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COMPANY CONFIDENTIAL Partner Program Training 2006 Andrew Thomas VP Partner Development World Energy Solutions.

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Presentation on theme: "COMPANY CONFIDENTIAL Partner Program Training 2006 Andrew Thomas VP Partner Development World Energy Solutions."— Presentation transcript:

1 COMPANY CONFIDENTIAL Partner Program Training 2006 Andrew Thomas VP Partner Development World Energy Solutions

2 COMPANY CONFIDENTIAL Training Objectives To equip IEC with the tools and knowledge to effectively market WE energy procurement offering To take a behind the scenes look at the reverse auction procurement process To delineate the goals and steps towards further developing the WE/Partner partnership Our Objective: To build a mutually beneficial partnership by being the energy procurement solution of choice for IECs network of clients and prospects

3 COMPANY CONFIDENTIAL Benefits of Partnering with World Energy Increase Revenue –Sell additional services to customers and prospects –Add predictable, recurring revenue to sales portfolio –Provides the supply side piece to the equation without heavy time and resource constraints Deliver Best of Breed Solution –Deliver the best price with reverse auction technology – typical savings are 5 to 20% from traditional paper RFP –Position a trusted broker service with a transparent bidding process Deliver a Compliant Procurement Approach –The transparent reverse auction platform helps organizations address Sarbanes-Oxley Section 404 requirements

4 COMPANY CONFIDENTIAL Agenda Part I Company Overviews Sales Presentation Review Part II Operations Review Marketing Discussion Platform Walk-through Floating FAQs & Materials Development

5 COMPANY CONFIDENTIAL Agenda Company Overviews Sales Presentation Review Operations Review Marketing Discussion Platform Walk-through Floating FAQs & Materials Development

6 COMPANY CONFIDENTIAL Agenda – Part I Introductions WE Overview – 1 hour IEC Overview – 1 hour Sales Presentation Review – 2 hours Frequently Asked Questions – 1 hour (Optional Part I or 2) Working Session – Materials Development

7 COMPANY CONFIDENTIAL Agenda – Part I Introductions WE Overview – 1 hour IEC Overview – 1 hour Sales Presentation Review – 2 hours Frequently Asked Questions – 1 hour (Optional Part I or 2) Working Session – Materials Development

8 COMPANY CONFIDENTIAL An EBay for Energy World Energy brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk. ENERGY COSTS CONFIDENCE Have procured over $1.2bb in electricity, natural gas, and financial instruments; next target - green credits Saved Customers over $100,000,000 5x the volume of nearest competitor Runaway market leader of 40 competitive exchanges

9 COMPANY CONFIDENTIAL Organization Structure

10 COMPANY CONFIDENTIAL #1 in online retail energy procurement market share, over 7 times the amount of energy than its nearest competitor – 16,000,000,000 kWh and 34,000,000,000 bcf Has served 250 clients saving them over $60,000,000 as compared to utility rates Has worked in over 100 deregulated utility markets with over 140 different suppliers Over 450 registered users on the World Energy Exchange Provided Auction Services for najor NE utilitys standard offer purchase Has won 5 prestigious Government Awards Featured in Wall Street Journal, NY Times, Inc Magazine, Restructuring Today Company Facts and Figures

11 COMPANY CONFIDENTIAL Our primary objective is to have the highest volume of retail energy procurement transactions To this end, World Energy has aligned with leading energy consultants and service companies to deliver its auction product World Energy will always give first priority to its partners with respect to WE/partner conflict Our long-term market strategy is through channel partners, with some key direct national and government clients. We are very comfortable letting the partner own the customer. Our philosophy hinges on delivering sustained value to our partners. Sales Strategy

12 COMPANY CONFIDENTIAL Agenda – Part I Introductions WE Overview – 1 hour IEC Overview – 1 hour Sales Presentation Review – 2 hours Frequently Asked Questions – 1 hour

13 COMPANY CONFIDENTIAL Agenda – Part I Introductions WE Overview – 1 hour IEC Overview – 1 hour Sales Presentation Review – 2 hours Frequently Asked Questions – 1 hour (Optional Part I or 2) Working Session – Materials Development

14 COMPANY CONFIDENTIAL Sales Presentation – Key Themes Experience. World Energy/Team has: –Blue Chip client list –Strong government business –Largest volume critical in illiquid energy market Compliance. Process and platform helps organizations meet Sarbanes-Oxley Section 404 requirements (requirement for management to articulate companies internal control structure) Reverse Auction Effectiveness. Our systems delivers the most competitive price in the market.

