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COMMERCIAL ENERGY PROVIDERS GUARANTY LOWEST RATE IN THE MARKET

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Page 1: Hudson Energy
Page 2: Hudson Energy

Who Is Central Energy Solutions?

Page 3: Hudson Energy

Central Energy Solutions brings you over 30 years of Sales, Marketing, Product Management, Merchant Services, and Banking experience and energy consulting. These vast skills allows us to be the powerhouse for your company.

We have teamed up with the largest independent supplier of electric and natural gas services for commercial customers within competitive markets in the U.S.

Page 4: Hudson Energy

Sales Agent Orientation

Page 5: Hudson Energy

Agenda

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Hudson Energy ServicesWho We Are

Deregulated MarketsThe Electric Market Hudson Serves

Our ProductsFixed, Indexed, and Hybrid Product

Offerings

Support Hudson’s Contact Information

Page 6: Hudson Energy

WHO IS HUDSON ENERGY SERVICES…

Page 7: Hudson Energy

Overview

Hudson Energy is the largest independent supplier of electric services and natural gas to commercial and residential customers within competitive markets in the U.S.

Hudson Energy Services has a proven growth engine:

From 2004 to 2007 realized 68% financial growth

Over $1 billion in revenue in 2009

Growth driven by the use of a custom, proprietary technology platform to efficiently acquire customers

Industry leading web-based Sales Portal

Proven ability to easily expand model into new markets

Solid management team with extensive experience in this industry results in business processes and technology to drive business that allows lower overhead and fewer people to deliver value proposition

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Page 8: Hudson Energy

Hudson’s Growth Story

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2002

Hudson Energy Services founded offering natural gas services in NY/NJ

2003 2004 2005 2006 2007 2008

Electric service launched in Illinois; natural gas pending

2009

On track to achieve $1 billion in revenue by end of 2009

Hudson enters Texas electric market Began offering

electricity products Launched sales

portal

Expand services into additional markets D

evel

op

men

tsD

evel

op

men

ts

HISTORICAL DEVELOPMENTS

A clear growth story that is well positioned for the futureA clear growth story that is well positioned for the future

Page 9: Hudson Energy

Current Markets of Operation Hudson Energy has a well established, diverse customer base in the New York, New

Jersey, Texas, and Illinois energy markets. Future markets: Massachusetts 2009 & Connecticut 2010

These markets are generally considered to be the most attractive competitive markets in the U.S. New York and Texas are established competitive markets that have been open

for several years Illinois essentially opened for competition in January 2007 in both the ComEd and

Ameren service territories Each market has a different degree of maturity

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Largo

Sales Offices

Call Center

States with Customers

Service Areas

Potential Near-Term Markets

Oak Brook

Brooklyn

Irving

TXNJ

IL NYSuffern

Three Different Levels of Maturity

Page 10: Hudson Energy

Large markets with growth opportunity!

The markets where Hudson currently operates present attractive organic growth

opportunities

According to KEMA (Reporting / Consulting Firm), the current size of the New York,

Texas, and Illinois electric markets is 491 TWh, or approximately $50 billion in

annual revenue

Customers continue to switch from utilities to competitive suppliers of electricity and

natural gas in all these markets

As a result, there continues to be lucrative growth opportunities serving New York,

New Jersey, Texas, and Illinois. Future market expansion to Massachusetts late 2009

and Connecticut 2010.

Other states are also deregulating; the timing is perfect.

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Source: KEMA 2008 Retailer Yearbook. Represents Hudson’s closest competitors.

(1) Pro forma for the acquisition of Strategic Energy.

Page 11: Hudson Energy

THE ELECTRIC MARKET

HUDSON SERVES…

Page 12: Hudson Energy

TX Electric Market Structure

Texas began deregulation with a pilot program during the summer of 2001 Texas Congressional Act (Senate Bill 7 or SB7) is passed January 1, 2002

All customers in the territories of all Investor Owned Utilities (IOUs) (except SWEPCO and Entergy) either choose a new Retail Electric Provider (REP) or are transferred to the AREP of the incumbent utility on a default tariff (PriceToBeat or Standard Offer)

End-users whose peak demand is less than 1 mW (1,000 kW) in aggregate are initially assigned to Price to Beat tariff

End-users over 1 mW are assigned to Standard Offer Municipal-owned and cooperative-owned utilities opted out of competition

i.e.. San Antonio, Austin, Garland, and others

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Page 13: Hudson Energy

FIXED, INDEXED, AND HYBRID PRODUCT OFFERINGS

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Page 14: Hudson Energy

Products Offered

Hudson provides customers with the flexibility to choose from variable rates and fixed-price product offerings

Focus is on simplified service offerings

Aim is to keep sales and operating costs low while reducing sales cycles

A hybrid product is also offered that enables customers to lock in a portion of their energy on a fixed-price basis while still allowing the remaining amount to be variable (Advance and Educated consumer only)

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Page 15: Hudson Energy

Pricing Options

Fixed RatesFixed rates are just that; a price that is constant for the entire period for which is offered. Provides predictability with a fixed price that’s guaranteed for a given term.

Allows customers seeking price certainty to budget their energy dollars with confidence, avoiding sudden spikes in energy prices and decreasing their exposure to costs that may impact their bottom line.

Current Market conditions dictate us to work with Fixed Rates.

Variable Rates

Varies from month-to-month, as the energy price floats with prevailing market rates. Other price components (ancillary and capacity) can be fixed.

Allows customers comfortable with price fluctuations to benefit from energy market declines, and lock-in a fixed price when market conditions are more favorable.

This is for Advanced / Educated consumers.

.

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Page 16: Hudson Energy

TX Product Overview

Fixed Price Fixed Power – All

Inclusive – Includes all components of power.

TDSP Charges are passed through at cost (no Mark-up)

Associated Taxes are not included in the price

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Additional information: 50KW & Below Peak Demand 12

& 24 month fixed Term; Over 50KW up to 5 years fixed Term

You have until 3:00 pm each day to submit your signed contract to your Unit Manager. Hudson fills a bucket and purchases energy in a single large purchase.

Torturous Interference – If we encouraged a customer to do this it is against Texas law.

Do not encourage people to break a contract. You can start on Future Start Date instead.

Page 17: Hudson Energy

TX Product Overview (cont)

Additional Information: Schools, Government, etc are long

term proposal. – These require RFP’s.

Critical to get correct date for end of contract (If wrong fees are high!)

Texas requires LOA NY & IL require copies of the bill.

Future Start Date – You can do pricing 6 months 50KW & below; over 50KW 1 year out.

Key points: Work with the decision maker, estimated spend, 50 contacts a day. Track in Excel and send them an e-mail. Anyone that can work a zip code territory. (Templates are coming)

Hudson wants to hear good and bad plus competitive information if available.

TDSP charges are a pass through no matter which REP the consumer choose.

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Page 18: Hudson Energy

HUDSON’S CONTACT INFORMATION

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Page 19: Hudson Energy

Regional Offices

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Contact your Central Energy Solution Manager First For Assistance!

TEXAS OFFICE5100 N. O’Connor Blvd.Suite 300Irving, TX 75039Tel: 972-373-1600Fax: 888-893-9882

ILLINOIS OFFICE1415 W. 22nd StreetTower Floor, Suite 1205Oakbrook, IL 60523Tel: 630-645-3879Fax: 630-645-3879

NEW YORK OFFICE4 Executive Blvd.Suite 300Suffern, NY 10901Tel: 845-228-3400Fax: 845-228-3422