It seems that everywhere I turn I see more indications that we are nearing the end of cheap hydrocarbon fuel sources in the world energy markets. For the last three decades the International Energy Agency (IEA) has been the worldwide leader energy supply research and development, public policy formulation and collaboration between most of the world’s energy consuming nations. Over the last decade the IEA Demand Side Management (DSM) Programme has provided major contributions to energy efficiency and demand response activities to its 17 member countries in meeting their goals in meeting energy security requirements and managing price volatility while striving to improve the environment in which we live.

Last year the IEA DSM Programme approved a major new project called Demand Response Resources (DRR). Designated as Task XIII, it is the mission of this project to produce the tools necessary for the project participants to rapidly deploy demand response into their electricity markets to address local issues. The project participants have found that demand response can be an extremely valuable tool in planning for resource adequacy, mitigating market power, addressing T&D congestion issues and as fantastic risk management tool. For more information on the project please visit the project Internet portal at www.demandresponseresources.com.

Interest in this project has been extremely high since its inception and we continue to receive inquiries on the project from both IEA DSM Programme member countries and nonmember countries alike. Although participation in this phase of the project is now, out of necessity closed, the IEA DSM Executive Committee has authorized me, as the Operating Agent, to work to structure a second implementation of the project. Our intent is to reach out to those parties who have expressed interest to start a second phase of the project beginning in the last half of 2005.

The participants in the second phase of the project will have several advantages over the first phase participants. First, the project participants will have access to all of the intellectual property, experience and lessons learned from the first phase participants. Secondly, there will be substantially less risk in the second phase since the first phase deliverables will have been met. Finally, the second phase participants can expect to have much more hands on participation from the Operating Agent in achieving their unique project goals.

Attached you will find a one page flyer on the second phase of the DRR Project along with a brief PowerPoint Presentation on the proposed project itself and a copy of our most recent newsletter, the Demand Response Dispatcher. If you are interested in receiving more information or potentially participating in this project please contact me at malme@retx.com or phone me directly in the USA at 770-390-8510.

Sincerely,

Ross Malme

Operating Agent

Task XIII