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********************************************************************* A new SCIENTECH PowerHitter interview with Dennis Bakke, President and CEO, AES Corporation, is now available. Find out more at: http://www.consultrci.com or call Chris Vigil (505) 244-7605 ********************************************************************* Reach thousands of utility analysts and decision makers every day. Your company can schedule a sponsorship of IssueAlert by contacting Nancy Spring at nspring@scientech.com or (505)244-7613. Advertising opportunities are also available on our website. ********************************************************************* =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SCIENTECH IssueAlert, November 29, 2000 Peace Software Lands MidAmerican Energy Account By: Will McNamara, Director, Electric Industry Analysis =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D Peace Software, a global provider of leading e-business solutions for retai= l energy companies, announced that MidAmerican Energy Company, a supplier of energy in the Midwest's deregulating market, has selected Peace's Energy software suite for a rapid entry into multiple deregulated markets. "Peace Energy is a better system for serving our unregulated electric and gas customers since we now have the capability to bill for multiple fuels, services and locations on a single statement," said Todd Raba, vice preside= nt of market and sales at MidAmerican Energy. ANALYSIS: This could materialize into a very strategic alliance for both companies. On the national or international stage, Des Moines, Iowa-based MidAmerican may not be considered a major player. Yet, within the Midwest, it is a recognizable brand name and sizeable presence. The company and its subsidiaries manage and own interests in more than 10,000 MW of=20 diversified power generation facilities around the world, providing both regulated and unregulated electric and natural-gas services to more than 1.3 million customers in six states and the United Kingdom (through its Northern Electr= ic & Gas subsidiary). In August, MidAmerican made its move into Ohio, the fourth largest U.S. market in terms of customers (behind California, Texas and Florida), indicating that the utility intends to aggressively grow in the retail sector and gain a corner on the increasingly competitive Midwest market. Just last Monday, MidAmerican became the first energy compa= ny to become registered as a certified retail electric supplier (CRES) in the Cincinnati Gas & Electric Co. territory in southwest Ohio. An essential element to the utility's growth is a comprehensive billing software system, which is where the value of Peace Software comes in.=20 According to MidAmerican, it aims to be able to provide customers with online energy usage and billing data on a 24/7 basis. Also important to MidAmerican as it enters different states is the elimination of "several automated and manual processes required by our current system." This can result in a real cost savings for an energy company as it can eliminate back office functions such as taking calls for final reads and address changes, all of which can be handled directly by the customer through online software. In this particular case, Peace's Energy software will provide to MidAmerica= n customers several self-serve features, including customer enrollment, summa= ry billing, more flexible due dates and electronic payment options. The Energy System was developed for retail energy companies and is capable of handling many functions required by retailers, from enrollment and registration to billing to settlement and load forecasting. The last two features are particularly noteworthy as, up to this point, they have been rarely found in billing software. Many systems in the United States today are building this competency or are "bolting on" the technology; Peace already offers it in a "one-stop-shop" tool. Peace Software is a growing company and had secured some key utility contra= cts prior to this one with MidAmerican, including Enron, BC Gas, Dominion Retai= l, Nordic Electric, Exelon Energy, and Pepco Services. The company is based in Atlanta and maintains a large presence in its country of origin, New Zealand, the first country to deregulate its electric utilities. I spoke with Brian Peace, CEO of Peace Software, last June and he gave an overview of how the Energy System functions. First, the Energy System is centered around the UNIX operating system and thus can be moved and upgraded from one hardware platform to another. Since its start in 1988, Peace Software has designed the Energy System around a multiple-product architecture that has enabled the company to encapsulate water, gas and electricity into one product suite. Currently, the system handles not only those three commodities, but also can consolidate billing information relat= ed to telecommunications, home security, home mortgaging and other value-added commodities and services. The end result is that an energy service provider can group all of its services into one bill stating one cost, which is a market edge against competitors that only provide multiple billing. At the time of our discussion, Peace said, "ESPs can no longer just rely on a commodity margin anymore. They've got to be able to buy it at the right price, combine it with the right services and then deliver it in a very convenient way to the customers. This is the path to being competiti= ve and profitable." Over the last decade, Peace Software gained a real lock on the New Zealand market, and began selling its technology in the United States in 1997. That same year the company secured a contract with Enron, which at the time owned Portland General and was attempting to penetrate the California retail market. Of course, Enron ultimately extinguished its retail marketin= g efforts in California, but still uses the Peace Energy software as it=20 continues to penetrate other markets. Peace Software's alliance with InSITE=01*a New York-based application service provider=01*has led to providing the softwar= e for the billing needs of Exelon. Brian Peace has said that for all of these utilities the key value of the software is the added convenience that they can market to new customers. Of course, although Peace Software's contract with MidAmerican certainly elevates the company and gives it additional stature in the Midwest market, the billing software business presents stiff competition. Perhaps the two greatest competitors for Peace Software are SCT and Excelergy. SCT offers the SCT Banner product, which was originally created to bill multiple=20 commodity customers in the utility environment and has done quite well. ENLOGIX uses the SCT Banner system to support multi-services across its client base including gas, financing, ancillary products, electricity, water, and solid waste. Excelergy was incubated in the deregulating states of the Northeast while Peace was incubated in the deregulating markets of New Zealand and Australia. Peace Software and Excelergy also have recently made their own inroads into the gas markets. Peace has entered the Canadian gas market by implementing its Energy software product at BC Gas, headquartered in Vancouver, which serves about 750,000 customers. Excelergy has implemented its billing product at Boston Gas, which serves about 535,000 customers. As competitive ESPs attempt to secure new customers in deregulating markets= , one of the key advantages will be a convenient and multi-faceted billing and customer care system. Facing a cloud of rather similar pricing offers, customers may be more enticed to select an ESP that offers the value-added service offerings found in software developed by Peace and its competitors. MidAmerican has branded itself with the tag line "Obsessively, Relentlessly At Your Service." The company is obviously making customer service a=20 centerpiece of its competitive strategy by adopting the Peace Energy software suite to support its entry into new markets. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D Need to design and implement your IT infrastructure? Learn more about=20 SCIENTECH's Information Technology team and what they can do for you at: http://www.consultrci.com/web/rciweb.nsf/web/Depts-IT.html =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SCIENTECH is pleased to provide you with your free, daily IssueAlert. Let us know if we can help you with in-depth analyses or any other SCIENTECH information products. If you would like to refer a colleague to receive our free, daily IssueAlerts, please reply to this email and include their full name and email address or register directly at: http://www.consultrci.com/web/infostore.nsf/Products/IssueAlert Sincerely, Will McNamara Director, Electric Industry Analysis wmcnamara@scientech.com =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D Feedback regarding SCIENTECH's IssueAlert should be sent to=20 wmcnamara@scientech.com =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SCIENTECH's IssueAlerts are compiled based on independent analysis by=20 SCIENTECH consultants. The opinions expressed in SCIENTECH's IssueAlerts are not intended to predict financial performance of companies discussed or to be the basis for investment decisions of any kind. SCIENTECH's sole purpos= e in publishing its IssueAlerts is to offer an independent perspective regard= ing the key events occurring in the energy industry, based on its long-standing reputation as an expert on energy and telecommunications issues. Copyright 2000. SCIENTECH, Inc. If you do not wish to receive any further IssueAlerts from SCIENTECH, pleas= e reply to this message and type "remove" in the subject line.
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