Presentation to Massachusetts Electricity Roundtable JumpStart Program Presentation to Massachusetts Electricity Roundtable Presented by Steven M. Rothstein AES NewEnergy, Inc. May 18, 2001

Alternative Strategies Participation Rates Mandatory Enrollment (opt out) Voluntary Enrollment (opt in) Technical Changes Customer Education Current System Mass DTE changes

Performance Based Rates Voluntary Enrollment Mandatory Enrollment Topics to Discuss Customer Education Technical Changes Performance Based Rates Voluntary Enrollment Mandatory Enrollment

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Consumer Education Critically important for all customer classes. Increased customer awareness will stimulate greater competition. Demand-pull strategy.

Consumer Education We advocate: Additional bill stuffers Separate mailings Customer seminars (LDC and/or DTE sponsor) Media outreach Paid advertising Public Service Announcements Web site links

Technical Changes The electricity business is largely an information management business.

Technical Changes Streamline data authorization process Support electronic and/or 3rd party telephone confirmation (data authorization and contract) Encourage use of “smart” account numbers. Encourage implementation of “power connections” type programs statewide

Technical Changes – con’t Help new large Default Service C&I customers obtain historical data. Assist suppliers with collecting customer credit information Allow suppliers to collect outstanding payments more timely. Ensure LDC has enough resources to process customer data in a timely manner

Performance Based Rates As DTE moves forward with Performance-Based Rates, include support for competitive market as one of the measurements. Customer education of competitive market Ease of customer data flow Other measurements to support customers’ right to choose

Voluntary Enrollment (Opt In) Market for new & existing Default Service customers. Account managers to meet with C&I customers. (Individual meetings and co-branded seminars.) Provide briefing to pre-qualified suppliers about customer background.

Voluntary Enrollment (Opt In) Customer Service Representative: Have prepared scripts outlining preferred suppliers’ products. Have suppliers’ authorization form, marketing material and website. Establish “hot link” for incoming telephone calls. Forward contact list of telephone calls.

Voluntary Enrollment (Opt In) Supplier Prequalification Process Member ISO - NE. Licensed in Massachusetts. Currently serving retail customers in New England. Financial requirements.

Voluntary Enrollment (Opt In) Direct mail to Default Service customers including bill inserts. Co-branding of written materials. Earned media (joint news conference/articles). Devote a portion of current LDC paid advertising budget? LDC website information/links. Other initiatives.

Mandatory Enrollment (Opt Out) Benefits: Helps get Massachusetts ready for the end of Standard Offer Service in 2005 (45 months). Encourages more customers to be more comfortable with competition. Encourages more suppliers to invest in Massachusetts.

Mandatory Enrollment (Opt Out) Propose program with extensive marketing to customers. Provide customers with predetermined period (i.e. months) to select a supplier. At end of period, randomly assign customers among pre-qualified suppliers. Allow suppliers to select rate class(es) to serve.

JumpStart Program Steven M. Rothstein Managing Director, New England AES NewEnergy, Inc. 617.772.7533 F. 617.772.7550 srothstein@newenergy.com