2006 BEGAN WITH Russia cutting off gas supplies to the Ukraine and is ending with governments and others digesting the ramifications of the International Energy Agency’s World Energy Outlook, 2006 and the Stern Review on the economics of climate change. Security of supply and environmental concerns now dominate energy market and political agendas. Debate has continued on a Kyoto successor – following the UN Climate Change Conference in Nairobi (COP 12) on strengthening the framework for the years following Kyoto’s initial commitment period (2008-2012). Meanwhile, oil reached a nominal high of over US$78 a barrel on July 14th before coming down sharply in the following months. And two of the most active hedge funds engaged in energy derivatives trading were recently forced to liquidate their holdings after experiencing large losses in natural gas and volatility spread trades. The European Commission has also been busy in establishing better control of the EU ETS following a price collapse earlier in the year because of the over-allocation of permits. It recently announced real cuts in a number of allocation plans. And in January next year, both the Energy and Competition Commissioners will give their verdicts on how the EU intends to structure energy policy and regulation into the future. Meanwhile, the developing world continues its voracious demand for energy with the IEA forecasting that global energy demand will increase by one half between now and 2030 – an average annual rate of 1.6%. Now in their fifth year, the Energy Business Awards reward excellence in a number of key energy business disciplines – to recognise those companies that are making a positive mark on the way energy business is conducted, trading risks mitigated, precious energy resources utilised, energy systems developed, environmental degradation curtailed, energy technology advanced, and energy production and consumption distributed more efficiently and ethically. Thus, these Awards recognise those companies making a positive impact on energy business developments and the understanding of energy markets. The 2006 category winners, based upon nominations, votes received and the opinions of the Awards Panel are as follows: 3 Excellence in Energy Trading 3

Energy trading was a pivotal business function in 2006 with continuing market volatility in both crude and, more specifically, natural gas. The year started with the brief gas dispute between Russia and Ukraine, which in turn encouraged debate on supply security. Although the Russia-Ukraine dispute was quickly resolved and largely limited to the European market, the importance of Russia’s energy economy to global security forced all economies to address supply security and in turn be more proactive in trading. With gas having a direct impact on electricity prices and also influencing the coal market, due to high gas prices encouraging more coal-fired generation, efficient energy trading had to encompass the full energy spectrum from crude oil through to emissions. Given the need to address energy trading across all products and geographic markets, the winner of the Gold Award had to be a company that excelled across the global energy portfolio and that company is MORGAN STANLEY, which has had a longstanding presence and wide ranging participation across the global energy markets. The size of its business, with fully staffed trading desks in the major energy regions, and its longevity in the energy marketplace enables it to accommodate large-volume, long-term derivatives transactions, which is ably supported by its physical trading capabilities. In an energy marketplace where products have become increasingly interdependent, the diverse trading opportunities provided by Morgan Stanley make it a worthy winner of this year’s Gold Award I Finalists: • APX Group • Gaselys In 2005 Société Générale won this award and this year it is • JP Morgan the turn of its subsidiary business (in conjunction with Gaz de • LA SNET France) GASELYS, which combines industrial and financial • Morgan Stanley expertise to enable it to provide effective physical and financial trading from standard vanilla through to more structured transactions. Building on its strength in the European gas hubs, the company has been able to design market-based structures that extract the value embedded in physical assets and provide flexibility in the underlying electricity, emissions and coal markets. Gaselys has also worked closely with regulators to assist in the development of a more efficient energy trading framework I

