Serving the power &utilities industryNaturally resourceful

Energy & Resources

Statement of qualifications February 2012

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Serving the power & utilities industry 1

About Deloitte 2

Deloitte’s global presence 3

Global Energy & Resources at a glance 4

Power & Utilities – Centers of Excellence 5

Representative clients 6

Representative engagements 7

Recent awards 10

Presence at leading global events 11

Providing insight through thought leadership 12

Strategic alliances and partnerships 13

Key contacts 14

Contents

Serving the power & utilities industry Naturally resourceful 1

The global network of Deloitte member firms boasts anarray of industry-focused practitioners who have, andcontinue to serve, the world’s largest power & utilitiescompanies across the entire value chain. Whether it’srestructuring to emerge from economic downturns,post-merger integration following an acquisition,meeting climate change challenges, or coping withincreased renewables requirements, Deloitte memberfirms help clients address many of these difficult tasksby providing a range of services to companies in allpower segments from regulated utilities toindependents, renewables and energy tradingbusinesses. By focusing on the delivery of value-addedservice to power sector clients, Deloitte subject matterspecialists can help companies focus attention on theleading issues of the day from energy policy, nucleargeneration and decommissioning, security of supply,and carbon emissions verification.

Deloitte member firms are fully integrated accountingand auditing, tax, strategic and operational consultingand financial advisory firms providing these and otherprofessional services through a network ofapproximately 182,000 people in more than 150 countries with more than 7,700 professionalsfocusing on the energy & resources industry. We are amarket leader in services to power & utilities companies,electric and gas utilities, independent power producers,renewable and alternative energy providers and waterutilities. We serve a majority of the world’s largestregulated utilities. We also offer over 15 dedicatedservice lines to the industry including strategy, energytrading, regulatory services, risk management,environmental services, energy efficiency, mergers andacquisitions, project finance, operational optimization,IT systems, structured finance, due diligence andvaluation services.

Serving the power & utilities industry

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Deloitte Touche Tohmatsu Limited is an organization of member firms around the world devoted to excellence in providing professional servicesand advice, focused on client service through a global strategy executed locally in close to 150 countries.

With access to the deep intellectual capital of approximately 182,000 people worldwide, these member firms serve more than 80% of the world’slargest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global companies.

Where we fit in the marketplaceDeloitte network is the leading global professional services provider, with deep, well-respected capabilities across a number of disciplines.

About Deloitte

AuditEnterprise RiskServices

Tax Consulting Financial Advisory

• Accounting Advisory • Assurance Services • Financial Statements Audit • Integrated Services

• Business Risk • Information and

Technology Risk

• Business Tax • Customs & Global Trade • Global Employer Services • Indirect Tax • International Tax • Legal Services • Mergers & Acquisitions • Private Company Services • Research & Development

and Government Incentives • Tax Management

Consulting • Transfer Pricing

• Human Capital • Strategy & Operations • Technology

• Corporate Finance Advisory • Forensic & Dispute Services • M&A Transaction Services • Reorganization Services • Valuation Services

Serving the power & utilities industry Naturally resourceful 3

Deloitte’s global presence

Deloitte

Audit Tax Business ConsultingFinancial Advisory

Services

• Deloitte is a leading global provider of audit and financial services to private and public organizations across all industries.

– Offices in 150 countries – Approximately 182,000 employees – Global FY11 revenue of more than US$28 billion

• We operate in four main service lines.

North America93 cities47,000 employees

Europe46 countries40,000 employees

MENA15 countries7,500 employees

Asia Pacific26 countries29,000 employees

LACRO(Latin Americaand Caribbean)28 countries16,000 employees

Africa46 cities10,500 employees

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GE&R covers the power & utilities, oil & gas, mining, shipping & ports and the water sectors.

GE&R has over 7,700 industry-focused practitioners that provide services covering audit, tax, financial advisory and consulting.

Deloitte member firms serve 60% or 57 companies of the 96 Fortune Global 500® Energy & Resources companies.

