www.lipower.org

Delivering Superior Service to C&I Customers A presentation to

APPA 2005 National ConferenceJune 18-22, 2005

by

Seth Hulkower, COO

More choice… Better service!

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Who is LIPA?

Long Island’s non-profit electric utility established May 29, 1998 A New York State Instrumentality Reduced rates by 20% initially and remains below rates at time of

takeover

LIPA delivers electricity to nearly 1.1 million customers Approximately 100,000 of these are commercial

( representing more than 50% of total sales)

We are highly rated for service restoration and reliability Rated #1 in New York by Public Service Commission for Utilities with

Overhead Service

LIPA provides business solutions through a wide array of products and services

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LIPA’s Vision

LIPA Vision

We will serve as the role model of what a public power company should be in the 21st Century by anticipating and responding to the needs of our

customers and demonstrating our commitment to the betterment of Long Island and its people.

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LIPA MissionWe will deliver safe, reliable and economical electric service to our

customers.

Our Commitment is to continuously:

Be responsive to customers’ needs Upgrade and enhance the electric system; and

Advance our energy efficiency and renewable technology initiatives, thereby fostering economic stability and growth and improving the quality of life within our service territory.

Our dedicated employees will accomplish this through an active business

and civic partnership with the communities we serve while adhering to our guiding principles of honesty and integrity,

open communication and service excellence.

LIPA’s MissionLIPA’s Mission

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Balancing the Account RelationshipBalancing the Account Relationship

How does the Account view the Relationship?

How does the Account Executive view the Relationship?

Balance Service with Value

Using Information and Personal Relationships Effectively

Create the Solution

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Customer Management Major Accounts

All commercial customers have a dedicated LIPA representative

Major Account Executives

10 Account Executives vertically aligned by business segment◊ This provides industry specialization and expertise ◊ The National Accounts program recognized in 2004 from the

Energy Planning Network as Best Program in Public Power Market

We build customer loyalty by becoming involved in customer’s business concerns, partnering in research projects and developing three to five year business plans for each of our Key Accounts

We work to build mutually beneficial relationships between business and LIPA executives through our Executive Outreach Initiative

We Identify and Implement Customer Solutions

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Major Account Structure

Manager, Key AccountsManager, Key AccountsManager, Key AccountsManager, Key Accounts

Govt. & EducationGovt. & EducationNassau CountyNassau County

Govt. & EducationGovt. & EducationNassau CountyNassau County

ManufacturingManufacturingNassau CountyNassau CountyManufacturingManufacturingNassau CountyNassau County

National AccountsNational AccountsRetail marketRetail market

National AccountsNational AccountsRetail marketRetail market

Business ServicesBusiness ServicesBusiness ServicesBusiness Services

DevelopersDevelopersDevelopersDevelopers

Govt. & EducationGovt. & EducationSuffolk CountySuffolk County

Govt. & EducationGovt. & EducationSuffolk CountySuffolk County

ManufacturingManufacturingSuffolk CountySuffolk CountyManufacturingManufacturingSuffolk CountySuffolk County

National AccountsNational AccountsFoodservice marketFoodservice marketNational AccountsNational AccountsFoodservice marketFoodservice market

Hospitals & Health CareHospitals & Health CareHospitals & Health CareHospitals & Health Care

State & Federal Entities State & Federal Entities State & Federal Entities State & Federal Entities

Key Account AdministrationKey Account AdministrationKey Account AdministrationKey Account AdministrationKey Account AdministrationKey Account AdministrationKey Account AdministrationKey Account Administration

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Customer ManagementSmall-Medium Sized C&I Accounts

Small to Mid-sized Business Accounts

Energy Advisors are assigned by geography ◊ This allows for all customers within the service territories to benefit from

the programs targeted to this segment

Economic Development Accounts

Economic Development Team members are assigned by townships ◊ This provides a single point of contact for qualified businesses looking to

expand or relocate to Long Island

Customers often recognize LIPA’s dedication to meeting their specialized needs, for example…

“Our account executives were insightful and left us with many options that will help us meet our energy efficiency goals”, “Thank you for your continued exceptional service…”.

