Preferred Energy Services Inc.

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PES Was Listed As The 3rd Fastest Growing Private Company In Silicon Valley By The San Jose Business Journal

The Audit Process

Our process involves the following stages. Throughout the process the client is kept abreast of our progress and a detailed report and analysis are presented prior to implementation of any claims or account changes.

1) Commencing The Analysis; Obtaining Information.
In this stage we obtain your utility account history detail from either the utility or the client. We also discover information about the facilities as needed. PES will obtain billing histories directly from the utilities using a Letter of Agency, as possible.

2) Performing the Analysis.
We then enter the data in to usable formats which can then be used to set billing parameters which indicate the need for further investigation. Using our proprietary software program, we develop hourly load profiles and review the cost under various alternative rate structures and operational scenarios. Experimental rates and programs are also evaluated. Further analysis, if warranted, is then performed and individually verified. In addition, PES researches current PUC programs and former PUC precedents to look for additional opportunities which you may benefit from.

3) Review of Past Charges and Optimizing Pricing
PES will also recalculate all billing that is suspect to verify charges. We attempt to verify meter read accuracy, demand charges, misapplied discounts and allowances, unapplied credits, power factor adjustments, and taxes. PES will review the applicability of tariffs for possible misclassification by the utilities. PES will review all overcharges to develop claims for refunds for the full length of term allowed by law that the overcharge may have occurred. We will discuss your case and negotiate with the utilities as needed. PES, at our discretion, will proceed to file complaints against the utility before the Public Utilities Commission for any unresolved issue.

4) Recommendations and Supplier Interaction
PES will draft all letters to the utility to activate any tariff changes. Your company personnel merely have to copy them on to letterhead sign and return them to us. PES will follow up the utilities and monitor the savings. We can also directly negotiate with your supplier or their affiliate and any available alternate suppliers for advantaged pricing. All suppliers will be ranked not only for price, but also for their stability and performance guarantees. PES assures that any alternate supplier chosen will not result in any reduction of quality of service.

5) Continued Review of Best Available Pricing
PES will continually review the national regulatory environment to identify any lower cost supplier, tariff, contract, programs or other means to reduce the operating cost to your company. This review will be periodic and dependent upon a number of factors including changes at the site (i.e. expansion, change in operating hours, etc.), by the vendor utility or incumbent supplier, changes in the industry or changes in regulatory matters.

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