Frequently Asked Questions

OUR PRODUCT

Am I guaranteed savings if I sign up for your gas or electricity programs?
No, but history indicates that both gas and electricity prices have been very volatile. Existing customers have saved substantial amounts over the term of their contracts. However, future savings will depend on the direction of commodity prices. What we do guarantee is no surprises. Your price will be as contracted every month for five years.

What is the difference between your natural gas offering and your electricity offering?
With gas, the customer buys all gas consumed at a fixed price. With electricity, the customer buys approximately 95% of projected demand at a fixed price, with any volume shortfall or excess purchased or sold at market price.

Why should I switch to Energy Savings from my Local Distribution Utility?
Customers want stability and the ability to accurately budget their household costs. With a five-year fixed price commodity contract, you have this stability plus protection against any future increases in commodity prices.

How can we trust that you will deliver our gas or electricity as contracted?
Energy Savings has operated since 1997. In that period, we have never missed a delivery to a single customer. Our commodity is purchased from counterparties with credit ratings in compliance with our Risk Management Policy. Financially, Energy Savings is a substantial entity with a market capitalization of over $1.2 billion.

How does weather effect your business?
We supply commodity as directed by the local utility based on long-term average consumption. We are then required, over time, to balance against actual consumption. In the case of a cold winter, we would (over time) supply more gas, reflecting the higher consumption. To the extent that this supply is at a cost higher or lower than our customer contract price, we have some small incremental loss or gain.

OUR UNITS ON THE TSX

Why are you an Income Fund if you grow so rapidly?
Energy Savings is a unique Income Fund. Because we generate an annual return that is substantially in excess of cash invested in marketing, we are able to both grow the business and pay out substantial cash.

Are your distributions guaranteed?
No. They are a function of operating results of our business and can vary with those results. Company policy is to only increase the distribution rate if, in the estimation of management, the amount is sustainable even if Energy Savings does not have any future net increase in customers.

How many units or equivalents are there in Energy Savings?
As of March 31, 2009 we had the following:

Trust units outstanding	124,325,307
Class A preference shares	5,263,728
JEEC exchangeable shares	4,688,172
Unit equivalents receiving distributions	112,791,147
Unit appreciation rights	2,640,723
Unit options outstanding Deferred unit grants	555,500 62,530
Total units and equivalents	137,354,568

Why do you not increase returns through leverage?
We believe an unlevered business results in a more predictable financial performance. Interest rates are inherently volatile and the ability to refinance is never a certainty. Unitholders are free to introduce their own leverage if they so desire.

Does the recent volatility in gas prices affect profitability?
Because we are matched between our supply and our customers’ demand, changes in gas price have very little effect on our financial results.

What are your future sources of growth?
Energy Savings continues to actively monitor the progress of the deregulated markets in various jurisdictions in North America.