15 COMPANY CONFIDENTIAL Date The Business of Buying Energy Has Changed… How CLIENT Can Maximize The Opportunity Client Logo

16 COMPANY CONFIDENTIAL (Sales Presentation) Agenda Introductions – IEC and World Energy Discussion of CLIENTs Needs Procure: Tools and Intelligence for a Successful Procurement –World Energy Exchange –Expert-driven Process –Elements of a Successful Procurement Sarbanes-Oxley Compliance Market Intelligence Wrap-up and Next Steps

17 COMPANY CONFIDENTIAL (Sales Presentation) Agenda Introductions – IEC and World Energy Discussion of CLIENTs Needs Procure: Tools and Intelligence for a Successful Procurement –World Energy Exchange –Expertise-Driven Process –Elements of a Successful Procurement Sarbanes-Oxley Compliance Market Intelligence Wrap-up and Next Steps

18 COMPANY CONFIDENTIAL IEC Overview Point 1 Point 2 Etc. A Certified World Energy Channel Partner

19 COMPANY CONFIDENTIAL An EBay for Energy World Energy Exchange brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk. ENERGY COSTS CONFIDENCE Have procured over $1.2bb in electricity, natural gas, and financial instruments; next target - green credits Saved Customers over $100,000,000 5x the volume of nearest competitor Runaway market leader of 40 competitive exchanges

20 COMPANY CONFIDENTIAL Market Leader: C+I and Channels RECKSON Many customers are delivered by channel partners for whom World Energy runs private label exchanges: Johnson Controls Cargill Energy Services SAIC Silver Oak Solutions Several regional players

21 COMPANY CONFIDENTIAL Market Leader: Govt Reach and Volume United Nations MarylandDCMassachusetts

22 COMPANY CONFIDENTIAL (Sales Presentation) Agenda Introductions – IEC and World Energy Discussion of CLIENTs Needs Procure: Tools and Intelligence for a Successful Procurement –World Energy Exchange –Expertise-Driven Process –Elements of a Successful Procurement Sarbanes-Oxley Compliance Market Intelligence Wrap-up and Next Steps

23 COMPANY CONFIDENTIAL We would appreciate an overview of any energy procurement efforts to date. Is this a full-time or part-time responsibility? Which states / locations have been a focus? Do you have a risk management strategy in place? What is your greatest challenge in energy procurement? Some Background to Guide Our Discussion

24 COMPANY CONFIDENTIAL (Sales Presentation) Agenda Introductions – IEC and World Energy Discussion of CLIENTs Needs Procure: Tools and Intelligence for a Successful Procurement –World Energy Exchange –Expertise-Driven Process –Elements of a Successful Procurement Sarbanes-Oxley Compliance Market Intelligence Wrap-up and Next Steps

25 COMPANY CONFIDENTIAL Procure - Full Service Solution Process Timing Pre Post World Energy Exchange Market Oppy Review Price-to-Compare Analysis RFP Design Deal Recommendation Contract Negotiation Usage Tracking Combination of Intelligence, Tools and Service to Meet Your Goals Pre-Auction Services include –Pulling and Formatting Usage –Creating a Price-to-Compare –Determining your Contract Needs –Designing RFP Post-Auction Services include –Validating Savings –Recommending Deal Terms –Supporting Contracting –Tracking Contract on our System

26 COMPANY CONFIDENTIAL World Energy Exchange Proven time and time again to deliver the lowest price available in the market Design to favor consumer – fixed end time, direct entry bidding Click for tion

27 COMPANY CONFIDENTIAL World Energy Exchange - Key Facts Nearly 1,000 auctions run in the past 24 months Over 450 supplier contacts at 175 suppliers registered Typical customer discounts between 5 and 30% Most auctions have 3-7 suppliers bidding between 5 and 15 times About 20% of the time the winning supplier outbids itself at the last minute to ensure they win the business, saving an additional mils Proven Time and Time Again to Deliver the Lowest Price Available in the Market We have never been beaten by a paper-based RFP process on apples-to-apples basis – EVEN NET OF OUR FEE!

