A FUNDAMENTAL BUSINESS CHANGE - -------------------------------------------------------------------------------- Stating the Obvious ... Increase in Volume and Complexity A single customer electing "choice" will cause Business-to-Business increased information handling from 12 to 8,760 Restructuring Challenge info packets amounting to over a (each one to every other) 700 fold increase THE RELATED SERVICE EXPLOSION [GRAPHIC OMITTED] IN INFORMATION & TRANSACTION PROCESSING... [GRAPHIC OMITTED] 4 perotSYSTEMS(TM) A FUNDAMENTAL BUSINESS CHANGE - -------------------------------------------------------------------------------- The Not-So-Obvious Challenge ... A Complexity Yet To Be Realized CONSUME ENERGY & TRANSPORT PURCHASE [GRAPHIC OMITTED] 5 perotSYSTEMS(TM) o [ILLEGIBLE] and time arbitrage -- o Trading & risk Gas -- abacus (being built out to accommodate physical) Electrical -- abacus Liquid -- Solare "Right Angle" Front office * revenue enhancement -- more complex and disaggregate risk should offer reduced costs and/[ILLEGIBLE] -- integrated settlements & clearing -- contract [ILLEGIBLE] & credit analytics -- dual structure & Forecasting (in front of front office) [ILLEGIBLE] Scheduling issues o risk control reporting o middle ware [ILLEGIBLE] o Areas -- different charts/grappling - o Fit to your needs - KEY BUSINESS ISSUES - ------------------------------------------------------------------------------- o Increasing Market complexity & volatility vs. Commodity Margins (Middleware) o Changing Rules -- even the familiar is uncertain o Cross market interfaces; modeling/simulator/optimization o This o 636 market pricing plus understanding past city gate -- 650 gas suppliers o Creation of Differentiation & Management of Customization (business enterprise & systems/service) o Shaping a value-added offering o Power Star o Alliances integration for synergy o Contract management o FCA o View world as "demand" digital marketplace o Significant increase in information handling & processing o Leveraging the investment & creating knowledge o Reduced transaction costs & enhanced service response o Dial tone, but how to turn to competitive advantage o Broader/deeper mid and back office - (market models/settlements and clearing) o integrated supply chain Been down path -- stabilizing as is w/view towards creating the "to be" -- substance and style -- pick major issue significance -- workshop to determine yes/no contribution [ILLEGIBLE] optionization 80/20 Key factors for leverage integration wholesale retail California market cash flow/costs o transaction o knowledge 3 systems(TM)