company confidential partner program training 2006 andrew thomas vp partner development world energy...

COMPANY CONFIDENTIAL

Partner Program Training

2006

Andrew ThomasVP Partner Development

World Energy Solutions


Training Objectives

• To equip IEC with the tools and knowledge to effectively market WE energy procurement offering

• To take a “behind the scenes” look at the reverse auction procurement process

• To delineate the goals and steps towards further developing the WE/Partner partnership

Our Objective: To build a mutually beneficial partnership by being the energy procurement solution of choice for

IEC’s network of clients and prospects


Benefits of Partnering with World Energy

• Increase Revenue– Sell additional services to customers and prospects

– Add predictable, recurring revenue to sales portfolio

– Provides the “supply side” piece to the equation without heavy time and resource constraints

• Deliver Best of Breed Solution– Deliver the best price with reverse auction technology –

typical savings are 5 to 20% from “traditional” paper RFP

– Position a trusted broker service with a transparent bidding process

• Deliver a Compliant Procurement Approach– The transparent reverse auction platform helps

organizations address Sarbanes-Oxley Section 404 requirements


Agenda

Part I Company Overviews

Sales Presentation Review

Part II Operations Review

Marketing Discussion

Platform Walk-through

Floating FAQs & Materials Development


Agenda

Company Overviews


Operations Review





Agenda – Part I

Introductions

WE Overview – 1 hour

IEC Overview – 1 hour

Sales Presentation Review – 2 hours

Frequently Asked Questions – 1 hour

(Optional Part I or 2) Working Session – Materials

Development


An “EBay” for Energy

World Energy brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk.

ENERGYCOSTS

CONFIDENCE

• Have procured over $1.2bb in electricity, natural gas, and financial instruments; next target - green credits

• Saved Customers over $100,000,000• 5x the volume of nearest competitor• Runaway market leader of 40 competitive

exchanges


Organization Structure

Rich DomaleskiCEO

Phil Adams COO, Marketing

Rob Hartwell CIO

Sales Administration

Open – Partner Sales

John CharbonneauVP Direct C&I Sales

Rich DomaleskiGovernment Sales

Finance

Market Desk

State 1 Market Director

State 2Market Director

Market Analysts

Andrew ThomasVP Operations

Product Development


• #1 in online retail energy procurement market share, over 7 times the amount of energy than its nearest competitor – 16,000,000,000 kWh and 34,000,000,000 bcf

• Has served 250 clients saving them over $60,000,000 as compared to utility rates

• Has worked in over 100 deregulated utility markets with over 140 different suppliers

• Over 450 registered users on the World Energy Exchange

• Provided Auction Services for najor NE utility’s standard offer purchase

• Has won 5 prestigious Government Awards

• Featured in Wall Street Journal, NY Times, Inc Magazine, Restructuring Today

Company Facts and Figures


• Our primary objective is to have the highest volume of retail energy procurement transactions

• To this end, World Energy has aligned with leading energy consultants and service companies to deliver its auction product

• World Energy will always give first priority to its partners with respect to WE/partner conflict

• Our long-term market strategy is through channel partners, with some key direct national and government clients.

• We are very comfortable letting the partner own the customer. Our philosophy hinges on delivering sustained value to our partners.

Sales Strategy


Agenda – Part I

Introductions






Agenda – Part I

Introductions






Development


Sales Presentation – Key Themes

• Experience. World Energy/Team has:

– Blue Chip client list

– Strong government business

– Largest volume critical in illiquid energy market

• Compliance. Process and platform helps organizations meet Sarbanes-Oxley Section 404 requirements (requirement for management to articulate companies internal control structure)

• Reverse Auction Effectiveness. Our systems delivers the most competitive price in the market.


