company confidential partner program training 2006 andrew thomas vp partner development world energy...
Post on 26-Mar-2015
216 Views
Preview:
TRANSCRIPT
COMPANY CONFIDENTIAL
Partner Program Training
2006
Andrew ThomasVP Partner Development
World Energy Solutions
COMPANY CONFIDENTIAL
Training Objectives
• To equip IEC with the tools and knowledge to effectively market WE energy procurement offering
• To take a “behind the scenes” look at the reverse auction procurement process
• To delineate the goals and steps towards further developing the WE/Partner partnership
Our Objective: To build a mutually beneficial partnership by being the energy procurement solution of choice for
IEC’s network of clients and prospects
COMPANY CONFIDENTIAL
Benefits of Partnering with World Energy
• Increase Revenue– Sell additional services to customers and prospects
– Add predictable, recurring revenue to sales portfolio
– Provides the “supply side” piece to the equation without heavy time and resource constraints
• Deliver Best of Breed Solution– Deliver the best price with reverse auction technology –
typical savings are 5 to 20% from “traditional” paper RFP
– Position a trusted broker service with a transparent bidding process
• Deliver a Compliant Procurement Approach– The transparent reverse auction platform helps
organizations address Sarbanes-Oxley Section 404 requirements
COMPANY CONFIDENTIAL
Agenda
Part I Company Overviews
Sales Presentation Review
Part II Operations Review
Marketing Discussion
Platform Walk-through
Floating FAQs & Materials Development
COMPANY CONFIDENTIAL
Agenda
Company Overviews
Sales Presentation Review
Operations Review
Marketing Discussion
Platform Walk-through
Floating FAQs & Materials Development
COMPANY CONFIDENTIAL
Agenda – Part I
Introductions
WE Overview – 1 hour
IEC Overview – 1 hour
Sales Presentation Review – 2 hours
Frequently Asked Questions – 1 hour
(Optional Part I or 2) Working Session – Materials
Development
COMPANY CONFIDENTIAL
Agenda – Part I
Introductions
WE Overview – 1 hour
IEC Overview – 1 hour
Sales Presentation Review – 2 hours
Frequently Asked Questions – 1 hour
(Optional Part I or 2) Working Session – Materials
Development
COMPANY CONFIDENTIAL
An “EBay” for Energy
World Energy brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk.
ENERGYCOSTS
CONFIDENCE
• Have procured over $1.2bb in electricity, natural gas, and financial instruments; next target - green credits
• Saved Customers over $100,000,000• 5x the volume of nearest competitor• Runaway market leader of 40 competitive
exchanges
COMPANY CONFIDENTIAL
Organization Structure
Rich DomaleskiCEO
Phil Adams COO, Marketing
Rob Hartwell CIO
Sales Administration
Open – Partner Sales
John CharbonneauVP Direct C&I Sales
Rich DomaleskiGovernment Sales
Finance
Market Desk
State 1 Market Director
State 2Market Director
Market Analysts
Andrew ThomasVP Operations
Product Development
COMPANY CONFIDENTIAL
• #1 in online retail energy procurement market share, over 7 times the amount of energy than its nearest competitor – 16,000,000,000 kWh and 34,000,000,000 bcf
• Has served 250 clients saving them over $60,000,000 as compared to utility rates
• Has worked in over 100 deregulated utility markets with over 140 different suppliers
• Over 450 registered users on the World Energy Exchange
• Provided Auction Services for najor NE utility’s standard offer purchase
• Has won 5 prestigious Government Awards
• Featured in Wall Street Journal, NY Times, Inc Magazine, Restructuring Today
Company Facts and Figures
COMPANY CONFIDENTIAL
• Our primary objective is to have the highest volume of retail energy procurement transactions
• To this end, World Energy has aligned with leading energy consultants and service companies to deliver its auction product
• World Energy will always give first priority to its partners with respect to WE/partner conflict
• Our long-term market strategy is through channel partners, with some key direct national and government clients.
• We are very comfortable letting the partner own the customer. Our philosophy hinges on delivering sustained value to our partners.
Sales Strategy
COMPANY CONFIDENTIAL
Agenda – Part I
Introductions
WE Overview – 1 hour
IEC Overview – 1 hour
Sales Presentation Review – 2 hours
Frequently Asked Questions – 1 hour
COMPANY CONFIDENTIAL
Agenda – Part I
Introductions
WE Overview – 1 hour
IEC Overview – 1 hour
Sales Presentation Review – 2 hours
Frequently Asked Questions – 1 hour
(Optional Part I or 2) Working Session – Materials
Development
COMPANY CONFIDENTIAL
Sales Presentation – Key Themes
• Experience. World Energy/Team has:
– Blue Chip client list
– Strong government business
– Largest volume critical in illiquid energy market
• Compliance. Process and platform helps organizations meet Sarbanes-Oxley Section 404 requirements (requirement for management to articulate companies internal control structure)
• Reverse Auction Effectiveness. Our systems delivers the most competitive price in the market.
