perotSYSTEMS(TM)
- --------------------------------------------------------------------------------
POWERSTAR CAPABILITIES REVIEW:
EXPLORING OPPORTUNITIES TO FORGE AN EDF & PEROT RELATIONSHIP
November 17th, 1998
Presentation
Perot Systems Confidential and Proprietary
OBJECTIVES & AGENDA FOR TODAY'S WORKSHOP
- --------------------------------------------------------------------------------
<Table>
The Relationship Process: L'Atelier:
First Step - Qualification of Capabilities 1ere Etape: Valider les solutions
Next - Setting the Commercial Model Puis... - Construire le Modele Commericial
Then - Launch Proof of Concept Enfin... - Tester le Concept sur un pilote
Agenda: Agenda:
Introduces & Backgrounds Introduction & Historique
Perot "The Company" Perot Systems "Qui sommes-nous?"
Perot's Energy Experience/Qualifications Experience & References en Energy
Establishing Shared Definitions & Mind Map Definitions
Description of PowerStar's Capabilities Description des Fonctionalites de PowerStar
Issues Problemes a resoudre
PowerStar Demonstration & Discussion PowerStar: Demonstration & Discussion
Existing versus Future Functionality & Modules Powerstar: une plate-forme evolutive
To the Market Commercial Services Models Modeles de Services Commerciaux
</Table>
2
- --------------------------------------------------------------------------------
CHALLENGE CONVENTIONAL THINKING
3
INTRODUCING PEROT SYSTEMS: OUR CORPORATE VALUES
- --------------------------------------------------------------------------------
OUR VALUES
WE SERVE OUR
CLIENTS...
with innovative, responsive solutions
to their needs.
WE TREASURE OUR PEOPLE...
by attracting, developing, and
recognizing outstanding people, and INTEGRITY
caring for them and their families.
WE OPERATE WITH INTEGRITY... CLIENTS
by treating our clients, people, and
suppliers in a fair and honest
manner - as we want to be treated. PEOPLE
WE REWARD OUR STAKEHOLDERS...
by producing strong financial STAKEHOLDERS
performance from which everyone
benefits.
COMMUNITY
WE CONTRIBUTE TO OUR COMMUNITY...
by using our talents and resources to
better the conditions in the diverse
communities in which we work
[GRAPHIC OMITTED]
PEROTSYSTEMS(TM)
4 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS(TM)
INTRODUCING PEROT SYSTEMS: OUR BUSINESS DESIGN
- --------------------------------------------------------------------------------
INDUSTRIES-FACING (PRIMARY TO-THE-MARKET CHANNEL)
<Table>
<Caption>
FINANCIAL TRAVEL & TELECOM MANUFACTURING
ENERGY SERVICES HEALTHCARE TRANSPORTATION & MEDIA & OTHER
DOMAIN EXPERTISE
COMMERCIAL DESIGN
BUSINESS & ORGANIZATIONAL
CHANGE IMPLEMENTATION
TECHNOLOGY EXPERTISE [GRAPHIC OMITTED]
& CAPABILITIES
PROCESS & FUNCTIONAL
OUTSOURCING
CORPORATE HUMAN MARKETING
SERVICES LEGAL RESOURCES FINANCE FACILITIES & COMM.
</Table>
5 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS
INTRODUCING PEROT SYSTEMS: OUR GROWTH HISTORY ...
- --------------------------------------------------------------------------------
PEROT SYSTEMS ASSOCIATES
[BAR CHART OMITTED]
6 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
INTRODUCING PEROT SYSTEMS: OUR "ENERGY" CREDENTIALS
- --------------------------------------------------------------------------------
U.S. LPP/GAS PIPELINE
GAS DEREGULATION
STRATEGIC OPTIMIZATION
o Unbundling - nominations; scheduling; balancing; settlements
o Marketing prod. & svc development
EUROPE ELECTRICITY & GAS: PRIVATIZATION, DEREG & COMPETITION
(U.K.,
GERMANY, 1st European Utility Technology Outsourcing - 3rd largest UK REC
SWEDEN) Nationally Branded Service Guarantee- tech & process innovation
Retail Electricity & Gas Service & Infrastructure
o Commercial systems & tools (retail)
o Billing and trading sys
o Cust svc systems & centres
U.S. ELECTRICITY, GAS AND WATER
1st Deregulated Energy and Transmission Clearinghouse (Calif.)