Commodities Now December 2006 1 3 Excellence in Energy Risk Management 3

Given the similar challenges facing trading and risk management it is little surprise that the top awards in risk management this year are again shared between the same top two companies in the trading category. And just as Société Générale won the Gold Award last year it is the turn of its subsidiary business GASELYS this year. Unlike last year, this year’s shortlisted nominees did not include any exchanges, which could suggest that risk management has become more of a specialised business discipline in 2006, and with the increase in volatility and market complexity it has needed to be. With the growth of emissions trading in increasingly carbon constrained economies, and with the combined challenges of supply security and competition, the need to manage the full spectrum of energy risks has become an essential business discipline. Gaselys is the worthy winner of this year’s Gold Award. Through its innovative derivatives expertise it is one of the few players able to tailor global solutions for its customers, providing energy hedging and optimisation structures, as well as market-based flexibilities on a large span of underlyings – gas, oil, power, CO2, coal – and locations. And from its banking background Gaselys has stringent practices in place to safeguard its clients and its operations, and actively promotes sound risk management practices. Its portfolio of risk management products includes physical and cash settled derivatives, and its services include market making on standard flows, tailor-made risk management, and asset and portfolio optimisation. Ultimately the measure of a risk management programme is its ability to benefit clients and one of the examples in this respect was its ability to help a client to reduce its electricity consumption costs by 10% in 2006 compared to the swap the client wanted to contract. The company actively promotes sound risk management practices Finalists: towards its customers by committing itself to playing as close as possible a role in financial BP Risk Manager management and advice on specific energy optimisation issues I • • Gaselys • Markit (Totem) The margin between Gold and Silver was wafer thin in this • Morgan Stanley category, reflecting the excellence of both companies. As • Risk Limited Corp with Gaselys, MORGAN STANLEY has had an outstanding year as it continued to offer its clients a complete range of risk management services that encompassed both exceptional physical and derivative capabilities, assisted by the breadth and depth of its product and geographical coverage. The company has also actively participated in the newly emerging markets and the development of complex and innovative client solutions. Morgan Stanley has been able to provide a comprehensive energy risk management solution for its clients by leveraging the capabilities of its Global Capital Markets, Investment Banking and Credit Advisory and Derivatives businesses I

3 Excellence in Energy Technology 3

TRIPLE POINT TECHNOLOGY takes this year’s Gold Award having demonstrated its commitment to innovation and performance excellence in providing critical next-generation solutions to the energy sector. Triple Point is the only vendor that integrates, supply, trading, marketing and movement of commodities – energy, softs, metals and others – onto a single platform. Triple Point’s XLTM is a next- generation solution, built specifically from the ground up for high-volume, complex transaction management organisations. In the last year, Triple Point signed two of the largest global banks (Lehman Brothers & UBS) and several hedge funds – in all, over 25 new and add-on client agreements. “More and more companies are realising the need for a real-time, enterprise-wide, fully-integrated energy trading and risk management system,” says Michael Schwartz, Triple Point’s Chief Marketing Officer. Moreover, “These systems are not optional in today’s complex energy markets and the speed an organisation moves to a next-generation platform could very well be the difference between success and failure.” Finalists: Triple Point also re-invests a market-leading 25% of revenue in R&D and recently signed a Global Energy Decisions co-development agreement with SAP AG to deliver Commodity SL™. Since their • GlobalView introduction in June 2005, Commodity XL for GasTM and ‘Visual Cockpit’ have proven • themselves world-class solutions, designed using the best practices of global leaders in gas • Soops b.v. trading and scheduling – and now used by Alliant Energy, Duke Energy, GUVNL, Westar • SunGard FAME Energy Energy and Cinergy, among others. • Triple Point Technology Commodity XLTM is built on proven next-generation technology architecture (n-tiered, J2EE 2.0-compliant, web-enabled, and extremely flexible & scalable). More than 25% of both Global 500 commodity trading companies and Global 500 energy companies use Triple Point solutions including Hess Corporation, Louis Dreyfus, BP, Morgan Stanley, ConocoPhillips, Petronas, Cinergy and . Founded in 1993 and headquartered in Westport, Connecticut, USA, Triple Point serves clients from five development and support centres located around the globe I

Commodities Now 2 December 2006 GLOBAL ENERGY DECISIONS is the winner of this year’s Silver Award for Excellence in Energy Technology. Because of changing energy market dynamics – mergers and acquisitions, greater regulatory oversight, the rise and fall of merchants, the EU ETS and NOx/Sox trade programmes – energy companies with generation assets need a better understanding of portfolio management and technology. Global Energy Decision’s EnerPrise is the first, stand-alone enterprise risk management system to combine financial and physical plant information from multiple departments, including trading, operations, planning, maintenance and fuel procurement – and also one of the first products to offer dual value at risk and cash flow at risk valuations. As such, EnerPrise enables companies to build complex deals around their energy assets and to model the risks/rewards of trades and physicals, and to integrate business processes and disparate data across departments to respond to changing market dynamics I

