APEX Services

Energy Price Targeting establishes a client's "target" price(s) for energy, based on the applicable area energy markets, available supply alternatives, and the estimated prices being paid by the client's major competitors. Target prices are essential to the development and implementation of an effective comprehensive energy plan, and are a critical component in evaluating current supplier prices, competitive supply options that may be available, and otherwise achieving a client's energy objectives.

Comprehensive Energy Planning is crucial to successfully navigating the rapidly changing energy landscape. A comprehensive energy plan is the basis for proactive energy strategies - from negotiations with energy providers to identification and evaluation of supply alternatives, to analysis of internal process operations. APEX assists client's in developing and implementing effective comprehensive energy plans reflecting the energy characteristics, location and competitive market position of the client.

Energy Rate Optimization entails detailed analyses of the client's current electric utility bills and alternative rate options which might be available. The analyses will provide input for a client's electric cost reduction strategy, as appropriate. In some cases, electric utility customers are paying more than the average electric rate for the area and may not be aware of more appropriate rate options, or that their rates may be "negotiable". The development of an effective cost reduction strategy designed for the customer's unique energy consumption characteristics is key to identifying cost reduction opportunities.

Energy Supply RFP's & RFQ's which are carefully crafted "requests for proposals" (RFP's) and "requests for qualifications" (RFQ's) can be an integral part of an overall customer energy cost reduction strategy. The RFP can be an effective tool in seeking out low cost suppliers of electricity and steam who may wish to locate an "energy plant" adjacent to the customer. By focussing on each customer's unique situation, APEX's customized RFP packages provide an additional means of securing energy cost savings by bringing the expertise of "outside" energy suppliers to bear on reducing energy costs.

Process Energy Management involves improving energy utilization by identifying energy cost to process relationships. Most manufacturers are committed to reducing production costs while increasing quality and productivity. However, when it comes to reducing energy costs, many manufacturers rely only on "use less - pay less" conservation techniques and practices. Process energy management techniques allow APEX to evaluate potential process "alternatives" and identify/quantify the associated impacts on energy costs and manufacturing efficiencies. Load shifting, thermal storage or other methods may be appropriate to reduce cost without necessarily reducing consumption.

On-Site Energy Management services are designed to optimize the effectiveness of the customer's present "in house" energy management staff, or provide an "out source" for the establishment of such staff. Through this service, APEX can provide and supervise on-site energy management personnel, as necessary, to meet the requirements of the individual client, thereby allowing clients to focus on their primary core business.

Legislative and Regulatory Liaison services provide clients with first-hand knowledge of activities in the legislative and regulatory arenas which may directly impact a client's energy costs or options. Current knowledge of relevant energy policy trends, initiatives, regulations and decisions, empowers APEX client's to make reasoned, informed choices in the development and implementation of energy cost reduction strategies. Services include monitoring legislative and regulatory proceedings that appear likely to affect the electric utility industry and energy consumers. APEX offers "Public Service/Utility Commission" support for clients who desire direct contact or involvement in resolving disputes with their electric utility, or who wish to participate in electric energy related policy making processes. APEX also offers legislative support for clients seeking to provide input, or seeking advice, assistance or information with respect to electric energy.

Energy Planning services provide clients with the types of information and research needed to prepare energy cost projections. APEX assists clients in formulating forecasts which reflect the uncertainty of future power costs but which rely on the latest information and modeling techniques to develop a "range" of projections based on various industry trends and forecasts.

Total Energy Management essentially combines the APEX services, with the additional services available by virtue of APEX's affiliation with the American Power Exchange, Inc. and its various strategic alliances. APEX is well positioned to provide complete energy management services to customers, including procurement of the customer's fuel, brokering/marketing of any excess electricity to the grid, and - when available - the brokering/marketing of electricity directly to the client.

Production Cost Analysis services are designed to accurately determine the cost of producing electricity and thermal energy so that appropriate pricing schedules and/or strategies can be developed. In the "cost plus" regulatory environment, determination of true production costs has been less important than it will be in the competitive market place - at both the wholesale and retail level. Because regulatory mechanisms allowed utilities to recover all prudently incurred costs, it was not critical that costs be specifically tied to the point of causation. This is expected to dramatically change in the competitive environment where it will be critical to accurately determine true production costs.

Mergers and Acquisitions services are designed specifically for those clients considering the purchase or sale of energy assets. These APEX services will identify, evaluate and quantify energy markets and trends, regulatory issues and operational costs and benefits, all with a view toward providing critical current information and advice intended to optimize financial benefit while minimizing client and transaction risks. M&A services will call include APEX expertise in a number of areas mentioned above such as development and publication of customized "requests for proposals" (RFP's) and/or "requests for qualifications" (RFQ's).

