Company Overview

MF 072010

Energy DeregulationConnecticut

Delaware

Illinois

Maine

Maryland

Massachusetts

New Hampshire

New Jersey

New York

Ohio

Pennsylvania

Rhode Island

Texas

Washington DC

For a Better Rate Or Program?

These States have deregulated their energy markets giving you the Power of Choice

Electricity DeregulationElectricity Deregulation

The objective of deregulation is to offer energy customers greater choice, both among suppliers and services. Ideally that will result in increased market efficiency and dollar savings to the consumer.U.S. Department of Energy

Energy Portion Open To Competition

Deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what remains is a regulated delivery (utility) company that continues to deliver electricity, maintains reliability, reads the meter, and provides customer service to the consumer.

Deregulated Electricity Generator Regulated Delivery (Utility Co)

Energy Consultants Energy Consultants WHAT WE DO:

America Approved recognizes that every customer is unique; therefore a customized Energy Cost Savings Analysis is created on behalf of each client.

WHY US:

•The customer comes first•Years of energy experience•Proven track record for saving our clients money

OUR SERVICES:

• Short and Long-Term Service Agreements• Fixed Rate and Variable Plans• Electricity and Natural Gas

We work with business customers to help them make informed energy purchasing decisions

Licensed Energy Brokers

MassachusettsMaineMaryland IR-1664PennsylvaniaIllinois 10-0073

Some States require energy brokers to be licensed. This is important as they conduct fitness for industry tests, evaluation of company owners, financial reporting and posting of bonds. This protects you.

Our advise, do not work with an energy broker that is not licensed in at least one state.

So Is The Price of Electricity Headed Up

Annual Energy Outlook 2008

nominal dollars per barrel

nominal dollars per ton

nominal dollars per thousand cubic feet

nominal cents per kWh

World Oil Price Natural Gas Wellhead Price

Coal Minemouth Price Average Electricity Price

Energy Outlook 2008 - Fuel Price Forecasts

Electricity Prices – Highly VolatileElectricity Prices – Highly Volatile

• This chart shows the movement of electric prices on the wholesale market

• Electricity market is 10 times more volatile than the stock market

• Price is now low which makes it a great time to lock in prices long term

Market Volatility

Most businesses today should protect themselves with a fixed all inclusive (non- escalating) program

Deregulated Energy – Complex MarketThe multitude of options combined with dramatic price fluctuations makes the deregulated market infinitely more complex.

America Approved helps your business buy energy at 20% to 50% off peak rates. We have a simple and objective process based on proven strategies that eliminates uncertainty and volatility risk for the your business.

America Approved connects businesses with the right supplier and the right contract at the lowest possible rate.

These and many other energy providers

Variable and Hybrid Rates – Deceiving?

Variable rate and hybrid contracts, on the surface, appear to save you money but actually cost you more than a fixed all inclusive rate contract. You should choose your supplier based on total term cost not just the rate you get today. A business that makes a decision by comparing rates only are often surprised by the volatility and hidden pass-thru charges which can add 25% or more to the energy cost.

Types of Products

• Fixed Price – Price Certainty & budget protection

• Index – Floating Price • Heat Rate – Floating price tied to

natural gas pricing• Stipulated Quantity – Block and Index –

Partial Fixed Price Hedge with exposure to Index Pricing > Hybrid Product

Contract Options

The Plan You Should Choose Depends On The Amount of Risk That You Are Willing To Take

Month To MonthVariable Rate

With Pass Thru

RiskVery High

Price varies Based on monthly

average market

Hourly PricedVariable Rate

With Pass Thru

RiskExtremely High

Price varies hourly based

on market and can easily

double or triple

HybridPartial Fixed Partial

Indexed

Risk HighFor Most

This contract type is very specialized – for users with large night time

loads

Fixed All InNo Pass Thru

RiskNone

Eliminates all risk, this rate is

constant and includes all

pass-thru charges, no bandwidth

Most businesses lack the time, expertise, and tools to track the energy market and make good purchasing decisions. Businesses today rely on experts when it comes to financial, insurance real estate and other complex transactions.

Risk Reward

• There are two other elements of the Risk/Reward Assessment that are important to understand. First, there is a trade-off between certainty and cost.

• As a general rule, the further one moves to the left of the spectrum the more they will pay in risk premiums as exhibited by the dotted white line.

• It is critical that customers understand this relationship to discern the difference between what they want and what they need.

• You will notice that the tip of the cone rests to the left of the vertical axis. This relates to the fact that Delivery charges are not necessarily driven by market forces and may be subject to adjustments which means they are never 100% "fixed".

• This becomes an important factor when setting appropriate expectations regarding one's budget.

The horizontal axis represents the degree of certainty a customer may seek ranging from "Fix" (high certainty) to "Float" (low certainty) with "Flex" representing something in between.

The vertical axis represents the range of cost outcomes that correlate to the degree of price certainty desired by the customer.

The further to the right of the spectrum, the higher the degree of risk and volatility and cost outcomes – to the left price certainty and a lower the range of cost outcomes. Conversely, the further to the right of the spectrum the lower degree of price certainty and the higher the range of cost outcomes.

Source: Suez Energy Resources

Cost Saving ScenariosCost Saving Scenarios

Retail Seafood House Paying $3,000 Monthly Annual Usage: 241,900 kWhOld Rate: $0.14555New All Inclusive Rate: $0.1199

3 Year Savings: $52,657

Automotive Repair and Body Shop Paying $7,500 MonthlyAnnual Usage: 597,200 kWhOld Rate: $0.145000New All Inclusive Rate: $0.1175

3 Year Savings: $128,667

Retail Furniture Store – 7 Locations Paying $9837 MonthlyAnnual Usage: 945,200 kWhOld Rate: $0.12490New All Inclusive Rate: $0.125

3 Year Savings: $81,257, First Year Savings $5100

Large Manufacturing Facility Paying $85,000 MonthlyAnnual Usage: 7,846,153 kWhOld Rate: $0.130100New All Inclusive Rate $0.117400

3 Year Savings: $1,215,484

Medical Center Paying $25,000 MonthlyAnnual Usage: 1,849,650 kWhOld Rate: $0.1622New All Inclusive Rate $0.0911

3 Year Savings: $527,759

Three Simple Steps To SavingsNo Cost No Obligation

1. We Gather Information– Provide us with a copy of your bill

2. We Analyze Your Energy Profile– No Cost No Obligation

3. You Start Saving Money– We present your options– You decide– No cost to switch providers

What We Do for Your Business

• We help you save 20% to 50% off peak rates• We analyze your use profile to secure the

best rate• We pre-screen suppliers to protect you from

costly mistakes• We help you avoid rate shock surprises

We represent numerous Energy Providers in your area allowing us to shop, compare and recommend the best

energy plan for your business!

Worry Free Switching

• No switching fees

• No interruption of service – same energy, same poles and wires, same power quality and service from your local utility

• First bill will come from the new supplier in approx. 45 days

• Pay the bill as normal