3 Excellence in Energy Policy & Implementation 3

Strong voting in this category reflected the INTERNATIONAL ENERGY AGENCY’S importance and continued excellence. IEA continues to report extensively on the global energy sector, remaining the pre-eminent inter-governmental body committed to advancing security of , economic growth and environmental sustainability through energy policy co-operation for industrialised nations. The recent World Energy Outlook (WEO) 2006 has shown the resolution and urgency required to change the energy future and how to make that happen. “WEO 2006 reveals that the energy future we are facing today, based on projections of current trends, is dirty, insecure and expensive. But it also shows how new government policies can create an alternative energy future which is clean, clever and competitive – the challenge posed to the IEA by the G8 leaders and IEA ministers,” according to Claude Mandil, IEA Executive Director. WEO 2006 identifies under-investment in new energy supply as a real risk. To quench the world’s thirst for energy, the Reference Scenario projections call a cumulative investment in energy supply infrastructure of over US$20 trillion in real terms to 2030 – substantially more than previously estimated. Roughly half of all the energy investment needed worldwide is in developing countries. It is far from certain that all this investment will actually occur. There has been an apparent surge in oil and gas investment in recent years, but it is, to a large extent, illusory. Drilling, material and personnel costs in the industry have soared, so that in real terms investment in 2005 was barely higher than that in 2000. However, the Alternative Policy Scenario posed by the IEA demonstrates that the energy future can be substantially improved if governments around the world implement the policies and measures they are currently considering. In this scenario, global energy demand is reduced by 10% in 2030 – equivalent to China’s entire energy consumption today. Global CO2 emissions are reduced by 16% – equivalent to current emissions in the US and Canada combined. Improved efficiency of energy use contributes most to the energy savings. Increased use of nuclear power and renewables also help reduce fossil fuel demand and emissions. “The good news,” says Mandil, “is that these policies are very cost effective. There are additional up-front costs involved, but they are quickly outweighed by savings in fuel expenditures.” The energy picture has changed appreciably since the 2004 Outlook. IEA recognises that the realities of the energy market have become harsher and the relative competitive position of fuels has changed. World economic growth has remained robust, as the recessionary effects of higher energy prices have been more than offset by other factors. The IEA continues to provide excellence in its reporting of all aspects of the energy sector, promoting rational energy policies in a global Finalists: context through co-operative relations and dialogue. And IEA Climate Change Capital I • publications remain renowned world-wide for their objectivity • Deutsche Bank • European Federation of Energy Traders (EFET) EFET’S role continues as one of • International Energy Agency (IEA) improving the structure and • PricewaterhouseCoopers conditions for the operation of European wholesale energy markets for the benefit of all. EFET has traditionally been active in identifying and implementing practical harmonisation and standardisation work. Best known are the contracts for physical OTC trading for electricity, gas and emissions allowances. EFET’s work this year has continued to present alternatives and remedies to current European energy market imperfections – believing in, and promoting, the establishment of (and confidence in) an open and fully liberalised European energy sector. The drive towards a truly EU internal market in power, gas and emissions remains the goal I

Commodities Now December 2006 3 3 Excellence in Emission Markets 3

It would be an understatement to say that 2006 has been a challenging year in the emissions market. The year saw serious questions asked of the EU Emission Trading Scheme as the verified emissions for 2005 led to a significant surplus of allowances, and has ended with the European Commission acting to reassert its authority and inject some integrity into the scheme by recommending significant cuts in proposed second phase allocation plans. The year also saw both the Stern Review on the economics of climate change and the IEA World Energy Outlook (2006) flag the importance of emission mitigation, which added to the pressure on trading to prove its ability as an efficient emission mitigation process. The key to success in emission reduction is to make the process universal throughout all market sectors, and in particular the inclusion of industry. In recognition of its excellence in creating the first alliance between a financial institution and industry to address emission reduction management, this year’s Gold Award goes to SOCIÉTÉ GÉNÉRALE. Together with Rhodia Energy Services, Société Générale created ORBEO, which followed one of the largest private CO2 transactions linked to two large CDM projects developed by Rhodia in Korea and Brazil, with the transactions registered with the UN in a CDM project development capacity. In addition to this ground breaking joint venture, Société Générale also invested ¤10m in the European Carbon Fund (ECF), the first non-governmental fund dedicated to the purchase of carbon instruments, which gives CER/ERU sellers the opportunity to gain access to a large investment capacity Finalists: through a transparent, liquid and secure buying policy I • CO2e.com • Evolution Markets Inc. The standard of nominations in the Energy Business • ICF Consulting Awards was higher this year than in previous years, and • Société Générale the emissions category was no exception. • TFS Energy Brokerages have traditionally excelled in this category, having been instrumental in developing the emissions market, and this year was no different. One of the leading brokerages in emissions is CO2e.COM and it is the recipient of this year’s Silver Award. The company is widely recognised as one of the leaders in the global emissions market and in 2006 continued to build on its strengths. It has continued to bring new products to the market and this year became the first broker to regularly quote secondary market CERs, while through its continued market innovation saw it transact a six-year CER forward contract paid 100% on contract signature I

