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Price Stabilization Protocol (PSP)

Volatility mitigation strategies for utilities and public commissions

Investor owned utilities and public utility commissions utilize Gelber's proprietary Price Stabilization Protocol (PSP). PSP is a proven and effective methodology to mitigate natural gas and energy price volatility and enhance price stability - while at the same time permitting the buying expertise of the utility to benefit the ratepayer. PSP is utilized in various states across the country and is proving invaluable in managing the price volatility of natural gas and energy.

Public Utility Commissions use PSP to develop reasonable and prudent procurement practices in a market that no longer permits or tolerates buying solely at first-of-the-month index prices. PSP integrates a portfolio approach coupled with Gelber's proprietary price forecasting and quantitative analysis of market behaviors to manage risk effectively in the regulatory environment.

If you are a regulated utility and are increasingly finding the "pass-through" dynamics troublesome for the "rate base" and others of your constituency, including the regulators, or forward purchasing is problematic due to existing regulatory prudence criteria, consider Price Stabilization Protocol.

• Prudent Procurement Techniques: Includes a disciplined hedging program to take advantage of seasonal buying opportunities. Also provides the flexibility for the utility to implement discretionary hedging decisions based upon market intelligence.

• Approved in multiples states: Gelber's methodology has already been approved in several states.

• 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.

• PGA pass through enhancement: Gelber assists utilities in presenting the PSP program to the Commission in order to receive approval of the general objectives of the program prior to implementation. Receiving advanced approval from the commission should allow for the PGA recovery of all costs associated with hedging.

• Expansion of products and tools via public commission education and market opportunities.