Date

The Business of Buying Energy Has Changed…How CLIENT Can Maximize The Opportunity

Client Logo


(Sales Presentation) Agenda

• Introductions – IEC and World Energy

• Discussion of CLIENT’s Needs

• Procure™: Tools and Intelligence for a Successful Procurement

– World Energy Exchange™

– Expert-driven Process

– Elements of a Successful Procurement

• Sarbanes-Oxley Compliance

• Market Intelligence

• Wrap-up and Next Steps







– Expertise-Driven Process






IEC Overview

• Point 1

• Point 2

• Etc.

• A Certified World Energy Channel Partner


An “EBay” for Energy

World Energy Exchange brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk.

ENERGYCOSTS

CONFIDENCE

• Have procured over $1.2bb in electricity, natural gas, and financial instruments; next target - green credits

• Saved Customers over $100,000,000• 5x the volume of nearest competitor• Runaway market leader of 40 competitive

exchanges


Market Leader: C+I and Channels

RECKSON

Many customers are delivered by channel partners for whom World

Energy runs private label exchanges:

Johnson Controls

Cargill Energy Services

SAIC

Silver Oak Solutions

Several regional players


Market Leader: Gov’t Reach and Volume

United United NationsNations

MarylandDCMassachusetts


We would appreciate an overview of any energy procurement efforts to date.

• Is this a full-time or part-time responsibility?

• Which states / locations have been a focus?

• Do you have a risk management strategy in place?

• What is your greatest challenge in energy

procurement?

Some Background to Guide Our Discussion


Procure™ - Full Service SolutionPro

cess

Tim

ing

Pre

Post

World EnergyExchange™

Market Opp’y ReviewPrice-to-Compare

AnalysisRFP Design

Deal RecommendationContract Negotiation

Usage Tracking

• Combination of Intelligence, Tools and Service to Meet Your Goals

• Pre-Auction Services include

– Pulling and Formatting Usage

– Creating a Price-to-Compare

– Determining your Contract Needs

– Designing RFP

• Post-Auction Services include

– Validating Savings

– Recommending Deal Terms

– Supporting Contracting

– Tracking Contract on our System


World Energy Exchange™

• Proven time and time again to deliver the lowest price available in the market

• Design to favor consumer – fixed end time, direct entry bidding


World Energy Exchange™ - Key Facts

• Nearly 1,000 auctions run in the past 24 months

• Over 450 supplier contacts at 175 suppliers registered

• Typical customer discounts between 5 and 30%

• Most auctions have 3-7 suppliers bidding between 5 and 15 times

• About 20% of the time the winning supplier outbids itself at the last minute to ensure they win the business, saving an additional 0.5-1.5 mils

• Proven Time and Time Again to Deliver the Lowest Price Available in the Market

We have never been beaten by a paper-based RFP process on apples-to-apples basis – EVEN NET OF OUR

FEE!


Elements of a Successful Procurement

• Documented process for Sarbanes-Oxley compliance

• Best of Breed Reverse Auction Process

– Proven to Secure the Lowest Price in the Market

– Provides an Array of Pricing Parameters

• Market Expertise and Pricing Knowledge

• Energy Procurement Experience

Delivered Using a State of the Art Web-Enabled Software Suite Specifically Designed for Energy

Procurement Management


Documentation, Process, and Automated Features of Platform facilitate Sarbanes-Oxley compliance

Compliance – Documented Audit Trail

1. Market structure briefings

2. Benchmark price analysis

3. Market sensitivity analysis

4. Contract options and analysis

5. Reverse auction results summary

1 2

3 4 5


Compliance - Sarbanes Oxley

• Public companies now spend between 2 and 5 cents per share annually on compliance

• Sarbanes-Oxley Section 404 requires management to articulate company’s internal control structure

• Processes and Controls for procurement are not explicitly delineated but the recommended approach is to become more prescribed and stringent

• Auditors are beginning to require subcontractors to have SAS 70 Type II Audit to have comfort around IT infrastructure of subcontractor

World Energy’s Process and Platform has helped Government and Corporate Buyers Adhere to the most stringent purchasing policies


