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Independent Energy Consultants, Inc. Concerns with Direct Energys Performance Draft Material to Facilitate Discussion Presented by: Mark Burns CONFIDENTIAL.

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Presentation on theme: "Independent Energy Consultants, Inc. Concerns with Direct Energys Performance Draft Material to Facilitate Discussion Presented by: Mark Burns CONFIDENTIAL."— Presentation transcript:

1 Independent Energy Consultants, Inc. Concerns with Direct Energys Performance Draft Material to Facilitate Discussion Presented by: Mark Burns CONFIDENTIAL MATERIAL February 1, 2013

2 Why the Slow Growth in Enrollment? 2 Elgin letters were are all mailed at the same time if some customers were enrolled in August and other meter reads didnt permit that all should have been enrolled by the 2 nd month (Sep). We dont see any growth until the 3rd month (Oct). NIGEAC enrollment is even worse. Its not until the 4 th month do we reach full enrollment. Theres only three reasons why this could occur and all are bad. Either Direct still cant produce reports, or ComEd didnt send you and pay you for the accounts you were owed, or Direct messed up on Submitting enrollments. That pattern doesnt Exist in the other 100+ programs weve brokered with Direct and other suppliers. These average kWh use numbers I calculated look reasonable.

3 Commission Reporting and Payment for Former Vectren Programs 3 On the previous slide were asked to believe that it can take 4 months to start a program and here were asked to believe the program commissions end immediately. There are obvious problems here and we need answers not made-up stories. Just be honest with us. If the data is lost and not retrievable, we can tell our clients that and come up with a forecasted means to be compensated for commissions owed. Weve been doing this for hundreds of programs with many suppliers and commissions always linger for 2-3 months after the end date.

4 Our Numbers Dont Match Directs? 4

5 Direct Energys Year-2 Price Quoting 5 The process used appears correct but the months are incorrect. The 2 nd year runs through July 2014. Also, our numbers are slightly different. What is Direct using as their data source and how fresh are the numbers? For example. I received this quote from Direct at 11:34. Your July Contract is shown at $49.60 for peak hours, our chart produced slightly later shows $47.14. If produced at 11:34 or earlier it would have been even lower. Wed like to see a timestamp or screenshot w/ time of market prices when your quote was produced.

6 Offer Runs Through the July 2014 Bill Cycle 6

7 Consumer Education Material for NIGEAC Thank you for the draft material. After a quick review it appears to be too much of a sales pitch for Direct Energy. We cautioned not to do that. Its supposed to be Educational Material Only Talk about Aggregation Process, Customer Options, High Levels of Participation, Significant Savings via Municipal Aggregation, etc. Credit should go to Community Any sales pitch should be limited to enrollment remains open, contact Direct Energy to join the program 7

8 Canfield Township Columbia Customers IGS Energy did not enroll current Columbia Gas of Ohio customers following the opt- out period. –Letters were mailed to residents but a computer glitch caused the subsequent enrollment EDI not to be processed with Columbia. –IGS did enroll the newly eligible COH customers. This masked the issue until Independent Energy Consultants continued to question Direct Energy and IGS Energy on the low enrollment levels. IGS Energy is enrolling these customers now and sending a letter to residents and community officials to explain that ~ 400 accounts were delayed in starting. IGS Energy will be crediting these customers with a refund that makes up for the difference between the SCO rate and what they should have been charged if properly enrolled. Direct Energy should have submitted drop notices to Columbia (and Dominion East Ohio) for the accounts that were being turned over to IGS Energy. After discussion with COH it was discovered that Direct is still serving these customers, albeit, without a contract. Thats tantamount to slamming. Direct Energy needs to determine the rate they are illegally charging these ~400 customers and how they plan to reimburse them the difference between that rate and the SCO rate. 8

9 City of Green Direct Energy has a contractual obligation to allow residential and commercial customers to convert to a fixed rate. –8% Discount off of Directs comparable Apples to Apples offer. Weve had repeated calls from residents over a prolonged period of time saying Direct Energy wont allow them to convert to a fixed rate. Even when theyre permitted to convert it doesnt appear to be working? Mr. and Mrs. Shahan are the latest to complain. Theyve been trying to get the fixed rate since July 2012. –Weve also not heard back from Rich/Adam as promised? 9

10 Closing Thoughts We have had issues with virtually all aspects of Directs performance serving Governmental Aggregation Programs dating back a couple of years. It is not our intention to bring them all up at this time. Adam and Rich are well aware of our concerns and I believe they share them as well. We have not seen the progress weve been told is coming. We do not have similar issues when working with Direct on C&I accounts. We continue to offer help and point out problem areas but our patience and that of our clients is wearing thin. We are aware of other brokers who share similar frustration with Direct Energy. In our humble opinion, Direct Energy needs to fix these problems fast and once and for all. Otherwise, they may lose their reputation as a viable player in the Governmental Aggregation business. Some clients are already expressing serious concerns to others considering Governmental Aggregation. 10

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