Online Energy Procurements: Creating Efficiencies & Reducing Costs November 10, 2010

2 Copyright © 2010 World Energy Solutions, Inc. 2 What We Do World Energy creates and operates energy commodity exchanges that cut costs and maximize incentives. electricitynatural gas renewable power carbon offsetsdemand response

3 Copyright © 2010 World Energy Solutions, Inc. Some of Our Clients  Commercial and Industrial – North American Coverage – Risk Management Services – Operations and Reporting – All Industries / Verticals  Government Customers – Federal, State, Local  Utilities – Energy and Capacity Sourcing – Sarbanes Oxley Compliance  Environmental – RGGI- RPS – Kyoto- Alberta Brown University Over 600 customers and 500 suppliers on the World Energy exchanges

4 Copyright © 2010 World Energy Solutions, Inc. Competitive Shopping  Contract Term Lengths – 12, 24, 36 month standard – Interim Terms for budgeting  Products – Retail vs. Wholesale? – Fixed, Index, Block & Index – Incorporating Renewable Energy  Credit Risk – Event of default – Criteria (Fed ID, DUNS, Financials)  Energy price risks – Consumption Volume – Load Shape – Load Predictability – Congestion  Capacity and transmission risks – Load factor – Changes in PLC – Ancillary services price risk  Competitive Supplier Landscape

5 Copyright © 2010 World Energy Solutions, Inc. PECO Case Study – September 2010  University – 1 account – Over 13M kWh annually  Event offered 7 RFPs – Fixed, Index, Green – 12, 24, 36 month Terms  96 bids from 10 suppliers  Resulted in savings of more than $75,000 with 10% green World Energy has delivered over $3 million in savings to its customers in the PPL service territory and we see similar opportunities in the PECO and Allegheny markets. For Met-Ed and Penelec customers, our process will drive more competition to mitigate post cap prices. Price to compare

6 Copyright © 2010 World Energy Solutions, Inc. PPL Case Study – May 2010  Manufacturer – 1 account – Over 30M kWh annually  Event offered 5 RFPs – Fixed, Index, Block Pricing – 12 & 24 month Terms  90 bids from 10 suppliers  Resulted in savings more than $300,000 The good news for Pennsylvania businesses is that today’s electricity rates are very attractive and there are a lot of suppliers hungry for new opportunities. This is a very potent combination. We are seeing excellent liquidity in the newly-opening markets, and strong, ongoing liquidity in PPL and Duquesne. Simply put, this means customers can land great deals. Price to compare

7 Copyright © 2010 World Energy Solutions, Inc. Additional Considerations Other Charges:  Energy Efficiency / Act 129  Advanced Energy Portfolio Standard – Mandatory – Utilities & Suppliers – Automatically will be incorporating green energy – Small percentages ramping up annually  Taxes – Gross Receipts Tax (GRT)  Mandatory – Utilities & Suppliers  5.9% (4.4% base PLUS 1.5% Revenue Neutral Reconciliation)  Currently ~6.27%  Readjusting to ~6.48% for 2011 – Sales & Use Tax (SUT)  Exemptions

8 Copyright © 2010 World Energy Solutions, Inc. After you Shop  What happens after the switch to a Supplier? – Enrollment  New Contracts for Capped Markets  Renewal Contracts for current Deregulated Markets – Meter Read Dates – Invoices  Single Billing  Dual Billing through Utility  Summary Billing – Invoice Issues & Resolution – Monitoring Market for next contracting opportunity  Proactive approach  See Market Chart

9 Copyright © 2010 World Energy Solutions, Inc. Market Conditions – PJM

10 Copyright © 2010 World Energy Solutions, Inc. 10 Copyright © 2010 World Energy Solutions, Inc. Summary  Lowest available price through transparency and competition. Even test the market to find your sweet spot.  Simplified bidding cuts administrative costs for suppliers, who can be more aggressive pursuing customers.  Faster award times minimize risk premiums, cutting costs.  Control and accountability – Meet your objectives with budget certainty, cost savings, and fulfillment of green energy requirements at the lowest available cost.  “Paper trail” no paper process could provide – All procurement information is captured on the platform. All. “World Energy made our strategic energy purchase easy by attracting a large pool of qualified suppliers to bid for our business and conducted an online auction process that maximized competition and yielded excellent price results. With the elimination of the competitive transition charge in 2011, we expect to pay less for electricity next year.” ~ Don Silverson, CFO of The Hill School

Thank You! Kenneth Antos Vice President, World Energy (508)