Energy Business Intelligence Optimizing Energy As a Part of Business Operations

Energy Business Intelligence Definition Key Attributes Architecture Optimizing Energy ROI Management Framework Operational EBI Challenges and Opportunities Examples What to Look For in a Vendor PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Steps in Energy ROI Facilities engineering improvement Facilities energy management Energy Business Intelligence PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Definition Business Intelligence is an environment that provides real-time, interactive access to, and analysis and manipulation of, mission-critical corporate information that provides valuable insight into key operating and strategic information to quickly identify business challenges and opportunities and to evaluate alternative responses to those challenges and opportunities Energy Business Intelligence is Business Intelligence applied to the energy component of your company’s resource and capacity management Energy Business Intelligence is referred to as “EBI”. PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information EBI ROI Day-to-day energy cost savings Long-term energy cost savings Energy as a component of Enterprise Resource Planning (ERP) Reduced operational risks Good energy citizenship PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Four Key Attributes of EBI Relevant Substantive, important, and actionable Abstract Comprehensive, meaningful, and comprehensible Interactive Available, malleable, and publishable Immediate Real-time, online, concurrent PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Architecture Presentation Analytics/Models Information Fundamental Data Data Management Cognizance PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Fundamental Data/Data Management PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Information /Analytics/Models PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Presentation / Cognizance PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Energy ROI Optimization Energy Supply Operational Energy Analysis Facilities Optimization Operations Optimization Energy Strategy PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information ROI: Energy Supply Contracting Management and Tracking Operational Sourcing Continuous Sourcing Optimization Hedging PredictPower Proprietary and Confidential Information [EBI030421..ppt]

ROI: Operational Energy Analysis Operational Factors Variable energy requirements reflecting operational decisions and alternatives Discretionary Factors Luxuries, design, advertising, and convenience factors, etc. Human Environmental Factors Energy requirements to support human environment – “life support systems” Climatological Factors Energy requirements directly related to weather conditions and climate Baseline Factors Facilities baseline infrastructure and fundamental plant equipment Identify those components with maximum return on investment for energy initiatives – prioritize PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Energy Cost Elements Human Environmental Factors Operational Factors Discretionary Factors Weather Factors Baseline Factors By normalizing for these factors, we can illuminate the incremental costs of those factors that can be influenced by business decisions and training Baseline Factors Weather Factors These factors are most subject to improvement through operational changes, business decisions, education and awareness, etc. Human Environmental Factors Operational Factors Discretionary Factors PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Component Contributions to Cost Cost Contribution Contribution to Variance Special Events (adder) 1.2% 1.7% Monthly Cycles .4% Other Annual Cycles 2.0% 2.6% Production Calendar 11.4% 10.7% Day of Week 11.6% 10.8% Hour of Day 9.5% 8.9% Weather-related 19.6% 49.9% Incremental Changes/Energy Mgmt 12.4% 2.7% Year-to-Year Growth 1.0% Base Load 29.2% fixed Discretionary Operations Human Environment Weather Baseline PredictPower Proprietary and Confidential Information [EBI030421..ppt]

ROI: Facilities Optimization Benchmarking and Comparisons Energy Initiatives Decision-making Project Management and Tracking Human Environmental Initiatives ROI Validation and Lessons Learned PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information ROI: Operations Distributed Generation Dispatch Energy Supply Alternatives Scheduling Energy Profiling Procedures Production Line Options Warehousing/Distribution Choices Demand Response Programs Utility sponsored Internal Energy Awareness PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information ROI: Energy Strategy Distributed Generation Manufacturing and Operations Technology Geographic Strategies Energy Sourcing Strategies Product Cost and Pricing Models Product Life Cycle Energy Models Energy Citizenship PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Energy ROI Optimization Energy Supply Facilities Optimization Operational Energy Analysis Operations Strategic Energy Considerations E2RP = Enterprise Energy Resource Planning with Energy Business Intelligence Energy Supply Facilities Optimization Operational Energy Analysis Operations Strategic Energy Considerations PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information The EBI Business Flow PredictPower Proprietary and Confidential Information [EBI030421..ppt]

