Meeting the Challenges of Energy Demand

Karim Barbir SVP Strategy, Portfolio and Risk Management

GDF SUEZ Energy North America

November 22, 2010

Who is GDF SUEZ ?Overview

• 2009 Revenues: €79.9 billion; EBITDA: €14.0 billion; over 200,000 worldwide employees

• Electricity: World’s largest IPP• Natural Gas: #1 buyer and transporter in Europe• LNG: #1 importer in Europe and U.S.

North American Business

• Integrated energy company; 2,000 employees• Electricity: ~8,000 MW in U.S., Canada & Mexico • 23 biomass, wind and hydro-powered assets in

US and Canada• Carbon light generation: 21% renewable; 67% gas• LNG: #1 importer in U.S., supply 20% of New

England’s annual gas demand• Retail: #2 U.S. electricity retailer servicing

commercial & industrial customers• Mexico: #1 private gas transmission; gas

distribution to nearly 400k customers2

Drive towards coal retirements

Drive for efficiency

Q: Timing? form?

Economic Recovery

Renewables

Regulatory Environment and

Sustainability

Primary Energy Sources

Signs of recovery; gas and power demand recovering

Q: Catalyst for growth?

Higher capital costs

Subsidies

Q: Will incentives continue?

What/when to invest for

clean, affordable and

reliable energy?

Shale gas advancement

Q: Price impact?

Fuel substitute?

3

Challenges/Opportunities for North American Energy

4

Economic Recovery Underway… And New Power Generation Will Be

Needed

* Solar, wood, biomass, geothermalSource: EIA

New build considerations

• Sustainability

• Infrastructure needs

• Supply diversity

• Price competitiveness

Coal

Natural gas

Hydro

Oil products

Nuclear

31%

39%

6%

10%

10%

4%

Today’s Generation Mix (capacity)

Tomorrow

US Example

Wind; other renew-ables*

New Generation Build – A Cost Perspective

Levelized Cost USD per MWh

5Source: GDF SUEZ Energy North America Analysis

Carbon Light Carbon FreeCarbon Intense

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Combined Cycle Gas - $4/MMBtu

Combined Cycle Gas - $6/MMBtu

Combustion Turbine Gas -$6/MMBtu

Coal - SC Nuclear Wind Solar (PV)

Capital Cost Property Tax & Insurance Fixed O&M Fuel & Variable With $12/Ton CO2

Renewables- Not Where We Consume Energy

6Source: NREL, Environment Canada

Vancouver

Toronto

MontrealUnited StatesWind Speed Map

CanadaWind Speed Map

United StatesSolar Intensity

• Significant incremental transmission will be needed over the next 15 years to integrate renewable development into U.S. generation fleet,

• $50 billion to satisfy existing state-level RPS standards

• As much as $130 billion to meet a 20% national renewable portfolio standard

• Texas PUC, as an example, approved nearly $5 billion for 18,456 MW of transmission investment to support renewable investments

7

Shale Gas - N. America’s Answer to a Domestic, Low Cost Primary Energy

Source?

Supply: may be as much as 100 years of U.S. consumption by some estimates

New uses: gas-fired power generation to displace coal; petrochemicals return? residential and transportation switching?

Technology adoption: to Europe? Asia? Source: EIA 2010

In a World of Cheap Gas, There is an Expanded Role for Natural Gas Fired

Generation

8

A fuel source for the ‘Utility of the

Future’

Carbon Light!Acceptable generation tradeoffs

Competitive Advantages

kg CO2 per MWh

Coal 1.0Natural Gas 0.4

• Flexible generation backup for wind and solar

• Electric vehicles

• Rapid deployment vs. nuclear

• Attractive opex/ capex profile vs. wind and nuclear

• High efficiency, off-the-shelf technology

GDF Suez Energy North America- Meeting the Challenges Now

A diversified, sustainable portfolio profitable under a variety of economic scenarios

9

Longer-term Options

Expand renewables footprint where

economically sensible; improve carbon position

of fleet

Maintain carbon-light fleet anchored by natural gas-fired generation

• Nuclear as a long-term option- clean, base load generation

• Concentrated solar, rooftop solar

• Renewables with PPAs

• Canada, US, Mexico

• CCGT

• Hydro and pumped storage

• Renewables firm support