Macy’s Partners with EnergyConnect to Help Reduce Electric Grid Strain During Northern California Heat Wave

Leading retail company worked with demand response provider EnergyConnect to curtail electricity usage during recent heat wave

Portland, OR – July 10, 2008: EnergyConnect, a wholly owned subsidiary of Microfield Group, Inc. (MICG.OB), and industry leader in innovative demand response technologies, announced that its customer Macy’s, Inc. (NYSE:M) curtailed over 2 Megawatts (MW) of electricity for 2 hours during a recent energy curtailment event called by PG&E on July 9th.

When temperatures topped 100 degrees on July 9, PG&E, Northern California’s leading utility, called on EnergyConnect’s diverse customer base to curtail their electric loads.

During a curtailment event, companies that have previously committed to reduce their electricity usage during times of peak demand are called upon to quickly respond by decreasing their electricity consumption to ease the strain on the power grid. The reduction in power use helps alleviate the risk of rolling blackouts and limits the need to ramp up additional greenhouse gas emitting power plants.

“EnergyConnect was quick to inform us of yesterday’s curtailment event and we were able to meet our commitment to make our promised capacity available to others in need,” said Marc Gordon, Vice President of Operations, Macy's West. “We are proud to be working with EnergyConnect on this important effort to help PG&E ease the strain on the electric grid and to have done so without disrupting our customers’ shopping experience.”

Macy’s West reduced electricity consumption at 32 of its department stores in northern California by dimming accent lights and other non-essential electrical loads. In total, Macy’s reduced enough capacity to power approximately 1500 homes.

Demand response is a proven way for companies to regain control of escalating electricity budgets by getting paid for simply cutting back power when the grid needs it the most.

“We are pleased that Macy’s responded so quickly and efficiently to yesterday’s curtailment event,” said Rich Quattrini, Vice President for EnergyConnect’s Western Region. “Reliable participants such as Macy’s demonstrate the significant role of demand response in helping to reduce electricity demand and the increased costs associated with turning to greenhouse gas emitting power plants during times of peak demand.”

EnergyConnect’s next generation demand response services enable a more efficient and reliable power grid while creating additional revenue opportunities for participating companies.

Macy's West, with headquarters in San Francisco, operates 259 premier department stores in 13 western states and Guam under the names of Macy’s and Bloomingdale’s.

Participation in EnergyConnect’s next generation demand response offerings joins a number of Macy’s conservation initiatives already underway, including:

Reducing company-wide total energy consumption by about 9 percent over the past five years.
Installation of solar panels on more than 30 Macy’s stores, primarily in California.
Increasing the use of recycled paper by nearly 10-fold in 2007.

About EnergyConnect
EnergyConnect, a wholly owned subsidiary of Microfield Group, Inc. provides industry leading Demand Response technologies and services that enable a smarter, more sustainable power grid while creating additional income for participating companies. The EnergyConnect web-based automated platform enables consumers of energy to participate in unprecedented incentive opportunities by cutting back power when the grid needs it the most. Demand response is the cleanest, most efficient and lowest cost solution for meeting the nation’s growing power needs. For more information about this next generation technology, visit: www.energyconnectinc.com

About Macy's
Macy's, the largest retail brand of Macy's, Inc., delivers fashion and affordable luxury to customers at more than 800 locations in 45 states, the District of Columbia, Puerto Rico and Guam. Offering distinctive assortments including exclusive fashion and home brands, Macy's stores are operated by four regionally based retail divisions - Macy's East, Macy's Florida, Macy's Central and Macy's West - and an online store at macys.com.

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