3 Excellence in Renewable Energy 3

The renewable energy market has had a strong growth year in 2006 as the market continued to address new products, technologies and services to meet the global challenge of climate change. Wind farms and hydro power projects have continued to be the main focus in the renewable energy sector, both within carbon constrained and developed economies, such as the EU, and in emerging economies such as those in Asia and Africa. Much of this renewable energy development has had the twin objectives of producing carbon-free energy and providing carbon credits through the Clean Development Mechanism. This year’s shortlisted nominees comprised banks, brokers and specialist renewable companies, which showed the diverse corporate focus being applied to the renewable energy challenge. As a global renewable energy award it was only fitting that the company winning the Gold Award was one that has taken a global market perspective, and in this respect BNP PARIBAS was the clear winner with over a third of the votes cast. During 2006 BNP Paribas has continued to make a positive contribution to the global renewable energy market. This contribution includes its involvement in the hydropower sector, which comprised landmark transactions such as the cross- border Nam-Theum Hydro Project in Laos and Thailand. BNP Paribas has also committed early to financing wind power projects, among these being: Yowip, the first wind farm in Korea and a key project for the renewable energy market in Asia; Astraeus, the first pan-European wind farm project; and Boralex, the first French wind farm portfolio. BNP Paribas has also achieved breakthough financings in the solar industry with the sun SPOTS programme in the Philippines and the world’s largest solar project Finalists: in Spain. BNP Paribas also has a dedicated carbon team of four professionals • Amerex focusing on global emission trading, environmental risk management and financial Biomass Industrial Crops Ltd. services for a wide range of global corporate and institutional clients. With its • BNP Paribas (ECEP) strong list of landmark renewable transactions over the year, and its continuing • commitment to develop clean energy sources throughout the world, BNP Paribas • Credit Suisse Securities is the worthy recipient of the Gold Ward and has already set the benchmark for • Econcern next year’s Awards I

Commodities Now 4 December 2006 The diverse challenges presented by the renewable energy sector offer opportunities to smaller and newer entrants in the energy sector. One such company is BIOMASS INDUSTRIAL CROPS LIMITED (BICAL), which is the recipient of the Silver Award. BICAL receives the Award for being the largest developer of Miscanthus in the EU and the successful research and development of the practical uses and cultivation of Miscanthus, which is now a leading biomass energy crop. BICAL has invested time and resources into developing a wide range of end uses for the crop, from animal bedding, inclusion in renewable composites through to one of the most profitable industrial crops on the market today. Miscanthus offers highly competitive biomass feedstock for both co-firing with coal, local micro-generation, Bioethanol or hydrogen production. BICAL has achieved this as a company privately owned by farmers based in Somerset and Devon (in the UK), highlighting the importance of innovation and creativity in achieving excellence I

3 Excellence in Energy Marketing & Communications 3

POINT CARBON is the leading global provider of independent analysis, news, market intelligence and forecasting on the emerging carbon emission markets globally – and a clear winner in this category. Throughout a tumultuous year in the European emission markets, Point Carbon has remained a critical source of news and views on emission market dynamics, with analysis built on the collective experience of both research and commercial activities. Core competencies include international and regional climate policy, mathematical and economic modelling and simulation, forecasting methodologies, and methods for expert evaluation. Many thousands of companies and organisations around the globe now rely on Point Carbon’s expanding product portfolio. This includes online news throughout the day, European and global market reports, online price data, CDM & JI rankings and project ratings. More specialised information is also available through its packaged subscription offerings. Carbon Market Insights – Point Carbon’s flagship European emissions conference – has been developed for the Americas and designed to introduce North American stakeholders to Finalists: lessons and opportunities in the global carbon markets. There are also plans also for an Elementerra GmbH Asian emissions event in the future I • • Evolution Markets Inc. • Greenstream Network Ltd EVOLUTION MARKETS, this year’s Silver Award winner, • Point Carbon understands that energy and environmental markets Vattenfall develop and grow through the education of market players • and fostering market transparency. Evolution Markets’ dedication of resources to communications channels is the industry’s largest and saw a dramatic expansion in 2006. Evolution Markets contributes to price discovery and liquidity with free daily, weekly, and monthly price reports for all the markets we broker. The reports are distributed to more than 10,000 active energy and environmental market participants, and are also available for free on Evolution Markets’ ground breaking market data online resource, evo.ID. Evolution Markets’ daily price reports for U.S. emissions and OTC coal markets have become the industry standard. In 2002, the company was the first to institute regular price reporting for global carbon markets and in 2006 Evolution introduced a Secondary CER weekly price report. Also in 2006, the company introduced weekly price reports for weather derivatives and uranium trading I