The Procure™ Process

NeedsPlanning

MarketAnalysis

Auction ContractOngoingSupport

• Discuss Goals

• Review current market conditions

• Identify Locations

• Request and Format 12 months historical usage

• Perform Price-to-Compare Analysis

• Identify Contract Parameters

• Structure RFP

• Alert 100% of registered supply base

• Run reverse auction

• Upload contracts, sites and usage

• Prepare for Renewals

Proven Process Ensures Success and Supports Compliance

• Perform Savings Analysis

• Recommend Contracting Terms

• Review and finalize contract

Life of Contract


From the World’s Foremost Authority

“The most important issues in auction design are the traditional concerns of competition policy--preventing collusive, predatory, and entry-deterring behavior. Ascending and uniform-price auctions are particularly vulnerable to these problems.

“The Anglo-Dutch auction--a hybrid of the sealed-bid and ascending auctions--may perform better.”

Paul Klemperer, Ph D

Edgeworth Professor of Economics, Oxford University

“What Really Matters in Auction Design”


World Energy Exchange™

Price-to-Compare provides a market

benchmark…

Natural competition, enhanced by

blinding number of suppliers and

leading supplier, drives price down

Fixed end time causes suppliers to

sharpen their pencils…

… and often bid lower than would

be otherwise required to win the

business.}

“The site is brutally efficient at driving the price down to the bare minimum.”

Manager C+I Sales, Major Supplier

“The auction saves between 7 and 9% versus the paper-based RFP process we formerly used with our clients.”

Eric Hoegger, Cargill Energy Mgmt Svcs

… against which customer savings

are quantified.


Approach Designed to Yield Lowest Price

0%

20%

40%

60%

80%

100%

Dynamic Auction vs Traditional Paper/Phone/Fax Methods: Pitting suppliers against one another creates a more competitive atmosphere, provides suppliers with more information about real time bidding dynamics, and shrinks time suppliers hold their prices - causing suppliers to bid more aggressively.

Fixed End Time vs Overtime Format: Having a hard stop causes the last bid to be “blind”, causing suppliers to put their best bid as their last.

Direct Bid Entry vs Proxy Bid: Causes suppliers to lower their bid by more than the minimum amount to win.

% o

f Tota

l S

avin

gs

35 -40%

35 -40%

25%


RFP Architecting

Intelligent sequencing of RFPs can yield bidding behavior that favors the customer

After losing the first RFP, Supplier 3 submits a last bid 2.8 mils lower thanthe then-current lowest bid and 1.9 mils lower than the second lowest bid.

Auction 1

Auction 2

Supplier 1

Supplier 1

Supplier 1Supplier 1

Supplier 2

Supplier 3

Supplier 4

Supplier 3

Supplier 3

Supplier 4

Supplier 1

Supplier 5

Supplier 1


Parameter Testing

• On-line Auction allows for testing of different procurement parameters

– Contract Term (e.g. 12, 18, 24, 30, 36 mos)

– Product (Fixed, Indexed, Baseload)

– Green Power Mix

• Also enables grouping of like load factor accounts to minimize cross-subsidization


Intelligence to Guide Strategy Decisions

• Platform contains market analysis for all deregulated markets

• Wholesale Pricing trends

• Market Characteristics

– Switch Rules

– Regulatory Hist

– Rate Classes

• Current Go-to-Market recommendation


8.21625

6.74400

12 mo Strip

7.13367

7.55792

5.9560424 mo Strip

6.88950

4.604.704.804.905.005.105.205.305.405.505.605.705.805.906.006.106.206.306.406.506.606.706.806.907.007.107.207.307.407.507.607.707.807.908.008.108.208.308.40

Trade Date

Clo

se P

rice

($

pe

r M

MB

tu)

In-Market Experience to Guide Timing

• While we do not advocate market timing, we have successfully guided customers in when and where to go-to-market to minimize cost.

