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Energy & Engineering Consulting LLC

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1 Energy & Engineering Consulting LLC
Energy & Engineering Consulting LLC works on behalf of companies nationwide to reduce energy costs through various procurement strategies and providing engineering support. E & E is an independent firm focused solely on the best interests of your company.

2 E & E Bio Energy & Engineering Consulting LLC has supplied our clients with essential energy and engineering services since We have nearly 50 years combined experience working in all aspects of the energy industry including utilities, marketing, distribution and engineering. Our extensive knowledge combined with the ability to provide Professional Engineering support allows us to offer the most complete and absolute best service to our clients.

3 Energy & Engineering Consulting LLC
Gary Sabella, PE Principal Owner 1982 – BSME University of Cincinnati Piedmont Natural Gas Utility 10 years industrial services Natural Gas Marketer 5 Years Principal owner of E & E Consulting LLC Jerry Hrusch Director Natural Gas Procurement 1985 – BSME Cleveland State University Design Engineer 20 years Natural gas procurement 4 years Engineering support

4 Energy & Engineering Consulting LLC
Matthew Stuchul Manager Sales & Marketing Natural gas procurement support Grace Sabella IT Analyst Office Manager Residual Fuels Procurement

5 Market Overview “Weak Dollar Pushes Oil Prices Higher”
- New York June 16, 2008 Dollar Doldrums: Low Value Has High Impact The Declining Value Of A Dollar Is Fanning Inflation And Driving Up The Cost Of Oil And Gas Since oil is bought and sold in dollars worldwide, the devalued dollar has made the recent surge in energy prices even worse for Americans, leading to $4 gasoline in the United States. Analysts suggest that of the $140 a barrel that oil fetches globally, some $25 may be due to the devalued dollar. Further declines in the dollar will add to oil's appeal as a commodity to be traded. WASHINGTON, July 6, 2008

6 Historically, market prices have been determined by supply and demand
Historically, market prices have been determined by supply and demand. Supply being affected by availability and demand by use. Weather and politics are the two major players in determining availability and if we were to look at a “normal” market as it should appear today prices would be somewhere between $6 and $8. So with storage levels close to their 5 year average, no adverse weather conditions and no current political threats why are prices so high? The answer is inflated demand.

7 The appeal of trading energy commodities has led to an influx of cash into this particular market and the appearance of increased demand. This “inflated” demand has driven current prices to historic levels while making it very difficult to accurately predict. "There's been a huge influx of cash into this market, because we made it too easy to trade in these commodities The [collateral] requirements [for funds used to trade oil] are very low. So, you can buy ten times as much oil for a dollar that you put on the table as you buy for stocks. It's just too easy.” CBS News 2008

8 E & E Consulting Services
How can we reduce your energy costs?

9 Aside from stealing gas for you, we’re able to offer alternative and more legally appealing options.
E & E Consulting’s advantage: We provide two services to ensure your energy costs remain low. Procurement Engineering Support In addition to minimizing energy costs, it is important to reduce energy use

10 Procurement Balancing risk and reducing costs
The recent price spikes will translate to higher energy costs. However, utilizing various investment tools such as hedging enables us to consistently minimize your commodity cost. Strategy Tools Trigger Orders Call Options No Cost Collars Three Way No Cost Collars

11 Additional Advantages
Your costs are not contained solely in the commodity itself. Other factors play a role in contributing to the bottom line such as: Interstate capacity costs Imbalance penalties Spot gas pricing Utility tariff rates and plans Invoice errors

12 How do we reduce these costs?
Request For Proposal – Choosing the right marketer and the right plan can mean the difference in thousands of dollars for interstate capacity costs. We send out RFP’s periodically to multiple marketers to ensure you get the lowest interstate capacity cost possible. And depending on utility balancing requirements, imbalance provisions are negotiated with the marketer. Monthly Nominations & Balancing – Imbalanced gas use will expose you to penalties and high spot gas pricing. When permissible, we balance your monthly use and purchase spot gas at minimum cost throughout the production month saving you money. Utility Plan Review & Negotiation - We review your current utility plan to ensure you’re taking advantage of the best rates available through the utility. We also apply for the right to negotiate gas prices vs. alternate fuel. Invoice Verification – We review your invoices to verify that you’ve been billed accurately and fairly.

13 Engineering Support To thoroughly reduce energy costs it is imperative to look at both ends of the spectrum. Focusing on the commodity price itself is not sufficient. Oftentimes the most overlooked and underrated cost is energy consumption. You receive invoices for the energy you’ve purchased each month but there are no invoices for inefficiencies in the energy you’ve consumed. E & E Consulting is able to provide the engineering support required to assure that your energy use is maximized and efficient.

14 How much could I really be losing?
Sample 1-Tank Insulation Replacement *Names have been changed for privacy purposes* Asphalt Storage Tank Annual Energy Use Dts $9.26 Tank ,420 $235,370 Tank ,420 $235,370 Total , $470,740 After Insulation Replacement Tank ,540 $60,527 Tank ,540 $60,527 Total , $121,120 Total 1st year savings $349,600 This customer was realizing a true loss of nearly $30,000 a month due to inefficiencies of it’s storage tank insulation alone.

15 Pre-tank insulation replacement infrared photos
Post-tank insulation replacement infrared photos

16 Viable Energy Use Reduction Projects:
Steam Trap Surveys The thermal image of this trap reveals it’s inefficiency apparent through the close proximity of the temperature of the steam entering and exiting the trap.

17 Boiler Conversions Converting a boiler that burns only one fuel and giving it the ability to burn alternate fuel to provides flexibility and advantages during shortages and price spikes. Boiler conversion to dual fuel. Current burner tip fuel pricing: #2 Oil $ / Dt #5 Oil $ / Dt #6 Oil 1.00% Sulfur $17.50 / Dt Natural Gas $14.25/ Dt Note competitive fuel allows for fuel switching and negotiated rates with utility

18 Terminal A – Wilmington, NC Boiler Conversion Project First Year in Operation 2006-2007
Initial Project Costs $ 40,000 Avg. #2 Oil Cost $ / Dt Avg. Natural Gas Cost $ / Dt Energy Cost Savings First Year $ 208,800 !! This client took full advantage of their ability to burn alternate fuel and the lower cost of natural gas vs. oil. After converting their boilers they realized a 100% ROI in 2 months.

19 Burner Combustion Analysis
Analyzing boiler burner efficiency can reveal opportunities for cost savings and have a significant impact on energy use.

20 Example 1 Natural Gas 5,000 Dts x $14.25 = $71,250 Month Dt
Increasing burner efficiency by 1% yields $700.00/month energy savings Example 2 Natural Gas 15,000 Dts x $14.25 = $213,750 Month Dt Increasing burner efficiency by 1% yields $2,135/month energy savings Example 3 #2 Oil 7,500 Dts x $28.00 = $210,000 Month Dt Increasing burner efficiency by 1% yields $2,100/month energy savings

21 E & E Consulting’s Value
Procurement Expertise Extensive Market Experience Professional Engineering Support Substantial financial savings for our clients If energy costs are a significant portion of your monthly manufacturing budget then an energy management program is crucial to your success. Energy & Engineering Consulting has the knowledge, experience and tools necessary to manage and reduce these costs.

22 Contacts Jerry Hrusch Matthew Stuchul Grace Sabella Gary Sabella, PE
Director of Gas Procurement Phone – Grace Sabella IT Analyst, Office Manager Phone – Fax – Matthew Stuchul Sales & Marketing Manager Phone – Gary Sabella, PE Principal Owner Phone – Fax –

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