Enron Energy Services Energy Management Outsourcing Overview

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Enron Energy ServicesEnergy Management
Outsourcing Overview
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Enron Corp.
Energy Businesses
New Business
Wholesale Energy
Retail Energy
Broadband Services
Transportation Distribution

• Energy outsourcingto commercial and industrial
  customers

• Natural gas transportation
• Electric distribution

• Marketing and delivery of energy products
  worldwide

• Bandwidth managementand broadband
  deliveryservices

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Our Strategy for Energy and Facility Management
Customer Receives
Traditional
Enron

• Improved Core Business Focus
• Redeployment of Capital
• Reduced Operating Costs
• Risk Transference
• Access to World-Class Capabilities

• Conditioned Air
• Light
• Managed Facilities

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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

• Workforce Management
• Information -based Maintenance Programs
• Vendor Management

Total Energy Costs Today
Optimized Total Costs

• Structured Financing for Asset Replacement
• Monetization of Energy Assets and asset
  deployment
• Increases owner cash flows

Increased Value
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Scope of Responsibilities
Operations Facility Management
Energy Asset Management
Commodity Management
Financial Operations
Operations Management
Capital Management
Customer Satisfaction

• Identify KPIs
• Schedule surveys and reporting
• Establish Customer dashboard

• Develop scope and construction specification
  documents
• Build out Asset Tracking Management database
• Develop project approval process

• Verify site and commodity requirements
• Conduct analysis on current supply commitment
• Evaluate opportunities and priorities with
  customers execution schedule

• Setup accounts notify utilities
• Agency Agreement from Customer
• Verify invoice format
• Setup invoice data transfer
• Test invoice algorithms and file transfer to
  customer
• Determine Customers reporting requirements

• Arrange project financing as required

• Build out database for financial reporting
• Setup cash accounting and financial tracking
  systems in SAP

• Develop scope and service level documents
• Human transition

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Enron Value

• EES provides value to Customer in the following
  areas which REQUIRE expertise in todays changing
  markets
• Commodity Procurement/Management
• Energy Equipment Management
• Engineering Services
• Facility management
• Capital Management
• Energy Information Management

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Structures
Shared Savings
Guaranteed Savings
Hybrids
savings
MORE
LESS
impact of acquisition/divestiture
MORE
LESS
economic transparency
MORE
LESS
accounting transparency
LESS
MORE
operational impact
LESS
MORE

• The optimal structure will often come from
  somewhere in the middle of the continuum rather
  than either of the extremes

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Deal Structures
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Structuring Consideration
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Asset Operations General Overview
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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
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Next Steps
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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
• ?

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Enron Energy Services