• For example, for GSA NY, we ran the May 2004 renewal in October 2003, as we identified a cyclical dip in the market, and as a result they are enjoying prices 20% lower than they would have gotten in Q1.

PJM rolling 12 and 24 month contracts

65.19

12 mo contract

53.64

60.30

24 mo contract

49.62

57.75

55.74

42.0043.0044.0045.0046.0047.0048.0049.0050.0051.0052.0053.0054.0055.0056.0057.0058.0059.0060.0061.0062.0063.0064.0065.0066.00

12/3

0/03

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041/

13/0

41/

20/0

41/

27/0

42/

3/04

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04

Trade Date

$ / M

kWh

Electricity

Gas

40%

10% 20%

75%

Timing of Exchange Volume


Broad-Reaching Market Intelligence

• Reports Available on All Active Competitive Deregulated Markets

• Intelligence Sources– Primary Research by

Market Directors and Analysts

– In-Market Expertise– Exchange Data– Content from KEMA via

Exclusive Relationship– Hub Pricing from

Industry Sources


Gas Only

Experience in Managing Complexity

World Energy’s broad market coverage (25+ States, 100+ Utilities)

enables us to support Clients with locations across the country

Electricity + Gas

Ontario

Not Currently Active or Not Deregulated


Software Tools to Support Management


Better than Traditional Processes

On the same day an industrial client’s consultant solicited the top 5 suppliers in the market, World Energy auctioned the client’s load to the other suppliers in the market and received pricing that was 18% lower than the consultant’s traditional process.

A large hotel operator’s incumbent supplier attempted to bypass the process and bid on a Tuesday. The operator instructed supplier to bid via the World Energy Exchange on Thursday. Even though market prices rose over the two days, the operator received lower pricing from the incumbent (who won the auction) and more favorable contract terms.

The Veteran’s Administration was part of an aggregation of several hospitals. The incumbent supplier bid directly to the client while World Energy ran an auction. The final price was 3.5 mils lower even with a GSA solicitation that had more favorable terms for the government.


Good for Suppliers, Too

“I get a lot of good pricing information about the

market through the auction process.”

“You bring deals my sales force

doesn’t see, so I have sales and

marketing margin to play with.”

“I know where I stand in the

process, so I can mitigate my risk in the wholesale

market.”

“Their data is so well organized, it costs me less to price a deal from World Energy.”


Additional Slides for Government Sales


Market Leader: Recognition and Awards

• Over the Past 4 years we have enabled clients to be recognized by their peers and superiors in winning 7 prestigious awards

• Awards for either – Use of innovative technology– Procuring green power

• Winners include– Boyd Rutherford, Sec’y of State, MD– Linda Collins, Director, NGAP– GSA Region 2– Energy Center of Expertise

Louis R. Harris, Jr. Award

Presidential Award

Innovative Technology Award

GSA Environmental Award

Named “Outstanding Program”

in June 2005

for any cost saving program of any kind

in any of the 50 states

at NASCA/NASFA joint conference.


Case Study: State of Maryland• Directly marketed to Universities and other Agencies on Maryland Department of General

Services (DGS) behalf; Created 30,0000 line database of electric account usage

• Aggregated accounts in multiple rate classes and four utilities; Segmented loads into 79 RFPs to meet client agency objectives

• Accurately Forecast Utility Rate 6 weeks in advance of publish date, providing customer with confidence to go to market before competitive supply prices rose 15%

• Received over 440 bids as a result of three procurements

• Auction sizes ranged from 30M kWh to 1.2B kWh

Result

• Received 100 MWH of renewable power at no price premium

• 820 accounts in four utilities served including state accounts, 7 universities with the option to procure on their own, and both city and county agencies who opted onto DGS’s contract

• $112M in contract awards made to 7 different suppliers

• Estimated discount off utility rate of over $13M

• DGS received the National Association of State Chief Administrators (NASCA) 2005 national award for this procurement www.nasca.org


