WALMART STORES, INC.

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WAL-MART STORES, INC.

• ENERGY EFFICIENCY AND DEMAND RESPONSE

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Wal-Mart in Illinois

• Supercenters 57
• Discount Stores 78
• Sams Clubs 28
• Distribution Centers 4

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Wal-Mart

• We operate more than 6,500 stores in 14 countries
  and serve more than 176 million customers around
  the globe each week.
• 1,200 Wal-Mart Discount Stores
• 1,980 Supercenters
• 100 Neighborhood Markets
• 2,680 Wal-Mart International Facilities

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Annual Energy Expense for 2007 in the U.S. alone

• 2.0 Billion

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Wal-Mart Environmental Commitments

• Aggressively investing approximately 500 million
  annually in sustainable technologies and
  innovations.
• Reducing greenhouse gases at our existing stores,
  Sams Clubs, and Distribution Centers around the
  world by 20 over the next seven years.
• Designing and opening a viable prototype store
  that is 25-30 percent more efficient and will
  produce up to 30 percent fewer greenhouse gas
  emissions within the next 4 years.

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Wal-Mart Environmental Commitments

• Sharing our learning with the world, including
  our competitors.
• Pursue regulatory and policy changes that will
  create incentives for utilities to invest in
  energy efficiency, to use low or no greenhouse
  gas sources of electricity, and to reduce
  barriers to integrating these sources into the
  power grid.

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Wal-Mart Environmental Commitments

• Initiate a program in the U.S. over the next 18
  months that will show preference to suppliers who
  set their own goals and aggressively reduce their
  own emissions.
• Assisting in the design and support of a green
  company program in China, where we will show
  preference to those suppliers and their factories
  involved in such a program.

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Wal-Marts Profile

• Most new facilities are .75 MW to 1.3 MW
• Wal-Mart typically builds 330 350 new stores
  yearly (roughly 400 MW)
• Most have high load factors 70 plus

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Energy Efficiency Programs Implemented in Stores

• Daylighting
• Electronic Dimming Balasts
• Computer Controlled Daylight Sensors
• Energy Management System

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Energy Efficiency Programs Implemented in Stores

• All new facilities utilize T-8 fluorescent lamps
• New construction uses LED lighting in all
  internally-illuminated exterior signage
• Occupancy sensors in non-sales areas of new stores

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Energy Efficiency Programs Implemented in Stores

• High efficiency HVAC systems
• White membrane roofs are used in most areas of
  the country
• 70 of hot water needs for Supercenters, Sams
  Clubs, and Neighborhood Markets are met through a
  heat reclaim system

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Energy Efficiency Programs Implemented in Stores

• We actively dehumidify our buildings allowing
  them to operate at higher temperatures

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Where We Are Going

• Sustainable Products
• Sustainable Goals
• Aspire to be supplied by 100 renewable energy
• To create zero waste
• To sell products that sustain our resources and
  our environment.

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Where We Are Going

• Energy Efficiency
• Good for the environment
• Good for business

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Demand Response Project Types

• Formal demand response programs at the state,
  utility, and ISO level
• Voluntary demand response to support states,
  regions, and utilities
• Experimentation with back-up generators

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Demand Response programs are being set up all
across the U.S.

• To date we have assisted with the stability of
  the grid through curtailment in the following
  states
• Arkansas
• California
• Connecticut
• Illinois
• Kansas
• Missouri
• Texas

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2006 Voluntary Load Curtailment

• Illinois
• NW Arkansas
• California

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2006 Voluntary Load Curtailment

• Illinois Reduced load on one day for one hour.
  There were 36 stores involved.
• NW Arkansas Reduced load for 3 days at all NW
  Arkansas stores and Home Office Campus
• California Reduced load for three days at 50
  locations
• Missouri Kansas Reduced load on one day for
  one hour. There were 5 stores involved

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2006 Wal-Mart Demand Response

• California
• PGE 13 locations, 7 events
• SDGE 20 locations, 4 events.

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2006 Wal-Mart Demand Response

• Connecticut
• Committed to approximately 3,000 kw
• 35 store locations
• 30 minute notice provision
• Actually curtailed over 5,000 kw

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2006 Wal-Mart Demand Response

• We also participate in pilot programs in
  Missouri, and Texas.

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2006 Wal-Mart Demand Response

• Back-up Generators (System Peak Shaving)
• Georgia
• Municipal Systems in NC and SC

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Demand Response

• Help reduce overall peak and demand loads
• Increase available energy supply
• Help to reduce greenhouse gas emissions
• Help reduce the need for fossil burning
  generation plants.
• Help create a more reliable power grid

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Whats Driving Demand Response Movement

• Need for new generation
• Transmission constraints
• Sustainability/Conservation
• Customer involvement
• Improved technology

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Demand Response

• Customers should be rewarded for
  implementation of demand response
• Energy payments/Capacity payments
• Renewable Energy Credits
• White Tags

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Demand Response

• Allow for aggregation
• No minimum participation limits

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Demand Response

• There are two utilities that we are aware of that
  claim all environmental attributes.
• Measurement and Verification should be
  standardized and affordable.
• Discourage Direct Load Control

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Demand Response

• Consistent methods of customer notification of an
  event can help facilitate a timely response
• Allow for Self-Directed programs

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Demand Response

• Promote customer choice with metering.
• The cost of advanced metering should be lowered
  by removing unreasonable regulation and promoting
  competition and innovation.
• Customers should be allowed to install their own
  advanced meters provided they are in compliance
  with standards set by the regulatory authority.
• Customers should receive full credit for meter
  ownership.
• Customers or their authorized representative
  should have full, frequent and easy access to
  their own meter data.

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Demand Response

• Real Time Pricing
• Gives customers the most accurate, up to
  date information so they can manage their load
  accordingly
• Gives large consumers the ability to have the
  most impact on load reduction at the most
  critical peak times

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Wal-Mart Stores, Inc.

• Thank you