ENERGY BUSINESS AWARDS PROCESS The process of nominations was conducted from August to October 2006. The nominations received were then drafted into a final 5 companies in which energy markets participants could vote at www.energy-business.com during November 2006. These votes were taken into consideration by the Awards Panel in its deliberations on the winners. Multiple and invalid votes were discarded giving a total of 7,024 votes taken into consideration in 2006. All finalists are highly rated and the differences in votes received in the majority of categories was marginal. Nevertheless, as in all these somewhat subjective exercises, winners emerge. The companies listed here, and those shortlisted for the Energy Business Awards have all demonstrated an eagerness and ability to promote and improve the way in which energy business is conducted. The Energy Business Awards, 2006 were adjudicated by Commodities Now magazine and Jeremy Wilcox. Any correspondence associated with these awards should be addressed to Guy Isherwood, Editor, Commodities Now magazine: T: + 44 (0) 20 7584 0000, E: gish@commodities–now.com or Jeremy Wilcox T: + 44 (0) 1273 327 108 E: [email protected]

Commodities Now December 2006 5 3 Energy Company of the Year 3

TOTAL is one of the world’s major oil and gas groups, with activities in more than 130 countries and the recipient of this year’s Energy Company of the Year Award. Headed by Chairman and CEO Thierry Desmarest, its 95,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, gas and electricity trading and marketing, together with renewables developments. And like most majors, Total is working to keep the world supplied with energy, today and in the future, by developing existing resources and new markets. Total is also a world-class chemicals producer, as well as having interests in coal mines, cogeneration and power generation, and is helping to secure the future of energy through its commitment to developing renewable energies, such as wind, solar and photovoltaic power. Exploration and production operations are conducted in 41 countries of which Total is a producer in 29. In 2005, energy production was 2.49 million barrels of oil equivalent per day with proven reserves of 11.1 bn barrels of oil equivalent. Total remains the premier European refiner and marketer and a key energy company in Africa. Last year, 10 % of Total’s oil and gas production came from the Asia-Pacific region, a percentage that is forecast to grow in coming years and the Group refines and markets its products in a large number of countries throughout the region. A trailblazer in the LNG industry since 1964, Total now has interests in six of the world’s largest liquefaction plants, representing around 40% of global LNG production capacity. More than one-quarter of the gas produced by Total in 2005 was dedicated to the LNG industry. And Total is strengthening its positions across the LNG chain, as illustrated by the recent contract signatures to acquire stakes in Brass LNG in Nigeria and the Ichthys LNG project in Australia. Total also has interests in four regasification terminal projects to secure additional markets for production from the Middle East, the Gulf of Guinea and, in the future, Northern Europe. Total has been particularly active in 2006, securing oil and gas assets and exploration rights, Finalists: together with joint ventures, throughout the energy value chain; From the Gabon, Australia, • Chevron Columbia, Yemen, Mexico, the North Sea, Nigeria, the Congo and Gulf of Mexico (to name but a few). • E.ON Total is also a European leader in biofuels, blending some 800,000 metric tons a year in the Gazprom automotive fuels it sells. And to meet targets set by the European Union, Total is already • devoting considerable R&D resources to this goal, based on partnerships with recognised • Sinopec operators in the field. • Total The Group has been active in photovoltaic solar power for more than 20 years, operating through two companies, Photovoltech and Tenesol. Following the inauguration of its first wind farm near Dunkirk (France) in 2003. Total is now actively looking at a number of large-scale onshore and offshore wind power projects in Europe, especially in France, Spain and the UK. Group sales in 2005 totalled ¤145 bn and are expected to reach ¤165-170 bn in 2006, with a continuing investment programme to generate 4% production growth. Total has shown and proved its commitment to energy business with its core values of professionalism, respect for employees, an ongoing concern with safety and environmental protection, as well as supporting the development of host communities I