Deloitte member firms serve

• 13 of the top 24 electric power companies

• 34 of the world’s 56 oil & gas companies

• 7 of the 10 mining companies

• 2 of the 4 largest shipping companies

• All of the water companies

For FY11, Deloitte revenues reached approximately US$28.8 billion

Global Energy & Resources at a glance

Serving the power & utilities industry Naturally resourceful 5

Power & Utilities – Centers of Excellence

SouthernCalifornia Washington

Buenos Aires

Sao Paulo

JohannesburgMelbourne Auckland

Hong Kong

Osaka

MoscowPragueAmsterdam

ParisRome

London

Madrid

Santiago

A2A (Italy)Abu Dhabi Water & Electricity Authority* (UAE)Alliant Energy Corporation* (US)American Electric Power* (US)Ashmore Energy International* (US)Areva* (France)Avista Corporation* (US)BC Hydro (Canada)Black Hills Corporation* (US)CEMIG* (Brazil)CenterPoint Energy Inc.* (UK)Centrica (US)CFE (Comision Federal de Electricidad) (Mexico)CNE (Comision Nacional de Energia) (Spain)Delta* (Netherlands)Distrigas (Belgium)Dominion Resources* (US)DQE, Inc.* (US)Duke Energy Corporation* (US)EDF (Electricite de France)* (France)EDP (Energias de Portugal)Eletrobras* (Brazil)Enagas* (Spain)ENDESA S.A. (Empresa Nacional de Electricidad, S.A.) (Spain)Eneco* (Netherlands)Enel (Italy)Energy Future Holdings Inc. (TXU* is a subsidiary) (US)Entergy Corporation* (US)Eolia (Spain)E.ON (Germany)Eskom (South Africa)Fortum* (Finland)FPL Group* (Florida Power & Light Group) (US)Gamesa* (Spain)Gas Natural (Spain)Gasunie (Netherlands)GDF Suez* (France)Great Plains Energy, Inc.* (US)Hub Power* (Pakistan)Hydro-Quebec (Canada)Iberdrola-Scottish PowerIdaCorp, Inc.* (US)Integrys Energy Group, Inc.* (US)ITC Holdings* (US)Israel Electric* (Israel)Kansai Electric Power Co.* (Japan)Karachi Electric Supply Corporation* (Pakistan)

KAPCO* (Kot Addu Power Company (Pakistan)KEPCO* (Korea Electric Power Company Inc. (Korea)Kyushu Electric Power Company, Inc.* (Japan)L’Air Liquide S.A. (France)MDU Resources Group, Inc.* (US)National Grid (UK)Nicor, Inc.* (US)NiSource, Inc.* (US)Northeast Utilities* (US)Northwestern Corporation* (US)Nuon (Netherlands)NV Energy (Sierra Pacific Resources* is a subsidiary) (US)PG&E Corporation* (US)Pinnacle West Capital Corporation* (US)PNM Resources* (US)Portland General Electric Company (US)Progress Energy* (US)PT PLN* (Indonesia)Public Power Corporation S.A. (Greece)Reliant Energy, Inc.* (US)RWE (Germany)SCANA Corporation* (US)Sempra Energy* (US)Shikoku Electric Power* (Japan)Southern Company, Inc.* (US)Statkraft Group* (Norway)Taipower* (Taiwan Power Company)TEIAS (Turkey)TransAlta (Canada)Turkish Electricity*Union Fenosa S.A.* (Spain)Vapo* (Finland)Vattenfall (Sweden)Vectren Corporation* (US)Verbund* (Austria)Westar Energy, Inc.* (US)WGL Holdings, Inc.* (US)Wisconsin Energy Corporation* (US)Xcel Energy Inc.* (US)

*Audit clients

Power & Utilities – representative clients

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Serving the power & utilities industry Naturally resourceful 7

Representative engagements

Mergers & AcquisitionsAccounting Function Integration for a SharedServices CenterFollowing the global merger between two powercompanies and their respective accounting functions, asimilar merger was required to integrate accountingfunctions of each group’s subsidiaries. Deloitte wasengaged to design, plan, and implement the SharedService Center (SSC) integration of the accounting areasof these companies. The functions under the projectscope included general accounting, accounts payable,financial administration and treasury.

Value delivered/estimated benefits• Shared service center integrated in six months.• Divisions totally centralized and located keeping

balance between two locations.• Synergies inventory – FTE savings to be captured

during the first year of operation.

Advisory Services for Merger of the SubsidiariesDeloitte provided advisory services for the merger oftwo subsidiaries of an electric power supplier. Bothcompanies are the subsidiaries of the client and providesimilar products and services to their parent company.Their businesses looked similar, but people working forboth the companies thought they were different inevery aspect such as corporate culture, business model,and attitude towards capital.

