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NAVIGATE POWER

NAVIGATE POWER. 2013 New Broker Introduction. Our Commitment to You. Welcome!

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NAVIGATE POWER

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  1. NAVIGATE POWER 2013 New Broker Introduction

  2. Our Commitment to You Welcome! Whether you’re an experienced energy professional or new to the industry, we’re excited to partner with you. With over 25 years of combined electricity and natural gas experience, we have mastered the industry’s best practices and are looking to share them with you. My partners and I have built Navigate Power on the principles of full transparency, servant leadership, and work ethic. Though the energy business can be challenging, it can be very lucrative if we remain disciplined and work together. We are committed to providing you: • The best resources and up-to-date market information • Competitive supplier relationships and pricing • Technical and customer relationship support • On time commissions and detailed reporting Thank you for your interest in becoming a Navigate Power broker. Let’s make it happen! Sincerely, Mark Nakayama CEO, Navigate Power

  3. Deregulation 101: Quick History REGULATED MARKET 3. Meter Reading & Billing 1. Generation The LDC is responsible for reading meters and billing. The LDC is also responsible for servicing and maintenance. 2. Delivery Most plants generate electricity by burning coal, natural gas, and oil. Fossil fuels are burned to create steam that are used to turn huge turbines, creating electricity The local distribution company (“LDC”) is responsible for safely and reliably delivery electricity across their network of poles and wires—or transmission lines.

  4. Deregulation 101: Quick History DEREGULATED MARKET 1. Open Market (NYMEX) Independent generation plants upload electricity to the open market to be traded, like other commodities like oil, natural gas, corn and soy beans. 4. Meter Reading & Billing 2. Retail Energy Suppliers (RES) The LDC is responsible for reading meters and billing. The LDC is also responsible for servicing and maintenance. 3. Delivery The local distribution company (“LDC”) is responsible for safely and reliably delivery electricity across their network of poles and wires—or transmission lines. RES’s use their cash and credit to buy large loads of electricity off the open market, in the hopes of reselling/ retailing the cheaper power to individual commercial or residential customers.

  5. Deregulation 101: Quick History DEREGULATED MARKETS For an interactive overview of all deregulated utilities in Ohio, please visit: www.puco.ohio.gov/pucogis/esa/index.cfm

  6. The Opportunity 2008 9.8¢ 2009 8.1¢ The graph shows annual average all-in fixed prices. The majority of business and residential customers choose budget certainty and look to “lock” in a price. Current market prices are extremely low, making it a great time to lock in a rate. 2010 7.1¢ ’11 to ’12 6.2¢ 4.5 – 5.9¢ per kwh

  7. Retail Energy Supply Partners

  8. PRECISION EXECUTION Pricing, Proposals, and Contract Strategy

  9. Getting “IT” Right, The First Time PRICING • 2. Collect the business and contact information • Legal entity and DBA • Decision maker’s name • Phone number, fax number, and e-mail address* * Navigate Power generates e-mails on behalf of it’s agents, informing clients of referral incentives, market updates, renewal rates. • Get a copy of the last three months of the electricity supply bill • Helps pass credit • More accurately calculate historical rates

  10. Getting “IT” Right, The First Time PRICING • Collect current contract information • Current electricity supplier • Contract end date • Type of rate: Fixed or Index • E-mail information to sales@navigatepower.com • Attach a bill copies • You will receive an e-mail confirming your pricing request

  11. Pricing: Key Terms and Definitions So What Is A Kwh? • A unit of measurement for electricity • Kilo watt-hour • 1 Kwh = Ten 100w light bulbs burning for one hour 100w Key Terms and Definitions annual usage: Quantity of kwh client uses in a year transfer price: price from supplier with no margin or zero mark-up contract price: transfer price plus margin. mil: $0.001/ kwh or 1/10th of a penny per kwh term: Number of months contracted ESA: electricity service agreement

  12. Pricing: Building a Contract Price After you submit a pricing request to sales@navigatepower.com, you will receive pricing back from various RES’s. Step 1: Supplier gives a transfer price Step 2: Decide on a margin to add or “build into” contract price. Step 3: Declare a contract price on agreement Concept: The more margin you add or “build into” the contract price, the less the client will save. Commission Savings

  13. Example: Calculating Prices and Savings So, Let’s say your friend Gino owns a pizza joint. Gino’s Pizzeria uses 300,000 kwh per year. They are currently paying $0.08650/ kwh. An RES returns a transfer price of $0.04950/ kwh. C Annual Usage 300,000 kwh Gino’s Pizzeria Difference in Rate $0.03100/ kwh A Transfer Price $0.04950 Margin: 6 mils $0.00600 Contract Price $0.05550 B Estimated Annual Savings $9,300 Difference in Rate $0.03100 Contract Price $0.05550 Current Rate $0.08650

  14. “What About Me?”: Calculating Commissions You’re a new agent making 30% of gross revenue. You must first calculate revenue. Annual Usage 300,000 kwh Margin Added $0.00600/ kwh Total Annual Revenue $1,800 Your Commission: $540 ($1,800 x 30%) Alec Baldwin in “Glengarry Glen Ross”

  15. Booking a Deal • After you close the deal, our operations team asks for your help when submitting your deals. This will help us better track the deals and ensure on-time enrollment. • Please make sure all deals: • Have a filled out deal cover sheet • Includes a copy of a recent supply bill, one per account number • Contain all pages of the contract, including terms and conditions • Are packaged together in one document. Submitting Deals E-mail to sales@navigatepower.com -or- Fax to (888) 783-0381

  16. Tracking, Reporting, Commissions • We understand that it’s hard enough generating sales. That’s why we strive to ensure transparency, accuracy, and timeliness when it comes to your pipelines and money. • Through salesforce.com, we are able to: • Track your pipeline and ensure on-time pricing • Ensure accurate reporting • Pay commissions in full and on time • Launch e-mail and marketing campaigns to help you stay in front of your clients and generate referrals Salesforce.com

  17. Questions & Inquiries If you have any questions, please contact your channel manager (CM) or Mark Nakayama (630) 881-0621 mnakayama@navigatepower.com Or visit us at: www.navigatepower.com

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