Project will create green jobs and help stimulate regional economy

WINDSOR, CO – August 25, 2009 – Ice Energy, a leading provider of distributed energy storage and smart grid solutions for increasing energy system efficiency and improving grid reliability, today announced an agreement with Redding Electric Utility to provide the California-based utility with its Ice Bear® distributed energy storage system to permanently reduce peak summer electrical demand.

REU, the City of Redding’s locally owned and controlled municipal utility, selected Ice Energy’s proven, cost-effective storage solution to slow the growth of peak demand and reduce the utility’s exposure to costly peak power.

"Redding Electric Utility is committed to delivering safe, reliable, competitively priced electric service to our customers in a sustainable, environmentally-sensitive manner. Ice Energy’s solution, the first viable, cost-effective alternative to conventional peaking power plants for meeting peak demand, aligns perfectly with that vision,” said Redding Electric Utility Director Paul Hauser. “We see the long-term value and potential for expansion of this solution as very significant."

Simply by changing how – and more importantly when – energy is consumed for air conditioning, Hauser estimates that 1,000 Ice Bear units installed in REU territory would enable the utility to reduce its peak power demand by as much as seven megawatts, more than offsetting its planned peak load growth.

Redding’s summer weather is dominated by hot, dry sunny days, driving the demand for REU’s electricity to provide air conditioned comfort. Evening temperatures drop by as much as 40 degrees; as temperatures fall so does the demand for and cost of power. Ice Energy’s solution enables REU to leverage the abundance of less expensive off-peak power and offset the need to run fossil fuel burning power plants during the peak of the day.

For businesses and building owners, this means reduced daytime energy consumption, lower energy costs, and a smaller environmental footprint, with no operational or behavioral change to negatively impact customer comfort and economic productivity.

"Redding Electric Utility’s selection of Ice Energy’s Smart Grid enabled distributed energy storage solution is a win-win-win-win. Consumers enjoy air conditioned comfort, REU meets its state mandated goals to reduce peak demand, the utility’s overall cost of service is reduced, and the energy storage devices play an important role in reducing California’s greenhouse gas emissions," said Greg Tropsa, co-founder and Executive Vice President of Ice Energy. “The Redding project is a great example of how to stimulate the local economy, create jobs, and reduce the impact of energy on our environment.”

About Ice Energy

Ice Energy delivers distributed energy storage and smart grid solutions for optimizing energy system efficiency. Our smart grid platform integrates our revolutionary, effectively lossless distributed energy storage technology with an advanced software infrastructure and intelligent two-way control to provide utilities with a powerful, cost-effective solution that fundamentally changes peak load management, and improves integration of intermittent, renewable resources onto the grid.

By leveraging the higher efficiencies associated with generating and transmitting less expensive off-peak power at thousands of distributed locations, and dispatching it during times of peak demand, Ice Energy delivers a sustainable new energy solution equivalent to hundreds of megawatts of clean peaking power for utilities.