Landfill Gas Optimization services are designed for those clients with access to landfill gas (LFG) supplies such as local government owners or contract operators of such facilities. Considered a renewable energy resource in many states, LFG can provide impressive financial returns including both market price revenues and investment or production tax credits for properly structured ownership and sales arrangements. A number of potentially lucrative options are now available for LFG ranging from the use of the low-BTU LFG in turbine or engine-electric generator sets for the production of electricity, to the production of high-BTU "pipeline" quality gas, among others. Determining which of these options may best suit the circumstances and need of a client will depend on LFG location, the local utility service area, access to the electric grid or natural gas pipeline, and various other factors.

Renewable Energy Credit services are comprised of the qualification, quantification and valuation of renewable energy credits (RECs). Many electric utilities, including investor-owned, municipal and cooperative, are seeking to purchase renewable energy, or the unbundled RECs associated with the renewable energy, in order to comply with mandated renewable portfolio standards or on a voluntary basis. The value of RECs can vary significantly by renewable energy resource type, geographical location, and applicable law. APEX strives to assist its clients in achieving the benefit from REC sales consistent with the timing, terms, conditions and other preferences of the client. APEX's REC services may include services will call include APEX expertise in a number of areas mentioned above such as development and publication of customized "requests for proposals" (RFP's) and/or "requests for qualifications" (RFQ's).

Climate Change services assist clients in identifying and quantifying the potential impact of climate change legislation or regulation. Depending on particular circumstances, large commercial or industrial concerns, if prepared and properly informed, may stand to benefit financially from climate change initiatives through sale of emission offsets, sale of non-energy attributes, the implementation of qualifying energy efficiency or conservation systems, use of renewable energy resources and other such pro-active measures. APEX is well equipped to qualify, quantify and establish for its clients the market values/costs of such measures as a basis for conducting cost-benefit and/or life cycle cost data. However, because climate change policies are in the formative stages and not implemented in any significant form at present, it is important that those who might be impacted - either positively or negatively by such initiatives - remain aware of current developments and likely outcomes of legislative and regulatory proposals. APEX provides its clients with updated information and advice.

Financial Assessment services are provided for those clients desiring a focused, thorough and comprehensive evaluation of various financial aspects of any energy related "decision" of a client - including the purchase or sale of energy assets (determining asset value), the sale of energy (evaluating market prices and trends) or other activities related to energy or its non-energy attributes in the case or renewable energy. Changes in the energy markets, and particularly the electric energy markets over the past decades, has necessitated and increase in scope and breadth of working knowledge of many new factors when conduction financial evaluations. The advent of renewable energy, the REC, the RPS, the notion of greenhouse gases, increase oversight of hedge and derivative products, decreasing oversight of electric utilities - all in recent years - render true financial assessment a much more involved and sometimes convoluted process. However, unless all such factors are properly reflected, the product of the analysis will be flawed and of limited value or usefulness. APEX possesses the scope and breadth of knowledge to provide truly thorough and comprehensive assessments.

Reliability Compliance services are offered to those clients who may become affected by the reliability standards and compliance registry administered by the National Electric Reliability Corporation (NERC) and a number of regional reliability organizations across the county. The primary purpose of the reliability standards and compliance registry is to increase the reliability and security of the interconnected electric system thereby reducing the risk of significant system failures or outages. The determination of which entities are included on the registry is typically made by NERC and/or upon recommendation of the regional organization. Those included on the registry must comply with various standards, failing which substantial fines can be assessed and applied. NERC standards include certain threshold and exemptions which, however, can be over-ridden by the NERC or a regional organization in certain cases. Importantly, an entity that should be on the registry but is not identified by NERC may still be subject to the standards and potential penalties. APEX can assist clients in evaluating its reliability compliance exposure and assist in the development of solutions as may be appropriate.

Expert Witness services can be provided for all proceedings relating to electric energy and renewable energy matters. APEX has provided such services before federal and state regulatory agencies and participated in preparation of cases to be heard judicial bodies including bankruptcy and insolvency cases. APEX professional's powerful combination of engineering, financial, operational, regulatory, and technical expertise is truly unique among consulting firms. Our expertise assures that APEX clients will fully benefit from the opportunities presented, while avoiding the risks created by seemingly on-going changes in the electric utility and energy markets. APEX provides expert witness services in all energy matters including, but not limited to, electric rates, contracts, and renewable energy issues.

Energy Brokering & Marketing is offered through APEX affiliate American Power Exchange, Inc. as may be appropriate under the circumstances dictated by the client's particular location and utility service area, as well as the applicable laws relating to sales of electricity.