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NAVIGATE POWER 2013 New Broker Introduction. Welcome! Whether you’re an experienced energy professional or new to the industry, we’re excited to partner.

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Presentation on theme: "NAVIGATE POWER 2013 New Broker Introduction. Welcome! Whether you’re an experienced energy professional or new to the industry, we’re excited to partner."— Presentation transcript:

1 NAVIGATE POWER 2013 New Broker Introduction

2 Welcome! Whether you’re an experienced energy professional or new to the industry, we’re excited to partner with you. With over 25 years of combined electricity and natural gas experience, we have mastered the industry’s best practices and are looking to share them with you. My partners and I have built Navigate Power on the principles of full transparency, servant leadership, and work ethic. Though the energy business can be challenging, it can be very lucrative if we remain disciplined and work together. We are committed to providing you:  The best resources and up-to-date market information  Competitive supplier relationships and pricing  Technical and customer relationship support  On time commissions and detailed reporting Thank you for your interest in becoming a Navigate Power broker. Let’s make it happen! Sincerely, Mark Nakayama CEO, Navigate Power Our Commitment to You

3 Deregulation 101: Quick History Most plants generate electricity by burning coal, natural gas, and oil. Fossil fuels are burned to create steam that are used to turn huge turbines, creating electricity The local distribution company (“LDC”) is responsible for safely and reliably delivery electricity across their network of poles and wires—or transmission lines. 1. Generation 2. Delivery 3. Meter Reading & Billing The LDC is responsible for reading meters and billing. The LDC is also responsible for servicing and maintenance. REGULATED MARKET

4 Deregulation 101: Quick History Independent generation plants upload electricity to the open market to be traded, like other commodities like oil, natural gas, corn and soy beans. The local distribution company (“LDC”) is responsible for safely and reliably delivery electricity across their network of poles and wires—or transmission lines. 1. Open Market (NYMEX) 3. Delivery 4. Meter Reading & Billing The LDC is responsible for reading meters and billing. The LDC is also responsible for servicing and maintenance. DEREGULATED MARKET 2. Retail Energy Suppliers (RES) RES’s use their cash and credit to buy large loads of electricity off the open market, in the hopes of reselling/ retailing the cheaper power to individual commercial or residential customers.

5 Deregulation 101: Quick History DEREGULATED MARKETS For an interactive overview of all deregulated utilities in Ohio, please visit: www.puco.ohio.gov/pucogis/esa/index.cfm

6 The Opportunity 4.5 – 5.9¢ per kwh ’11 to ’12 6.2¢ 2008 9.8¢ 2009 8.1¢ 2010 7.1¢ The graph shows annual average all-in fixed prices. The majority of business and residential customers choose budget certainty and look to “lock” in a price. Current market prices are extremely low, making it a great time to lock in a rate.

7 Retail Energy Supply Partners

8 PRECISION EXECUTION Pricing, Proposals, and Contract Strategy

9 1.Get a copy of the last three months of the electricity supply bill  Helps pass credit  More accurately calculate historical rates Getting “IT” Right, The First Time 2. Collect the business and contact information  Legal entity and DBA  Decision maker’s name  Phone number, fax number, and e-mail address* * Navigate Power generates e-mails on behalf of it’s agents, informing clients of referral incentives, market updates, renewal rates. PRICING

10 Getting “IT” Right, The First Time PRICING 3.Collect current contract information  Current electricity supplier  Contract end date  Type of rate: Fixed or Index 4.E-mail information to sales@navigatepower.comsales@navigatepower.com  Attach a bill copies 5.You will receive an e-mail confirming your pricing request

11 Key Terms and Definitions  annual usage: Quantity of kwh client uses in a year  transfer price: price from supplier with no margin or zero mark-up  contract price: transfer price plus margin.  mil: $0.001/ kwh or 1/10 th of a penny per kwh  term: Number of months contracted  ESA: electricity service agreement Pricing: Key Terms and Definitions So What Is A Kwh?  A unit of measurement for electricity  Kilo watt-hour  1 Kwh = Ten 100w light bulbs burning for one hour So What Is A Kwh?  A unit of measurement for electricity  Kilo watt-hour  1 Kwh = Ten 100w light bulbs burning for one hour 100w

12 Pricing: Building a Contract Price Step 1: Supplier gives a transfer price Step 2: Decide on a margin to add or “build into” contract price. Step 3: Declare a contract price on agreement Concept: The more margin you add or “build into” the contract price, the less the client will save. After you submit a pricing request to sales@navigatepower.com, you will receive pricing back from various RES’s. Savings Commission

13 Example: Calculating Prices and Savings So, Let’s say your friend Gino owns a pizza joint. Gino’s Pizzeria uses 300,000 kwh per year. They are currently paying $0.08650/ kwh. An RES returns a transfer price of $0.04950/ kwh. Gino’s Pizzeria Current Rate $0.08650 Contract Price $0.05550 Difference in Rate $0.03100 Transfer Price $0.04950 Margin: 6 mils $0.00600 Contract Price $0.05550 Annual Usage 300,000 kwh Difference in Rate $0.03100/ kwh Estimated Annual Savings $9,300

14 “What About Me?”: Calculating Commissions Alec Baldwin in “Glengarry Glen Ross” You’re a new agent making 30% of gross revenue. You must first calculate revenue. Annual Usage 300,000 kwh Margin Added $0.00600/ kwh Total Annual Revenue $1,800 Your Commission: $540 ($1,800 x 30%)

15 Booking a Deal After you close the deal, our operations team asks for your help when submitting your deals. This will help us better track the deals and ensure on-time enrollment. Please make sure all deals: 1.Have a filled out deal cover sheet 2.Includes a copy of a recent supply bill, one per account number 3.Contain all pages of the contract, including terms and conditions 4.Are packaged together in one document. Submitting Deals E-mail to sales@navigatepower.com -or- Fax to (888) 783-0381

16 Tracking, Reporting, Commissions Salesforce.com We understand that it’s hard enough generating sales. That’s why we strive to ensure transparency, accuracy, and timeliness when it comes to your pipelines and money. Through salesforce.com, we are able to: Track your pipeline and ensure on- time pricing Ensure accurate reporting Pay commissions in full and on time Launch e-mail and marketing campaigns to help you stay in front of your clients and generate referrals

17 Questions & Inquiries If you have any questions, please contact your channel manager (CM) or Mark Nakayama (630) 881-0621 mnakayama@navigatepower.com Or visit us at: www.navigatepower.com


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