1. Client Relationships, Value for now and in the Future APPA National Conference

2. Agenda 2 1. Market Positioning 2. The Key to Success 3. Products and Services 4. Account Mgmt. by the Numbers 5. What the Future Holds

3. Positioning Statement CPS Energy Retail Services will deliver client valued solutions for our chosen markets by building on relationships, market intelligence, and innovation.

4. Value Disciplines of Any Company 4

5. 5 Gateway relationship interface 5 The Key To Success

6. Pricing Options Pricing Analysis Striata ITRON Customer Care Outage Mgmt. Windtricity Options Valued Products and Services 6

7. Account Management by the Numbers 310 Accounts $350K & UP 7 ESMs 1800 Accounts $50K-$350K 3 BAMs 30K Accounts Less than $50K POD of Experts Key Accounts Mid-Size Business Mom & Pop 7

8. Where do we go from here? CPS Energy has achieved good results with a traditional, revenue focused, account management program. But what would happen if we began to think differently about our business and clients? What if we operated more like a for-profit entity and considered………

9. Client Profitability as a Key Driver of Account Management? PROFITABILITY CONTINUUM Mid Size Business Values: Price options, single contact, energy management, consulting for all needs. Mom & Pop Values: Fair price, reliability, understandable bill, call center expertise. Large C&I Values: Price is # 1, single contact, information, expedited response

10. Mid Size Business Focus Holiday Inns, Marriott Brands, Hilton hotels restaurants Larger chain restaurants and larger locally owned establishments health care Specialized Care Centers, Convalescent Centers, Assisted Living big retail Big Box Retail, Grocers Newspapers, Television Stations information finance Banks, Credit Unions public administration City services, Educational Service Centers, TXDOT

11. Conclusions The single most important client defined value beyond price is one point of contact, the “relationship”. Our success with large commercial customers is predicated on that relationship through one stop account management. For the future, we believe it is prudent to consider the margin clients bring to the business in enhancing our “serve” via account management. Thinking and acting like a for-profit entity will improve our business and help us create more robust relationships with our highest margin clients.