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Ambit EnergyMay 10, 2007
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Agenda
• Company Overview
• Customer Acquisition/Order Process
• Communications
• DNP Process
• Usage/Billing Challenges
• Q&A
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Ambit Overview
• History
– Founded 2006, currently employs 40 associates
• Network marketing used for distribution
– Success based acquisition model
– Perfect for selling recurring retail products
– Reduces costs associated with direct mail, advertising, etc.
• Technology infrastructure is a core asset
– Mature systems and processes in place
– All orders taken over the internet
– Allows for scale and keeps overhead costs to a minimum
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Customer Acquisition - Strategy
• Customers are acquired through network marketing– Network of independent sales consultants
– Relationship selling
• All orders placed directly through consultant websites– Automated ESI ID lookup
– Online rate calculator
– Minimizes errors compared to manual processes
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Order to Cash – Customer Acquisition
BlueNet
Customer
Personal Website
Credit Score
Find ESIID
Enrollment
Call CenterThird Party Verification
ERCOT
No
Yes
Payment Processor
$$
$$ $$$$
2 minutes + (TPV, Deposit Pay)
BlueNet
Customer
Personal Website
Credit Score
Find ESIID
Enrollment
Call CenterThird Party Verification
ERCOT
No
Yes
Payment Processor
$$
$$ $$$$
2 minutes + (TPV, Deposit Pay)
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Who are the players?
• Public Utilities Commission of Texas (PUC-T) – primary regulatory authority
• Energy Reliability Council of Texas (ERCOT) - works at direction of PUC
• Transmission and/or Distribution Service Provider (TDSP)
• CR/REP (Competitive Retailer/Retail Electric Provider)
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Communications
• EDI transactions between Ambit and ERCOT and Ambit and TDSP’s for all enrollments and service orders
• Delivery Service Agreement – option 1 vs. option 3– Attempt to improve customer service by consolidating all
requests into Ambit (i.e. billing, service orders, etc.)– EDI Challenges – systems need to support all service order
request options (i.e. quality check, meter re-read, replace meter, etc.)
• CR support centers• Phone• Emails• TDSP web portals• MarkeTrak
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Disconnect for Non-pay
• #1 Challenge for CR’s• Disconnect and Reconnect business rules
– Due dates vs. TDSP schedules– Critical Care customers – Disconnect at meter vs. pole (i.e. Bad Dog!, gate locked, etc.)
• “Energy Hoppers”• AMR will help to minimize delays• Treatment process
– Multiple tiers of treatment timelines based on a customer’s propensity to pay
– Business rules built into platform • Payment plans• Assessment of charges
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Usage/Billing Challenges
• Meter re-reads & meter tests– Validity of request?– Customer abuse?
• Estimated usage vs. actual usage• Cancel/Rebill process• Discretionary charges
Q&A