28 COMPANY CONFIDENTIAL Elements of a Successful Procurement Documented process for Sarbanes-Oxley compliance Best of Breed Reverse Auction Process –Proven to Secure the Lowest Price in the Market –Provides an Array of Pricing Parameters Market Expertise and Pricing Knowledge Energy Procurement Experience Delivered Using a State of the Art Web-Enabled Software Suite Specifically Designed for Energy Procurement Management

29 COMPANY CONFIDENTIAL Documentation, Process, and Automated Features of Platform facilitate Sarbanes-Oxley compliance Compliance – Documented Audit Trail 1.Market structure briefings 2.Benchmark price analysis 3.Market sensitivity analysis 4.Contract options and analysis 5.Reverse auction results summary

30 COMPANY CONFIDENTIAL Compliance - Sarbanes Oxley Public companies now spend between 2 and 5 cents per share annually on compliance Sarbanes-Oxley Section 404 requires management to articulate companys internal control structure Processes and Controls for procurement are not explicitly delineated but the recommended approach is to become more prescribed and stringent Auditors are beginning to require subcontractors to have SAS 70 Type II Audit to have comfort around IT infrastructure of subcontractor World Energys Process and Platform has helped Government and Corporate Buyers Adhere to the most stringent purchasing policies

31 COMPANY CONFIDENTIAL The Procure Process Needs Planning Market Analysis AuctionContract Ongoing Support Discuss Goals Review current market conditions Identify Locations Request and Format 12 months historical usage Perform Price- to-Compare Analysis Identify Contract Parameters Structure RFP Alert 100% of registered supply base Run reverse auction Upload contracts, sites and usage Prepare for Renewals Proven Process Ensures Success and Supports Compliance Perform Savings Analysis Recommend Contracting Terms Review and finalize contract Life of Contract

32 COMPANY CONFIDENTIAL From the Worlds Foremost Authority The most important issues in auction design are the traditional concerns of competition policy--preventing collusive, predatory, and entry-deterring behavior. Ascending and uniform-price auctions are particularly vulnerable to these problems. The Anglo-Dutch auction--a hybrid of the sealed-bid and ascending auctions--may perform better. Paul Klemperer, Ph D Edgeworth Professor of Economics, Oxford University What Really Matters in Auction Design

33 COMPANY CONFIDENTIAL World Energy Exchange Price-to-Compare provides a market benchmark… Natural competition, enhanced by blinding number of suppliers and leading supplier, drives price down Fixed end time causes suppliers to sharpen their pencils… … and often bid lower than would be otherwise required to win the business. } The site is brutally efficient at driving the price down to the bare minimum. Manager C+I Sales, Major Supplier The auction saves between 7 and 9% versus the paper-based RFP process we formerly used with our clients. Eric Hoegger, Cargill Energy Mgmt Svcs … against which customer savings are quantified.

34 COMPANY CONFIDENTIAL Approach Designed to Yield Lowest Price Dynamic Auction vs Traditional Paper/Phone/Fax Methods: Pitting suppliers against one another creates a more competitive atmosphere, provides suppliers with more information about real time bidding dynamics, and shrinks time suppliers hold their prices - causing suppliers to bid more aggressively. Fixed End Time vs Overtime Format: Having a hard stop causes the last bid to be blind, causing suppliers to put their best bid as their last. Direct Bid Entry vs Proxy Bid: Causes suppliers to lower their bid by more than the minimum amount to win. % of Total Savings % 25%

35 COMPANY CONFIDENTIAL RFP Architecting Intelligent sequencing of RFPs can yield bidding behavior that favors the customer After losing the first RFP, Supplier 3 submits a last bid 2.8 mils lower than the then-current lowest bid and 1.9 mils lower than the second lowest bid. Auction 1 Auction 2 Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 3 Supplier 4 Supplier 1 Supplier 5 Supplier 1

36 COMPANY CONFIDENTIAL Parameter Testing On-line Auction allows for testing of different procurement parameters –Contract Term (e.g. 12, 18, 24, 30, 36 mos) –Product (Fixed, Indexed, Baseload) –Green Power Mix Also enables grouping of like load factor accounts to minimize cross-subsidization