COMPANY CONFIDENTIAL
Date
The Business of Buying Energy Has Changed…How CLIENT Can Maximize The Opportunity
Client Logo
COMPANY CONFIDENTIAL
(Sales Presentation) Agenda
• Introductions – IEC and World Energy
• Discussion of CLIENT’s Needs
• Procure™: Tools and Intelligence for a Successful Procurement
– World Energy Exchange™
– Expert-driven Process
– Elements of a Successful Procurement
• Sarbanes-Oxley Compliance
• Market Intelligence
• Wrap-up and Next Steps
COMPANY CONFIDENTIAL
(Sales Presentation) Agenda
• Introductions – IEC and World Energy
• Discussion of CLIENT’s Needs
• Procure™: Tools and Intelligence for a Successful Procurement
– World Energy Exchange™
– Expertise-Driven Process
– Elements of a Successful Procurement
• Sarbanes-Oxley Compliance
• Market Intelligence
• Wrap-up and Next Steps
COMPANY CONFIDENTIAL
IEC Overview
• Point 1
• Point 2
• Etc.
• A Certified World Energy Channel Partner
COMPANY CONFIDENTIAL
An “EBay” for Energy
World Energy Exchange brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk.
ENERGYCOSTS
CONFIDENCE
• Have procured over $1.2bb in electricity, natural gas, and financial instruments; next target - green credits
• Saved Customers over $100,000,000• 5x the volume of nearest competitor• Runaway market leader of 40 competitive
exchanges
COMPANY CONFIDENTIAL
Market Leader: C+I and Channels
RECKSON
Many customers are delivered by channel partners for whom World
Energy runs private label exchanges:
Johnson Controls
Cargill Energy Services
SAIC
Silver Oak Solutions
Several regional players
COMPANY CONFIDENTIAL
Market Leader: Gov’t Reach and Volume
United United NationsNations
MarylandDCMassachusetts
COMPANY CONFIDENTIAL
(Sales Presentation) Agenda
• Introductions – IEC and World Energy
• Discussion of CLIENT’s Needs
• Procure™: Tools and Intelligence for a Successful Procurement
– World Energy Exchange™
– Expertise-Driven Process
– Elements of a Successful Procurement
• Sarbanes-Oxley Compliance
• Market Intelligence
• Wrap-up and Next Steps
COMPANY CONFIDENTIAL
We would appreciate an overview of any energy procurement efforts to date.
• Is this a full-time or part-time responsibility?
• Which states / locations have been a focus?
• Do you have a risk management strategy in place?
• What is your greatest challenge in energy
procurement?
Some Background to Guide Our Discussion
COMPANY CONFIDENTIAL
(Sales Presentation) Agenda
• Introductions – IEC and World Energy
• Discussion of CLIENT’s Needs
• Procure™: Tools and Intelligence for a Successful Procurement
– World Energy Exchange™
– Expertise-Driven Process
– Elements of a Successful Procurement
• Sarbanes-Oxley Compliance
• Market Intelligence
• Wrap-up and Next Steps
COMPANY CONFIDENTIAL
Procure™ - Full Service SolutionPro
cess
Tim
ing
Pre
Post
World EnergyExchange™
Market Opp’y ReviewPrice-to-Compare
AnalysisRFP Design
Deal RecommendationContract Negotiation
Usage Tracking
• Combination of Intelligence, Tools and Service to Meet Your Goals
• Pre-Auction Services include
– Pulling and Formatting Usage
– Creating a Price-to-Compare
– Determining your Contract Needs
– Designing RFP
• Post-Auction Services include
– Validating Savings
– Recommending Deal Terms
– Supporting Contracting
– Tracking Contract on our System
COMPANY CONFIDENTIAL
World Energy Exchange™
• Proven time and time again to deliver the lowest price available in the market
• Design to favor consumer – fixed end time, direct entry bidding
COMPANY CONFIDENTIAL
World Energy Exchange™ - Key Facts
• Nearly 1,000 auctions run in the past 24 months
• Over 450 supplier contacts at 175 suppliers registered
• Typical customer discounts between 5 and 30%
• Most auctions have 3-7 suppliers bidding between 5 and 15 times
• About 20% of the time the winning supplier outbids itself at the last minute to ensure they win the business, saving an additional 0.5-1.5 mils
• Proven Time and Time Again to Deliver the Lowest Price Available in the Market
We have never been beaten by a paper-based RFP process on apples-to-apples basis – EVEN NET OF OUR
FEE!
