1.  Power Costs, Inc. 2013. All rights reserved. Confidential and Proprietary to Power Costs, Inc. May not be distributed or reproduced without permission Demo of PCI Settlement Analyzer for Market Participants in SPP Integrated Marketplace June 20, 2013

2.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 1 Meeting Objectives  Overview on PCI Bid-to-Bill Suite for SPP IM Market Participants  Capabilities of PCI Settlement Analyzer  Demo of PCI Settlement Analyzer (SPP IM Version)  Q&A Session

3.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 2 PCI Overview  PCI is a very established vendor in portfolio management, production costing, bid management & evaluation, ISO communications, post-analysis, shadow settlement, congestion management, and deal management  PCI GSMS Suite is currently used to manage 50 % of US capacity  Deploy PCI GSMS Suite to Automate Bid-to-Bill Workflow for 50 Market Participants in MISO, SPP, PJM, ERCOT, and CAISO  Provide Powerful Analytical Tools to Forecast Prices, Validate Market Awards, Perform Post Analysis, and Compute Profits & Losses

4.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 3 PCI GSMS Solution for SPP IM Market Participants PCI GenManager  Bid Formulator  ISO Communication  Pre-Settlement  Shadow Settlement  Settlement Reporting  Bid Evaluator  LMP Manager PCI GenPortal & GenBase  PCI Deal Management  PCI Etagging Module  PCI Outage Management Module  PCI Gas-Management System BI & DW Tools  Data Warehouse  Settlement Analyzer  P&L Analyzer PCI GenTrader  Unit Commitment  Long-Term Production Costing

5.  Power Costs, Inc. Confidential and Proprietary 2012 www.PowerCosts.com Who Currently Uses PCI Software? Page 4 PCI Suite is currently used to manage around 50% of the US Generation Capacity. MISO (70 %), SPP (85%), PJM (40%), ERCOT (80%), CAISO (90%),

6.  Power Costs, Inc. Confidential and Proprietary 2011 www.PowerCosts.com Page 5 Maximizing Profits of Genco Assets in SPP IM Market  To maximize market benefits, it is critical for market participants to have good tools to: –Automate DA & RT bidding workflow  PCI GenManager (Front Office Suite) –Validate ISO Settlement Statements and Invoices  PCI GenManager (PCI Back-Office Suite) –Provide feedback to front office on bidding and hedging strategies, and make on-course correction  PCI P&L Analyzer –Analyze large volume of settlement data, provide feedback loop to management, and create settlement reports  PCI Settlement Analyzer  PCI Settlement Analyzer changes the business paradigm for validating settlement. The tool is a game changer. PCI Settlement Analyzer revolutionizes settlement workflow in the areas of data visualization, settlement validation, and data reporting  The tool can significantly increase the effectiveness of your settlement analysts

7.  Power Costs, Inc. Confidential and Proprietary 2011 www.PowerCosts.com Page 6 Settlement Challenges Facing SPP IM Market Participants  SPP IM has 55 charge codes (17 DA, 27 RT, and 11 TCR/ARR) –Most of RT charge codes use 5-mn billing determinants  How do you manage and visualize the large volume of 5-mn data? –SPP IM has 6 black-belt charge codes (DA & RUC MWP, RUC Charge, RT Regulation Non-Performance Penalty, RT CRDF Penalty). We expect that 70-80 % of the settlement disputes to originate from these 6 black-belt charge codes  Do you have the tools to validate these black-belt charge codes? –SPP IM will publish the first settlement statement on Aug 5  Do you have the tools to process SPP settlement data by 8/5/13?  Advantages of Using PCI Settlement Analyzer –Use data warehouse to store large amount of data –Use BI wizard to digest large amount of data, perform data analytics, and provide feedback loop to your front-office team

8.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Settlement Analyzer BI Wizard Use PCI Settlement Analyzer to View SPP Settlement Charges and Provide Feedback Loop to Management PCI GenBase Settlement Analyzer Data Warehouse SPP PCI GenManager  Key Applications for PCI Settlement Analyzer:  Use settlement results to provide feedback loop to front office  Monitor Settlement Trends  Identify settlement discrepancies. Check whether these discrepancies are routine or unique due to special operating conditions  Provide a data warehouse to store ISO settlement data (Settlement charges and Billing determinants)  Build custom reports Page 7

9.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 8 PCI Dashboard showing DA Charges

10.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 9 PCI Settlement Analyzer can be used to Validate Black-Belt Charge Codes

11.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 10 PCI Settlement Analyzer can be used to Monitor and Identify Potential Operational Problems

12.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 11 PCI Settlement Analyzer can be used to view settlement charges and billing determinants for multiple time frames (Year, Month, Day, Hour, 5-mn)

13.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Key Benefits for PCI Settlement Analyzer  Revolutionize settlement workflow in the areas of data visualization, settlement validation, and data reporting  With the tool, most settlement analysts will become black-belt players  Validate all 55 SPP IM charge codes, including 6 black-belt charge codes (DA & RUC MWP, RUC Charge, RT Regulation Non-Performance Penalty, RT CRDF Penalty)  Use settlement results to provide feedback loop to your front office … and make on-course correction  Monitor Settlement Trends … and identify potential market problems  Identify settlement discrepancies. Check whether these discrepancies are routine or unique due to special operating conditions  Provide a data warehouse to store SPP settlement data (Settlement charges and Billing determinants)  Build custom reports  Support all settlement rules for 6 ISO Markets (SPP, MISO, PJM, ERCOT, CAISO, ISO-NE)

14.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 13 Next Steps?  Arrange demo of PCI Settlement Analyzer for your team  Provide Budgetary Quote  Perform Proof-of-Concept Project  Conduct Training Workshop on SPP IM Settlement using PCI Settlement Analyzer

15.  Power Costs, Inc. Confidential and Proprietary 2013 www.PowerCosts.com Page 14 For More Information  Bid-To-Bill Automation –Forecast LMPs –Automate XML Communications –Create Unit & Demand Bids –Evaluate Bidding Strategies –Perform Shadow Settlement  Deal Management –Capture Bilateral Deals –Perform Deal Settlement –Submit NERC Tags  Operations & Trading –Optimal unit commitment and economic dispatch –Fuel Forecasting –Emissions Forecasting  BI & Data Warehouse –P&L Analyzer –Settlement Analyzer –GenTrader Analyzer PCI GENERATION SUPPLY MANAGEMENT SYSTEM™ Khai Le (919) 730-9899 kle@powercosts.com Paul Davis (919) 368-1994 pdavis@powercosts.com Stuart Wright (303) 917-3565 stuart@powercosts.com Ken Lukowski (618) 616-1032 klukowski@powercosts.com