Enron Energy Services Energy Management Outsourcing Overview

Enron Corp. Energy Businesses New Business Transportation & Distribution Wholesale Energy Retail Energy Broadband Services Natural gas transportation Electric distribution Marketing and delivery of energy products worldwide Energy outsourcing to commercial and industrial customers Bandwidth management and broadband delivery services

Our Strategy for Energy and Facility Management Customer Receives Traditional Enron Lenders Specialty Contractors Consultants HVAC Svc Companies Software Vendors Accounts Payable Mechanical Contractors Architects / Engineers Controls Manufacturers Equipment Manufacturers Electrical Contractors Utilities Energy Marketers Internal Treasury Commodity Management Energy Information Management Capital Energy Asset Facilities Improved Core Business Focus Redeployment of Capital Reduced Operating Costs Risk Transference Access to World-Class Capabilities Conditioned Air Light Managed Facilities

Our Strategy to Optimize Total Costs Commodity Assets Labor Risk Management Physical Supply Financial Settlements Reduces price volatility Capital Total Cost Operating Strategies Life Cycle Management Best Practices Frees up budget dollars for expansion Total Energy Costs Today Workforce Management Information -based Maintenance Programs Vendor Management Structured Financing for Asset Replacement Monetization of Energy Assets and asset deployment Increases owner cash flows Optimized Total Costs Increased Value

Scope of Responsibilities Operations Facility Management Commodity Management Energy Asset Management Financial Operations Customer Satisfaction Operations Management Capital Management Develop scope and service level documents Human transition Verify site and commodity requirements Conduct analysis on current supply commitment Evaluate opportunities and priorities with customers execution schedule Develop scope and construction specification documents Build out Asset Tracking & Management database Develop project approval process Build out database for financial reporting Setup cash accounting and financial tracking systems in SAP Identify KPIs Schedule surveys and reporting Establish Customer dashboard Setup accounts & notify utilities Agency Agreement from Customer Verify invoice format Setup invoice data transfer Test invoice algorithms and file transfer to customer Determine Customer’s reporting requirements Arrange project financing as required

Enron Value EES provides value to Customer in the following areas which REQUIRE expertise in today’s changing markets: Commodity Procurement/Management Energy Equipment Management Engineering Services Facility management Capital Management Energy Information Management

Structures savings impact of acquisition/divestiture Shared Savings Guaranteed Savings Hybrids savings LESS MORE impact of acquisition/divestiture LESS MORE economic transparency MORE LESS accounting transparency MORE LESS operational impact MORE LESS The optimal structure will often come from somewhere in the middle of the continuum rather than either of the extremes

Deal Structures

Structuring Consideration Energy Infrastructure Span of control Maintain and/or upgrade Commodity Risk tolerance Expectations about deregulation Facility Management Capital Who’s capital On/Off balance sheet On/Off credit Hurdle rates

Asset Operations General Overview

Energy Asset Management Services Projects: Upgrading energy infrastructure to drive efficiency Operations: Optimal operation of energy systems Maintenance: Risk Based Maintenance - Optimal preventive, replacement and repair procedures Energy Asset Management is …

Next Steps

Enron Offering EES provides value to Customer managing Risk New Opportunities - New offerings Demand Side Load Management Fixed Price Shared Savings Management Service Information Service ?

Enron Energy Services