COMPANY CONFIDENTIAL
Elements of a Successful Procurement
• Documented process for Sarbanes-Oxley compliance
• Best of Breed Reverse Auction Process
– Proven to Secure the Lowest Price in the Market
– Provides an Array of Pricing Parameters
• Market Expertise and Pricing Knowledge
• Energy Procurement Experience
Delivered Using a State of the Art Web-Enabled Software Suite Specifically Designed for Energy
Procurement Management
COMPANY CONFIDENTIAL
Documentation, Process, and Automated Features of Platform facilitate Sarbanes-Oxley compliance
Compliance – Documented Audit Trail
1. Market structure briefings
2. Benchmark price analysis
3. Market sensitivity analysis
4. Contract options and analysis
5. Reverse auction results summary
1 2
3 4 5
COMPANY CONFIDENTIAL
Compliance - Sarbanes Oxley
• Public companies now spend between 2 and 5 cents per share annually on compliance
• Sarbanes-Oxley Section 404 requires management to articulate company’s internal control structure
• Processes and Controls for procurement are not explicitly delineated but the recommended approach is to become more prescribed and stringent
• Auditors are beginning to require subcontractors to have SAS 70 Type II Audit to have comfort around IT infrastructure of subcontractor
World Energy’s Process and Platform has helped Government and Corporate Buyers Adhere to the most stringent purchasing policies
COMPANY CONFIDENTIAL
The Procure™ Process
NeedsPlanning
MarketAnalysis
Auction ContractOngoingSupport
• Discuss Goals
• Review current market conditions
• Identify Locations
• Request and Format 12 months historical usage
• Perform Price-to-Compare Analysis
• Identify Contract Parameters
• Structure RFP
• Alert 100% of registered supply base
• Run reverse auction
• Upload contracts, sites and usage
• Prepare for Renewals
Proven Process Ensures Success and Supports Compliance
• Perform Savings Analysis
• Recommend Contracting Terms
• Review and finalize contract
Life of Contract
COMPANY CONFIDENTIAL
From the World’s Foremost Authority
“The most important issues in auction design are the traditional concerns of competition policy--preventing collusive, predatory, and entry-deterring behavior. Ascending and uniform-price auctions are particularly vulnerable to these problems.
“The Anglo-Dutch auction--a hybrid of the sealed-bid and ascending auctions--may perform better.”
Paul Klemperer, Ph D
Edgeworth Professor of Economics, Oxford University
“What Really Matters in Auction Design”
COMPANY CONFIDENTIAL
World Energy Exchange™
Price-to-Compare provides a market
benchmark…
Natural competition, enhanced by
blinding number of suppliers and
leading supplier, drives price down
Fixed end time causes suppliers to
sharpen their pencils…
… and often bid lower than would
be otherwise required to win the
business.}
“The site is brutally efficient at driving the price down to the bare minimum.”
Manager C+I Sales, Major Supplier
“The auction saves between 7 and 9% versus the paper-based RFP process we formerly used with our clients.”
Eric Hoegger, Cargill Energy Mgmt Svcs
… against which customer savings
are quantified.
COMPANY CONFIDENTIAL
Approach Designed to Yield Lowest Price
0%
20%
40%
60%
80%
100%
Dynamic Auction vs Traditional Paper/Phone/Fax Methods: Pitting suppliers against one another creates a more competitive atmosphere, provides suppliers with more information about real time bidding dynamics, and shrinks time suppliers hold their prices - causing suppliers to bid more aggressively.
Fixed End Time vs Overtime Format: Having a hard stop causes the last bid to be “blind”, causing suppliers to put their best bid as their last.
Direct Bid Entry vs Proxy Bid: Causes suppliers to lower their bid by more than the minimum amount to win.
% o
f Tota
l S
avin
gs
35 -40%
35 -40%
25%
COMPANY CONFIDENTIAL
RFP Architecting
Intelligent sequencing of RFPs can yield bidding behavior that favors the customer
After losing the first RFP, Supplier 3 submits a last bid 2.8 mils lower thanthe then-current lowest bid and 1.9 mils lower than the second lowest bid.
Auction 1
Auction 2
Supplier 1
Supplier 1
Supplier 1Supplier 1
Supplier 2
Supplier 3
Supplier 4
Supplier 3
Supplier 3
Supplier 4
Supplier 1
Supplier 5
Supplier 1
COMPANY CONFIDENTIAL
Parameter Testing
• On-line Auction allows for testing of different procurement parameters
– Contract Term (e.g. 12, 18, 24, 30, 36 mos)
– Product (Fixed, Indexed, Baseload)
– Green Power Mix
• Also enables grouping of like load factor accounts to minimize cross-subsidization
COMPANY CONFIDENTIAL
Intelligence to Guide Strategy Decisions
• Platform contains market analysis for all deregulated markets
• Wholesale Pricing trends
• Market Characteristics
– Switch Rules
– Regulatory Hist
– Rate Classes
• Current Go-to-Market recommendation
COMPANY CONFIDENTIAL
8.21625
6.74400
12 mo Strip
7.13367
7.55792
5.9560424 mo Strip
6.88950
4.604.704.804.905.005.105.205.305.405.505.605.705.805.906.006.106.206.306.406.506.606.706.806.907.007.107.207.307.407.507.607.707.807.908.008.108.208.308.40
Trade Date
Clo
se P
rice
($
pe
r M
MB
tu)
In-Market Experience to Guide Timing
• While we do not advocate market timing, we have successfully guided customers in when and where to go-to-market to minimize cost.
• For example, for GSA NY, we ran the May 2004 renewal in October 2003, as we identified a cyclical dip in the market, and as a result they are enjoying prices 20% lower than they would have gotten in Q1.