37 COMPANY CONFIDENTIAL Intelligence to Guide Strategy Decisions Platform contains market analysis for all deregulated markets Wholesale Pricing trends Market Characteristics –Switch Rules –Regulatory Hist –Rate Classes Current Go-to-Market recommendation

38 COMPANY CONFIDENTIAL In-Market Experience to Guide Timing While we do not advocate market timing, we have successfully guided customers in when and where to go-to-market to minimize cost. For example, for GSA NY, we ran the May 2004 renewal in October 2003, as we identified a cyclical dip in the market, and as a result they are enjoying prices 20% lower than they would have gotten in Q1. Electricity Gas 40% 10% 20% 75% Timing of Exchange Volume

39 COMPANY CONFIDENTIAL Broad-Reaching Market Intelligence Reports Available on All Active Competitive Deregulated Markets Intelligence Sources –Primary Research by Market Directors and Analysts –In-Market Expertise –Exchange Data –Content from KEMA via Exclusive Relationship –Hub Pricing from Industry Sources

40 COMPANY CONFIDENTIAL Gas Only Experience in Managing Complexity World Energys broad market coverage (25+ States, 100+ Utilities) enables us to support Clients with locations across the country Electricity + Gas Ontario Not Currently Active or Not Deregulated

41 COMPANY CONFIDENTIAL Software Tools to Support Management

42 COMPANY CONFIDENTIAL Better than Traditional Processes On the same day an industrial clients consultant solicited the top 5 suppliers in the market, World Energy auctioned the clients load to the other suppliers in the market and received pricing that was 18% lower than the consultants traditional process. A large hotel operators incumbent supplier attempted to bypass the process and bid on a Tuesday. The operator instructed supplier to bid via the World Energy Exchange on Thursday. Even though market prices rose over the two days, the operator received lower pricing from the incumbent (who won the auction) and more favorable contract terms. The Veterans Administration was part of an aggregation of several hospitals. The incumbent supplier bid directly to the client while World Energy ran an auction. The final price was 3.5 mils lower even with a GSA solicitation that had more favorable terms for the government.

43 COMPANY CONFIDENTIAL Good for Suppliers, Too I get a lot of good pricing information about the market through the auction process. You bring deals my sales force doesnt see, so I have sales and marketing margin to play with. I know where I stand in the process, so I can mitigate my risk in the wholesale market. Their data is so well organized, it costs me less to price a deal from World Energy.

44 COMPANY CONFIDENTIAL Additional Slides for Government Sales

45 COMPANY CONFIDENTIAL Market Leader: Recognition and Awards Over the Past 4 years we have enabled clients to be recognized by their peers and superiors in winning 7 prestigious awards Awards for either –Use of innovative technology –Procuring green power Winners include –Boyd Rutherford, Secy of State, MD –Linda Collins, Director, NGAP –GSA Region 2 –Energy Center of Expertise Louis R. Harris, Jr. Award Presidential AwardInnovative Technology Award GSA Environmental Award Named Outstanding Program in June 2005 for any cost saving program of any kind in any of the 50 states at NASCA/NASFA joint conference.

46 COMPANY CONFIDENTIAL Case Study: State of Maryland Directly marketed to Universities and other Agencies on Maryland Department of General Services (DGS) behalf; Created 30,0000 line database of electric account usage Aggregated accounts in multiple rate classes and four utilities; Segmented loads into 79 RFPs to meet client agency objectives Accurately Forecast Utility Rate 6 weeks in advance of publish date, providing customer with confidence to go to market before competitive supply prices rose 15% Received over 440 bids as a result of three procurements Auction sizes ranged from 30M kWh to 1.2B kWh Result Received 100 MWH of renewable power at no price premium 820 accounts in four utilities served including state accounts, 7 universities with the option to procure on their own, and both city and county agencies who opted onto DGSs contract $112M in contract awards made to 7 different suppliers Estimated discount off utility rate of over $13M DGS received the National Association of State Chief Administrators (NASCA) 2005 national award for this procurement