Case Study: DC Government

• DC’s two previous attempts with traditional consulting firms resulted in only two bidders and uncompetitive bids / no awards

• Increased the number of bidders from 2 to 5 (7 eligible to bid)

• Modeled price to beat for over 600 individual accounts

• Re-wrote supply Solicitation based on customer requirements and lessons learned from past government PJM buys in NJ and MD

• Created 7,000 line usage database from raw utility data

Result

• $41.2M in contract awards and 100% of accounts served

• 5% or 33M kWh of green power awarded

• Assisted in shortening DC City Council award timeline from 2 weeks to less than 24 hours

• Estimated discount off Utility Rate of $11 M

• Total time between procurement contract and supply contract award: 21 days


Case Study: Large NE Utility

• Client had been using traditional paper-based procurement performed by T+M consultant

• Intrigued by World Energy Exchange due to experience with unregulated subsidiary bidding as a supplier on World Energy government and commercial retail auctions

• Engaged World Energy to buy financial instruments for 3 utilities’ wholesale power needs

– Fixed volumes

– “Slices of the System”

• Volume ~ 5,000,000,000 kWh

Result

• Successfully placed all contracts worth over $500,000,000 with 5 suppliers including Morgan Stanley, JP Morgan Chase and Entergy Nuclear

• Reverse Auction outperformed paper-based process by 7-9%

• Saved rate payers $35,000,000 to $45,000,000

• World Energy fees 1/3 of traditional T+M consultant

• Process hailed by PUC for Cost Savings

• Process validated by Price Waterhouse for Sarbanes-Oxley Compliance


Drivers of Success

• Regulatory and Market Rules

• Commodity Trend Technical Analysis

• Forward Pricing Curves

• Price to Compare Analysis

• Contract Decision Support Analysis

MarketIntelligence

ProcurementProcess

Energy-SpecificTools

• Marketing Support to Build the Aggregation

• Load Pull/Database Creation

• Solicitation Development

• Supplier Communication and Management

• Due Diligence Reporting

• Market Summaries

• Hybrid Anglo-Dutch Auction Designed Specifically for Energy

• Contract, Site, Account Management

• On-Going Usage Tracking


Natural Gas Future Contracts, 12 & 24 Month (Months Forw ard from Trade Date)

NYMEX Henry Hub Strip, Traded Sep 2003 - Dec 2005

12.06

12.32

10.67

12.4012.70

12 mo Strip

8.22

6.70

7.68

5.67

6.91

8.188.21 8.04

9.649.78

10.82

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

9/30

/03

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0/03

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11/2

9/03

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05

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2/11

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3/3/

05

3/23

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4/12

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05

5/22

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6/11

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05

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8/10

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9/19

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10/9

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8/05

12/8

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12/2

8/05

Trade Date

Clo

se

Pri

ce

($

pe

r M

MB

tu)

NGAP Success

Intelligence Enables Going to Market at Low Points to

Realize Significant DiscountsOff Utility Rates


GSA NY Success

NY Zone_J rolling 12 and 24 month contracts

114.90

102.95

99.60

79.25

108.35

12 mo contract

136.00139.15

143.20

114.25

100.23

80.93

96.73

24 mo contract

107.85

103.85

117.93119.00

132.48

125.03

133.23

128.93

137.60

75.00

80.00

85.00

90.00

95.00

100.00

105.00

110.00

115.00

120.

125.00

130.00

135.00

140.00

145.00

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3/05

Trade Date

$ /

MW

h

00

Intelligence Enables Going to Market5 months before a Contract is Upto Lock in Favorable Rates andAchieve a Significant Discount

{


State of MD Success

PJM West rolling 12 and 24 month contracts

49.50

55.00

45.85

102.01

95.19

79.05

98.75

49.25

67.50

51.25

53.90

64.34

12 mo contract

61.60

86.25

95.08

91.13

52.82

24 mo contract

77.50

42.00

47.00

52.00

57.00

62.00

67.00

72.00

77.00

82.00

87.00

92.00

97.00

102.00

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510

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05

Trade Date

$ /

MW

h

Intelligence Enables Going to Market before Utility Rate is Announced

And Take Guaranteed Discounts Not Available Later if Client Waited as Consultant Advised


Rigorous Attention to Compliance

Aggregation-specific web sites provide consistent communication of content, timelines and deliverables – minimizing opportunities for errors that could lead to protests.

