TEXAS Market Profile

1. TEXASMarket Profile November 2011

2. TEXAS Market Market Size: $24 Billion Potential Market 7.1 Million Potential Customers

3. TEXAS Market Invoices come directly from Ambit Energy • pay online, IVR, via phone with agent, payment locations, or by mail) Account Descriptions: • Oncor- 17 digit number, • Centerpoint- 22 digit number, • AEP Central 17 digit number, • AEP North- 17 digit number • TNMP 17 digit number

4. TEXAS Credit Checks Credit checks are required before electric service is established • Score is obtained through Equifax (credit reporting agency)and determines if a deposit is necessary based on the customer’s score • Consent is required by the Texas customer to conduct the credit review

5. TEXAS Deposits Split Deposits are available- only at the time of set up • First half is due at set up time and second half will be billed on the customer’s first invoice Deposit Refunds- are issued 365 days from due date of 1st invoice, if customer has 12 month good payment history • After the final meter read and final invoice are sent the deposit will be credited to the account and the remaining balance will be mailed to the customer 30 days from the final invoice due date

6. TEXAS Free Energy Referral Program- 180 days from service start date to enroll 15 customers (refer these customer to consultant’s personal website to enroll) • The credit is based on an average payment amount of the minimum 15 customers, all bills must be paid on time, and the free energy credit is displayed on the invoice • The Customer’s bill will display a $0.00 balance in the “Billing History” under the Charges/Invoice column if the credit exceeds the bill amount

7. TEXAS Products Assistance Programs: • LITE UP- government sponsored program that provides discount on electric rates to qualified low- income customers

8. TEXAS Product Types

9. TEXAS Average Billing Average billing is based on a rolling 365 day historical average use • Usage is calculated using: • {(avg. daily use) X (# days in billing cycle) = rate} • Single ESI-ID customers • All TEXAS residential customers are eligible unless they are in “Treatment or De-Energized”

10. http://www.PowerToChoose.com Public Utility Commission • All retail electricity providers are required to provide PTC website on first page of customer invoices • Website provides rates of all retail electric providers in Texas • Low teaser rates are displayed to attract customers • Some customers change providers monthly to take advantage of low introductory rates • Not the most reliable source for complete competitive analysis for Texas rates

11. Ambit vs. the Incumbents When comparing websites: • Recognize the 2,000 kWh vs. 1,000 kWh difference • “Power To Choose” requires an “average” rateat 1,000 kWh • To make an accurate comparison, do the math! • “Unbundled rates” • TDU fees go straight to the customer vs. Ambit’s fees are built into the energy rate

12. TEXAS Small Commercial Is defined as a non-residential customer whose average monthly electricity bill is less than $5,000.00 • Peak demand is less than 50 kilowatts during any 12 month period • TSC customers are not eligible for Free Energy or Travel Rewards • TSC customers are subject to Third Party Verification • Consolidated billing is available upon enrollment • TSC Rates can be located in PowerZone • Business Tools → Customer Tools → TSC Pricing Flyer

13. TEXASRates • Guaranteed Rate Savings Flyers are listed in PowerZone • Located in the Business Tools Tab → Advertising Tool Kit → Customer Flyers

14. Please share this information with your organizations and potential customers.

15. Thank you for helping build the TEXAS Market!