Value delivered/estimated benefits• Formation of the corporate vision of the new company.• Promoted the exchange of opinions and

understanding of the businesses of the other.• Forming the future goal of the new company created

a strong tie between them, and eliminated the ‘youand I’ attitude and created a sense of ‘We’.

Audit/Enterprise Risk ServicesGlobal Corporate SAP ERP ImplementationAs a result of several large acquisitions across differentgeographies, the client had a need to simplify,standardize and integrate its support business processesand SAP systems. This led to the need to address twocorporate needs:• Align the client’s SAP ERP application architecture

with the shared services implementation strategywithin the client – alignment of the support businessprocesses and implementation of the client’s sharedservices organization until 2012-2013.

• Update the SAP ERP IT architecture and its evolutionplan, assuring the optimization and coordination ofthe implementation roadmap.

Value delivered/estimated benefits• Align the business processes in all geographies within

a single global template achieving the benefitsinherent to process standardization and unificationaccording to industry best practices.

• Rationalize client’s ERP IT landscape decreasingoverall TCO.

• Have a scalable systems architecture to enhance thedevelopment of the client’s business execution,namely regarding the expansion strategy newgeographies.

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Risk Assessment AlignmentThe client was looking for a partner to support itsunderstanding of the various formal and informal riskassessment processes undertaken at the departmentallevel, and to integrate these different processes with theorganization’s existing Enterprise Risk Management(ERM) program. The client recognized that differentneeds may require different approaches, and waslooking to streamline the process while leveragingexisting risk management efforts.

Value delivered/estimated benefitsDeloitte provided the following deliverables:• A preliminary report that identified and categorized

existing formal and informal risk assessment processesand methodologies at the department level, as well asthose departments where there was no risk assessmentperformed, but where there was a need for such aprocess. This preliminary report documented initialobservations of how risk assessments were conductedat the departmental level.

• A final report that introduced a framework to enablethe integration of the different risk assessmentactivities with the client’s ERM program, leveragingpast efforts and proposing a comprehensive set ofpractical recommendations.

• A debriefing session with the client’s risk managementdepartment and the Risk Management Committee.

Consulting – Strategy & OperationsEffectiveness Review of the Procurement FunctionAs outlined in its annual audit plan, the internal auditdepartment at the client was undertaking aneffectiveness review of the corporate procurementfunction.

The review was approved by the client audit committeeof the Board of Directors. The review was designed toassess the current role and effectiveness of theprocurement function and the value-add it provides toits internal customer base.

Value delivered/estimated benefits• Deloitte provided recommendations to transform the

client’s procurement function into a more strategicorganization, incorporating strategic sourcingmethodologies and tools.

• The proposed new procurement approach containsclear opportunities for the client to start obtainingadditional savings.

Smart Grid Strategic PlanningThe client believes there is potential to reduce thegrowth in peak electricity demand and the growth inenergy consumption.

Value delivered/estimated benefitsSupporting the client with overall roadmapdevelopment for how to transform the client. Inaddition, providing support in the security arena,including how best to: • Smart Grid Strategy Development, Visioning, and

Program Planning artifacts.• Content creation to support distributor overview

meetings.• Demand Response PMO templates.• Support for Meter Data Management (MDM) System

vendor selection and planning.• Define MDM site visit criteria to be used during

vendor selection process.• Creation of Security Smart Grid Metering Standards,

Programs and Policies.

Serving the power & utilities industry Naturally resourceful 9

Integrated Human Resource ManagementImplementationThe client and its subsidiaries customized and integrateda benefits system, which was virtually impossible toupgrade efficiently to the current version. Workerscompensation, internal training, Family Medical Leave Act(FMLA) and other business operations employ separatehomegrown systems and standalone databases in orderto meet their business needs. The result is acumbersome system, requiring significant staff time,duplicate data processes and extensive work around.Additionally, the system lacks access to timelyinformation required for decision-making due toprocessing limitations. There was a critical need to havea high performing, well tested and scalable technologysolution with flexibility to adapt to changingrequirements and have analytical tools available toexecutives to facilitate decision-making.