PJM rolling 12 and 24 month contracts
65.19
12 mo contract
53.64
60.30
24 mo contract
49.62
57.75
55.74
42.0043.0044.0045.0046.0047.0048.0049.0050.0051.0052.0053.0054.0055.0056.0057.0058.0059.0060.0061.0062.0063.0064.0065.0066.00
12/3
0/03
1/6/
041/
13/0
41/
20/0
41/
27/0
42/
3/04
2/10
/04
2/17
/04
2/24
/04
3/2/
043/
9/04
3/16
/04
3/23
/04
3/30
/04
4/6/
044/
13/0
44/
20/0
44/
27/0
45/
4/04
5/11
/04
5/18
/04
5/25
/04
6/1/
046/
8/04
6/15
/04
6/22
/04
6/29
/04
7/6/
047/
13/0
47/
20/0
47/
27/0
48/
3/04
8/10
/04
8/17
/04
8/24
/04
8/31
/04
9/7/
049/
14/0
49/
21/0
49/
28/0
410
/5/0
410
/12/
0410
/19/
0410
/26/
0411
/2/0
411
/9/0
411
/16/
0411
/23/
0411
/30/
0412
/7/0
412
/14/
04
Trade Date
$ / M
kWh
Electricity
Gas
40%
10% 20%
75%
Timing of Exchange Volume
COMPANY CONFIDENTIAL
Broad-Reaching Market Intelligence
• Reports Available on All Active Competitive Deregulated Markets
• Intelligence Sources– Primary Research by
Market Directors and Analysts
– In-Market Expertise– Exchange Data– Content from KEMA via
Exclusive Relationship– Hub Pricing from
Industry Sources
COMPANY CONFIDENTIAL
Gas Only
Experience in Managing Complexity
World Energy’s broad market coverage (25+ States, 100+ Utilities)
enables us to support Clients with locations across the country
Electricity + Gas
Ontario
Not Currently Active or Not Deregulated
COMPANY CONFIDENTIAL
Software Tools to Support Management
COMPANY CONFIDENTIAL
Better than Traditional Processes
On the same day an industrial client’s consultant solicited the top 5 suppliers in the market, World Energy auctioned the client’s load to the other suppliers in the market and received pricing that was 18% lower than the consultant’s traditional process.
A large hotel operator’s incumbent supplier attempted to bypass the process and bid on a Tuesday. The operator instructed supplier to bid via the World Energy Exchange on Thursday. Even though market prices rose over the two days, the operator received lower pricing from the incumbent (who won the auction) and more favorable contract terms.
The Veteran’s Administration was part of an aggregation of several hospitals. The incumbent supplier bid directly to the client while World Energy ran an auction. The final price was 3.5 mils lower even with a GSA solicitation that had more favorable terms for the government.
COMPANY CONFIDENTIAL
Good for Suppliers, Too
“I get a lot of good pricing information about the
market through the auction process.”
“You bring deals my sales force
doesn’t see, so I have sales and
marketing margin to play with.”
“I know where I stand in the
process, so I can mitigate my risk in the wholesale
market.”
“Their data is so well organized, it costs me less to price a deal from World Energy.”
COMPANY CONFIDENTIAL
Additional Slides for Government Sales
COMPANY CONFIDENTIAL
Market Leader: Recognition and Awards
• Over the Past 4 years we have enabled clients to be recognized by their peers and superiors in winning 7 prestigious awards
• Awards for either – Use of innovative technology– Procuring green power
• Winners include– Boyd Rutherford, Sec’y of State, MD– Linda Collins, Director, NGAP– GSA Region 2– Energy Center of Expertise
Louis R. Harris, Jr. Award
Presidential Award
Innovative Technology Award
GSA Environmental Award
Named “Outstanding Program”
in June 2005
for any cost saving program of any kind
in any of the 50 states
at NASCA/NASFA joint conference.