1st Commercial Market Clearing Exchange (Calif.)
Largest Municipal Utility in the U.S. - Calif. 1st U.S. Market
2nd Largest of U.S. Investor Utilities - Calif. 1st U.S. Market
Lead Architects of North America Market Clearinghouse
Joint Enterprise development - Technology Innovation EnerAct
Companies
o Unbundling of services - interexchange
of information / [ILLEGIBLE] & customer between
[ILLEGIBLE]
o Development & training of marketing department
o Upgrade and design of new cust. svcs
o Market validation - [ILLEGIBLE] ESCO'S
[ILLEGIBLE]
ACCELERATE CHANGE
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
7 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS
ESTABLISHING A SHARED MIND-MAP: THE ENERGY VALUE CHAIN
- --------------------------------------------------------------------------------
The term "Energy" is used to include: ELECTRICITY- KWH; GAS- BTU OR THERMAL
UNIT; PROPANE- BTU OR THERMAL UNIT;
STEAM- BTU OR THERMAL UNIT; CHILLED
WATER- BTU OR THERMAL UNIT; ETC.
<Table>
OUTSOURCING DEMAND SIDE
VALUE-ADDED SERVICES ADMINISTRATIVE MANAGEMENT PURCHASE ENERGY
PRODUCT & SERVICE FACILITIES MGT & SERVICES & PERFORMANCE COMMODITY
INNOVATIONS CENTRAL PLANT (BILLING, ETC) CONTRACTING [SUPPLY]
3RD PARTY SERVICES ELECTRICITY &
"OTHER" SALES EDF
OUTSOURCING SALES &
SERVICES MARKETING BILLING SERVICES
Services Around
the Load Curve:
RTP, Aggregation
</Table>
[GRAPHIC OMITTED]
8 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS(TM)
ESTABLISHING A SHARED MIND-MAP: ENERGY VALUE CHAIN DEFINITIONS
PURCHASING ENERGY:
procurement of energy to meet customer's needs with delivery normally provided
through trading and/or power marketing organizations.
DEMAND SIDE MANAGEMENT:
consultancy provided to improve customer's energy efficiency and/or to shift
load profile to match more favorable price or rate period.
PERFORMANCE CONTRACTING:
assessment and implementation of energy management technology e.g. variable
speed drives; HVAC; lighting, etc., to optimize the customer's overallenergy
use.
ADMINISTRATIVE SERVICES:
billing, report analysis, forecasting, etc.
OUTSOURCING FACILITIES MNGT & CENTRAL PLAN OPRNS:
assuming oper. & mngt responsibility for customer's maintenance forces & its
energy related equipment.
VALUE-ADDED PRODUCTS & SERVICES:
Content services designed to create new customer value combinations across the
energy value chain
ACHAT D'ENERGIE:
fourniture de l'energie necessaire a satisfaire les besoins d'un client et
livree par I'intermediaire d' organisations de trading et/ou de marketing
GESTION DEMANDE ET COURBE DE CHARGE:
services de conseil & analyse des consommations energetiques d'un client en vue
d'agir sur ses charges pour beneficier de tarifs ou periodes plus favorables
CONTRATS DE PERFORMANCE (MDE):
etude et mise en oeuvre de technologies specifiques telles que: variateurs
(vev), climatisation-chauffage ou eclairage en vue d'optimiser l'utilisation de
l'energie consommee par le client et reduire ses couts
SERVICES ADMINISTRATIFS:
facturation, analyse, previsions, etc.