Value delivered/estimated benefitsAs the client engages in this change process, theseguiding principles describe the basic attributes desiredin the new systems and processes: • Access: Maximize access to data and transaction for

all workers and decision makers, while appropriatelyprotecting sensitive employee data as provided instatutes and regulations. Web-based tool provide thegreatest access to information to all stakeholders ofthe various processes.

• Usability: Systems should provide intuitive, user-friendly interfaces with robust on-line “help”functionality geared toward the working professional.

• Workflow: Maximize the use of proactive “online”processing of all transactions to eliminate paper, yetprovide the appropriate “online” approvals as requiredto comply with applicable laws and Board policies.

• Robust and Flexible Reporting: Flexible reportingshould allow for standard and ad-hoc queries on alldimensions.

• Better Practice Business Processes: Embrace the“Better Practices” embedded in the ERP system andchange the client’s process rather than pursue costlycustomization of software.

Tax and related servicesTax Net Operating Loss Utilization Analysis for anElectricity Distribution CompanyThe client had a change in ownership as defined in theCode and, as such, faced limitations on the utilizationof its net operating losses. Deloitte’s combined FinancialAdvisory and Tax team helped analyze the client’s netoperating losses subject to the Code limitations andperform valuations of various business assets to assist inmaximizing the client’s ability to make its net operatinglosses available for use.

Value delivered/estimated benefitsDeloitte provided the client with the ability to make itsnet operating losses available for use.

Cash Management Structure for SubsidiariesThe cash position of the subsidiaries was not well-balanced, so the client needed to know how to usecash more efficiently.

Value delivered/estimated benefitsDeloitte assisted the client by defining various scenariosto improve cash management. The scope of the projectwas limited so Deloitte provided workshop styleapproach that was favored by all stakeholders.

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Deloitte ranks No. 1 in Kennedy’s Global Consulting MarketplaceReport, 2011-2014.

Ranked best overall advisory firm by Environmental Risk magazine’senvironmental survey in 2008.

Leader in information security and IT risk consulting – The ForresterWave Q1 2009.

Leader in IT organization redesign consultancies – The ForresterWave Q1 2009.

Accountancy firm of the year for the 11th consecutive year – The International Securitization Report.

A ranking at the highest level for 47 Deloitte tax practices by theInternational Tax Review.

Recent awards

Serving the power & utilities industry Naturally resourceful 11

Global Energy & Resources practitioners are actively involved with the leading events in the industry throughsponsorship arrangements, speaker participation and delegate attendance. Involvement in these high-profile eventsdemonstrates our commitment to meaningful involvement in the industry.

Presence at leading global events

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Staying in tune with the marketDeloitte member firms regularly publish research thought leadership pieces focusing on pertinent industry issues.The basis of these publications come from the wealth of knowledge of our most senior energy partners and detailsnot only our member firms’ point of view but the wider market perspective.

Proving insight through thoughtleadership

Serving the power & utilities industry Naturally resourceful 13

Establishing relationshipsOur Global Energy & Resources (GE&R) group has formed significant strategic alliances with many industryorganizations. Involvement with these organizations ranges from the co-development of major research and projectinitiatives to participation in discussion groups, forums and private meetings. GE&R member firms are regularlyinvolved with analyzing new legislation, expanded corporate governance requirements and changing financial andreporting standards.

Many of our member firms have also established relationships with the leading industry organizations in their homecountries.

Strategic alliances and partnerships

Key contacts

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Global Energy & Resources leadership

Carl D. HughesDeloitte Touche Tohmatsu LimitedGlobal Industry Leader+44 20 7007 0858cdhughes@deloitte.co.uk

Felipe RequejoDeloitte Touche Tohmatsu LimitedGlobal Power Leader+34 915145000 ext 1655frequejo@deloitte.es

Jane AllenDeloitte Touche Tohmatsu LimitedRenewable Energy Leader+1 416 874 3136janallen@deloitte.ca

Dick CooperDeloitte Touche Tohmatsu LimitedConsulting Leader+1 403 261 8115dcooper@deloitte.ca

John EnglandDeloitte Touche Tohmatsu LimitedEnterprise Risk Services Leader+1 713 982 2556jengland@deloitte.com

Rajeev ChopraDeloitte Touche Tohmatsu LimitedFinancial Advisory Services Leader+44 20 7007 2933rchopra@deloitte.co.uk