Procurement calls are recorded, transcribed, and published to document off-line processes.

The Exchange – synched to the atomic clock - automatically date and time stamps all bid activity.


World Energy and IEC

World Energy Platform:

• Industry-leading procurement technology

• Helps address growing SOX compliance needs

• Maximize savings from a deregulated market

• Achieve short or long-term purchasing confidence

• No obligation, no cost

World Energy and IEC

• Neutral players to secure your advantage

• A voice you can trust – people you know


Wrap-up and Next Steps

Action Who? SuggestedDate

Gain Clarity on Goals Joint Today

Provide List of Accounts Client Today

Sign Schedule A’s Client Today + 5 Days

Perform Market Opportunity Review IEC/World Energy

Today + 10 Days

Sign Procurement Consulting Agreement

Client Today + 15 Days

Perform Price-to-Compare Analysis IEC/World Energy

Today + 22 Days

Run Auctions IEC/World Energy

Today + 30 Days


Thank You (End of Sales Presentation)


Platform Demo

• We have developed an online demo as a short introduction to our platform

• Benefits

– Use when an in-person presentation is not possible

– The platform link can be packaged as a “calling card” which can be forwarded within an organization

– Addresses general reverse auction questions

• We are in the midst of producing an updated demo– feedback and suggestions are appreciated


Agenda – Part I

Introductions




Frequently Asked Questions Discussion – 1 hour


Development


Agenda

Part I Company Overviews


Part II Operations Review





Agenda – Part II

Platform Development – 30 minutes

WE Auction Process – 2 hours

Marketing Discussion – 1.5 hours

Platform Walk-through – 1 hour


History of Platform Development

• Mgmt Insight– Contract

Profitability– Usage Variance– Intelligence

Dashboard

• Automatic Data Feeds

– Pricing Curves– Utility Data (EDI)

•Self-Service

•Green Credits Trading

•Bill Validation

2003 2004 2005 2006

•1.x• RFPs• Auction• Suppliers• Utilities• Contacts

•2.x• Partners• Pricing Prods

•3.x• Contracts• Sites• Accounts• Market Intel

•4.x• Commissions• Receivables• Data Migration

•5.x• Reporting

•6.x• Deals• Process

2006, 2007 +


Agenda – Part II






The Procure™ Process

NeedsPlanning

MarketAnalysis

Auction ContractOngoingSupport

• Discuss Goals

• Review current market conditions

• Identify Locations

• Request and Format 12 months historical usage

• Perform Price-to-Compare Analysis

• Identify Contract Parameters

• Structure RFP

• Alert 100% of registered supply base

• Run reverse auction

• Upload contracts, sites and usage


Proven Process Ensures Success and Supports Compliance

• Perform Savings Analysis

• Recommend Contracting Terms

• Review and finalize contract

Life of Contract


World Energy Partner Roles

Role Organization

Identify Opp’y Partner

Introductory Meeting Partner

Sales Meeting WE/Partner

Gain Dealsheet/ Contract Partner

Submit Usage Requests and Prepare Data

Partner

Customer Analysis WE

Supply Conference – Set Customer Expectations

Partner

Prepare RFP WE

Run Auction WE

Due Diligence Rpts WE

Negotiate Contract Partner

Obtain Signature WE/Partner

Account Management Partner


Customer Objectives

• Prep with supply team (optional)