EXTERNALISATION DE LA GESTION ET DE L'EXPLOITATION
responsabilite de gestion et d'exploitation des activites et equipemments d'un
client
PRODUITS & SERVICES A VALEUR AJOUTEE:
services nouveaux concus pour creer de nouvelles configurations generatrices de
valeur ajoutee pour le client tout au long de la chaine de valeur
9 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS(TM)
ESTABLISHING A SHARED MIND-SET: THE CUSTOMER'S VALUE PROPOSITION
- -------------------------------------------------------------------------------
CUSTOMER NEEDS BUSINESS SERVICES
REDUCE ENERGY CONSUMPTION
O ENERGY VOLUMES
O UTILITY TRANSACTION CHARGES:
TRANSMISSION & DISTRIBUTION
CUT UNIT PRICE PAID FOR ENERGY
o PURCHASING &
REAL TIME PRICING; AGGREGATION
OPTIMIZE ENERGY USE
o DEMAND SIDE MANAGEMENT &
PERFORMANCE CONTRACTING
REDUCE ADMINISTRATIVE COSTS
o BILLING ADMINISTRATION
REDUCE EQUIPMENT & PEOPLE COSTS
o OUTSOURCING FACILITIES MNGT &
CENTRAL PLANT OPERATIONS
10 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
WHAT IS POWERSTAR?.....
- --------------------------------------------------------------------------------
POWERSTAR
[GRAPHIC OMITTED]
o Continuous real-time simulation modeling & optimization of energy use
o Knowledge-based value-added synergies across the whole of the Energy Value
Chain
ALL DEFINITION
FULL SPECTRUM "LIGHTS OUT" SERVICE
[GRAPHIC OMITTED]
LEVERAGED RESULTS
SERVICING
THE ENERGY VALUE CHAIN
CUSTOMER COSTS ARE A FUNCTION OF:
<Table>
[GRAPHIC OMITTED] = [GRAPHIC OMITTED] + [GRAPHIC OMITTED] + [GRAPHIC OMITTED] + [GRAPHIC OMITTED] + [GRAPHIC OMITTED]
ADMIN COST OF OPERATIONS: AMOUNT OF ENERGY USED UTILITY TRANSACTION ENERGY PURCHASE
COSTS PEOPLE & EQUIPMENT OR EFFICIENCY FEES COSTS
</Table>
11 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS(TM)
POWERSTAR'S VALUE PROPOSITION... AN OVERVIEW OF CAPABILITIES
- --------------------------------------------------------------------------------
WHAT POWERSTAR'S SERVICE PORTFOLIO OFFERS
[GRAPHIC OMITTED]
% SAVINGS - CLIENTS ANNUAL ENERGY EXPENSE SPEND
12 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY PEROTSYSTEMS(TM)
POWERSTAR CAPABILITIES REVIEW: COMPONENT TEMPLATE
- --------------------------------------------------------------------------------
business capability addressed
solution
functional description
technical description
summary
benefits/application
in france
pan europe
benefits/application
distribution company
industrial customer
commercial customer
Issue for discussion
13 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
POWERSTAR CAPABILITIES REVIEW: COMPONENT TEMPLATE
- --------------------------------------------------------------------------------
<Table>
<Caption>
NEED WHAT BUSINESS
TO: CAPABILITIES? SOLUTION BENEFITS/SUMMARY
- --- ------------------ -------- ----------------
1) Reduce o Know current consumption o Provide means to gather o Recognize anomalies
energy & when consumed (load profile) info to a common platform o Make on going changes
consumption o Info from many facilities for o Provide common interface
aggregation
2) Cut unit o Profile of energy use o Provide real-time 2 way o Aggregate load for best
Price o Control of facility systems communications to facility unit price
o Provide drivers for all o Re-act to unit price in
facility systems real-time
3) Optimize o Real time information o Provide real-time 2 way o Aggregate load for best
energy o 2 way communication with communications to facility unit price
use facility o Provide real-time o Re-act to unit price in
o Predictive model of facility predictive, learning model real-time
4) Reduce o Gather meter data in real-time o Provide meter accuracy o Accurate bills
admin o Check accuracy of bills check o Reduced cost processing
costs o Aggregate paying bills o Provide central management bills
of energy bills
5) Reduce o Monitor on real-time basis o Provide 24x7 monitoring of o More efficient equipment