47 COMPANY CONFIDENTIAL Case Study: DC Government DCs two previous attempts with traditional consulting firms resulted in only two bidders and uncompetitive bids / no awards Increased the number of bidders from 2 to 5 (7 eligible to bid) Modeled price to beat for over 600 individual accounts Re-wrote supply Solicitation based on customer requirements and lessons learned from past government PJM buys in NJ and MD Created 7,000 line usage database from raw utility data Result $41.2M in contract awards and 100% of accounts served 5% or 33M kWh of green power awarded Assisted in shortening DC City Council award timeline from 2 weeks to less than 24 hours Estimated discount off Utility Rate of $11 M Total time between procurement contract and supply contract award: 21 days

48 COMPANY CONFIDENTIAL Case Study: Large NE Utility Client had been using traditional paper-based procurement performed by T+M consultant Intrigued by World Energy Exchange due to experience with unregulated subsidiary bidding as a supplier on World Energy government and commercial retail auctions Engaged World Energy to buy financial instruments for 3 utilities wholesale power needs –Fixed volumes –Slices of the System Volume ~ 5,000,000,000 kWh Result Successfully placed all contracts worth over $500,000,000 with 5 suppliers including Morgan Stanley, JP Morgan Chase and Entergy Nuclear Reverse Auction outperformed paper-based process by 7-9% Saved rate payers $35,000,000 to $45,000,000 World Energy fees 1/3 of traditional T+M consultant Process hailed by PUC for Cost Savings Process validated by Price Waterhouse for Sarbanes-Oxley Compliance

49 COMPANY CONFIDENTIAL Drivers of Success Regulatory and Market Rules Commodity Trend Technical Analysis Forward Pricing Curves Price to Compare Analysis Contract Decision Support Analysis Market Intelligence Procurement Process Energy-Specific Tools Marketing Support to Build the Aggregation Load Pull/Database Creation Solicitation Development Supplier Communication and Management Due Diligence Reporting Market Summaries Hybrid Anglo-Dutch Auction Designed Specifically for Energy Contract, Site, Account Management On-Going Usage Tracking

50 COMPANY CONFIDENTIAL NGAP Success Intelligence Enables Going to Market at Low Points to Realize Significant Discounts Off Utility Rates

51 COMPANY CONFIDENTIAL GSA NY Success NY Zone_J rolling 12 and 24 month contracts mo contract mo contract /1/04 7/11/04 7/21/04 7/31/4 8/10/048/20/04 8/30/04 9/9/04 9/19/04 9/29/04 10/9/04 10/19/04 10/29/04 11/8/04 11/18/0411/28/04 12/8/04 12/18/04 12/28/04 1/7/05 1/17/05 1/27/05 2/6/05 2/16/05 2/26/05 3/8/05 3/18/05 3/28/05 4/7/05 4/17/054/27/05 5/7/05 5/17/05 5/27/05 6/6/05 6/16/05 6/26/05 7/6/05 7/16/05 7/26/05 8/5/05 8/15/05 8/25/05 9/4/05 9/14/05 9/24/0510/4/05 10/14/05 10/24/05 11/3/05 11/13/05 11/23/05 12/3/05 12/13/05 12/23/05 Trade Date $ / MWh 00 Intelligence Enables Going to Market 5 months before a Contract is Up to Lock in Favorable Rates and Achieve a Significant Discount {

52 COMPANY CONFIDENTIAL State of MD Success Intelligence Enables Going to Market before Utility Rate is Announced And Take Guaranteed Discounts Not Available Later if Client Waited as Consultant Advised

53 COMPANY CONFIDENTIAL Rigorous Attention to Compliance Aggregation- specific web sites provide consistent communication of content, timelines and deliverables – minimizing opportunities for errors that could lead to protests. Procurement calls are recorded, transcribed, and published to document off-line processes. The Exchange – synched to the atomic clock - automatically date and time stamps all bid activity.