– General market overview

– Current market conditions

• Introductory meeting with customer

– Discuss value proposition

– Review market conditions and potential

• Indicate Lead to WE via Pipeline report

• Send introduction package to Partner

– Confirm receipt of opportunity

– Tentative fee agreement

Needs Planning

WE Partner Both


Customer Objectives

• Sales meeting– Business requirements discussion

• Contract term• Pricing structure (Fixed, Indexed)• Supplier preferences or exceptions

• Complete WE dealsheet− Contact Info− Total Energy Consumption− # of Facilities− LDCs− Locations− # of Accounts− Name of Current Supplier

− Contract Expiration Date− Rate− Contract Amount− D&B # (if 400K+ contract)− Requested flow date− Contracting Party Info− Tax Id#

Needs Planning

WE Partner Both


Pre-Auction

• Obtain bill determinant data (electronic, with IDR data if

applicable)

• Provide an energy procurement recommendation

• Provide price-to-beat and analysis if applicable

– suggest target price

– identify expected savings, if applicable

Market AnalysisWE Partner Both


Deal Analysis – Pre-Auction

WE Recommend Summarizing Prices Across All Facilities…

…and Presenting in the Auction Grouping for Comparison

Account #Peak kW

Total Annual kWh

> 500 kW Account

5 mil Adder*

June 2004--> PTB (no 6% tax)

24 Months

30 Months

42 Months

24 Months

30 Months

42 Months 24 Months 30 Months 42 Months

5197393114 0 25,009 No 0.0423 0.0423 0.0423 0.0423 0.0435 0.0442 0.0453 0.0448 0.0462 0.04845121346913 110 292,920 No 0.0634 0.0634 0.0634 0.0634 0.0653 0.0663 0.0679 0.0671 0.0692 0.07265121241313 23 40,068 No 0.0556 0.0556 0.0556 0.0556 0.0573 0.0581 0.0596 0.0589 0.0607 0.06375121305311 86 258,435 No 0.0572 0.0572 0.0572 0.0572 0.0588 0.0598 0.0612 0.0605 0.0624 0.06555120437621 8 26,166 No 0.0563 0.0563 0.0563 0.0563 0.0579 0.0588 0.0603 0.0596 0.0614 0.06445121236115 69 208,020 No 0.0577 0.0577 0.0577 0.0577 0.0594 0.0603 0.0618 0.0611 0.0630 0.06615121348118 12 4,560 No 0.0509 0.0509 0.0509 0.0509 0.0523 0.0531 0.0544 0.0538 0.0555 0.05825121206011 132 522,840 No 0.0611 0.0611 0.0611 0.0611 0.0628 0.0638 0.0654 0.0646 0.0666 0.06995119040128 608 3,100,800 Yes 0.0050 0.0645 0.0624 0.0629 0.0633 0.0643 0.0658 0.0679 0.0662 0.0687 0.0727

Weighted Average 0.0632 0.0616 0.0620 0.0623 0.0635 0.0648 0.0668 0.0653 0.0677 0.0715

Sensitivity Case Weighted Avg Price to Beat (no 6% Tax)0% Annual Cost Increase

Base Case Weighted Avg Price to Beat (no 6% Tax)5% Annual Cost Increase

Moderate Growth Case Weighted Avg Price to Beat (no 6% Tax)

10% Annual Cost Increase

Tariff Class TRANCHE (ACCOUNT GROUPING)

ANNUAL KWH

# OF ACC. TERM IN MONTHS

Sensitivity Case (0% Annual Cost

Increase)

Base Case (5% Annual Cost

Increase)

Moderate Growth Case (10% Annual

Cost Increase)

Expected Value (10% Sensitivity, 55% Base,

35% Moderate)BPL, GLP 3,040,904 30 24 0.0609 0.0627 0.0644 0.0631BPL, GLP 3,040,904 30 30 0.0609 0.0636 0.0664 0.0643BPL, GLP 3,040,904 30 42 0.0609 0.0652 0.0697 0.0663

