Company Overview

Introduction

ENERGY CONSULTING Switch Energy is an energy consulting firm that assists non-residential electric consumers in making informed energy purchasing decisions.

Switch Energy has developed numerous channel partnerships with major Retail Energy Providers across the country offering all-inclusive energy contracts to serve a wide variety of business and government entities.

Simplifying the

energy markets.

Energy Consultant

WHAT WE DOSwitch Energy recognizes that every customer has different needs; therefore a customized Energy Cost Savings analysis is created on behalf of each client.

WHY USThe customers needs come first. We have years of energy experience and a proven track record for saving our clients money.

Before deregulation, businesses had no choice and therefore no need to pay attention to the energy market. You simply paid the regulated rate just like everyone else. Over the past decade, deregulation has ushered in a new era of competition and consumer choice.

You have the

power to choose.

Electricity Deregulation

The objective of deregulation is to offer energy customers greater choice, both among suppliers and services. Ideally that will result in increased market efficiency and dollar savings to the consumer.

U.S. Department of EnergyThe reality is that savings do not come by default, You Must Choose!

In a deregulated market the business must decide who to buy from, when to buy, what type of contract, how long to contract or whether they should consider a market based rate. With every option comes a certain level of risk, the decisions a business makes or fails to make is what drive the cost.

Energy Portion Open To Competition

Deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what remains is a regulated delivery (utility) company that continues to deliver electricity and provides billing and customer service to the consumer.

Deregulated Electricity Generator Regulated Delivery (Utility Co)

Source: EIA - Energy Information Administration - Official Govt Statistics

Electric Prices Will Continue To Rise

Electricity Prices – Highly Volatile

This chart shows the movement of electric prices on the wholesale market

Electricity market is 10 times more volatile than the stock market

Price is now low which makes it a great time to lock in prices long term

Factors That Affect The Price of Electricity Many factors affect the price of electricity and can introduce price risk to

the customer› Fuel price › New Plant Construction› Demand – Forecasted to grow by 30% to 40%

Load & seasonal variation Local climate On the fuels used to generate electricity

› Environmental Issues› Natural disasters – Hurricanes that disrupt fuel delivery › Political instability› Congestion Charges – not enough delivery infrastructure › Transmission and RTO service charges› Regulation› Speculation› Inflation› Unpredicted plant outages of base load plants

Supply and demand issues cause monthly and even daily price fluctuations Demand is usually highest:

› In the afternoon and early evening, known as “on peak” hours› During the summer and winter months when electricity is used for heating and

cooling

Electricity Generation – Fuel Types

Most people think that the price of oil affects the price of electricity. Not true, this chart shows that 70.2% of electricity is generated from Coal and Natural Gas. The U.S competes for these fuels globally.

Energy Outlook 2008 - Fuel Price Forecasts

0

2

4

6

8

10

12

14

16

Annual Energy Outlook 2008

nominal dollars per barrel

nominal dollars per ton

nominal dollars per thousand cubic feet

nominal cents per kWh

World Oil Price Natural Gas Wellhead Price

Coal Minemouth Price Average Electricity Price

Nuclear's Comeback: Still No Energy Panacea By Michael Grunwald

Environmental

http://eddriscoll.com/archives/014260.php

Electricity Consumption - Demand

Emerging countries are lighting up, placing enormous price pressure on the fuels used to generate electricity

New York Generation – New Construction

Coal

Petroleum

Natural Gas

Nuclear

Renewable

CoalPetroleum

Natural Gas

Nuclear

Renewable

New Generating Plant Construction Has Increased 50% In Just 8 Years

Switch Energy connects businesses with the right supplier and the right contract at the lowest possible

rate.

Deregulated Energy – Complex MarketThe multitude of options combined with dramatic price fluctuations makes the deregulated market infinitely more complex.

Switch Energy helps businesses buy energy at 15% to 50% off peak rates in deregulated markets with a simple and objective process based on proven strategies that eliminates uncertainty and volatility risk for the consumer.

These and many other energy providers

Pass-Thru Charges

Pass Thru Charges Can Include:› Ancillary Charges› Capacity Charges› Transmission Services› Congestion Charges› Location Forward Reserves› Transmission & Distribution Losses› Energy Procurement Cost Recovery› RMR (Reliability Must Run) Charges

Bandwidth› Some contracts will charge you if your usage varies Plus or Minus

the contracted amount of energy

Many contracts do not include Pass-Thru charges which can add 5 cents per kWh or more to your contracted energy price.

Your total price including pass-thru is the price to compare.

Variable and Hybrid Rates – Deceiving?

Variable rate and hybrid contracts, on the surface, appear to save you money but actually cost you more than a fixed all inclusive rate contract. You should choose your supplier based on total term cost not just the rate you get today. A business that makes a decision by comparing rates only are often surprised at the wide fluctuations they see on their bills.

Energy Provider Contract OptionsThe Plan You Should Choose Depends On The

Amount of Risk That You Are Willing To Take

Month To MonthVariable Rate

With Pass Thru

RiskVery High

Price varies Based on monthly

average market

Hourly PricedVariable Rate

With Pass Thru

RiskExtremely High

Price varies hourly based on market and

can easily double or triple

HybridFixed Energy

With Pass Thru

RiskHigh

Fixed energy but pass-thru charges can add 5 centsto the energy

price

Fixed All InNo Pass Thru

RiskNone

Eliminates all risk, this rate is constant and includes all pass-thru

charges, no bandwidth

Most businesses lack the time, expertise, and tools to track the energy market and make good purchasing decisions. Businesses today rely on experts when it comes to financial, insurance real estate and other complex transactions.

Retail Seafood House Paying $3,000 Monthly Annual Usage: 241,900 kWhOld Rate:  $0.14555New All Inclusive Rate:  $0.11993 Year Savings:  $52,657

Automotive Repair and Body Shop Paying $7,500 MonthlyAnnual Usage: 597,200 kWhOld Rate:  $0.145000New All Inclusive Rate:   $0.11753 Year Savings:  $128,667

Retail Furniture Store – 7 Locations Paying $9837 MonthlyAnnual Usage: 945,200 kWhOld Rate:  $0.12490New All Inclusive Rate:   $0.1253 Year Savings:  $81,257, First Year Savings $5100

Large Manufacturing Facility Paying $85,000 MonthlyAnnual Usage: 7,846,153 kWhOld Rate:  $0.130100New All Inclusive Rate   $0.1174003 Year Savings:  $1,215,484

Medical Center Paying $25,000 MonthlyAnnual Usage: 1,849,650 kWhOld Rate:  $0.1622New All Inclusive Rate   $0.09113 Year Savings:  $527,759

Cost Saving Scenarios:

Savings Analysis - Actual Customer

Worry Free Switching: No switching fees

No interruption of service

Same poles, wires, and power quality from your local utility

First bill will come from the new supplier in approx. 45 days

Will notice new provider on the bill and contracted rates

Pay the bill as normal

Simple Steps To Savings: Fax or email Your Energy Bill For Analysis

› We will work to get your savings approved.› We will match you to the lowest cost provider that has an “all

in” fixed price.› Process takes 5 to 10 days on average.

Set the Appointment To Review Your Savings and to Lock In Your Rate› We provide you a blank contract prior to the meeting so you

have time to review.› Rates are priced daily so you will need to lock in the rate by

4PM eastern.

Contact us today to get started!1-888-893-9113www.switchenergy.us