Natural Gas Sourcing Presentation for Armstrong Management Services Prepared by: Mark R. Burns, President Independent Energy Consultants, Inc. January 22, 2008

2 Potential Aggregation of Loads Loads of at least 50,000 Dth/year needed for auction Larger groups draw more suppliers Combining loads may improve load profile and result in lower prices Larger group spreads acquisition and transaction costs over greater base resulting in lower rates

3 Gas Only Experience in Managing Complexity 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

4 An EBay for Energy Independent Energy Consultants brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk. ENERGY COSTS CONFIDENCE Partner with Internet Auction Site that has procured over $1.2bb in electricity, natural gas, and financial instruments. Saved Customers over $100,000,000 5x the volume of nearest competitor Runaway market leader of 40 competitive exchanges

5 The Procurement 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

6 Decision Support Modeling

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

8 Auction View Proven time and time again to deliver the lowest price available in the market Design to favor consumer – fixed end time, direct entry bidding Engagement cost contingent on you saving – paid by supplier

9 Data Needs Before Auction Most recent 12-months of natural gas consumption Completed Deal Sheet for participating accounts –Service address, billing address, account numbers, D&B number, current contract details, etc. Signed Exchange Agreement With Auction Provider –No cost to client to use this service –Exchange paid by supplier, if and only if, offer accepted –Commits client to accept an offer if it is lower than price to beat –Exclusivity for 12 months Do not accept offers sought through other channels –Similar to other agent agreements

10 Letter of Authorization (LOA) Client Provides Utility with account information Requests utility turn over data to consultant Most efficient means of assembling accurate data Consultant needs to analyze load data and prepare RFPs Suppliers will need data to bid and enroll accounts

11 Contact Information Contact your licensed full service independent energy experts: Independent Energy Consultants Ph: Toll Free: (888) Fax: (216) Web: naturalgas-electric.com

12 Mark Burns Biographical Summary Owner/Founder of Two Successful Energy Consulting Firms Licensed Natural Gas and Electric Broker and Aggregator by State Regulators Bachelors Degree in Electrical Engineering Technology Masters Degree in Business Administration Former Risk Control over $1 Billion Electric/Natural Gas Trading Floor Former Strategic Planning Manager Major Utility Develop & Oversee $250 Million Annual Capital Budget for Major Utility Designed Energy Trading Models Successfully Used by Major Utility Senior License from Nuclear Regulatory Commission to Operate and Manage a Nuclear Power Plant Electric Test Engineer on Several U.S. Naval Nuclear Powered Submarines Certified in Performance of Energy Efficiency Projects 23 Years Professional Development and Training Member The Association of Energy Engineers Member Facility Managers Institute of AEE Member of various Boards and Councils

13 Sample Questions - Self Assessment My company spent $________ for electricity last year and used ______ kWh My company spent $________ for natural gas last year and used ______ MCF The cost and use figures are ___%, ___%, ___%, and ___% higher or lower than the prior year If asked, I could readily develop an energy budget, by utility meter, for next year Y/N In this FY we are currently ___% over/under budget for natural gas, and ____% over/under for electric The temperature forecast for the next 14 days calls for ______ HDD and ______ CDD The forecast mentioned above will cause my company to use ____% more gas ____% electric The top three drivers of my natural gas use are _______________________________________________________ The top three drivers of my electric use are __________________________________________________________ Natural gas in storage is ____BCF. That is ____% higher or lower than last year and ____% from the 5-yr average The upcoming U.S. hurricane season is expected to be worse, better or equal to the 100-year average Natural gas and electric prices are correlated Y/N If so, which commodity drives the other? If I have a choice of heating fuels, I would know how to value and select the least cost alternative? My electric utility charges me a penalty for low power factor? If so, it is costing me $_______/month. Last month I paid multiple utility bills and I am confident each amount was correct Y/N ? I am confident a faulty utility meter (water, electric, gas) would be promptly identified by our maintenance staff? I received literature talking about energy conservation measures (ECM) for lighting, ventilation, motors, etc. I am confident were doing all we can to identify ECMs and I would be able to perform a cost/benefit analysis on the same? A 10% reduction in electric energy kWh would reduce my bill by ____%. A 10 reduction in demand kW would reduce my bill by ____% I could perform a historical analysis to determine if a fixed rate or indexed rate would have resulted in lower costs I would be able to value a contract with a swing tolerance to determine if it were lower cost than a full requirements agreement Y/N