EMC Energy Group: Member Update 2008-10-30

1. A Bright Idea in Energy for Manufacturers... EMC Energy Group:Member Update 2008-10-30 Jason Craig: ECNG Energy L.P. Scott McNeil-Smith:Excellence in Manufacturing Consortium (EMC)

2. EMC Energy Group Update: Round One Status / Tender Recap Summary of Strategy Implementation Member Report Cards Energy Group Website & Resources Update Next Steps Energy Market Outlook: Market Indicators Natural Gas and Electricity Market Prices Summary of Market Forecast Q & A EMC Energy Group Recap (Previous Info Provided) Conference Call Agenda

3. EMC Energy Group Update

4. Summary of Strategy Implementation EMC Member Strategies Include: Fixed Cost Strategies driven by Member Need and achieved through competitive tender; Floating/Index Cost Strategies(and combinations); Regulated Price Plan Programs(Electricity). EMC Energy Group Update

5. Tender Results Summary EMC Energy Group Update

6. Energy Group Report Cards (In production) EMC Energy Group Update

7. Energy Group Website & Resources EMC Web 2.0: Energy Group Page Dashboard Report 2008 Energy Survey Updated Strategies Energy Market Report (ECNG) Energy Market Video Summary (ECNG) EMC Energy Group Update

8. Program Objectives Better Cost Certainty: Members are better able to manage energy costs and budgets; Better Energy Prices: Members are able to access tier 1 wholesale energy pricing typically reserved for utilities and very large consumers. Better Security of Supply: Members energy supply needs are sourced from secure, reputable wholesale suppliers. Customized Strategies: Member strategies are specific to their needs... they are not put into a ‘one size fits all’ bucket. Each strategy is presented with tailored options. Energy Expertise: Members are able to access to energy market experts, who review their strategies and needs on a regular basis and identify any market conditions which may present opportunities for additional savings Green Energy: (Future Objective) EMC’s Energy Group facilitator ECNG Energy is exploring ‘green energy’ options which will be communicated in the near future. This could include purchasing energy from renewable resources, carbon tax credits, etc. EMC Energy Group

9. Next Steps: Continue to tender for final (2011) NG Block Generate Energy Report Cards for Fixed Price Strategies Review & Update Strategies for Index & RPP Launch EMC Energy Group Webpage: EMC Energy Group information & blog Dashboard Report 2008 EMC Energy Survey Results Energy Market Reports (ECNG) Energy Market Summary ~ Video (ECNG) EMC Energy Group Update

10. Energy Market Update

11. Energy Market Update

12. Energy Market Update ~ Natural Gas

13. Energy Market Update ~ Natural Gas

14. Energy Market Update ~ Electricity

15. Demand Hourly Ontario Electricity Price How ‘Spot Market’ Prices are Set Morning example $ GAS & OIL Supply 9.3¢ GAS & OIL GAS & OIL 5.1¢ COAL Market Price COAL HYDRO NUCLEAR NUCLEAR HYDRO EMC Energy Group: Harnessing the Power of EMC Strategic Manufacturing Energy Initiative

16. From the OPA website (generation development section) Planned Additions to Generation(Ontario)

17. Ontario Electricity Supply Profile Generation Stack / $ per MWh / Time of Day Fossil 31% Hydroelectric 24% Nuclear 45% Wind < 1% Coal/Oil/Gas - higher cost and flexible Water – medium cost and more flexible Different generation facilities have different response times and costs Nuclear – lower cost but rigid performance

18. Questions / Discussion

19. EMC Energy Group Recap

20. Round 1 Results: Nearly 20% of Ontario members joined Round 1 of EMC’s Energy Group; Each Energy Group member provided with custom energy strategy based on their needs; EMC Member Strategies Included: Fixed Cost Strategies (with variable ratios vary per member) Floating/Index Cost strategies (and combinations) Regulated Price Plan (RPP) programs (and combinations) EMC Energy Group Recap

21. Round 1 Results: Competitive Tender Process Works! 10% savings achieved from variation in tier 1 bids; 46% savings on Electricity Bids (below retail prices); 22% savings on Natural Gas Bids (below retail prices); Some bids were below EMC’s target prices: All electricity price target prices were achieved or beaten! First two year Natural Gas target prices were beaten! Tenders are continuing on remaining NG volume block. ‘Retail Prices’ are prices derived from retail energy sellers (more affectionately known as “door knockers”) not to be confused with rates offered by your local utility, which fluctuate up and down. EMC Energy Group Recap

22. Round 2 Launch: EMC Energy Group Round 2 commenced September/08 Information Webcast hosted in September 2008 Applications underway – finalizing October 2008 – however members can apply to the program any time. Once applications are finalized, ECNG will complete energy profiles for each member and provide custom energy strategies. Once members review & accept their strategies, ECNG will aggregate the group volume and begin to conduct competitive tenders with tier 1 energy suppliers. Round 2 tender target completion and prices flowing on/before February 2009 EMC Energy Group

23. GJ to m3 conversion ($ per GJ) x (0.0378) = $ per m3 For example $9/GJ x 0.0378 = $0.3402/m3 Conversion Ratio

24. Questionswww.emccanada.org