EBI Component Solutions Presentation Notification Dissemination Financial Risk Management Operations Risk Visualization Alerts Controls Energy Budget Management Energy Sourcing Management Energy Portfolio Management Cash Forecasting Demand Response Mgmt Energy&Operations Risk Mgmt Strategic Decision Support Engineering Alerts Operational Alerts Key Performance Monitor Energy Initiatives/Projects Mgmt Process Improvement Monitor Cost Reduction Program Mgmt Operations Planning Analytics Scenario Processing Process Improvement Business Systems Industry Benchmarks Project Mgmt Energy Market Info Forecasts 3rd Party Information Installed Devices Utility Devices Invoice Info XML Feeds EDI Feeds 3rd Party Systems Business Information Repository Enterprise Energy Info Market Information Repository PredictPower Proprietary and Confidential Information [EBI030421..ppt] PredictPower Proprietary and Confidential Information

PredictPower Proprietary and Confidential Information Management Framework Constraints Performance Operational Risk Financial Risk Strategy Planning Tactics Energy Requirement Energy Supply Operational Risk Financial Risk Operational Risk Financial Risk Energy Requirement Energy Supply Energy Requirement Energy Supply Strategy Planning Tactics Strategy Planning Tactics PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Energy Requirements Location Quantity Type Schedule Quality Reliability Accountability Environment Financial PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Energy Supply Delivery Points Location Capacity Connectivity Suppliers Acquisition methods Internal supply Other PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Operational Risk Production Interruption Distribution Interruption Inventory Spoilage Capacity Reduction Facilities Degradation / Damage Employee Productivity Loss Customer Disruption Customer Cost Excursion Loss of Sales Market Reputation Impact Regulatory Risk Safety Concerns PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Financial Risk Increased price volatility Increases Maximum Monthly Energy Cost 41% Increases Total Energy Cost 7% PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Financial Risk Energy Cost Excursion Inventory Spoilage / Write-off Facilities Repair Loss of Sales Loss of Profitability Customer Churn / Cost of Customer Acquisition Compensatory Goods and Services Market Positioning Costs Capital Costs Regulatory and Safety Risk Mitigation Costs PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Strategy, Planning and Tactics Strategic horizon 2-20 years (and beyond) Business strategy Corporate portfolio Capital programs Energy sourcing strategy Planning horizon 1- 24 months Budgets Initiatives Projects Annual cycles Contracts Tactical horizon now – 1 month Operational decisions Response programs Corrective actions Scheduling PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Energy Strategy Product / Solutions Portfolio Facilities Siting Technology Facility Energy Characteristics Energy Management Processes Cost Allocation and Budget Management Internal Energy Sourcing Demand Response Programs Sourcing Strategy Financial Instrument Strategy PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Energy Planning Business Performance Objectives (KPIs) Energy Performance Objectives (Energy KPIs) Energy Budget and Budget Accountability Demand Response Programs Energy Procurement Contracts Operational Improvements Employee Awareness Projects and Initiatives Energy Control Improvement Energy Usage Analysis Energy Cost Analysis Portfolio Balancing PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Energy Tactics Energy Monitoring and Control Demand Response Operational Risk Identification & Mitigation Scheduling Alerts and Notifications Balancing Spot and Near-Real-Time Procurement PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Management Framework Constraints Performance Operational Risk Financial Risk Strategy Planning Tactics Energy Requirement Energy Supply PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Constraints Physical Facilities Local and Regional Energy Infrastructure Energy Market Structure and Conditions Enterprise Market Trends and Forecasts Financial Strength Corporate Policies Regulatory Environment Company Culture Risk Tolerance (Operational) Risk Tolerance (Financial) Organizational Skills PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Performance Corporate Performance Objectives / Metrics Energy Contribution to Metrics Energy Metrics Key Performance Indicators Reporting and Accountability Visibility Regulatory Context Good Citizenship and Market Positioning PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Monitoring, Interpreting, and Deciding Management Framework Constraints Performance Operational Risk Financial Risk Strategy Planning Tactics Energy Requirement Energy Supply Constraints Performance Operational Risk Financial Risk Strategy Planning Tactics Energy Requirement Energy Supply Monitoring, Interpreting, and Deciding PredictPower Proprietary and Confidential Information [EBI030421..ppt]

