 80 to 90-percent
range with the same number recommending the prices to their family and friends.

There are different types of dynamic pricing, each reflecting the varying cost
of wholesale power at different times of the day. Time-of-use rates have peak
and off-peak rates every day, much like cellular phone plans. Peak time rebate
programs pay consumers for not using as much electricity during summer
afternoons for 10 peak days per year. Critical peak and hourly prices are lower
99 percent of the time but are up to 10 times more expensive for approximately
100 hours per year; consumers who reduce power usage at those times save money.

The DOE's rules for Smart Grid investment grants require that applicants
consider dynamic pricing programs as part of their projects, including them as
one of the decision criteria. Specifically, the rules state that one of the key
"Customer-Level Metrics" in measuring smart grid program progress is the
percentage of electricity customers "served by dynamic pricing programs" and
that smart meter programs are to include dynamic pricing.

Dynamic prices are also an alternate solution to so-called peaking plants, which
account for up to 20-percent of utility power plants and serve the peak energy
demand that occurs during the top 100 hours of the year, sitting idle the rest
of time. When consumers are able to respond to peak energy events and reduce
their usage less utility investment and fewer peaking plants are needed.

"The beauty of dynamic pricing is that it has always been voluntary, and
policymakers agree on this point," added King. "It really comes down to one
thing, consumers like choice, and only the consumers who want to participate
need do so to achieve the benefits of reduced peak demand for all consumers."

As part of eMeter`s latest program, PowerCentsDC in Washington, D.C.,
participants, for the first time, are being tested on three different dynamic
pricing programs in parallel. The programs will enable policymakers in the
District to compare results for peak time rebate, critical peak pricing, and
hourly pricing over the same customer population. The PowerCentsDC pilot program
went live in July 2008 and will continue through February 2010.

About eMeter:

eMeter is the leader in Smart Grid Management software and enables electric, gas
and water utilities to realize the full benefits of their AMI and Smart Grid
initiatives with its flagship product, EnergyIP. eMeter`s experienced
professional services team can help ensure project success, as well as provide
strategic consulting services for meter data management, advanced metering and
demand response. www.emeter.com.

Antenna Group (for eMeter)
Skye Laudari, 415-977-1925
skye@antennagroup.com

Copyright Business Wire 2009