Edison Electric Institute Partnership Proposal — Technology-Enhanced Carbon Integrity

Executive Summary

The energy transition presents a unique set of challenges and opportunities for investor-owned electric utilities (IOUs). As the Edison Electric Institute (EEI) champions technology-neutral decarbonization pathways and emphasizes grid reliability, DaedArch Corporation offers a strategic partnership to enhance carbon credit integrity through our innovative sensor-based Monitoring, Reporting, and Verification (MRV) platform. Our advanced technology provides continuous, ground-truth data that not only supports the integrity of carbon markets but also aligns with EEI’s commitment to environmental, social, and governance (ESG) standards.

This proposal outlines the mutual value derived from our partnership, a collaborative pilot program, an integration timeline, and commercial terms that will position both DaedArch and EEI as leaders in the energy transition.

Value Proposition

Enhancing Carbon Credit Integrity

DaedArch’s MRV platform leverages cutting-edge sensor technology to deliver real-time data on carbon emissions and reductions. This capability directly supports EEI’s goal of creating a robust framework for utility climate disclosure, ensuring that members can confidently report their carbon reduction efforts. By providing transparent, verifiable data, we enhance the credibility of carbon credits, which is vital for market participants and regulators alike.

Supporting Technology-Neutral Decarbonization

Our platform is designed to accommodate a range of decarbonization technologies, including Carbon Capture and Storage (CCS), Direct Air Capture (DAC), and Sustainable Aviation Fuel (SAF). This flexibility aligns with EEI’s commitment to a technology-neutral approach, enabling utilities to adopt the most effective solutions for their specific circumstances without being constrained by rigid frameworks.

Ensuring Grid Reliability

As the energy landscape evolves, maintaining grid reliability becomes paramount. DaedArch’s MRV platform not only tracks carbon emissions but also monitors the performance of various technologies deployed across the grid. By providing utilities with actionable insights, we empower them to optimize operations, manage resources effectively, and ensure reliability during the transition to a low-carbon future.

Aligning with ESG Priorities

DaedArch’s commitment to transparency and accountability resonates with EEI’s ESG objectives. Our platform facilitates accurate reporting and compliance with regulatory requirements, enabling utilities to demonstrate their commitment to sustainability and responsible governance. This alignment enhances stakeholder trust and positions utilities favorably in the eyes of investors and customers.

Partnership Model

The proposed partnership between DaedArch and EEI will be structured around collaborative engagement, knowledge sharing, and joint initiatives aimed at advancing carbon market integrity and supporting utility decarbonization efforts. Key components of the partnership model include:

Joint Development Initiatives

Collaborative research and development efforts focused on enhancing the MRV platform’s capabilities to meet the specific needs of EEI members. This will include integrating utility-specific metrics and developing tailored reporting frameworks.

Knowledge Sharing and Best Practices

Regular workshops and seminars to share insights on carbon market trends, regulatory developments, and best practices in MRV. This will foster a community of practice among EEI members, enhancing their understanding of carbon credit integrity and market dynamics.

Pilot Program Collaboration

A dedicated pilot program to implement DaedArch’s MRV platform within select EEI member utilities. This program will serve as a proof of concept for the technology’s effectiveness in enhancing carbon credit integrity and supporting utility decarbonization efforts.

Pilot Program

Objectives

The pilot program aims to demonstrate the effectiveness of DaedArch’s MRV platform in real-world utility operations, focusing on:

• Validating carbon credit integrity through continuous monitoring and reporting.
• Enhancing decision-making processes for utility decarbonization strategies.
• Identifying operational efficiencies and performance improvements.

Implementation Steps

1. Selection of Pilot Utilities: Collaborate with EEI to identify a diverse group of member utilities that represent various operational contexts and decarbonization strategies.

1. Platform Customization: Work with selected utilities to customize the MRV platform, ensuring that it meets their specific reporting requirements and operational needs.

1. Data Integration: Seamlessly integrate the MRV platform with existing utility systems to enable real-time data collection and analysis.

1. Training and Support: Provide comprehensive training for utility staff on utilizing the MRV platform and interpreting the data generated.

1. Monitoring and Evaluation: Conduct ongoing assessments of the pilot program’s effectiveness, gathering feedback from participating utilities to refine the platform and reporting processes.

Expected Outcomes

• Improved accuracy and transparency in carbon credit reporting.
• Enhanced operational insights leading to optimized decarbonization strategies.
• A scalable framework for broader implementation across EEI member utilities.

Timeline

The proposed timeline for the partnership and pilot program is as follows:

| Phase | Timeline | |-----------------------------|-------------------------| | Partnership Formalization | Month 1 | | Utility Selection | Month 2 | | Platform Customization | Months 3-4 | | Data Integration | Month 5 | | Training and Support | Month 6 | | Pilot Program Launch | Month 7 | | Monitoring and Evaluation | Months 8-12 | | Final Report and Next Steps | Month 13 |

Commercial Terms

Partnership Structure

The partnership will be structured as a collaborative agreement between DaedArch and EEI, with clear roles and responsibilities outlined for both parties. Key commercial terms include:

1. Cost Sharing: The costs associated with the pilot program, including platform customization and training, will be shared between DaedArch and participating utilities, ensuring that the financial burden is equitably distributed.

1. Revenue Model: DaedArch will offer a subscription-based model for the MRV platform, with tiered pricing based on the scale of implementation and the number of utilities engaged. This model will ensure that utilities can access the technology at a manageable cost while providing DaedArch with a sustainable revenue stream.

1. Data Ownership: Utilities will retain ownership of their operational data, with DaedArch providing insights and analytics derived from the data collected through the MRV platform. This ensures that utilities maintain control over their information while benefiting from enhanced reporting capabilities.

1. Performance Metrics: The success of the pilot program will be assessed based on predefined performance metrics, including accuracy of carbon credit reporting, user satisfaction, and operational efficiencies gained. These metrics will guide future iterations of the partnership and potential scaling efforts.

Conclusion

The partnership between DaedArch Corporation and the Edison Electric Institute represents a strategic opportunity to enhance carbon credit integrity while supporting the essential role of investor-owned electric utilities in the energy transition. By leveraging DaedArch’s innovative MRV platform, EEI members can confidently navigate the evolving carbon market landscape, ensuring compliance with ESG standards and maintaining grid reliability.

We invite the Edison Electric Institute to engage in this partnership, paving the way for a more sustainable and economically viable energy future. Together, we can lead the charge in advancing carbon market integrity and empowering utilities to achieve their decarbonization goals.

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This proposal serves as a foundation for further discussions and refinement, and we look forward to collaborating with EEI to drive meaningful change in the energy sector.