equipment o Manage maintenance facilities by energy o Reduced people costs
& people automatically engineers o Reduce repair cost
costs o Have expertise monitoring all o Centrally keep maintenance
facilities records and dispatching
</Table>
14
POWERSTAR CAPABILITIES REVIEW: COMPONENT TEMPLATE
- --------------------------------------------------------------------------------
<Table>
<Caption>
CUSTOMER NEEDS
Information Predictive
acquisition Aggregation Profiling Optimization analytics Control
REDUCE ENERGY USE X X X X
REDUCE UTILITY TRANSACTION FEE X X X X X X
CUT PRICE PAID PER UNIT X X X X X
OPTIMIZE ENERGY USE X X X X X
REDUCE EQUIPMENT & PEOPLE COSTS X X X X
REDUCE ADMINISTRATIVE COSTS X X X X
</Table>
15 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
X-INDUSTRY GO-TO MARKET SERVICE..... CUSTOMIZED VALUE
- --------------------------------------------------------------------------------
Hotel
Industry Service Lines [GRAPHIC OMITTED]
Hospital EACH INDUSTRY SERVICE LINE
[GRAPHIC OMITTED]
Commercial Client
[GRAPHIC OMITTED] Management
Industrial
[GRAPHIC OMITTED] Marketing
Retail & Sales
[GRAPHIC OMITTED]
Grocery Future
[GRAPHIC OMITTED] Products &
Education Services Launch
[GRAPHIC OMITTED]
Airport PowerStar
[GRAPHIC OMITTED] Customized
Government Module
[GRAPHIC OMITTED]
Service
Other Market Channels Utility Bureau
[GRAPHIC OMITTED]
Power Marketer
[GRAPHICS OMITTED]
Energy Services Company
(e.g. Honeywell)
[GRAPHIC OMITTED]
19 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
POWER STAR . . .
A VALUE-ADDED SERVICES ENTERPRISE ADDRESSING ENERGY MANAGEMENT
[GRAPHICS OMITTED]
HOTEL
HEALTHCARE
COMMERCIAL
INDUSTRIAL
GROCERY
RETAIL
EDUCATION
AIRPORT
GOVERNMENT
Information Acquisition
Aggregation
Profiling
Predictive Decision Analytics
Optimization
Control
Common Interface
Warehousing
Mining
Proprietary Modeling, Simulation, and Methodology
Web-Based Interface and Services
Data Acquisition
Control
Communications
Reports Presentation
Mid and Back-Office Services and Infrastructure
PRODUCTS AND SERVICE PORTFOLIO
FEATURES
Base Service
A (Main Metering): Acquisition + Aggregation + Profiling
B (Sub Metering): Acquisition + Aggregation + Profiling + Optimization
(historical data -- neural net model)
Extended Service
(communicate with existing energy management system)
Levels of Service; advisory intervention or on-site customer access and control
Acquisition + Aggregation + Profiling + Predictive Analysis + Optimization
Premier Service
(includes remote "lights-out" optimization and control)
Arrangements defined by service level agreements
Acquisition + Aggregation + Predictive Analysis + Optimization + Control
BENEFITS
o Knowledge to negotiate BEST ENERGY RATE -- both regulated & deregulated
markets
o Identify anomalies & abnormal patterns FOR COST SAVINGS
o Benchmark & assess to VALIDATE FUTURE IMPROVEMENTS
o MAXIMIZE SAVINGS thru real-time optimization of equipment & energy
o REDUCE EQUIPMENT DOWN-TIME by identifying potential failures
o RESOURCES OPTIMIZED thru actual run-time predictive maintenance
o REDUCE OPERATING STAFF through remote "lights out" service
o Optimize SAVINGS ACROSS THE BOARD through dynamic service level modeling &
interaction
20 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
POWERSTAR: EMCC DESIGN AND LAYOUT
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
21 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
POWERSTAR TECHNICAL CONFIGURATION
[GRAPHIC OMITTED]
22 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
POWERSTAR: EMCC DESIGN AND LAYOUT
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
23 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
PAN-EUROPEAN MARKET REQUIREMENTS: ICH, A NEW ENTERPRISE INITIATIVE
The International Information ClearingHouse administrates, facilitates and
monitors EDF's domestic and EU activities for seizing opportunities in the
opening of the electricity & gas markets to competition.
