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A New Way of Looking at Energy: From Expense toStrategic AssetPhil Adams, President and COO

World Energy

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Q. Is your energy consumption

an expense or an asset?

Last December I Asked

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Q. Are your energy consumption

and environmental footprintexpenses or assets?

And Today

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A. Assets to be Optimized.

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J F M A M J J A S O N D J F M A M2008 2009

-8-6-4-2024

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

Extremely Challenging Times

Change in GDP

Unemployment Rate

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Extremely Challenging Times

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Significant Changes as a Result

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Significant Changes as a Result

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Significant Changes as a Result

http://images.google.com/imgres?imgurl=http://barneymccoy.files.wordpress.com/2008/09/merrill-lynch-logo.jpg&imgrefurl=http://barneymccoy.wordpress.com/2008/09/15/merrill-lynchs-bull-is-on-the-run/&usg=___cTxfQ580RZj4tviNs_xY20njpo=&h=526&w=2266&sz=180&hl=en&start=5&um=1&tbnid=2Zd4uwzsCZGlUM:&tbnh=35&tbnw=150&prev=/images%3Fq%3Dmerrill%2Blynch%26hl%3Den%26rls%3Dcom.microsoft:en-us%26sa%3DN%26um%3D1http://reverse-loans.net/wp-content/uploads/2008/10/aig_logo.jpghttp://renajoy.files.wordpress.com/2007/10/countrywide-logo.jpghttp://images.google.com/imgres?imgurl=http://ceoworld.biz/ceo/wp-content/uploads/2009/02/citibank-logo.jpg&imgrefurl=http://ceoworld.biz/ceo/tag/citi/&usg=__em80ef_RwEs4G7ljvU67XtSOfnU=&h=521&w=2071&sz=83&hl=en&start=12&um=1&tbnid=bHnLwyYW1vRWWM:&tbnh=38&tbnw=150&prev=/images%3Fq%3Dcitigroup%2Blogo%26hl%3Den%26rls%3Dcom.microsoft:en-us%26sa%3DN%26um%3D1

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Significant Changes as a Result

http://www.westny.wish.org/news/Rad/uaw_gm.jpg

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Precedent-Setting Fiscal StimulusAmerican Recovery and Reinvestment Act of 2009

$100bb aimed at energy and the environment Energy Efficiency

Consumer

Business

Government

Renewable Energy Wind

Solar

Geothermal

Plug-in Hybrids

Smart Grid

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MegatrendsPrice Volatility, Smart Grid

& Energy Efficiency

Sustainability, Cap and Trade

& Energy Independence

http://images.google.com/imgres?imgurl=http://farm3.static.flickr.com/2385/1591411087_97e5587c18.jpg&imgrefurl=http://subrealism.blogspot.com/2008/05/great-filter-us-electric-grid.html&usg=__12IfJdczXJof1Vb1sAaVAOpYUW4=&h=334&w=500&sz=103&hl=en&start=4&um=1&tbnid=oVzkrRbGNI5muM:&tbnh=87&tbnw=130&prev=/images%3Fq%3Delectric%2Bgrid%26um%3D1%26hl%3Den%26rls%3Dcom.microsoft:en-us%26sa%3DNhttp://www.mckinsey.com/

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McKinsey Abatement Analysis

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McKinsey Abatement Analysis

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What Do I Do?

Understand YourCurrent Situation

You Are Here

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What Do I Do?

Understand YourCurrent Situation

Identify YourFuture Objective

You Are Here

Desired State

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What Do I Do?

Understand YourCurrent Situation

Identify YourFuture Objective

You Are Here

Desired StateDevelop an Action and Investment Plan

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What Do I Do?

You Are Here Desired State

Energy Procurement Buy from the Utility Optimized Portfolio

Energy Consumption Use What I Use Efficient User

Energy ManagementInfrastructure

Simple Smart Systems withDashboards

Energy EfficiencyInitiatives

None Executing in ROIOrder

On-Site Generation None Renewable

Carbon No Tracking Tracking, Reduction,Brand Leverage

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What Do I Do?

You Are Here Desired State

Energy Procurement Buy from the Utility Optimized Portfolio

Energy Consumption Use What I Use Efficient User

Energy ManagementInfrastructure

Simple Smart Systems withDashboards

Energy EfficiencyInitiatives

None Executing in ROIOrder

On-Site Generation None Renewable

Carbon No Tracking Tracking, Reduction,Brand Leverage

Decision-Making Facilities Management C-Suite Involvement

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What Do I Do?

Energy Procurement Buy from the Utility Optimized Portfolio

Do you know the local regulatory and competitive dynamics for

each of your facilities? Do you run the most competitive procurement process possible?

Do you utilize a paper or technology-based process?

Do you use a third party or do-it-yourself?

Are you in the market on a regular basis to understand the ever-changing supplier dynamics?

Do you take a portfolio approach to procuring energy?

Is your process Sox compliant?

You Are Here Desired State

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What Do I Do?

Energy Consumption Use What I Use Efficient User

Do you benchmark your consumption? Like facilities within your

portfolio? Across industry benchmarks? Do you understand your time of day use patterns?

Do you understand how to impact your capacity charges?

Do you have a prioritized list of strategies to reduce demand andshape load?

You Are Here Desired State

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What Do I Do?

Energy ManagementInfrastructure

Simple Smart Systems withDashboards

Do you have any advanced technologies in your asset base?

Smart meters?

Building Management Systems?

Dashboards to control machinery and equipment?

Do you have analytic tools to support usage optimization?

Do you have the tools to support participating in demand responseprograms?

You Are Here Desired State

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What Do I Do?

Energy EfficiencyInitiatives

None Executing in ROIOrder

Do you have a prioritized list of energy efficiency projects?

Do they also reduce carbon?

Are you aware of coming opportunities to bid in efficiency projectsinto ISOs and utilities?

If these initiatives reduce carbon, do you know how to structurethe project to create carbon credits you can sell?

You Are Here Desired State

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What Do I Do?

On-Site Generation None Renewable

Are you contemplating co-generation?

Are you contemplating renewable?

Are you aware of all the incentives available for such projects?

Do you know how to structure the project to create carbon creditsyou can sell?

Do you have access to capital?

You Are Here Desired State

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What Do I Do?

Carbon No Tracking Tracking, Reduction,Brand Leverage

Are you aware of coming regulation to require certain emitters to

track and report their carbon? With coming regulation, do your CEO and Board fully understand

their potential liabilities?

Do you have a strategy for managing and reducing your carbon?

for leveraging being greener to reduce costs?

for introducing green products into the market?

for enhancing your brand with your employees, customers andother stakeholders?

You Are Here Desired State

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What Do I Do?

Decision-Making Facilities Management C-Suite Involvement

Where are your decisions being made?

How involved is your C-Suite?

Is your CEO a climate leader?

You Are Here Desired State

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World Energy Solutions

Trusted advisor to Commercial, Industrial, Government, Utility andISOs

Unparalleled technology platforms, market knowledge and processskills Leading auction-based exchange for procuring energy Leading green credits auctioneer worldwide

Program manager for pioneering Regional Greenhouse Gas Initiative

Energy buyer for the US Federal Government and 8 of the 12deregulated electricity states

Serve 40+ utilities

Clients have won over 10 awards with our green and energy products

Dual Listed on NASDAQ (XWES), April 09, IPO on TSX (XWE), Nov 06

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Questions & Discussion

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Phil Adams, President and COOpadams@worldenergy.com

508.459.8100www.worldenergy.com

Thank you

mailto:djoyce@worldenergy.commailto:djoyce@worldenergy.com