Steve Castracane, Pathmark Stores

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Economic DevelopmentEnergy Advisors

Manager, Eco DevManager, Eco DevManager, Eco DevManager, Eco Dev

Account ExecutiveAccount ExecutiveNassau CountyNassau County

Account ExecutiveAccount ExecutiveNassau CountyNassau County

Account ExecutiveAccount ExecutiveSuffolk CountySuffolk County

Account ExecutiveAccount ExecutiveSuffolk CountySuffolk County

Account ExecutiveAccount ExecutiveAssociationsAssociations

Account ExecutiveAccount ExecutiveAssociationsAssociations

Eco Dev HotlineEco Dev HotlineDevelopment SpecialistDevelopment Specialist

Eco Dev HotlineEco Dev HotlineDevelopment SpecialistDevelopment Specialist

7 – Senior Energy Advisors7 – Senior Energy AdvisorsTerritory AssignedTerritory Assigned

7 – Senior Energy Advisors7 – Senior Energy AdvisorsTerritory AssignedTerritory Assigned

Technology SpecialistTechnology SpecialistLightingLighting

Technology SpecialistTechnology SpecialistLightingLighting

Technology SpecialistTechnology SpecialistHVAC & ProcessHVAC & Process

Technology SpecialistTechnology SpecialistHVAC & ProcessHVAC & Process

Technology SpecialistTechnology SpecialistCompressor & IT TechCompressor & IT TechTechnology SpecialistTechnology SpecialistCompressor & IT TechCompressor & IT Tech

Manager, C&I ServicesManager, C&I ServicesManager, C&I ServicesManager, C&I Services

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Products and Services

Since we have a diverse customer base with a robust appetite for specialized products and services…

We strive to meet customer needs by offering a wide array of products and services

Energy Savings Programs Load Reduction Online Customer Services Business Solutions Research and Development Initiatives Rate Choices

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Energy Saving ProgramsLIPA’s Clean Energy Initiative

Commercial Construction

Customers save energy and receive cash rebates for upgrading to more energy efficient equipment

Options are available for renovations and new construction

RECAP

LIPA provides incentives to Energy Service Companies (ESCOs) to sell and install energy efficient equipment

The ESCOs make energy savings guarantees to LIPA.

Energy Analysis

We provide detailed analysis of customer facilities to make energy efficiency recommendations (motors, lighting, HVAC etc.) through both onsite and online systems

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Demand Reduction Initiative

Peak Reduction Program / LIPAedge

A partnership between Long Island Businesses, LIPA and the New York State ISO to maintain sufficient electric supply

The program ensures electric demand can be met during high load days or during supply emergencies

Financial Incentives are paid to customers to reduce demand based upon metered hourly reduction against an established customer baseline

Utilizes both Interval Meter and Thermostat deployed technologies for Load Curtailment and Messaging

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Online payments and account history

Secure Electronic Bill Presentment and Payment service featuring 13 month historical data

Interactive Business Analyzer

Customer-driven online energy audit program integrated with Billing DataMart delivering actionable energy recommendations

Business eNews

Email service featuring quarterly energy and information updates on business related topics

Business Library

Business–related topics indexed in an online searchable database

TEMPO – “Total Electronically Managed Payment On-line”

Consolidates multiple account records into a single electronic bill Fully customizable by customer

On-line Services – MY ACCOUNTOn-line Services – MY ACCOUNT

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Business Solutions for Commercial Customers

Economic Development Programs

Preferential rates are available for qualified businesses relocating or expanding on Long Island

Representatives provide access to State and local resources including financial assistance and technical training programs to assist in retention efforts

Work closely with Customers to identify productivity and profitability solutions to business issues

Trade Ally Program

Partnerships with electrical and mechanical contractors, architects, engineers and public works officials

LIPA provides training for safety, service reliability and energy efficiency

LIPA works to improve service operation interactions and develop new business opportunities that benefit the both the customer’s and the utility’s bottom line

Energy Energy

SavingsSavingsEnergy Energy

SavingsSavings

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Business Solutions for Commercial Customers

Light Solutions

Utility-owned outdoor leased lighting program providing a low-cost option using full cut-off fixtures mounted on LIPA-owned distribution poles

Customer-owned outdoor lighting program providing design, installation and financing options through our Light Solutions Provider network of manufacturers, distributors and contractors

Population Survey

LIPA provides annual estimates of population by county and town for use by planners, developers, and business owners

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Research and Development

Brings Leading edge Electro-technologies to the customer

Fuel Cell Installations

Electric Vehicles

Wind power

Photovoltaics

Collaborative projects with EPRI (Ozonation for Laundry, Ultraviolet Light for Wastewater Treatment)

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Energy Supply Choices

Green Choice

LIPA’s commitment to advancing renewable energy supply in New York State

Customers buy renewable attributes from ESCOs and elect to pay a small premium over standard electric rates

Long Island Choice – Retail Competition

Customers may choose their electricity supplier directly from a list of approved ESCOs

LIPA continues to deliver the electricity, maintain the distribution wires and provide customer service

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Conclusion

LIPA provides SOLUTIONS and SERVICE through a team of specialized representatives delivering products and services to all commercial customers.

LIPA is committed to offering an abundance of diverse products and services to commercial customers in order to encourage customer growth and to foster prosperity on Long Island.

More choice… Better service!