LPLS 13,550,480 5 24 0.0650 0.0669 0.0689 0.0674LPLS 13,550,480 5 30 0.0654 0.0684 0.0714 0.0691LPLS 13,550,480 5 42 0.0658 0.0705 0.0754 0.0717

BPL, GLP, LPLS C 4,478,818 9 24 0.0616 0.0635 0.0653 0.0640LPLP 10,396,800 2 24 Hourly N/A Hourly N/A Hourly N/A Hourly N/ALPLP 10,396,800 2 30 Hourly N/A Hourly N/A Hourly N/A Hourly N/ALPLP 10,396,800 2 42 Hourly N/A Hourly N/A Hourly N/A Hourly N/A

D, E

A

B

Price to Beat ($/kWh, no taxes)

Market Analysis


Deal Analysis – Assess Market Conditions

• Review market factors (optional)

• Tariff pricing structure (optional)

– Identify tariff sensitivity factors

• Load characteristics

• Tie-in to Natural Gas Index

• Tariff switches

• Transition charges

• Assess sensitivities to factors, using (optional)

– Objective third party research

– Historical analysis

– Current market events and conditions



Pre-Auction

• Customer, sales, and supply conference call (WE

Optional)

– Discuss market conditions and price expectations

– Review general contract items

– Confirm signatories

– Schedule auction time and date

– Schedule follow-up Contract Meeting



Pre-Auction

• Package the customer load

– Determine contract parameters

– Set tranches by rate class, LDC, etc.

• Confirm auction with customer

• Alert suppliers

• Conduct auction

Auction ProcessWE Partner Both


Auction

• Deliver post auction summary

• Contract Meeting

– Review auction results

– Identify supplier(s) and contract(s)

– Obtain executed contract

• Administer contracts

• Process payments

• Maintain customer relationship

• Send renewal notice to Partner

Contract ApptWE Partner Both


Post-Auction

• Upload

– Sites

– Usage

– Contracts

• Maintain customer access to platform


Ongoing SupportWE Partner Both


Agenda – Part II






Accomplishments and Goals

• WE and IEC have laid the foundation for a long-

standing Partnership

• Focused, structured initiatives will help us build this

relationship

– Relationship definition

– Marketing

– Sales approach

– Operations – deal processing


Defining the Relationship

• Accomplishments

– Signed partner agreement

– Defined roles

– Identified revenue breakdown

• Goals

– Implement pilot in Q1/Q206

– Rollout by end of Q206


Marketing - Goals

• External Marketing

– Press release

– Mutual trade show presence

– Mutual web listings

– Cobranded whitepapers

– Deal success press release

• Internal Marketing

– Deal announcements/auction monitoring

– Intranet presence

– Newsletters


Sales Approach - Goals

• Identify product rollout markets

• Design and distribute support materials

• Define operational procedures for opportunity

management

• Sales roles and responsibilities

• Account management responsibilities


Sales - Design And Distribute Support Materials

• Partner marketing and sales materials

• Value proposition script

• Customer qualification questionnaire/screening tool


Sales - Roles And Responsibilities

• IEC

– Lead generation

– Customer qualification

– Price-to-beat analysis

– Contract negotiations

– Deal closing

• World Energy

– Market assessment

– Procurement auction

– Post auction results reports


Sales - Account Management Responsibilities

• IEC

– Continuous customer contact

– Expand product penetration to other locations

– Contract renewal(s)

• World Energy

– Renewal reminders

– Market updates through platform


Operations – Deal Processing - Goals

• Develop event chain and associated timing

• Identify contact points for rollout

• Identify and train platform user(s)


Agenda – Part II






Platform Login

• We have set up a user account for IEC

• www.wesplatform.com

– User Name: sebron

– Password: newpartner


Thank you!

Andrew [email protected] Energy Solutions800-578-0718

company confidential partner program training 2006 andrew thomas vp partner development world energy...

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