Summer 2005 OutlookConstellation NewEnergyFebruary 22, 2005

Summer 2005 Outlook

• CNE Background– Serving customers in competitive markets for 10 years– Largest national C&I retail provider, 12,000 MWs nationally– Description of other Constellation Energy CA businesses

• Purchase Supplies to Correspond with Customer Commitments– Serve approximately 4,000 accounts, 200

commercial/industrial customers– Serve approximately 1,000 MWs NCP demand– Supply through firm energy contracts for NP 15 or SP 15– Supplies are delivered to the zone where the load is.

Summer 2005 Outlook

• Procedures to Balance Loads and Resources– CNE purchases supplies to match the customer’s contract

term– Forecasts and schedules aggregate hourly loads for

customers– Residual differences are purchased or sold in day-ahead

over-the-counter market and/or ISO imbalance market• Procedures to Plan and Acquire New Resources

– Supply plan is based on customer purchase requests– Acquisition is through:

• Standard over the counter energy products• Structured or non-standard, unit-based purchases

– Asset-based deals– Any customized purchase (i.e. non-standard on/off peak, hourly

differentiated volume purchase or other)