Your
Partner for
Total Utility
Management
Y
CES and OTC Global Holdings
Power in the Marketplace
•
Choice Energy Services(CES) is a subsidiary of OTC Global Holdings(www.otcgh.com) , the
largest liquidity providers to the NYMEX. We have unprecedented relationships with energy
providers across the US, Canada , and the EU– giving our clients access to the widest variety of
products and lowest prices available. We are working with some of the largest loads with specialized
portfolio products developed for them --- giving our clients access to wholesale markets for active
management of energy costs on a real time basis.
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The market is extremely complicated and volatile in deregulated markets. Given the complicated nature
of the markets, and the detrimental effect of the credit crunch on Energy companies – now more than
ever is the time to have someone with expertise present your options to you in a clear and unbiased
way.
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CES works for you in all aspects of procurement and ongoing services throughout the term of your
contracts – at no additional cost to you. We are paid by the companies that YOU chose.
RESUME
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Headquartered in Houston; with offices in New York, New Jersey, and London; expanding to
Dallas later this year
More than 6,000 accounts managed
Has carried out over 600 billion kWh in electricity transactions over the last 15 years
Rated #1 by Energy and Risk Magazine 6 years in a row
Leading independent interdealer broker in over-the-counter energy commodities with
dominant market share in U.S. and Canadian natural gas markets (Gas Options 65%)
CESR has over 50 years of combined energy expertise in house, and totaling well into the
hundreds under the OTC umbrella. We bring more experience than anyone else in the energy
markets
Because we don’t take positions in the market – we are price neutral and offer unbiased
opinions on market direction
Energy
Deregulation
End Users Have an Opportunity to Define and
Implement Solutions
1
Competitive Markets – You have a Choice of Energy Suppliers
2
Strategic Product Choices
3
Active Participation – Choice works with you to create an energy strategy
that best suits your individual needs
4
Your Electric Delivery and Maintenance – regulated and guaranteed by
the PUC
5
Cost Management – ongoing management reduces risks in market
volatility and protects against rising costs.
6
Customer Service – Choice will give you a team dedicated to your
customers service needs
7
Residential – Choice will give you and your employees wholesale
rates
Choice Energy Services
Procurement

Experience – Choice Energy Services is the oldest and largest procurement specialist in Texas. And offers a national footprint with experience

Relationships – CES has been brokering energy for over 14 years in Texas and the United States - the wholesale relationships give us an edge in understanding the companies’
service and contract history.

Time – To deliver a full RFP, negotiate several different products, to manage the contract/market, and the moving pieces while under contract.

Knowledge – To customize products for specific usage and needs. To know who is competitive, who can deliver service, natural gas curves, market timing, new products.

Leverage – More business, larger clients, wholesale “knowledge”.
CESR will customize the RFP based on specific information from your company. CESR will manage and provide market opportunities, as they arise. Choice Energy is the “front
line” for customer service, assuring issues are handled quickly and thoroughly.
Audit
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(expectation to capture at least 4% of cost for the last 4 years)
Our team has 27 years experience and has recovered money in every state in the US.
Audit utility bills that have already been paid and filed away
Identify errors for all energy services (Electric, Gas, Water, Steam)
Recover overcharges from the provider
ZERO cost for the analysis of all bills
City of New Orleans recouped $15 million
Our audit team is the most experienced in the industry, we will find and recoup any overpayments you have made over the last 4 years for any facilities in your company
portfolio.
Choice Energy Services
Power Factoring

This system will reduce overall kWh consumption by 6%-30% by treating lighting, HVAC, refrigeration, equipment, and power distribution systems.
A one page report listing cost and return with a payback timetable

We are able to guarantee ROI by policies underwritten by Lloyds of London. Reference list available upon request.

Our equipment comes with a 3 year warranty and has a typical mean time between failures of 180,000+ hours of active operation
Power Factoring is a low cost quantifiable way to lower demand side cost, raising efficiencies and the value of the properties. (Utility costs) Choice Energy can
help incorporate these costs into a procurement offer.
Conservation

No cost, specific, conservation evaluation of Your company’s facilities.
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Budget minded start (no cost for a complete study of facilities)
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Easily understandable timely reports discussing findings.
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Our experience at efficiently analyzing facilities allows us to complete within 30 to 45 days from a start date.
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Help Your company assess the best plan, and then roll it out.

Once a direction is determined and a scope of work and value created CES will direct, trouble shoot and deliver the conservation program.
Conservation is a demand side savings that includes a dollar investment in facility upgrades. We suggest an owner with interest in all upgrade options roll out all
three plans at once. This will allow some recognized dollars savings through procurement to initiate a demand side program with little or no impact on their
operating budget.
Choice Energy Services
EILS – (Emergency Interruptible Load Service) – DEMAND RESPONSE

Back up program for potential needs to the ERCOT Grid – (Back up Back up)
 LAARS –5 times in the last 18 months – largest usage was 1100 mw’s, the program has 2000.