COMPANY CONFIDENTIAL
Case Study: State of Maryland• Directly marketed to Universities and other Agencies on Maryland Department of General
Services (DGS) behalf; Created 30,0000 line database of electric account usage
• Aggregated accounts in multiple rate classes and four utilities; Segmented loads into 79 RFPs to meet client agency objectives
• Accurately Forecast Utility Rate 6 weeks in advance of publish date, providing customer with confidence to go to market before competitive supply prices rose 15%
• Received over 440 bids as a result of three procurements
• Auction sizes ranged from 30M kWh to 1.2B kWh
Result
• Received 100 MWH of renewable power at no price premium
• 820 accounts in four utilities served including state accounts, 7 universities with the option to procure on their own, and both city and county agencies who opted onto DGS’s contract
• $112M in contract awards made to 7 different suppliers
• Estimated discount off utility rate of over $13M
• DGS received the National Association of State Chief Administrators (NASCA) 2005 national award for this procurement www.nasca.org
COMPANY CONFIDENTIAL
Case Study: DC Government
• DC’s two previous attempts with traditional consulting firms resulted in only two bidders and uncompetitive bids / no awards
• Increased the number of bidders from 2 to 5 (7 eligible to bid)
• Modeled price to beat for over 600 individual accounts
• Re-wrote supply Solicitation based on customer requirements and lessons learned from past government PJM buys in NJ and MD
• Created 7,000 line usage database from raw utility data
Result
• $41.2M in contract awards and 100% of accounts served
• 5% or 33M kWh of green power awarded
• Assisted in shortening DC City Council award timeline from 2 weeks to less than 24 hours
• Estimated discount off Utility Rate of $11 M
• Total time between procurement contract and supply contract award: 21 days
COMPANY CONFIDENTIAL
Case Study: Large NE Utility
• Client had been using traditional paper-based procurement performed by T+M consultant
• Intrigued by World Energy Exchange due to experience with unregulated subsidiary bidding as a supplier on World Energy government and commercial retail auctions
• Engaged World Energy to buy financial instruments for 3 utilities’ wholesale power needs
– Fixed volumes
– “Slices of the System”
• Volume ~ 5,000,000,000 kWh
Result
• Successfully placed all contracts worth over $500,000,000 with 5 suppliers including Morgan Stanley, JP Morgan Chase and Entergy Nuclear
• Reverse Auction outperformed paper-based process by 7-9%
• Saved rate payers $35,000,000 to $45,000,000
• World Energy fees 1/3 of traditional T+M consultant
• Process hailed by PUC for Cost Savings
• Process validated by Price Waterhouse for Sarbanes-Oxley Compliance
COMPANY CONFIDENTIAL
Drivers of Success
• Regulatory and Market Rules
• Commodity Trend Technical Analysis
• Forward Pricing Curves
• Price to Compare Analysis
• Contract Decision Support Analysis
MarketIntelligence
ProcurementProcess
Energy-SpecificTools
• Marketing Support to Build the Aggregation
• Load Pull/Database Creation
• Solicitation Development
• Supplier Communication and Management
• Due Diligence Reporting
• Market Summaries
• Hybrid Anglo-Dutch Auction Designed Specifically for Energy
• Contract, Site, Account Management
• On-Going Usage Tracking
COMPANY CONFIDENTIAL
Natural Gas Future Contracts, 12 & 24 Month (Months Forw ard from Trade Date)
NYMEX Henry Hub Strip, Traded Sep 2003 - Dec 2005
12.06
12.32
10.67
12.4012.70
12 mo Strip
8.22
6.70
7.68
5.67
6.91
8.188.21 8.04
9.649.78
10.82
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
12.00
12.50
13.00
13.50
9/30
/03
10/2
0/03
11/9
/03
11/2
9/03
12/1
9/03
1/8/
04
1/28
/04
2/17
/04
3/8/
04
3/28
/04
4/17
/04
5/7/
04
5/27
/04
6/16
/04
7/6/
04
7/26
/04
8/15
/04
9/4/
04
9/24
/04
10/1
4/04
11/3
/04
11/2
3/04
12/1
3/04
1/2/
05
1/22
/05
2/11
/05
3/3/
05
3/23
/05
4/12
/05
5/2/
05
5/22
/05
6/11
/05
7/1/
05
7/21
/05
8/10
/05
8/30
/05
9/19
/05
10/9
/05
10/2
9/05
11/1
8/05
12/8
/05
12/2
8/05
Trade Date
Clo
se
Pri
ce
($
pe
r M
MB
tu)
NGAP Success
Intelligence Enables Going to Market at Low Points to
Realize Significant DiscountsOff Utility Rates
COMPANY CONFIDENTIAL
GSA NY Success
NY Zone_J rolling 12 and 24 month contracts
114.90
102.95
99.60
79.25
108.35
12 mo contract
136.00139.15
143.20
114.25
100.23
80.93
96.73
24 mo contract
107.85
103.85
117.93119.00
132.48
125.03
133.23
128.93
137.60
75.00
80.00
85.00
90.00
95.00
100.00
105.00
110.00
115.00
120.
125.00