This evolving service concept includes direct responsibility for:
o the clearing service for the registration and switch-over of customers
between energy suppliers;
o the measurement data management e.g. initial validation, resolution,
quality and exchange of meter information between the utility and market
participants, plus the creation & submission of load profile schedules to the
ISO or other designated entities as may be required;
o the administration of contracts e.g. metering, billing, payments,
settlements & other related services to the end customer, as well as between
market participants and intermediaries such as the resident utility distribution
companies, power marketers & ISO's and other agencies as required;
o the design and supporting operation of an underlying foundation of
Financial Services e.g. credit management, securitization, monetization,
insurance, payments, etc., complementing the flow of energy units (*) exchanged
between international entities
ICH acquires a key international position with Roles and Functions to be
defined.
[CHART OMITTED]
(*) Electricity or Gaz
16 Perot Systems Confidential and Proprietary
PAN-EUROPEAN MARKET REQUIREMENTS: Simplified View of Clearinghouse Concept
- --------------------------------------------------------------------------------
Restructuring Challenge Conversion & Integration
(each one to every one) Mechanism
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
25 PEROT SYSTEMS CONFIDENTIAL AND PROPRIETARY perotSYSTEMS(TM)
POWERSTAR REVIEW: EXISTING VS. FUTURE FUNCTIONALITY & MODULES
- --------------------------------------------------------------------------------
<Table>
<Caption>
Core to Required Pan-European
Functionality PowerStar Existing Future Other for France? Requirement
- ------------- --------- -------- ------ ----- ----------- ------------
Metering Services No Alliance Yes Yes
Communications Design/ No Alliance Yes Yes
Installation
EMCC
- ----
Information Acquisition Yes Yes Yes Yes
Meter Data Management Yes Web X Yes Yes
Aggregation & Analysis Yes Yes Yes Yes
Profiling Yes Yes Yes Yes
Optimization Yes Yes Yes Yes
Predictive Decision Analytics Yes Partial X Yes Yes
Control Yes No Yes Yes
Reports Capabilities Yes Web Yes Yes
Customized Industry Sets Yes Partial X Yes Yes
Mid-Office
- ----------
Call Center Yes No X Alliance Yes Yes
Help Desk Yes No X Yes Yes
Service Management Yes No X Yes Yes
</Table>
17
POWERSTAR REVIEW: EXISTING VS. FUTURE FUNCTIONALITY & MODULES
- --------------------------------------------------------------------------------
<Table>
<Caption>
Core to Required Pan-European
PowerStar Existing Future Other for France? Requirement
--------- -------- ------ ----- ----------- ------------
Information Clearinghouse
- -------------------------
Service Switch-out No Enterprise ? Yes
Registration Contract No Enterprise ? Yes
Management
Billing & Payments No Enterprise ? Yes
Settlements (UDC & PM) No Enterprise ? Yes
Call-outs/Service No Enterprise ? Yes
Coordination & Escalation
Commercial Office
- -----------------
Sales Order Entry No Develop or Yes Yes
License
Portfolio Management No Develop or Yes Yes
License
Rates Analysis & Pricing No Develop or Yes Yes
License
Product & Service Design No Develop or Yes Yes
License
Risk Management No Develop or Yes Yes
License
Modeling & Assessment No Develop or Yes Yes
License
</Table>
18
POWERSTAR: CREATING A LAUNCHING PLATFORM FOR THINGS TO COME
A HIERARCHY OF POTENTIAL INNOVATIONS
[GRAPHIC OMMITTED]
26 Perot Systems Confidential and Proprietary PEROTSYSTEMS(TM)