Bringing Smart Energy Value to Customers

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Bringing Smart Energy Value to Customers Scott Burns Manager, Smart Energy Product Management May 25, 2011

Reliant Energy Retail Overview Reliant operates in competitive areas of Texas, addressable market of 5.6M residential households 2 nd largest retail electric provider (REP) in Texas 1.5M customers Traces its roots to the company that first brought electricity to Houston Acquired by NRG Energy in May 2009 475,000 bills issued every week 1,200 member workforce Houston Non-Ercot North South West

Texas Competitive Electricity Market Deregulated Market Value Chain Generation Plant Transmission and Distribution Utility Retail Electricity Provider Customer

Smart Energy Background 6.7M Smart Meters throughout Texas by 2015 (3M deployed so far) Reliant was awarded $20M Department of Energy Smart Grid Investment Grant (SGIG) Grant will expedite deployment of smart energy solutions over next 3 years Smart Energy Solutions allow Reliant to differentiate itself from competitors through value-added services

Texas Competitive Market Opportunity The Smart Meter deployment hits its halfway mark this year. Meter Count 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 J-11F-11 M- 11 AMI Deployment (2011) A-11 M- 11 J-11 J-11A-11S-11O-11N-11D-11 Meter Count AMI Deployment (2009-2013) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2013 AEP CenterPoint Oncor

Smart Energy Customer Experience Use/Spend Analysis Peer Compare Mobile Devices Alerts Display Efficiency Tips Portal/ email Smart Energy transforms the way customers use and value electricity Insights Pricing Plans Solar Choice Choices Payment Plans Controls Load Response / Economic Dispatch Carbon Credits EV and Fleet Vehicles Partnership Offers Appliances Thermostat Switches/ Plugs

e-sense TM Smart Energy Solutions Customer Insights Weekly Summary Email Online Account Management Home Energy Monitor At-a-glance overview of electricity usage each week Comparison to previous week Estimated bill for the month Energy savings tips In-depth view of historical usage via web Email/SMS Alerts High usage Bill target Peer comparison Remote access Real-time view of current electricity usage Communicates with advanced meter every 10-15 seconds Alerts/notifications Bill-to-date Estimated bill

Reliant Energy e-sense TM Weekly Summary Email

e-sense TM Smart Energy Solutions Customer Insights Text Alerts Both preset and text on-demand Preset alerts: Bill due Cost exceeds budget Projected bill exceeds budget Daily usage exceeds threshold Usage spike by 25% Text on-demand: BILL bill amount and due date EST BILL estimated bill amount COST cost to date USAGE usage to date

e-sense TM Smart Energy Solutions Customer Insights e-sense Gadget Mini-website view Provides an at-aglance view of usage data on site commonly used for internet home pages

e-sense TM Smart Energy Solutions Customer Choices Traditional Rate Plans Time-of-Use with Weekly Summary Email SmartStart TM Prepay Blended average price No price difference depending on time-of-day electricity is used Usage provided monthly in bill Different prices during different times of the day Opportunity for customers to save during Off-Peak hours Highest price only 3% of time; Off- Peak is 80% of time Includes Weekly Summary email to track usage across pricing tiers Enables enrollment without deposit No bills to pay SMS, email, web, and outbound dialer notification of balance, disconnect warnings, and payment confirmations

e-sense TM Smart Energy Solutions Customer Control Remote Control Remote Access Home Automation Personalized Settings Price Sensitive Controls

Electric Vehicle Charging Network The planned evgo network consists of two types of stations: Freedom Stations have Level 2 and DC chargers and are available 24 hours a day, 7 days a week. Convenience Stations, typically hosted by a retailer, have Level 2 chargers and are available during the same hours as their hosts. Home Charging Docks Your home charging dock and installation are included in your monthly plan. A standard installation represents a savings of more than $2,000 in up-front costs. Charging Plans Home - $49 + home electricity cost; includes: o Installation of your home charging dock and equipment o Three-year service agreement Mobile - $79 + home electricity cost; includes: o Installation of your home charging dock and equipment o Three-year service agreement o Unlimited charging at evgo network stations Complete - $89 (includes home EV electricity); includes: o Installation of your home charging dock and equipment o Three-year service agreement o Unlimited charging at evgo network stations o Unlimited charging at home charging dock with no additional electricity cost during non-peak hours

Thank You! Scott Burns Reliant Energy sburns@reliant.com