TEXAS Market Profile

July 2013

TEXAS Market

Market Size: $24 Billion Potential Market

7.1 Million Potential Customers

TEXAS MarketAmbit Energy is a Retail Electric Provider (REP)

Invoices come directly from Ambit Energy • Pay online, IVR, via phone with agent, payment locations, or by mail

ESI ID Information: • Oncor- 17 digit number

• Centerpoint- 22 digit number

• AEP Central 17 digit number

• AEP North- 17 digit number

• TNMP 17 digit number

Credit checks are required before electric service is established

• Score is obtained through Equifax (credit reporting agency) and determines if a deposit is necessary based on the customer’s score

• Consent is required by the Texas customer to conduct the credit review

Split Deposits are available- only at the time of set up• First half is due at set up time and second half will be billed on the customer’s first invoice

Deposit Refunds- are issued after 12 months of continuous service, if the customer has good payment history and has not been disconnected

• If the customer cancels service, the deposit will be applied to the account balance and any remaining credit will be mailed to the customer 30 days after the final invoice due date.

TEXAS Credit Check / Deposit

TEXAS Free Energy

Our popular Free Energy Program has changed to give you more Free Energy – and more freedom!

• Here’s the biggest change: No more clock! That means there’s no more deadline for gathering your 15 Customers, and no more deadline for replacing Customers! Just maintain 15 energized Customers in any month, and you earn a credit! And that doesn’t mean 15 payments; calculations will now be based on average daily energy cost, instead. You can get more Free Energy, and we can now accommodate all bill schedules.

• Free Energy credit is credited to the invoice.

• For more information: PowerZone > Business Tools > Consultant Tools > Free Energy Program FAQ.

TEXAS Assistance Programs

Assistance Programs:

• LITE UP- Government sponsored program that provides discount during summer months on electric rates to qualified low- income customers.

TEXAS Product Types

TEXAS Oncor, Centerpoint, AEP Central, AEP North, TNMP

Electric Product Plan(s) Rate ETF Texas Select Variable Plan Variable No

Certified Green Texas – Variable Plan Variable No

Ambit Certified Green – 12 Month Term Plan * Term $199

Lone Star Select - 24 Month Term Plan * Term $199

Lone Star Select - 12 Month Term Plan* Term $199

Lone Star Select – 6 Month Term Plan Term $100

*Discount of 0.2¢ per kWh applies to billing cycles in which you are actively enrolled in paperless billing, e-correspondenceand ACH recurring payment bank draft.

TEXAS Average Billing

Average billing is based on a rolling 365 day historical average use

Usage is calculated using:• avg. daily use X # days in billing cycle = charge

Available for Single ESI-ID customers

All TEXAS residential customers are eligible unless they are in a “De-Energized” status.

http://www.PowerToChoose.orgPublic Utility Commission

• All retail electricity providers are required to provide PTC website on first page of customer invoices

• Website provides rates of all retail electric providers in Texas• Low teaser rates are displayed to attract customers

• Some customers change providers monthly to take advantage of low introductory rates• Not the most reliable source for complete competitive analysis for Texas rates

When comparing websites:• Recognize the 2,000 kWh vs. 1,000 kWh difference• “Power To Choose” requires an “average” rate at 1,000 kWh• To make an accurate comparison, do the math!• “Unbundled rates”

• TDU fees are billed straight to the customer on page three of the invoice, Ambit’s charges are itemized under “Ambit Energy Charges” on page one of the invoice

TEXAS Small Commercial

Is defined as a non-residential customer whose average monthly electricity bill is less than $5,000.00

Small Commercial ESI-ID rules:• A customer can enroll up to 5 ESI-IDs• The majority of small commercial will not have more than 2 ESI IDs.• We cannot sign up Municipalities.• We can combine Residential and Commercial but we need at least 1 ESI-ID to be

Commercial. The Residential location will have commercial rates.

General Information:• TSC customers are not eligible for Free Energy or Travel Rewards• TSC customers are subject to Third Party Verification• Consolidated billing is available upon enrollment• TSC Rates can be located in PowerZone

• Business Tools > Customer Tools > TSC Pricing Flyer

TEXAS Rates

Customer Gathering Flyers are available in PowerZone

Located in the Business Tools Tab > Advertising Tools > Customer Flyers

Please share this information with your organizations and

potential customers.

Thank you for your help in building the Texas market!