54 COMPANY CONFIDENTIAL (Sales Presentation) Agenda Introductions – IEC and World Energy Discussion of CLIENTs Needs Procure: Tools and Intelligence for a Successful Procurement –World Energy Exchange –Expertise-Driven Process –Elements of a Successful Procurement Sarbanes-Oxley Compliance Market Intelligence Wrap-up and Next Steps

55 COMPANY CONFIDENTIAL World Energy and IEC World Energy Platform: Industry-leading procurement technology Helps address growing SOX compliance needs Maximize savings from a deregulated market Achieve short or long-term purchasing confidence No obligation, no cost World Energy and IEC Neutral players to secure your advantage A voice you can trust – people you know

56 COMPANY CONFIDENTIAL Wrap-up and Next Steps ActionWho?Suggested Date Gain Clarity on GoalsJointToday Provide List of AccountsClientToday Sign Schedule AsClientToday + 5 Days Perform Market Opportunity ReviewIEC/ World Energy Today + 10 Days Sign Procurement Consulting AgreementClientToday + 15 Days Perform Price-to-Compare AnalysisIEC/ World Energy Today + 22 Days Run AuctionsIEC/ World Energy Today + 30 Days

57 COMPANY CONFIDENTIAL Thank You (End of Sales Presentation)

58 COMPANY CONFIDENTIAL Platform Demo We have developed an online demo as a short introduction to our platformWe have developed an online demo as a short introduction to our platform Benefits –Use when an in-person presentation is not possible –The platform link can be packaged as a calling card which can be forwarded within an organization –Addresses general reverse auction questions We are in the midst of producing an updated demo– feedback and suggestions are appreciated

59 COMPANY CONFIDENTIAL Agenda – Part I Introductions WE Overview – 1 hour IEC Overview – 1 hour Sales Presentation Review – 2 hours Frequently Asked Questions Discussion – 1 hour (Optional Part I or 2) Working Session – Materials Development

60 COMPANY CONFIDENTIAL Agenda Part I Company Overviews Sales Presentation Review Part II Operations Review Marketing Discussion Platform Walk-through Floating FAQs & Materials Development

61 COMPANY CONFIDENTIAL Agenda – Part II Platform Development – 30 minutes WE Auction Process – 2 hours Marketing Discussion – 1.5 hours Platform Walk-through – 1 hour

62 COMPANY CONFIDENTIAL History of Platform Development Mgmt Insight –Contract Profitability –Usage Variance –Intelligence Dashboard Automatic Data Feeds –Pricing Curves –Utility Data (EDI) Self-Service Green Credits Trading Bill Validation x RFPs Auction Suppliers Utilities Contacts 2.x Partners Pricing Prods 3.x Contracts Sites Accounts Market Intel 4.x Commissions Receivables Data Migration 5.x Reporting 6.x Deals Process 2006,

63 COMPANY CONFIDENTIAL Agenda – Part II Platform Development – 30 minutes WE Auction Process – 2 hours Marketing Discussion – 1.5 hours Platform Walk-through – 1 hour

64 COMPANY CONFIDENTIAL The Procure Process Needs Planning Market Analysis AuctionContract Ongoing Support Discuss Goals Review current market conditions Identify Locations Request and Format 12 months historical usage Perform Price- to-Compare Analysis Identify Contract Parameters Structure RFP Alert 100% of registered supply base Run reverse auction Upload contracts, sites and usage Prepare for Renewals Proven Process Ensures Success and Supports Compliance Perform Savings Analysis Recommend Contracting Terms Review and finalize contract Life of Contract

65 COMPANY CONFIDENTIAL World Energy Partner Roles RoleOrganization Identify OppyPartner Introductory MeetingPartner Sales MeetingWE/Partner Gain Dealsheet/ ContractPartner Submit Usage Requests and Prepare DataPartner Customer AnalysisWE Supply Conference – Set Customer Expectations Partner Prepare RFPWE Run AuctionWE Due Diligence RptsWE Negotiate ContractPartner Obtain SignatureWE/Partner Account ManagementPartner

66 COMPANY CONFIDENTIAL Customer Objectives Prep with supply team (optional) –General market overview –Current market conditions Introductory meeting with customer –Discuss value proposition –Review market conditions and potential Indicate Lead to WE via Pipeline report Send introduction package to Partner –Confirm receipt of opportunity –Tentative fee agreement Needs Planning WE Partner Both

67 COMPANY CONFIDENTIAL Customer Objectives Sales meeting –Business requirements discussion Contract term Pricing structure (Fixed, Indexed) Supplier preferences or exceptions Complete WE dealsheet Contact Info Total Energy Consumption # of Facilities LDCs Locations # of Accounts Name of Current Supplier Contract Expiration Date Rate Contract Amount D&B # (if 400K+ contract) Requested flow date Contracting Party Info Tax Id# Needs Planning WE Partner Both

