Ambit Energy May 10, 2007

Page 2 Agenda Company Overview Customer Acquisition/Order Process Communications DNP Process Usage/Billing Challenges Q&A

Page 3 Ambit Overview History –Founded 2006, currently employs 40 associates Network marketing used for distribution –Success based acquisition model –Perfect for selling recurring retail products –Reduces costs associated with direct mail, advertising, etc. Technology infrastructure is a core asset –Mature systems and processes in place –All orders taken over the internet –Allows for scale and keeps overhead costs to a minimum

Page 4 Customer Acquisition - Strategy Customers are acquired through network marketing –Network of independent sales consultants –Relationship selling All orders placed directly through consultant websites –Automated ESI ID lookup –Online rate calculator –Minimizes errors compared to manual processes

Page 5 Order to Cash – Customer Acquisition

Page 6 Who are the players? Public Utilities Commission of Texas (PUC-T) – primary regulatory authority Energy Reliability Council of Texas (ERCOT) - works at direction of PUC Transmission and/or Distribution Service Provider (TDSP) CR/REP (Competitive Retailer/Retail Electric Provider)

Page 7 Communications EDI transactions between Ambit and ERCOT and Ambit and TDSP’s for all enrollments and service orders Delivery Service Agreement – option 1 vs. option 3 –Attempt to improve customer service by consolidating all requests into Ambit (i.e. billing, service orders, etc.) –EDI Challenges – systems need to support all service order request options (i.e. quality check, meter re-read, replace meter, etc.) CR support centers Phone s TDSP web portals MarkeTrak

Page 8 Disconnect for Non-pay #1 Challenge for CR’s Disconnect and Reconnect business rules –Due dates vs. TDSP schedules –Critical Care customers –Disconnect at meter vs. pole (i.e. Bad Dog!, gate locked, etc.) “Energy Hoppers” AMR will help to minimize delays Treatment process –Multiple tiers of treatment timelines based on a customer’s propensity to pay –Business rules built into platform Payment plans Assessment of charges

Page 9 Usage/Billing Challenges Meter re-reads & meter tests –Validity of request? –Customer abuse? Estimated usage vs. actual usage Cancel/Rebill process Discretionary charges

Q&A