Matthew Sheehan, Regional Sales Manager 10/08/2014

1. GDF SUEZ Energy Resources Overview & Factors to consider when buying Electric Supply for large industrials Matthew Sheehan, Regional Sales Manager 10/08/2014

2. A World Leader in Energy • Leader in Electricity • #1 independent power producer in the world • 113.7 GW of gross installed power generating capacity • 32 renewable operating facilities with a generation capacity of 1,000 MW and 1,153 MW of pumped hydro storage • World leader in LNG & Natural Gas • # 1 importer of LNG and buyer of natural gas in Europe • # 1 in natural gas transport and distribution networks in Europe • A supply portfolio of more than 1,334 TWh • Energy & environmental efficiency services • #1 supplier to cities and businesses across Europe (180 million heating & cooling networks managed in Europe) • Environment • #1 supplier of energy and environmental efficiency services in the world (91 million people supplied with drinking water)

3. Global Fast Facts • GDF SUEZ Group headquarters located in Paris and Brussels • 2013 GDF SUEZ Revenues totaled €81.3 billion • A publically traded company, GDF SUEZ is listed on the Euronext Paris, Euronext Brussels, and Luxembourg markets under the symbol GSZ • Strong credit ratings: A / A-1 (outlook stable) (S&P, July. 2014) • Ranked No. 1 most admired company in the world for Social Responsibility by CNN Money in 2012

4. KCAREY GDF SUEZ Energy Resources place in the global structure

5. North America Structure

6. Financial Stability

7. GDF SUEZ North America Corporate & Business Unit Functions GDF SUEZ North America (GSENA) • Manages North America’s liquefied natural gas operations and gas sales to large customers in the U.S. and LDCs and gas transportation in Mexico • Manages wholesale commodity price risks and optimizes North America’s businesses’ positions through Central Portfolio Management • Manages power generation operations in North America, including natural gas-fired, renewable, and thermal plants • Provides Commercial & Industrial customers in the United States with products and services to help control costs when procuring electricity Natural Gas & LNG Trading & Portfolio Management GSEMNA Power Generation GSEGNA Retail Electricity

8. GDF SUEZ Energy Resources NA GDF SUEZ Energy Resources NA is a licensed provider of retail electricity and related services to industrial and commercial customers in the United States • One of the largest national energy providers, licensed to serve 12 deregulated markets, with customers in TX, CT, DE, IL, NY, NJ, MA, MD, ME, PA, OH & DC • GDF SUEZ Energy Resources NA serves over 3,000 customers and over 60,000 accounts • Customer accounts represent almost $4 billion in contract value • The first retail supplier to publicly guarantee on-time enrollment • Recognized by customers and energy partners as a leader in quick problem resolution, execution on price quotes and on-time, accurate billing

9. GDF SUEZ Energy Resources Service Areas

10. We take pride in who we serve, we serve over half of the Fortune Top 100 ™ in 2014

11. Informational Leader providing Industry Experts & Insight • Seminars: 2014 GDF SUEZ Road Show Speaking series featuring Andrew Weissman, Publisher of Energy Business Watch and CEO of EBW Analytics. Weissman discusses current market conditions and price forecasts specific to the region of event. • Dallas 7/31/2014 (recording available) • Philadelphia 8/21/14 (recording available) • Boston 10/28/14 • Cleveland Spring 2015 • Webinars: Current Intelligence Series Educational live webinars hosted by energy experts who will highlight the most relevant topics to the industry. • Check out the latest on Reducing Commodity Costs By Integrating Load Analytics

12. Decision-Making Tools Click here to subscribe for weekly post updates

13. Decision-Making Tools

14. Decision Making Tools: historical price data right from your phone

15. All review Hassle free-streamlined Services Ease of contracting allows customer to be time efficient and focus on other areas of their business. • Quick turnaround on pricing, even for multiple products • Single master contract for multi-site accounts • On time and accurate billing • Fully Integrated Billing System • Gold Standard for Gas Locks

16. Assessing Risk Appetite GDF SUEZ Energy Resources offers a range of core products that cover the spectrum below. Notice the tip of the cone rests to the left of the vertical axis due to the fact the Delivery charges are not driven by market forces and may be subject to adjustment, meaning that prices can never be 100% “fixed.” ---- = Risk Premiums Fix= High Certainty & High Risk Premiums Flex=Low Certainty & Low Risk Premiums