Doug KingDeloitte Touche Tohmatsu LimitedGlobal Accounting Leader+44 20 7007 0863djking@deloitte.co.uk

Chris NicholsonDeloitte Touche Tohmatsu LimitedChairman, Global Energy & Resources+1 571 882 8331cnicholson@deloitte.com

Brad SeltzerDeloitte Touche Tohmatsu LimitedGlobal Tax Leader+1 202 220 2050bseltzer@deloitte.com

Regional leadership

North AmericaJohn McCueDeloitte United States+1 216 830 6606jmccue@deloitte.com

Latin AmericaRicardo RuizDeloitte Argentina+54 11 4320 4013riruiz@deloitte.com

Europe, Middle East, AfricaCarl D. Hughes+44 20 7007 0858cdhughes@deloitte.co.uk

Asia PacificAdi KarevDeloitte China+852 2852 6442adkarev@deloitte.com

Serving the power & utilities industry Naturally resourceful 15

Power & Utilities specialists

Deloitte AustraliaMichael Rath+61 3 9671 6465mrath@deloitte.com.au

Deloitte BrazilIara Pasian+55 (11) 5186 1501ipasian@deloitte.com

Deloitte CanadaJane Allen+1 416 874 3136janallen@deloitte.ca

Valerie Chort+1 416 601 6147vchort@deloitte.ca

Deloitte Czech RepublicVladimir Vanek+420 246 042 361vvanek@deloitteCE.com

Deloitte FranceJean Michel Gauthier+33 1 55 61 69 11jgauthier@deloitte.fr

Deloitte GermanyHans Guenter Wolf+49 211 8772 3647hwolf@deloitte.de

Ulrich Harnacke+49 211 8772 3880uharnacke@deloitte.de

Volker Rosenstock+49 211 8772 2581vrosenstock@deloitte.de

Deloitte Middle EastKen McKellar+971 2 676 0025kmckellar@deloitte.com

Deloitte RussiaYegor Popov+7 495 7870660 ext. 2210ypopov@deloitte.ru

Deloitte SingaporeGene Sullivan+65 6216 3206genesullivan@deloitte.com

Deloitte SpainJesus Navarro+34 915145000jenavarro@deloitte.es

Deloitte United KingdomJulian Small+44 20 7007 1853jsmall@deloitte.co.uk

Daniel Grosvenor+44 20 7007 1971dgrosvenor@deloitte.co.uk

Deloitte United StatesJohn McCueDeloitte United States+1 216 830 6606jmmcue@deloitte.com

Global Energy & Resources MarketingLeader

Mark L Robinson, PhD+1 703 251 4057mlrobinson@deloitte.com

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Notes

www.deloitte.com/power

About Deloitte“Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the worldcollaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients. These firms aremembers of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Each member firm providesservices in a particular geographic area and is subject to the laws and professional regulations of the particular country orcountries in which it operates. DTTL does not itself provide services to clients. DTTL and each DTTL member firm are separate anddistinct legal entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only for their own acts oromissions and not those of each other. Each DTTL member firm is structured differently in accordance with national laws,regulations, customary practice, and other factors, and may secure the provision of professional services in its territory throughsubsidiaries, affiliates, and/or other entities.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its networkof member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detaileddescription of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries.With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte'sapproximately 182,000 professionals are committed to becoming the standard of excellence.

The Deloitte Touche Tohmatsu Limited (DTTL) Global Energy & Resources group, which includes senior partners from Deloittemember firms around the world, provides comprehensive, integrated solutions to the energy and resources sector. These solutionsaddress the range of challenges facing energy companies as they adapt to changing regulatory environments, to political,economic and market pressure, and to technological development. Deloitte member firms’ in-depth expertise in this dynamicsector serves as an indispensible resource for a significant portion of the world’s largest energy and resources companies. Deloittemember firms have been designed to provide the energy industry with unparalleled service, innovation, and critical thinking.

DisclaimerThis publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, Deloitte Global Services Limited,Deloitte Global Services Holdings Limited, the Deloitte Touche Tohmatsu Verein, any of their member firms, or any of theforegoing’s affiliates (collectively the “Deloitte Network”) are, by means of this publication, rendering accounting, business,financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professionaladvice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Beforemaking any decision or taking any action that may affect your finances or your business, you should consult a qualifiedprofessional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person whorelies on this publication.

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