EBI and Process Improvement Analyze Predict React Monitor Baseline ROI Energy Business Intelligence Platform PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Challenges and Opportunities Energy Requirements Location Quantity Type Schedule Quality Reliability Accountability Environment Financial Energy Supply Delivery Points Suppliers Acquisition methods Internal Supply Other Operational Risk Production Interruption Distribution Interruption Inventory Spoilage Capacity reduction Facilities Damage Productivity Loss Customer Disruption Customer Cost Excursion Loss of Sales Market Reputation Impact Regulatory Risk Safety Concerns Financial Risk Energy Cost Excursion Inventory Write-off Facilities Repair Loss of Profitability Customer Churn Customer Acquisition Compensatory Goods and Services Market Positioning Costs Capital Costs Regulatory and Safety Risk Mitigation Costs Energy Strategy Product / Solutions Portfolio Facilities Siting Technology Facility Characteristics Energy Processes Cost Allocation and Mgmt Internal Energy Sourcing Demand Response Programs Sourcing Strategy Financial Instrument Strategy Energy Planning KPIs Energy KPIs Energy Budget/Accountability Energy Procurement Contracts Operational Improvements Employee Awareness Projects and Initiatives Energy Control Improvement Energy Usage Analysis Energy Cost Analysis Portfolio Balancing Energy Tactics Energy Monitoring / Control Demand Response Operational Risk Mitigation Scheduling Alerts and Notifications Balancing Spot Procurement Constraints Physical Facilities Local Energy Infrastructure Energy Market Conditions Financial Strength Corporate Policies Regulatory Environment Company Culture Risk Tolerance (Ops) Risk Tolerance (Finance) Organizational Skills Performance Corporate Metrics Energy Contribution Energy Metrics KPIs Reporting / Accountability Visibility Regulatory Context Good Citizenship PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Organization Energy Management and Control Facilities Management Capital Projects Operational Processes Production/Operations Scheduling Project Execution Training Technology (Production Line / Distribution) Technology (Product) Product Portfolio Management Facilities Siting Procurement Contracts Distributed and Internal Generation Financial Instruments Risk Assessment and Concurrence IT Systems Who has the expertise Who has the knowledge Who is affected Who influences Who recommends Who decides Who concurs / vetoes Who executes Who monitors Who reports PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Information: From Top  Bottom Strategic Planning Tactical How does info fit within the organization? What decisions What information required When is it required Over what timeframe Baseline? Benchmarking? Comparatives? Integrated with business information? Scenarios? What-ifs? PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Information: From Bottom  Top Objectives of the decision Who are the decision-makers When, how often, and where is the decision made What Decision? What Information? How Presented? How Derived? What Source? Basis for decision Interpretation/analysis of information User skills Format Flexibility, user-definition, and analytics/models Timeliness and frequency Analysis & Algorithms Manipulation of data Integration with business, market data Storage and warehousing Interfaces (internal and external) Data Capture PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Energy Business Intelligence What does it look like? Some examples

individual user functions Dashboard tailored to individual user functions

PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Routine and ad hoc Reports PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Price Signals PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Aggregated Historical Baseline Lots of graphical analyses Aggregated Historical Baseline Total kilowatt-hours, Commercial Operations, US PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information On-line (and Web) Presentations PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Cell-phone/Pager Messages Price Excursion Alert 08/03/02 Call John at 800-555-1212 Price Alert 800-555-1212 PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Email From: Alert@PredictPower.com Sent: Friday, July 05, 2002 8:32 PM To: Facilities Manager (Eastern Operations) Subject: Energy Price Excursion Alert   Current weather conditions indicate that there is a greater than 90% probability that peak electricity prices in California’s SouthPath 15 will increase by more than 25% on Thursday, August 7, 2002. This price increase may impact your real-time price contracts in facilities located in San Diego and Riverside Counties. For more information, go to http://www.PredictPower.com/electricity_alerts.htm   Thank you The PredictPower Electricity Price Alert Team http://www.PredictPower.com Alert@PredictPower.com (888)-555-1212 PredictPower Proprietary and Confidential Information [EBI030421..ppt]

What to Look For in an EBI Vendor Understanding of energy market dynamics Understanding of enterprise energy context (in your business) Understanding of business operations Strong analytical and modeling capabilities Effective vendor and solution partnerships Business Intelligence expertise Systems integration strength Strong project management Operational and user perspective Technical perspective PredictPower Proprietary and Confidential Information [EBI030421..ppt]

PredictPower Proprietary and Confidential Information Why PredictPower? PredictPower PredictPower Proprietary and Confidential Information [EBI030421..ppt]

Energy Business Intelligence Optimizing Energy As a Part of Business Operations