1. “ Energy procurement is about much more than just finding a low cost supplier. We determine the optimum supply strategy to meet client financial and operational needs, establish and communicate forward views of the market, manage risk, assess sustainability, deliver ongoing account management and budget for long term financial success. And yes, we also deliver the best value/low cost supplier on the day of execution.” Revised 9/8/2009
2. Power Brokers Performance Scorecard Power Brokers Client Portfolio, Year to Date: 8% below the Texas average 9% below the national average Product Savings vs. Texas Average (TX = all regions , all products ) 2009 through May (latest available D.O.E. data) Fixed Price Only in All Markets vs. All Products, All Markets -Texas Average
3. How We Deliver Value to our Clients Wholesale Energy Delivery Charges Risk Premiums Supplier Margin Sales Commission Taxes What’s in an Electric Bill? We earn this We compress this We aggressively manage this We help to sensibly reduce this We help you improve this And together these strategies reduce this Our affiliate, Current Energy, specializes in shrinking the pie 25% or more by reducing overall energy use through efficiency technologies
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5. Timeline Lowball bid from Supplier (final bid is much higher) Execute Contract Customer receives no benefit and all the cost for market movement Positive Volume Change Product Structure Change Supplier Renewal Premium compounded by waiting until the 11 th hour to execute MISSED MARKET OPPORTUNITY (What days & how big are the dips) Add/ Delete Meters *All costs are $/MWh Qtr 4 ‘10 Qtr 3 ’10 Qtr 2 ’10 Qtr 1 ’10 Qtr 4 ’09 Qtr 3 ’09 Qtr 2 ’09 Qtr 1 ’09 Qtr 4 ’08 Cumulative Cost $16.10 Cumulative Cost $14.10 Cumulative Cost $14.10 Cumulative Cost $9.10 Cumulative Cost $6.30 Cumulative Cost $4.30 Cumulative Cost $4.00 Cumulative Cost $4.00 Cumulative Cost $1.50 Excessive margin Supplier includes for renewal, along with not seeing advantage of previous market opportunities Cost $2.00 Customer is not made aware of market driven buying opportunity by Supplier Cost $5.00 Margin captured when customer decides to change the price structure or lock-in Cost $2.80 Margin included when customer foresees a considerable change to their Energy usage Cost $2.00 Additional Margin captured when customer adds or deletes new meters to contract Cost $.30 Supplier gets to decide the day of contract execution. Supplier Margin is affected by market changes; along with Risk Premium, Shape Premium, & Insurance Cost $2.50 Supplier blames the change on market movement Cost $1.50
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9. For More Information 5440 Harvest Hill Road, Suite 100 Dallas, Texas 75230 Toll-Free (800) 828-7736