130.00
135.00
140.00
145.00
7/1/
047/
11/0
4
7/21
/04
7/31
/4
8/10
/04
8/20
/04
8/30
/04
9/9/
04
9/19
/04
9/29
/04
10/9
/04
10/1
9/04
10/2
9/04
11/8
/04
11/1
8/04
11/2
8/04
12/8
/04
12/1
8/04
12/2
8/04
1/7/
05
1/17
/05
1/27
/05
2/6/
052/
16/0
5
2/26
/05
3/8/
05
3/18
/05
3/28
/05
4/7/
054/
17/0
54/
27/0
5
5/7/
055/
17/0
5
5/27
/05
6/6/
05
6/16
/05
6/26
/05
7/6/
057/
16/0
5
7/26
/05
8/5/
05
8/15
/05
8/25
/05
9/4/
059/
14/0
5
9/24
/05
10/4
/05
10/1
4/05
10/2
4/05
11/3
/05
11/1
3/05
11/2
3/05
12/3
/05
12/1
3/05
12/2
3/05
Trade Date
$ /
MW
h
00
Intelligence Enables Going to Market5 months before a Contract is Upto Lock in Favorable Rates andAchieve a Significant Discount
{
COMPANY CONFIDENTIAL
State of MD Success
PJM West rolling 12 and 24 month contracts
49.50
55.00
45.85
102.01
95.19
79.05
98.75
49.25
67.50
51.25
53.90
64.34
12 mo contract
61.60
86.25
95.08
91.13
52.82
24 mo contract
77.50
42.00
47.00
52.00
57.00
62.00
67.00
72.00
77.00
82.00
87.00
92.00
97.00
102.00
12/3
0/03
1/9/
041/
19/0
41/
29/0
42/
8/04
2/18
/04
2/28
/04
3/9/
043/
19/0
43/
29/0
44/
8/04
4/18
/04
4/28
/04
5/8/
045/
18/0
45/
28/0
46/
7/04
6/17
/04
6/27
/04
7/7/
047/
17/0
47/
27/0
48/
6/04
8/16
/04
8/26
/04
9/5/
049/
15/0
49/
25/0
410
/5/0
410
/15/
0410
/25/
0411
/4/0
411
/14/
0411
/24/
0412
/4/0
412
/14/
0412
/24/
041/
3/05
1/13
/05
1/23
/05
2/2/
052/
12/0
52/
22/0
53/
4/05
3/14
/05
3/24
/05
4/3/
054/
13/0
54/
23/0
55/
3/05
5/13
/05
5/23
/05
6/2/
056/
12/0
56/
22/0
57/
2/05
7/12
/05
7/22
/05
8/1/
058/
11/0
58/
21/0
58/
31/0
59/
10/0
59/
20/0
59/
30/0
510
/10/
0510
/20/
0510
/30/
0511
/9/0
511
/19/
0511
/29/
0512
/9/0
512
/19/
0512
/29/
05
Trade Date
$ /
MW
h
Intelligence Enables Going to Market before Utility Rate is Announced
And Take Guaranteed Discounts Not Available Later if Client Waited as Consultant Advised
COMPANY CONFIDENTIAL
Rigorous Attention to Compliance
Aggregation-specific web sites provide consistent communication of content, timelines and deliverables – minimizing opportunities for errors that could lead to protests.
Procurement calls are recorded, transcribed, and published to document off-line processes.
The Exchange – synched to the atomic clock - automatically date and time stamps all bid activity.
COMPANY CONFIDENTIAL
(Sales Presentation) Agenda
• Introductions – IEC and World Energy
• Discussion of CLIENT’s Needs
• Procure™: Tools and Intelligence for a Successful Procurement
– World Energy Exchange™
– Expertise-Driven Process
– Elements of a Successful Procurement
• Sarbanes-Oxley Compliance
• Market Intelligence
• Wrap-up and Next Steps
COMPANY CONFIDENTIAL
World Energy and IEC
World Energy Platform:
• Industry-leading procurement technology
• Helps address growing SOX compliance needs
• Maximize savings from a deregulated market
• Achieve short or long-term purchasing confidence
• No obligation, no cost
World Energy and IEC
• Neutral players to secure your advantage
• A voice you can trust – people you know
COMPANY CONFIDENTIAL
Wrap-up and Next Steps
Action Who? SuggestedDate
Gain Clarity on Goals Joint Today
Provide List of Accounts Client Today
Sign Schedule A’s Client Today + 5 Days
Perform Market Opportunity Review IEC/World Energy
Today + 10 Days
Sign Procurement Consulting Agreement
Client Today + 15 Days
Perform Price-to-Compare Analysis IEC/World Energy
Today + 22 Days
Run Auctions IEC/World Energy
Today + 30 Days
COMPANY CONFIDENTIAL
Thank You (End of Sales Presentation)
COMPANY CONFIDENTIAL
Platform Demo
• We have developed an online demo as a short introduction to our platform
• Benefits
– Use when an in-person presentation is not possible
– The platform link can be packaged as a “calling card” which can be forwarded within an organization
– Addresses general reverse auction questions
• We are in the midst of producing an updated demo– feedback and suggestions are appreciated
COMPANY CONFIDENTIAL
Agenda – Part I
Introductions
WE Overview – 1 hour
IEC Overview – 1 hour
Sales Presentation Review – 2 hours
Frequently Asked Questions Discussion – 1 hour
(Optional Part I or 2) Working Session – Materials
Development
COMPANY CONFIDENTIAL
Agenda
Part I Company Overviews
Sales Presentation Review
Part II Operations Review
Marketing Discussion
Platform Walk-through
Floating FAQs & Materials Development
COMPANY CONFIDENTIAL
Agenda – Part II
Platform Development – 30 minutes
WE Auction Process – 2 hours
Marketing Discussion – 1.5 hours
Platform Walk-through – 1 hour
COMPANY CONFIDENTIAL
History of Platform Development
• Mgmt Insight– Contract