Shift excess usage in systems to allow the state to recover some un-needed power
 Shift HVAC Loads (Pre-cooling in some cases)
 Curtail Open Area Lighting (Natural light often allows this to go un-noticed)
 Reduce Floor Lighting (If BAS controls an acceptable pattern of lights and tenants okay the measure)
 Initiate Genset (If program allows)
 Does your company have any backup generation?
 Can it be turned on in ten minutes?
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No more than once a day - no more than twice a quarter - 8 hours total for a quarter
Can curtail - No financial penalties if curtailed, only reduced payouts
No capital costs
Green component. (Actually a white component)
Paid just for the option - even if the state does not curtail.
No cost upgrading of current systems.
EILS is an example of the opportunities Choice Energy Services can find, study and present to your company, while you focus on your core business.**
***GREEN ENERGY
***RECYCLING EFFORTS: We allow big box retailers and/or any other business with recyclable trash to get paid in conjunction with their recycling efforts
USA Deregulation Opportunities
Washington
Montana
Oregon
North Dakota
Michegan
(upper penisula)
Minnesota
Wisconsin
South Dakota
Idaho
New Hampshire
New York
Pennsylvania
Wyoming
Nebraska
Nevada
Utah
Colorado
Ohio
Illinois
Kansas
Indiana
West
Virginia
Kentucky
Missouri
Massachutes
Rhode Island
Connecticut
Michegan
Iowa
New Jersey
Delaware
Maryland
Virginia
North Carolina
Tennessee
California
Oklahoma
Arizona
New Mexico
Alaska
South Carolina
Arkansas
Mississippi Alabama Georgia
Texas
Maine
Vermont
Louisiana
Florida
Electricity & Gas Deregulation
Gas Deregulation
Electricity Deregulation
No Deregulation
Hawaii
Energy Costs are likely the most volatile
expense in your business
Below is the Natural Gas 12 month Strip over the past 3+ years
POWER RESOURCES
NYMEX
Futures
Prices
• Electric prices
are directly
correlated to
NAT GAS.
Product
• CES will work
with you to find
the proper
product.
Company
Specific
Strategy
There are numerous factors that
can come into play for your
energy rate. CES will manage ALL
of them to come up with the
right strategy for you.
Contract
Terms
100+
REP’s
• CES will use • CES presents
our leverage
only the top
with the REP’s. REP’s that can
meet your
needs.
Choice Energy – Procurement Process Methodology
Process Performed in Each Regional Market
Initiate project
and establish
project goals
Data
accumulation
and analysis
Request for
proposal process
/pricing
solicitation
Pricing
proposal
analysis
Contract
review and
negotiation
Contract
execution
and price
establishment
As part of the establishment of Goals and Objectives - Choice Energy works with clients to
identify best deal structures which fit each clients individual electric and natural gas needs.
Electric Structures
Natural Gas Structures
~Collar/ Cap Structure
~Guaranteed Discount Structure
~Fixed Price Structure
~Index/ Heat Rate Structure
~Index Structure
~Fixed Price Structure
~ Hybrid Structure
Ongoing contract
maintenance
and market
monitoring
Product Risk Continuum
Guaranteed Discount
Least Risk
Fixed Price
Heat Rate with Cap
Index
RISK CONTINUUM
Most Risk
Heat Rate
 Choice Energy works with clients to assist in determining the best product structure based on each individual clients' goals and objectives.
 There are hybrids versions of these products which Choice Energy can offer to many clients.
Bill Payment and Data Reporting
ACH
Scanning
Verification
Checks
EDI
Normalization
Vendor Mgmt
OCR
Security
Application
Data Entry
Exchange
Escheatment
Missing Bills
Shutoff
Prevention
Exception
Handling
Consolidation
Accuracy
Data Feed
Web Analytics
GL or A/P
Interfaces
INFORMATION
Quality
PAYMENTS
Mail handling
DATA
INVOICES
A comprehensive end-end-process for managing utility transactions.
Accruals
Process Reporting
Performance
Reporting
Data Management Screen Shot
Data Management Screen Shot
Fixed OPTION
Sample Pricing Sheet
Consulted Services For
Consulted Services For
Choice Energy Services
Partners
Choice Mission Statement
Choice Energy Services is in the business of creating long term
partnerships with our clients in order to provide ongoing energy
solutions in a convoluted marketplace allowing our clients to focus on
their core business.