Gateway Launches Smart Grid Pilot in Oncor Service Area

Gateway Power Services will initiate a three-month smart grid pilot program this summer for its customers in the service area of Texas utility Oncor.

Gateway, based in Montebello, N.Y., is one of
the largest independent retail energy suppliers in North America,
providing natural gas and
electricity to thousands of residential and business customers in 35
deregulated energy markets
across eight states, the District of Columbia and Ontario, Canada.

The company will test two time-of-use rate structures, both of which will provide customers with
incentives to shift power usage to off-peak hours and deterrents to use power during peak
hours. Customers will have online access to reports that
show details about their energy usage, as well as a side-by-side billing analysis of the so-called "Lifestyle
Plan" versus their current rate plan.

Any savings accrued will be realized as a bill credit at the
end of the pilot. After a post-pilot survey, customers will also receive a $50 Visa® Prepaid Card
to thank them for their participation.

Steven J. Maslak,
president and CEO of Gateway, said: “At the core of our Lifestyle Energy Plan is the basic premise
that a few small adjustments by enough people can effect significant change in the amount of
energy consumed.”

Gateway reached out to 287 of its customers in the Oncor service area by letter. Criteria for
participation included residential customers who already have an Oncor-installed smart meter
and are enrolled on Gateway’s variable-rate Tex Flex Plan, instead of a fixed rate. Of these, 51
customers opted in to the program by taking a brief survey, answering a series of demographic
questions. They also evaluated eight common household power guzzlers by rating them as
easy or hard to shift to hours outside of 2-6 p.m. Their survey scores determined the variation of
the Lifestyle Energy Plan on which they were placed.

Of the respondents, 18% qualified for the Busy Life Plan, which will give them a 20% discount
on electricity usage on weekdays from 6 p.m. to 9 a.m. and all day on weekends. The plan will
cost customers a premium of 50% for the power they use between 9 a.m. and 6 p.m. The
balance of customers (82%) qualified for the Max Savings Plan, giving them a 20% discount
every day on usage during all hours outside of 2-6 p.m. with a 60% premium during those peak
hours.

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