17. Transparent Pricing

18. Simplified Products & Services

19. Compare Stipulated Quantity vs Price Lock • Standard RTC Block and Index • Block does not follow the customers load. • Block portion represented as an adjustment to the customer bill. • Easy Flex with Price Lock • Price lock follows the customers load. • Price Lock quantity varies with customers usage. • Price Lock portion represented as component of the customer’s bill. GDF Suez Confidential

20. Number of Locks • Price Lock minimum increments are 20% of historical load. • Increments can be in units of 20%, 25%, 30% etc. • Executed at time of contract signing or during the term. • Must be done 3 business days before delivery month. • Not available via recorded line. • Does not have to be locked for remainder of term. • Tolerance bands apply to months where 100% locked. • Incremental locks are opportunities for incremental margin. • Price Locks are not transparent. GDF Suez Confidential

21. Product SelectionRisk Tolerance & Energy Procurement Strategies

22. Product SelectionProduct Determination • Once you have established your risk tolerance level, choose a product that matches your needs • Fixed Price Full Requirements – Price Certainty • Day Ahead or Real Time Index – Floating Price • Heat Rate – Floating price with the power price tied to the price of natural gas, ability to lock-in price • Stipulated Quantity (a.k.a. Block & Index) – partial Fixed Price hedge with exposure to index pricing hybrid product

23. Basic Rules for Electricity PurchasingClearly identify the product and features you want

24. Buying Electricity is Like….Choosing a Cell Phone Plan

25. Basic Rules for Electricity PurchasingSolicit bids from qualified suppliers • How many years serving customers? • How many customers served? • Creditworthiness/Financial Stability • Service • Negotiate contract with shortlisted suppliers • X Price

26. Basic Rules for Electricity Purchasing Make an Apples to Apples Comparison • Look closely at definitions

27. Basic Rules for Electricity Purchasing Make an Apples to Apples Comparison • Use a bid-table • Forces suppliers to present information in a manner you can easily compare and analyze • Confirms the number of ESI being priced matches expectations

28. Basic Rules for Electricity PurchasingTiming of Contract Execution • Establish price targets and be ready to contract when the opportunity arises • Have a back-up plan if price target isn’t reached *Note: Does not apply to customers on an “Index All Pass Through” product

29. Basic Rules for Electricity PurchasingTiming of Contract Execution • Be ready to execute quickly • Executable hold premiums can be significant • Example • Supplier’s executable offer = 7.00 cents • Supplier’s executable offer with 12 hour hold open= 7.15 cents • Supplier’s executable offer with 24 hour hold open= 7.30 cents • How much is the hold premium costing you? • 10 million kWh/year  $15k – 30k per year

30. Looking At The Fine Print • Contract Expiration • Expected Usage • Components of an Electricity Bill • Line Losses • Treatment of regulatory/market events

31. Looking At The Fine Print… Contract Expiration • When does the contract really expire? • Most contracts end on the meter read after the “End Date” • Some contracts stipulate a specific #months service. If a meter is enrolled late then the term is extended for that meter – causes issues for next contract • Switching too early may result in early termination payments to the supplier • Switching too late may result in paying the “rollover” or “transition” rate • Price may include monthly service charge per meter • Price may be indexed to gas (e.g., Heat Rate * Gas + Adder) • Price may be based on Index + Adder • Price may be based on Index+ Adder + Additional Pass Through Charges

32. Looking At The Fine Print… Expected Usage • Basics • Suppliers need to know how much power to hedge • Customers must provide a reasonable estimate of how much power will be consumed • Contract stipulates that price is based on expected consumption (within stipulated tolerance bands) • Things to Consider • How far away is the start date of the next contract? • How does the historical usage compare to the expected forecast? • Communicate to suppliers how energy consumption will change in the future • Energy efficiency projects • New construction, expansions, deletions Establish reasonable projections of usage

33. Looking At The Fine Print…Line Losses • Supplier #1’s price includes line losses • Sample Bill calculation: Energy charge = $0.075/kWh * 600,000 kWh = $45,000 Utility Charge = $10,000 Total Charge = $55,000 • Supplier #2 is passing through losses as a line item under the T&D charge category  • Sample Bill calculation: Energy charge = $0.074/kWh * 600,000 kWh = $44,400 Utility Charge = $10,000 + ($0.074/kWh * 600,000 kWh * 5%) = $12,220 Total Charge = $56,620 •  Supplier #3 is grossing up the usage to account for the T&D losses • Sample Bill calculation: Energy charge = $0.074/kWh * (600,000 kWh *1.05) = $0.074/kWh * 630,000 = $46,620 Utility Charge = $10,000 Total Charge = $56,620 As shown above, Supplier 1 has the lowest effective price to the customer.