WALMART STORES, INC.

1
WAL-MART STORES, INC.

• DEMAND RESPONSE

2
Wal-Mart in New York

• Supercenters 45
• Discount Stores 45
• Neighborhood Markets 0
• Sams Clubs 17
• Distribution Centers 4

3
Wal-Mart

• We operate more than 6,900 stores in 14 countries
  and serve more than 176 million customers around
  the globe each week.
• 1,040 Wal-Mart Discount Stores
• 2,326 Supercenters
• 118 Neighborhood Markets
• 2,903 Wal-Mart International Facilities
• 584 Sams Clubs

4
Annual Energy Expense for 2007 in the U.S. alone

• 2.0 Billion

5
Environmental Goals

• To be supplied by 100 renewable energy
• To create zero waste
• To sell products that sustain our resources and
  the environment

6
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 by 2012.
• 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 by 2009.

7
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.

8
Wal-Mart Environmental Commitments

• Initiate a program in the U.S. that will show
  preference to suppliers who set their own goals
  and aggressively reduce their own emissions.

9
Wal-Marts Profile

• Most new facilities are .75 MW to 1.3 MW

10
Energy Efficiency

• Daylighting
• Electronic Dimming Balasts
• Computer Controlled Daylight Sensors
• All new facilities utilize T-8 fluorescent lamps
• New construction uses LED lighting in all
  internally illuminated exterior signage

11
Energy Efficiency

• Occupancy sensors in non-sales areas of new
  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
• We actively dehumidify our buildings

12
Energy Efficiency

• Energy Management System

13
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

14
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

15
Demand Response

• We are preparing to implement Demand Response
  in
• New York
• Tennessee
• Maine
• Delaware
• Massachusetts
• New Hampshire
• Pennsylvania
• Wisconsin

16
2006 Voluntary Load Curtailment

• Illinois
• NW Arkansas
• California

17
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

18
2006 Wal-Mart Demand Response

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

19
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

20
2006 Wal-Mart Demand Response

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

21
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 and construction of new peaker
  plants.
• Help create a more reliable power grid

22
Whats Driving Demand Response Movement

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

23
Demand Response

• Customers should receive the benefits they
  earn by participating in demand response
• Energy payments/Capacity payments
• Renewable Energy Credits
• White Tags

24
Demand Response

• Allow for aggregation
• No minimum participation limits
• Competitive Markets

25
Demand Response

• Consumer retention of environmental attributes.
• Measurement and Verification should be
  standardized and affordable.
• Direct Load Control

26
Demand Response

• Consistent methods of customer notification.

27
Demand Response

• Customer choice with metering.
• 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, free, frequent and easy access
  to their own meter data.

28
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

29
Wal-Mart Stores, Inc.

• Thank you