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Least Cost Purchasing Practices (LCPP)

For industrial manufacturers, electric power generators, financial institutions.

Gelber's Least Cost Purchasing Practice^TM is a structured framework for minimizing energy commodity costs and managing volatility in a client's energy portfolio. The purchasing practices are implemented using Gelber's "collaborative approach" which entails working closely with our clients. Constant communication and thorough follow-up is the hallmark of excellent project management and Gelber excels in both.

LCPP is a proven and effective methodology for dealing with the extreme price volatility and aberrant nature of natural gas, wholesale power, and other energy-related commodities. Gelber's strengths are rooted in long industrial and financial experience, honed intuition, a deep understanding of market fundamentals, the use of modern methodologies and tools, a presence on the NYMEX floor, and most importantly, an independent perspective.

LCPP integrates best-in-market information and risk management techniques with the expertise of Gelber's experienced and knowledgeable experts. LCPP implementation is thorough, yet pragmatic; we are sensitive to risk management costs and don't overstress exotic solutions. While we feel that our time-tested methodology produces results, we are also keenly aware that every situation and every client demands a unique solution and a personal touch - you won't just find a black box in our shop.

The key value creation components of LCPP include:

• PRIMAP: Gelber's Price Risk Management and Procurement Methodology Program Report (PRIMAP) is the road map for optimizing energy procurement. With on-site and close client interaction, PRIMAP is a crucial benchmark upon which future performance is based. PRIMAP includes client asset and profile determinates, risk/reward assessment, corporate energy policies and procedures review, regulatory considerations and client expectations and outcomes. The PRIMAP component may also be purchased as an "a la carte" service from Gelber & Associates.

	Gelber Communications Suite
	-Gelber Daily Energy Sheet: Synopsis of previous days market activities, daily trading range forecast, direction and recommendations (1-3 days forward), important news items impacting market action. See an example. -Trading Desk Communications: Daily phone access from client to the NYMEX trading floor. Gelber does what it takes to get you proper direction & recommendations based on real-time data. -Urgent Advisories and Communiques: Gelber's staff issue urgent advisories and calls to action via e-mail, instant messaging, and telephone. The advisory services may be purchased separately. -Gelber initiates weekly telephone discussions to discuss near term market and market influences, evaluate portfolio relative to PRIMAP benchmarks and portfolio positions, and provide a consistent follow-up on the development of the client's programs.

• On going transaction assistance and support to deploy initiatives critical for the attainment of the PRIMAP Program, intervention to insure best bid/offer price from "trigger" deals, futures and swap transactions, etc. Gelber has access to the NYMEX floor as well as real-time market information; we are well qualified and equipped to offer reliable transaction services.

• Annual Energy Price Forecast, Industry Review, and Seminar: The cornerstone in going forward. (Full day, on-site presentation). In addition to a progress review and performance "report card", Gelber will tackle a topic of the client's choosing.

• Monthly swing/non-swing physical purchasing decisions.

• Current Contract Review: Extensive review of energy, tolling, transportation/transmission, agreements and contracts and reporting of findings.

• Contract Term Sheet Development: Gelber's experience, insight, and research allows for the development of strong contract term sheet development. Gelber also aids in the development of intelligent negotiation tactics for client-service provider relationships.

• Physical Cash Market Resources: Gelber provides clients with a wide variety of contact points in the cash market.

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