Reduction and Elimination of Sales Tax on Transportation Charges from the Utilities Transportation charges are approximately 40% of a full service utility bill When buying from the utility, the full sales tax is charged on the entire bill When buying from Stuyvesant, Stuyvesant will charge the full sales tax on the commodity, but the utility will reduce the tax on the transportation portion of the bill On September 1, 2003, the utilities will eliminate the sales tax completely on the transportation charges This equates to a savings of approximately $0.0350 per therm Retail Choice Credits Incentives to switch to Stuyvesant are available from the utilities: - Con Ed is currently offering a $0.0240 discount on the transportation charges - Keyspan NY is currently offering a $0.0210 discount on the transportation charges - Keyspan LI is currently offering a $0.0190 discount on the transportation charges - O & R is currently charging a $0.0300 surcharge to their direct customers, but will eliminate that fee when an account buys from Stuyvesant Elimination of Gross Receipts Tax and M.T.A. Surcharges Utilities must collect GRT and MTA fees Stuyvesant does not have to collect GRT and MTA fees Savings vary by region and account type, but the range is between 1.75% and 8.17%; the majority of accounts will save about 4.5% Stuyvesant offers Fixed Rate and NYMEX Plus Pricing Plans Utilities only offer monthly variable rates, subject to current market conditions Stuyvesant offers monthly variable rates in addition to fixed and index based plans Enhanced Customer Services are Available from Stuyvesant Utilities consider their accounts to be rate-payers, while Stuyvesant considers an account to be their customer Stuyvesant offers better customer service than a utility can offer Stuyvesant services may include a dedicated account representative, consultative services, savings analyses, and market and pricing updates Benefits of Buying from Stuyvesant Energy We offer lower rates than most marketers Our winter rates were considerably lower than Castle Power, Great Eastern, NATGASCO, and Amerada Hess We offer customized savings analyses to illustrate potential savings to a prospect Our billing is timely, clear and accurate Our credit department handles accounts in a fair and reasonable fashion, adding value to our customer service Our wholesale supply is very solid We have an excellent relationship with all utilities