68 COMPANY CONFIDENTIAL Pre-Auction Obtain bill determinant data (electronic, with IDR data if applicable) Provide an energy procurement recommendation Provide price-to-beat and analysis if applicable –suggest target price –identify expected savings, if applicable Market Analysis WE Partner Both

69 COMPANY CONFIDENTIAL Deal Analysis – Pre-Auction WE Recommend Summarizing Prices Across All Facilities… …and Presenting in the Auction Grouping for Comparison Market Analysis

70 COMPANY CONFIDENTIAL Deal Analysis – Assess Market Conditions Review market factors (optional) Tariff pricing structure (optional) –Identify tariff sensitivity factors Load characteristics Tie-in to Natural Gas Index Tariff switches Transition charges Assess sensitivities to factors, using (optional) –Objective third party research –Historical analysis –Current market events and conditions Market Analysis WE Partner Both

71 COMPANY CONFIDENTIAL Pre-Auction Customer, sales, and supply conference call (WE Optional) –Discuss market conditions and price expectations –Review general contract items –Confirm signatories –Schedule auction time and date –Schedule follow-up Contract Meeting Market Analysis WE Partner Both

72 COMPANY CONFIDENTIAL Pre-Auction Package the customer load –Determine contract parameters –Set tranches by rate class, LDC, etc. Confirm auction with customer Alert suppliers Conduct auction Auction Process WE Partner Both

73 COMPANY CONFIDENTIAL Auction Deliver post auction summary Contract Meeting –Review auction results –Identify supplier(s) and contract(s) –Obtain executed contract Administer contracts Process payments Maintain customer relationship Send renewal notice to Partner Contract Appt WE Partner Both

74 COMPANY CONFIDENTIAL Post-Auction Upload –Sites –Usage –Contracts Maintain customer access to platform Prepare for Renewals Ongoing Support WE Partner Both

75 COMPANY CONFIDENTIAL Agenda – Part II Platform Development – 30 minutes WE Auction Process – 2 hours Marketing Discussion – 1.5 hours Platform Walk-through – 1 hour

76 COMPANY CONFIDENTIAL Accomplishments and Goals WE and IEC have laid the foundation for a long-standing Partnership Focused, structured initiatives will help us build this relationship –Relationship definition –Marketing –Sales approach –Operations – deal processing

77 COMPANY CONFIDENTIAL Defining the Relationship Accomplishments –Signed partner agreement –Defined roles –Identified revenue breakdown Goals –Implement pilot in Q1/Q206 –Rollout by end of Q206

78 COMPANY CONFIDENTIAL Marketing - Goals External Marketing –Press release –Mutual trade show presence –Mutual web listings –Cobranded whitepapers –Deal success press release Internal Marketing –Deal announcements/auction monitoring –Intranet presence –Newsletters

79 COMPANY CONFIDENTIAL Sales Approach - Goals Identify product rollout markets Design and distribute support materials Define operational procedures for opportunity management Sales roles and responsibilities Account management responsibilities

80 COMPANY CONFIDENTIAL Sales - Design And Distribute Support Materials Partner marketing and sales materials Value proposition script Customer qualification questionnaire/screening tool

81 COMPANY CONFIDENTIAL Sales - Roles And Responsibilities IEC –Lead generation –Customer qualification –Price-to-beat analysis –Contract negotiations –Deal closing World Energy –Market assessment –Procurement auction –Post auction results reports

82 COMPANY CONFIDENTIAL Sales - Account Management Responsibilities IEC –Continuous customer contact –Expand product penetration to other locations –Contract renewal(s) World Energy –Renewal reminders –Market updates through platform

83 COMPANY CONFIDENTIAL Operations – Deal Processing - Goals Develop event chain and associated timing Identify contact points for rollout Identify and train platform user(s)

84 COMPANY CONFIDENTIAL Agenda – Part II Platform Development – 30 minutes WE Auction Process – 2 hours Marketing Discussion – 1.5 hours Platform Walk-through – 1 hour

85 COMPANY CONFIDENTIAL Platform Login We have set up a user account for IEC –User Name: sebron –Password: newpartner

86 COMPANY CONFIDENTIAL Thank you! Andrew Thomas World Energy Solutions


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