1. A Retailer’s Perspective On Canada’s Natural Gas Market Deryk King Chairman and CEO, Direct Energy September 26, 2006

2. 2 Direct Energy - North America’s largest integrated non- utility energy and services company Main Offices Power Plants Gas Production Services Operations Upstream  > 80 mmcfe/day production and P&P reserves of 320 bcfe in Alberta  >1,270MW of gas fired CCGT capacity in Texas  >440MW of wind power though Off- take agreements Downstream  1.8 million households taking 2.8 million energy and services products in Ontario  >30,000 business markets customer relationships in North America  >1 million gas and power customers in Alberta and Manitoba  >1.3 million gas and power customers in US  40,000 residential services installs/year in 10 states

3. 3 Real Energy Prices Will Drive Infrastructure Investment and Conservation  Government imposed subsidized pricing distorts price signals for both consumers and upstream investors  Regulated wholesale pricing limits long term contracting and private investors’ willingness to accept the capital risk and shift from taxpayers and ratepayers  Exposure to true cost of energy results in increased consumer interest in monitoring usage and implementing conservation programs

4. 4 Changes To Canada’s Natural Gas Infrastructure May Significantly Influence The Retail Market  Significant infrastructure projects are expected to come on-line over the next 10 years –Large investments are being made in LNG infrastructure  Current forecasts indicate that LNG is needed to satisfy 10% of North America’s natural gas consumption in about five years  Opportunities for price arbitrage, potentially equalizing prices in Europe and North America obscure the picture

5. 5 Climate Change Will Impact The Global Economy And Society At Large  The energy industry needs to be positive participants in climate change discussions  Significant new opportunities exist to develop energy efficient products and services  Increasing environmental awareness and informing customers on the benefits of conservation should be an important part of a retailer’s strategy

6. A Retailer’s Perspective On Canada’s Natural Gas Market Deryk King Chairman and CEO, Direct Energy September 26, 2006