ENERGY OVERVIEW

ENERGY OVERVIEW

WHAT YOU NEED TO KNOW TO TAKE

ADVANTAGE OF THE RECENT DEREGULATION

OF THE ENERGY INDUSTRY

ENERGY OVERVIEW

Presented By

CHRISTOPHER MOORE

Certified National Energy Consultant

(917) 519-3490greenmarble@optonline.net

Electricity …

A PRODUCT USED BY EVERYONE

Electricity …

A necessity Not a Luxury

Electricity …

A $297,000,000,000

Market

THE MARKET IS WIDE OPEN

How Deregulation Works

Delivery, Service, Billing & ReliabilityRemain the Same

Generation / Supply Open to Competition

Deregulation of the energy markets represents the greatest transfer of wealth in our lifetimes!

ENERGY DEREGULATIONConnecticut

Delaware

Illinois

Maine

Maryland

Massachusetts

New Hampshire

New Jersey

New York

Ohio

Pennsylvania

Rhode Island

Texas

Washington DC

These States have deregulated their energy markets giving you the Power of Choice

ENERGY PORTION OPEN TO COMPETITION

Deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what remains is a regulated delivery (utility) company that continues to deliver electricity, maintains reliability, reads the meter, and provides customer service to the consumer.

Deregulated Electricity Generator Regulated Delivery (Utility Co)

The objective of deregulation is to offer energy customers greater choice, both among suppliers and services. Ideally that will result in increased market efficiency and dollar savings to the consumer.U.S. Department of Energy

The reality is that savings do not come by default, You Must Choose!

In a deregulated market the business must decide who to buy from, when to buy, what type of contract, how long to contract or whether they should consider a market based rate. With every option comes a certain level of risk, the decisions a business makes or fails to make is what drive the cost.

ENERGY DEREGULATION

THE PRICE OF ELECTRICITY IS HEADING UP

Annual Energy Outlook 2008

nominal dollars per barrel nominal dollars per thousand cubic feet

nominal cents per kWh

World Oil Price Natural Gas Wellhead Price

nominal dollars per ton

Coal Minemouth Price Average Electricity Price

ENERGY OUTLOOK 2008 - FUEL PRICE FORECASTS

ELECTRICITY PRICES – HIGHLY VOLATILE

This chart shows the movement of electric prices on the wholesale market

Electricity market is 10 times more volatile than the stock market

Price is now low which makes it a great time to lock in prices long term

Market Volatility

Most businesses today should protect themselves with a fixed all inclusive (non-

escalating) program

SOLUTIONS…Selecting an ESCO (Energy Supply COmpany)Energy BrokersSolarWindLighting UpgradesPower/Line ConditionersEnergy AuditsAffinity/Affiliate Fund-Raising Programs for Not-for-Profits and 501(C3) CorporationsSealantsFuel Pills

Energy Brokers work with several ESCOs and pre-screen them for integrity, proper business etiquette and rates. On large commercial deals Energy Brokers are your best bet as they can pretty much guarantee the best rates available and often these rates can be fixed as a hedge against inflation and rising costs.

Solar power, a renewable energy source, can actually pay for itself within a few short months. Due to rebates, green initiatives, government sponsored incentives, tax abatements and other programs, the cost of audits, surveys, equipment and installation can be recovered quickly. In fact, a different type of meter is used which actually spins backwards so, if you produce more energy than you need, your local utility is required by law to pay you for the excess.

Wind power, a renewable energy source, can actually pay for itself within a few short months. Due to rebates, green initiatives, government sponsored incentives, tax abatements and other programs, audits, surveys, equipment and installation costs can be recovered quickly. In fact, a different type of meter is used which actually spins backwards so, if you produce more energy than you need your local utility is required by law to pay you for the excess.

Energy Efficient Lighting

The Edison incandescent light bulb is obsoleteGovernment mandated phase out starting in

2011GE made its last Edison bulb 9-23-2010Some states have criminalized the sale

LED and Inductive bulbs save up to 75% and last for 50,000 hours

Huge lighting retrofit opportunities – less than 2 year payback

Billions of bulbs will be replacedFinancing available

Project Example:5 early learning centers

Price: $200,000

Direct Consultant Commission: $33,000 Unilevel: $16,500

Solar ArraysHuge financial incentives for customers

to install solarGovernment and private financing

optionsExceptional pricing

Installation availableAverage direct residential commission per sale $2,000 - plus $1,000 in the

unilevelAny project size

Project Example:

½ Megawatt Industrial Warehouse

Price: $2.5 MillionDirect Consultant Commission:

$200,000 Unilevel: $100,000

Energy Products For All Markets

Why Products? More money for you

No Regional, State or International Boundaries

DEREGULATED ENERGY – COMPLEX MARKETThe multitude of options combined with dramatic price fluctuations makes the deregulated market infinitely more complex.

Some energy companies can help your business buy energy at 20% to 50% off peak rates. We recommend using a company that has a simple and objective process based on proven strategies that eliminates uncertainty and volatility risk for your business.

Use an energy broker that connects businesses with the right supplier and the right contract at the lowest possible

rate.

These are just a few of the available energy providers

VARIABLE AND HYBRID RATES – DECEIVING?

Variable rate and hybrid contracts, on the surface, appear to save you money but actually cost you more than a fixed all inclusive rate contract. You should choose your supplier based on total term cost not just the rate you get today. A business that makes a decision by comparing rates only are often surprised by the volatility and hidden pass-thru charges which can add 25% or more to the energy cost.

Contract OptionsThe Plan You Should Choose Depends On The Amount of Risk That You Are Willing To Take

Month To MonthVariable Rate

With Pass Thru

Price varies Based on monthly

average market

Risk:Very High

Hourly PricedVariable Rate

With Pass Thru

Price varies hourly based on market and

can easily double or triple

Risk:Extremely High

HybridPartial Fixed Partial

Indexed

This contract type is very specialized – for users with large night

time loads

Risk :High For Most

Fixed All InNo Pass Thru

Eliminates all risk, this rate is constant and includes all

pass-thru charges, no bandwidth

Risk:None

Most businesses lack the time, expertise, and tools to track the energy market and make good purchasing decisions. Businesses today rely on experts when it comes to financial, insurance real estate and other complex transactions.

Actual Cost SavingsRetail Seafood House Paying $3,000 Monthly Annual Usage: 241,900 kWhOld Rate:  $0.14555New All Inclusive Rate:  $0.1199

3 Year Savings:  $52,657

Automotive Repair and Body Shop Paying $7,500 MonthlyAnnual Usage: 597,200 kWhOld Rate:  $0.145000New All Inclusive Rate:   $0.1175

3 Year Savings:  $128,667

Retail Furniture Store – 7 Locations Paying $9837 MonthlyAnnual Usage: 945,200 kWhOld Rate:  $0.12490New All Inclusive Rate:   $0.125

3 Year Savings:  $81,257, First Year Savings $5,100

Large Manufacturing Facility Paying $85,000 MonthlyAnnual Usage: 7,846,153 kWhOld Rate:  $0.130100New All Inclusive Rate   $0.117400

3 Year Savings:  $1,215,484

Medical Center Paying $25,000 MonthlyAnnual Usage: 1,849,650 kWhOld Rate:  $0.1622New All Inclusive Rate   $0.0911

3 Year Savings:  $527,759

Q & A

THANK YOU