CT Electricity Retail Market Commercial – Industrial Update 12/14/2010

CBIA Energy Connections l Established in 1999 – initially for natural gas l Provide market advice and procurement services for member companies l Licensed Electricity Aggregator since 2000 l Aggregation approach for small/med. users l Unique auction process for large users l Currently serve over 700 member companies comprising over 200 megawatts of load

Vibrant Market l 30 Licensed Suppliers l 47 Registered Aggregators/Brokers l CL&P and UI l 87% of Large Business and 79% of Small Business volumes being served by Electric Suppliers l Best prices in five years

2 Year NG Calendar Strip

Product Options l Monthly variable l Fixed all-inclusive commodity price l Fixed commodity – variable ancillaries l Block purchasing – usually fixed ancillaries l Long term l Short term

Supplier Contract Variations Pricing terms Fully fixed Partially fixed Totally variable Variable using on-peak prices Variable to fixed Swing factors - Bandwidths Payment terms Potential liquidation costs

Broker Agreements l Be careful what you sign!!! l Most agreements provide exclusivity l Suppliers will only bid through one broker l Potential financial consequences if cancelled l Long terms with long notification periods l Authority to execute without your review

Summary l Market prices have never been better l Price isn’t the only consideration. l Many variables in offerings l What you don’t know can hurt you l Work only with organizations you trust