Energy Management Services Presentation for Kalahari Resorts Prepared by: Mark R. Burns, President Independent Energy Consultants, Inc. October 31, 2006.

Energy Management Services Presentation for

Kalahari Resorts

Prepared by: Mark R. Burns, President

Independent Energy Consultants, Inc.October 31, 2006

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Comprehensive Approach to Energy Management

• Energy Supply Sourcing– World Energy Solutions and Independent Energy Consultants– Identify least cost options & mitigate risk– Natural Gas & Electric Sourcing– Internet Reverse Auctions

• Energy Management– Turning data into decision quality information– Tariff Analysis– Bill Auditing

• Demand Side Management– Benchmarking identifies best and worst performers– Power Factor Analysis – eliminate utility penalties– Energy walkthroughs and audits

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Gas Only

Experience in Managing Complexity

Broad market coverage (25+ States, 100+ Utilities) enables us to support Clients with locations across the

country

Electricity + Gas

Ontario

Not Currently Active or Not Deregulated

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An “EBay” for Energy

Independent Energy Consultants brings together the intelligence and tools to enable energy buyers to procure energy more efficiently - reducing cost and limiting risk.

ENERGYCOSTS

CONFIDENCE

• Partner with Internet Auction Site that has procured over $1.2bb in electricity, natural gas, and financial instruments. Saved Customers over $100,000,000

• 5x the volume of nearest competitor• Runaway market leader of 40 competitive

exchanges

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The Procurement Process

NeedsPlanning

MarketAnalysis

Auction ContractOngoingSupport

• Discuss Goals

• Review current market conditions

• Identify Locations

• Request and Format 12 months historical usage

• Perform Price-to-Compare Analysis

• Identify Contract Parameters

• Structure RFP

• Alert 100% of registered supply base

• Run reverse auction

• Upload contracts, sites and usage

• Prepare for Renewals

Proven Process Ensures Success and Supports Compliance

• Perform Savings Analysis

• Recommend Contracting Terms

• Review and finalize contract

Life of Contract

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Dominion East Ohio Gas Cost Recovery vs. Market Forecast and Offer Price

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4

5

6

7

8

9

10

$/M

cf

Actual Estimated Forecast Confidence Limit Contract

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Intelligence to Guide Strategy Decisions

• Platform contains market analysis for all deregulated markets

• Wholesale Pricing trends

• Market Characteristics

– Switch Rules

– Regulatory History

– Rate Classes

• Current Go-to-Market recommendation

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Auction View

• Proven time and time again to deliver the lowest price available in the market

• Design to favor consumer – fixed end time, direct entry bidding

• Engagement cost contingent on you saving – paid by supplier

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IEC Auditing and Tariff Analysis Services

• Can provide past and ongoing utility bill auditing

• Look at ~ 40 billing parameters to spot possible errors

• Assist in Processing claims for overcharges

• Verification of proper Rate Code

– Utility assigns original rate code

– New ones come about and client’s operations change

• Verification of proper Tariff Riders

– These change frequently

• Can host online keep energy data in one spot

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Energy Accounting and Auditing Service

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Energy Star Process

• Begin with benchmarking– Determine best and worst performing facilities

• Integrated approach (one change effects others)– Recommissioning– Lighting– Load reductions– Distribution systems– Plant upgrades

• Implement cost effective measures– Seek low interest loans grants to fund projects– Track improvement– Apply for Energy Star Recognition– Publicize and build on success

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Bench Marking

• Need to determine where improvements might be needed

– Do not want to spend efforts on efficient buildings

• Benchmark using latest federal government data for commercial buildings (CBECS)

• Data needed from Kalahari

– Building size (square feet)

– Occupancy (people and hours/week)

– Utility bills data – cost and consumption

• View online at Portfolio Manager

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Why Outsource

• Economical way to obtain professional help

• Downsized organizations not devoting needed resources

• No need to train personnel

• Part-time job that requires full-time attention

• Markets, regulations, and technology change frequently

• Large spend category – even minor improvements produce big gains

• Independent and objective advice

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Energy Quiz – Could I answer these? Do I understand why they are important?

• My company spent $________ for electricity last year and used ______ kWh

• My company spent $________ for natural gas last year and used ______ MCF

• The cost and use figures are ___%, ___%, ___%, and ___% higher or lower than the prior year

• If asked, I could readily develop an energy budget, by utility meter, for next year Y/N

• In this FY we are currently ___% over/under budget for natural gas, and ____% over/under for electric

• The temperature forecast for the next 14 days calls for ______ HDD and ______ CDD

• The forecast mentioned above will cause my company to use ____% more gas ____% electric

• The top three drivers of my natural gas use are _______________________________________________________

• The top three drivers of my electric use are __________________________________________________________

• Natural gas in storage is ____BCF. That is ____% higher or lower than last year and ____% from the 5-yr average

• The upcoming U.S. hurricane season is expected to be worse, better or equal to the 100-year average

• Natural gas and electric prices are correlated Y/N If so, which commodity drives the other?

• If I have a choice of heating fuels, I would know how to value and select the least cost alternative?

• My electric utility charges me a penalty for low power factor? If so, it is costing me $_______/month.

• Last month I paid multiple utility bills and I am confident each amount was correct Y/N ?

• I am confident a faulty utility meter (water, electric, gas) would be promptly identified by our maintenance staff?

• I received literature talking about energy conservation measures (ECM) for lighting, ventilation, motors, etc. I am confident we’re doing all we can to identify ECMs and I would be able to perform a cost/benefit analysis on the same?

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Energy Cost Intensity by Industry

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Contact Information

Contact your licensed full service independent energy experts:

Independent Energy Consultants

Ph: 330 995-2675

Toll Free: (888) 862-6060

Email: [email protected]

Fax: (216) 274-9176

Web: naturalgas-electric.com

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Kalahari Involvement – Next Steps

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Sample Testimonial

“It has been my pleasure to work with Mark Burns in developing Green's electric and gas aggregation programs. Green was one of the first municipalities to initiate an aggregation program and Mr. Burns' knowledge and drive were instrumental in getting this accomplished in a timely and cost efficient manner. The city of Green has saved its residents literally millions of dollars in reduced costs for both power and natural gas. Given Mr. Burns extensive knowledge and customer responsiveness, I would recommend him unconditionally to coordinate any utility based study.”

 Dan Croghan,

Mayor, City of Green, Ohio

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Mark Burns Biographical Summary

• Owner/Founder of Two Successful Energy Consulting Firms

• Licensed Natural Gas and Electric Broker and Aggregator by State Regulators

• Former Risk Control over $1 Billion Electric/Natural Gas Trading Floor

• Former Strategic Planning Manager Major Utility

• Develop & Oversee $250 Million Annual Capital Budget for Major Utility

• Designed Energy Trading Models Successfully Used by Major Utility

• Senior License from Nuclear Regulatory Commission to Operate and Manage a Nuclear Power Plant

• Electric Test Engineer on Several U.S. Naval Nuclear Powered Submarines

• Bachelors Degree in Electrical Engineering Technology

• Masters Degree in Business Administration

• Certified in Performance of Energy Efficiency Projects

• 23 Years Professional Development and Training

• Member Association of Energy Engineers

• Member Facility Managers Institute of AEE

• Member of various Boards and Councils