Energy Management Services Proposal for Hilite International Prepared by: Mark R. Burns, President Independent Energy Consultants, Inc. June 13, 2006

2 Comprehensive Approach to Energy Management Energy Supply Sourcing –Identify least cost options & mitigate risk –Natural Gas –Electric Energy Management –Turning data into decision quality information –Tariff Analysis –Bill Auditing Demand Side Management –Benchmarking identifies best and worst performers –Power Factor Analysis – eliminate utility penalties –Share best practices –Energy walkthroughs and audits

3 Gas Only Experience in Managing Complexity 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

4 The Procurement Process Needs Planning Market Analysis AuctionContract Ongoing Support 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

5 Develop Procurement Strategies Strategies will be dictated by various factors Market outlook Risk tolerance Diversification –Suppliers and start dates –Price offerings: fixed, index, variable w/ option to fix, use of options puts, calls, costless collars … Importance of meeting budget by minimizing price volatility

6 IECs Probabilistic Market Modeling Probabilistic Modeling Captures Real-Life Uncertainty, Client Risk Tolerance and Produces a Robust Decision

7 Understanding Your Energy Market 1. Know where market has been 2. Where it is likely to go 3. Your risk tolerance 4. Decide when to go to market and 5. Decide the price structure and terms to accept.

8 An EBay for Energy Independent Energy Consultants brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk. ENERGY COSTS CONFIDENCE Partner with Internet Auction Site that has procured over $1.2bb in electricity, natural gas, and financial instruments. Saved Customers over $100,000,000 5x the volume of nearest competitor Runaway market leader of 40 competitive exchanges

9 Intelligence to Guide Strategy Decisions Platform contains market analysis for all deregulated markets Wholesale Pricing trends Market Characteristics –Switch Rules –Regulatory History –Rate Classes Current Go-to-Market recommendation

10 Auction View Proven time and time again to deliver the lowest price available in the market Design to favor consumer – fixed end time, direct entry bidding

11 IEC Auditing and Tariff Analysis Services Can provide past and ongoing utility bill auditing Look at many billing parameters to spot possible errors Assist in Processing claims for overcharges Verification of proper Rate Code –Utility assigns original rate code –New ones come about and clients operations change Verification of proper Tariff Riders –These change frequently

12 Energy Star Process Begin with benchmarking –Determine best and worst performing facilities Integrated approach (one change effects others) –Recommissioning –Lighting –Load reductions –Distribution systems –Plant upgrades Implement cost effective measures –Seek low interest loans grants to fund projects –Track improvement –Apply for Energy Star Recognition –Publicize and build on success

13 Bench Marking Need to determine where improvements might be needed –Do not want to spend efforts on efficient buildings Benchmark using latest federal government data for commercial buildings (CBECS) Data needed from Hilite –Building size (square feet) –Occupancy (people and hours/week) –Utility bills data – cost and consumption View online at

14 Energy Cost Intensity by Industry

15 Service and Fee Summary

16 Contact Information Contact your licensed full service independent energy experts: Independent Energy Consultants Ph: Toll Free: (888) Fax: (216) Web: naturalgas-electric.com