Volunteer Energy presentation from AFCOM Ohio River Valley Chapter Meeting on May 27, 2010

1. Volunteer Energy – Electric Division

2. Confidential. 2009 Volunteer Energy 2 Company Background Volunteer Energy (VE) is a full-service energy provider, serving various businesses and industries throughout the region with expertise that allows us to provide business solutions that assure competitive and consistent energy pricing for customers. VE is based in Ohio and serves customers throughout the Ohio, Michigan and Pennsylvania regions. VE is certified by the Public Utilities Commission of Ohio (PUCO) as a Competitive Retail Natural Gas Supplier and a Competitive Retail Electric Service Provider. VE’s electric team has over 50 years experience working in the mid-west deregulated energy markets

4. A Regional Load Aggregator

5. 100% aligned with your budget and cost objectives

7. A self serving Electric marketer

8. A subsidiary of a utility companyConfidential. 2009 Volunteer Energy 3

9. Our Client’s Include Property Management Industrial Commercial Financial Institutions Office Buildings Confidential. 2009 Volunteer Energy 4

11. Capacity

12. Congestion

13. PJM ISO fees

14. Ancillaries

15. Load shaping

16. Line loss

17. Gross receipts

18. Risk / holds

19. Supplier margin85% of Cost What is Electric “Choice”? Regulated Deregulated Utility “Tariff” Bundled Cost Includes G,T & D (G) Generation (T) Transmission (D) Distribution P R I C E - T O - C O M P A R E Confidential. 2009 Volunteer Energy

21. Background: Deregulation in Ohio

22. 1999: Ohio Senate Bill 3–Deregulated generation of electricity–Provided for utility divestiture of generation plants

23. 2001-2005: Market Development Period (20%+ shopping in Duke)

24. 2005: Complete divestiture of generation plants

25. 2006-2008: Rate Stabilization Plan (minimal shopping in Duke)Confidential. 2009 Volunteer Energy

27. –Reworked the regulatory framework

28. –Allowed utilities to choose between an Electric Security Plan (ESP) or Market Rate Offer (MRO) to provide default generation supply

29. 2009-2011: Duke Energy’s ESP is in effectDuke rate increases + falling market prices = opportunity for customer savings Confidential. 2009 Volunteer Energy

30. Wholesale Electric Market Trend 8 Confidential. 2010 Volunteer Energy

32. Under deregulation the charges are “unbundled”Non-shopping customer –local utility charges generation, transmission and delivery Shopping customer –supplier charges generation and transmission; utility charges delivery Confidential. 2009 Volunteer Energy

33. Electricity 101 10 Confidential. 2009 Volunteer Energy

34. How to Determine Savings by Shopping 11 Confidential. 2009 Volunteer Energy

35. What Charges Can I Avoid by Shopping? 12 Confidential. 2009 Volunteer Energy

36. What Charges Can I Avoid by Shopping? 13 Confidential. 2009 Volunteer Energy

37. What Charges Can I Avoid by Shopping? 14 Confidential. 2009 Volunteer Energy

38. What Charges Can I Avoid by Shopping? 15 Confidential. 2009 Volunteer Energy

40. Understand your business requirements, i.e., energy budget vs. cost risk that will define various supply options that make sense

41. Negotiate beneficial contract language and terms that fit your commercial requirements and risk profile

42. Market individual or aggregated account usage, contract requirements, and product type to qualified energy suppliers

43. Monitor energy market indices for the optimal buying opportunities

45. How to Shop for an Alternative Electric Supplier 18 Confidential. 2009 Volunteer Energy

46. How to Shop for an Alternative Electric Supplier 19 Confidential. 2009 Volunteer Energy

48. We recommend and deploy an effective purchasing strategy

49. We engage the market on your terms

50. We conduct an “open book” transparent competitive bid process

51. We negotiate supplier agreements to mitigate unnecessary risk

52. We ensure quality billing and account transition

53. We monitor the ongoing energy market for timely contract renewals to “lock-down” optimal future buying opportunitiesConfidential. 2009 Volunteer Energy 20

55. Your authorization to obtain historical energy supply usage and account data by signing an Letter Of Authorization (LOA)

56. Provide VE with a recent copy of your natural gas bill and electricity bill

57. VE will provide individual consultation to assist in providing for best program options, contract terms, and pricing for your organization

58. Finalize a pricing offer upon your final review and approvalConfidential. 2009 Volunteer Energy 21