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Ambit EnergyMay 10, 2007

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Agenda

• Company Overview

• Customer Acquisition/Order Process

• Communications

• DNP Process

• Usage/Billing Challenges

• Q&A

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Ambit Overview

• History

– Founded 2006, currently employs 40 associates

• Network marketing used for distribution

– Success based acquisition model

– Perfect for selling recurring retail products

– Reduces costs associated with direct mail, advertising, etc.

• Technology infrastructure is a core asset

– Mature systems and processes in place

– All orders taken over the internet

– Allows for scale and keeps overhead costs to a minimum

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Customer Acquisition - Strategy

• Customers are acquired through network marketing– Network of independent sales consultants

– Relationship selling

• All orders placed directly through consultant websites– Automated ESI ID lookup

– Online rate calculator

– Minimizes errors compared to manual processes

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Order to Cash – Customer Acquisition

BlueNet

Customer

Personal Website

Credit Score

Find ESIID

Enrollment

Call CenterThird Party Verification

ERCOT

No

Yes

Payment Processor

$$

$$ $$$$

2 minutes + (TPV, Deposit Pay)

BlueNet

Customer

Personal Website

Credit Score

Find ESIID

Enrollment

Call CenterThird Party Verification

ERCOT

No

Yes

Payment Processor

$$

$$ $$$$

2 minutes + (TPV, Deposit Pay)

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Who are the players?

• Public Utilities Commission of Texas (PUC-T) – primary regulatory authority

• Energy Reliability Council of Texas (ERCOT) - works at direction of PUC

• Transmission and/or Distribution Service Provider (TDSP)

• CR/REP (Competitive Retailer/Retail Electric Provider)

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Communications

• EDI transactions between Ambit and ERCOT and Ambit and TDSP’s for all enrollments and service orders

• Delivery Service Agreement – option 1 vs. option 3– Attempt to improve customer service by consolidating all

requests into Ambit (i.e. billing, service orders, etc.)– EDI Challenges – systems need to support all service order

request options (i.e. quality check, meter re-read, replace meter, etc.)

• CR support centers• Phone• Emails• TDSP web portals• MarkeTrak

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Disconnect for Non-pay

• #1 Challenge for CR’s• Disconnect and Reconnect business rules

– Due dates vs. TDSP schedules– Critical Care customers – Disconnect at meter vs. pole (i.e. Bad Dog!, gate locked, etc.)

• “Energy Hoppers”• AMR will help to minimize delays• Treatment process

– Multiple tiers of treatment timelines based on a customer’s propensity to pay

– Business rules built into platform • Payment plans• Assessment of charges

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Usage/Billing Challenges

• Meter re-reads & meter tests– Validity of request?– Customer abuse?

• Estimated usage vs. actual usage• Cancel/Rebill process• Discretionary charges

Q&A