Profitability– Usage Variance– Intelligence
Dashboard
• Automatic Data Feeds
– Pricing Curves– Utility Data (EDI)
•Self-Service
•Green Credits Trading
•Bill Validation
2003 2004 2005 2006
•1.x• RFPs• Auction• Suppliers• Utilities• Contacts
•2.x• Partners• Pricing Prods
•3.x• Contracts• Sites• Accounts• Market Intel
•4.x• Commissions• Receivables• Data Migration
•5.x• Reporting
•6.x• Deals• Process
2006, 2007 +
COMPANY CONFIDENTIAL
Agenda – Part II
Platform Development – 30 minutes
WE Auction Process – 2 hours
Marketing Discussion – 1.5 hours
Platform Walk-through – 1 hour
COMPANY CONFIDENTIAL
The Procure™ Process
NeedsPlanning
MarketAnalysis
Auction ContractOngoingSupport
• Discuss Goals
• Review current market conditions
• Identify Locations
• Request and Format 12 months historical usage
• Perform Price-to-Compare Analysis
• Identify Contract Parameters
• Structure RFP
• Alert 100% of registered supply base
• Run reverse auction
• Upload contracts, sites and usage
• Prepare for Renewals
Proven Process Ensures Success and Supports Compliance
• Perform Savings Analysis
• Recommend Contracting Terms
• Review and finalize contract
Life of Contract
COMPANY CONFIDENTIAL
World Energy Partner Roles
Role Organization
Identify Opp’y Partner
Introductory Meeting Partner
Sales Meeting WE/Partner
Gain Dealsheet/ Contract Partner
Submit Usage Requests and Prepare Data
Partner
Customer Analysis WE
Supply Conference – Set Customer Expectations
Partner
Prepare RFP WE
Run Auction WE
Due Diligence Rpts WE
Negotiate Contract Partner
Obtain Signature WE/Partner
Account Management Partner
COMPANY CONFIDENTIAL
Customer Objectives
• Prep with supply team (optional)
– General market overview
– Current market conditions
• Introductory meeting with customer
– Discuss value proposition
– Review market conditions and potential
• Indicate Lead to WE via Pipeline report
• Send introduction package to Partner
– Confirm receipt of opportunity
– Tentative fee agreement
Needs Planning
WE Partner Both
COMPANY CONFIDENTIAL
Customer Objectives
• Sales meeting– Business requirements discussion
• Contract term• Pricing structure (Fixed, Indexed)• Supplier preferences or exceptions
• Complete WE dealsheet− Contact Info− Total Energy Consumption− # of Facilities− LDCs− Locations− # of Accounts− Name of Current Supplier
− Contract Expiration Date− Rate− Contract Amount− D&B # (if 400K+ contract)− Requested flow date− Contracting Party Info− Tax Id#
Needs Planning
WE Partner Both
COMPANY CONFIDENTIAL
Pre-Auction
• Obtain bill determinant data (electronic, with IDR data if
applicable)
• Provide an energy procurement recommendation
• Provide price-to-beat and analysis if applicable
– suggest target price
– identify expected savings, if applicable
Market AnalysisWE Partner Both
COMPANY CONFIDENTIAL
Deal Analysis – Pre-Auction
WE Recommend Summarizing Prices Across All Facilities…
…and Presenting in the Auction Grouping for Comparison
Account #Peak kW
Total Annual kWh
> 500 kW Account
5 mil Adder*
June 2004--> PTB (no 6% tax)
24 Months
30 Months
42 Months
24 Months
30 Months
42 Months 24 Months 30 Months 42 Months
5197393114 0 25,009 No 0.0423 0.0423 0.0423 0.0423 0.0435 0.0442 0.0453 0.0448 0.0462 0.04845121346913 110 292,920 No 0.0634 0.0634 0.0634 0.0634 0.0653 0.0663 0.0679 0.0671 0.0692 0.07265121241313 23 40,068 No 0.0556 0.0556 0.0556 0.0556 0.0573 0.0581 0.0596 0.0589 0.0607 0.06375121305311 86 258,435 No 0.0572 0.0572 0.0572 0.0572 0.0588 0.0598 0.0612 0.0605 0.0624 0.06555120437621 8 26,166 No 0.0563 0.0563 0.0563 0.0563 0.0579 0.0588 0.0603 0.0596 0.0614 0.06445121236115 69 208,020 No 0.0577 0.0577 0.0577 0.0577 0.0594 0.0603 0.0618 0.0611 0.0630 0.06615121348118 12 4,560 No 0.0509 0.0509 0.0509 0.0509 0.0523 0.0531 0.0544 0.0538 0.0555 0.05825121206011 132 522,840 No 0.0611 0.0611 0.0611 0.0611 0.0628 0.0638 0.0654 0.0646 0.0666 0.06995119040128 608 3,100,800 Yes 0.0050 0.0645 0.0624 0.0629 0.0633 0.0643 0.0658 0.0679 0.0662 0.0687 0.0727
Weighted Average 0.0632 0.0616 0.0620 0.0623 0.0635 0.0648 0.0668 0.0653 0.0677 0.0715
Sensitivity Case Weighted Avg Price to Beat (no 6% Tax)0% Annual Cost Increase
Base Case Weighted Avg Price to Beat (no 6% Tax)5% Annual Cost Increase
Moderate Growth Case Weighted Avg Price to Beat (no 6% Tax)
10% Annual Cost Increase
Tariff Class TRANCHE (ACCOUNT GROUPING)
ANNUAL KWH
# OF ACC. TERM IN MONTHS
Sensitivity Case (0% Annual Cost
Increase)
Base Case (5% Annual Cost
Increase)
Moderate Growth Case (10% Annual
Cost Increase)
Expected Value (10% Sensitivity, 55% Base,
