1. Enron Energy Services Energy Management Outsourcing Overview

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Deal Structures

9. 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

10. Asset Operations General Overview

11. 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 …

12. Next Steps

13. 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 ?

14. Enron Energy Services