35% Moderate)BPL, GLP 3,040,904 30 24 0.0609 0.0627 0.0644 0.0631BPL, GLP 3,040,904 30 30 0.0609 0.0636 0.0664 0.0643BPL, GLP 3,040,904 30 42 0.0609 0.0652 0.0697 0.0663
LPLS 13,550,480 5 24 0.0650 0.0669 0.0689 0.0674LPLS 13,550,480 5 30 0.0654 0.0684 0.0714 0.0691LPLS 13,550,480 5 42 0.0658 0.0705 0.0754 0.0717
BPL, GLP, LPLS C 4,478,818 9 24 0.0616 0.0635 0.0653 0.0640LPLP 10,396,800 2 24 Hourly N/A Hourly N/A Hourly N/A Hourly N/ALPLP 10,396,800 2 30 Hourly N/A Hourly N/A Hourly N/A Hourly N/ALPLP 10,396,800 2 42 Hourly N/A Hourly N/A Hourly N/A Hourly N/A
D, E
A
B
Price to Beat ($/kWh, no taxes)
Market Analysis
COMPANY CONFIDENTIAL
Deal Analysis – Assess Market Conditions
• Review market factors (optional)
• Tariff pricing structure (optional)
– Identify tariff sensitivity factors
• Load characteristics
• Tie-in to Natural Gas Index
• Tariff switches
• Transition charges
• Assess sensitivities to factors, using (optional)
– Objective third party research
– Historical analysis
– Current market events and conditions
Market AnalysisWE Partner Both
COMPANY CONFIDENTIAL
Pre-Auction
• Customer, sales, and supply conference call (WE
Optional)
– Discuss market conditions and price expectations
– Review general contract items
– Confirm signatories
– Schedule auction time and date
– Schedule follow-up Contract Meeting
Market AnalysisWE Partner Both
COMPANY CONFIDENTIAL
Pre-Auction
• Package the customer load
– Determine contract parameters
– Set tranches by rate class, LDC, etc.
• Confirm auction with customer
• Alert suppliers
• Conduct auction
Auction ProcessWE Partner Both
COMPANY CONFIDENTIAL
Auction
• Deliver post auction summary
• Contract Meeting
– Review auction results
– Identify supplier(s) and contract(s)
– Obtain executed contract
• Administer contracts
• Process payments
• Maintain customer relationship
• Send renewal notice to Partner
Contract ApptWE Partner Both
COMPANY CONFIDENTIAL
Post-Auction
• Upload
– Sites
– Usage
– Contracts
• Maintain customer access to platform
• Prepare for Renewals
Ongoing SupportWE Partner Both
COMPANY CONFIDENTIAL
Agenda – Part II
Platform Development – 30 minutes
WE Auction Process – 2 hours
Marketing Discussion – 1.5 hours
Platform Walk-through – 1 hour
COMPANY CONFIDENTIAL
Accomplishments and Goals
• WE and IEC have laid the foundation for a long-
standing Partnership
• Focused, structured initiatives will help us build this
relationship
– Relationship definition
– Marketing
– Sales approach
– Operations – deal processing
COMPANY CONFIDENTIAL
Defining the Relationship
• Accomplishments
– Signed partner agreement
– Defined roles
– Identified revenue breakdown
• Goals
– Implement pilot in Q1/Q206
– Rollout by end of Q206
COMPANY CONFIDENTIAL
Marketing - Goals
• External Marketing
– Press release
– Mutual trade show presence
– Mutual web listings
– Cobranded whitepapers
– Deal success press release
• Internal Marketing
– Deal announcements/auction monitoring
– Intranet presence
– Newsletters
COMPANY CONFIDENTIAL
Sales Approach - Goals
• Identify product rollout markets
• Design and distribute support materials
• Define operational procedures for opportunity
management
• Sales roles and responsibilities
• Account management responsibilities
COMPANY CONFIDENTIAL
Sales - Design And Distribute Support Materials
• Partner marketing and sales materials
• Value proposition script
• Customer qualification questionnaire/screening tool
COMPANY CONFIDENTIAL
Sales - Roles And Responsibilities
• IEC
– Lead generation
– Customer qualification
– Price-to-beat analysis
– Contract negotiations
– Deal closing
• World Energy
– Market assessment
– Procurement auction
– Post auction results reports
COMPANY CONFIDENTIAL
Sales - Account Management Responsibilities
• IEC
– Continuous customer contact
– Expand product penetration to other locations
– Contract renewal(s)
• World Energy
– Renewal reminders
– Market updates through platform
COMPANY CONFIDENTIAL
Operations – Deal Processing - Goals
• Develop event chain and associated timing
• Identify contact points for rollout
• Identify and train platform user(s)
COMPANY CONFIDENTIAL
Agenda – Part II
Platform Development – 30 minutes
WE Auction Process – 2 hours
Marketing Discussion – 1.5 hours
Platform Walk-through – 1 hour
COMPANY CONFIDENTIAL
Platform Login
• We have set up a user account for IEC
• www.wesplatform.com
– User Name: sebron
– Password: newpartner
COMPANY CONFIDENTIAL
Thank you!
Andrew Thomasathomas@worldenergy.comWorld Energy Solutions800-578-0718
top related