THE ENERGY BUSINESS AWARDS 2006 – A TWO STAGE PROCESS Stage 1: The first stage of Nominations opened from the end of July 2006 and conclude on 25th October, 2006. We asked energy industry practitioners to tell us who they thought deserved recognition and reward for advancing energy business expertise in any or all of the categories listed. The Awards recognise excellence in 10 categories. They are reflective of the processes, technology, vision, strategy and execution of business throughout the energy sector – in oil, gas, electricity, coal, nuclear, renewables, emissions, weather, energy IT and other related markets. Nominations were submitted directly from individuals, companies or from a third party. Nominations were submitted at the official Energy Business website, www.energy-business.com, or as an email word file. ONLY nominated companies were eligible to go through to the second voting stage.

Stage 2: The second stage is Voting which was conducted exclusively online through the Energy Business website. All multiple votes were destroyed. Votes received from company employees for their own organisation were taken into consideration. Voting took place during November 2006 and involved choosing from 5 shortlisted nominated companies in each category as drawn up by the Awards Panel.

energy-business.com

Commodities Now 6 December 2006 3 Energy Exchange of the Year 3

The 2006 Energy Exchange of the Year is awarded to INTERCONTINENTALEXCHANGE (ICE), a leading electronic energy marketplace. On November 16th, the ICE marked the first anniversary of its listing as a publicly traded company, following its initial public offering in November 2005. In that time, it has continued to expand its business, develop new products and extend the reach of its trading and risk management product portfolio. Shareholders too have been handsomely rewarded with a three-fold increase in ICE’s valuation. ICE’s business has continued to expand in parallel with the fortunes of the energy markets and the exchange’s ability to capitalise on the sweeping changes taking place throughout the energy trading community. This can be shown in the most recent figures for ICE: Third quarter 2006 consolidated revenues were US$94.7 million, an increase of 109.2% year-on- year. Volumes and commissions have more than doubled; average daily volume for ICE Futures, ICE’s -based regulated futures subsidiary, was 451,676 contracts, an increase of 144.9% year-on- year. Average daily commissions in ICE’s over-the-counter business segment Finalists: reached US$723,323 in November, a 101.3% increase year-on-year. Contract volume • APX Group in ICE’s cleared OTC markets increased 144.1% to a record 37.1 million contracts in • European Climate Exchange (ECX) the third quarter. European Energy Exchange (EEX) Third quarter 2006 consolidated operating income was US$65.4 million, an increase • of 163% year-on-year. Operating margin in the third quarter of 2006 was 69.1% – a • IntercontinentalExchange (ICE) substantial increase from 54.9% in last year’s third quarter. Approximately 58% of • Powernext ICE’s third quarter revenues were derived from North America. ICE has driven advances in risk management through technology and product innovation. In 2006, ICE re-architected its systems and software to dramatically reduce execution times. In addition, ICE is the only exchange to offer its participants a customised front-end, as well as connectivity to ISVs. ICE introduced more than 50 new cleared OTC products during 2006. But the ICE is not alone in setting exchange records in the energy complex. What makes it stand out has been its continued determination to expand and challenge traditional transaction methodologies. And the energy community voted with its feet giving the ICE 38% of the votes cast. Chief Operating Officer, Jeffrey Sprecher, has guided the exchange through another year of robust growth and consolidation in energy exchange business. By continually challenging the open-outcry exchange model, ICE is further opening up markets to new products and participants. ICE acquired the London International Petroleum Exchange (IPE) energy futures and options exchange in 2001. In February this year, ICE fulfiled a key strategic goal when (after winning regulatory approval) it began trading in the West Texas Intermediate (WTI) crude oil contract – the ‘jewel in the crown’ of energy products – bringing the world’s two most significant crude oil benchmarks together on ICE’s widely distributed trading platform. This followed the transition from IPE’s open-outcry to fully electronic trading on April 7th 2005 in London. In October last year, and in a move to consolidate ICE’s world branding, the IPE began operating under the name ICE Futures. ICE’s OTC market data services, formerly known as The 10x Group, as well as the company’s futures market data business also began operating as a single business unit under the name ICE Data. The WTI contract has set consecutive monthly records since its launch, with ICE Futures taking approximately 50% market share in global crude futures in November 2006 and yet another daily volume record of 292,994 contracts in the ICE Brent Crude was also set on December 8th. ICE WTI Crude futures reached a new daily volume record of 255,744. Since its launch in April 2002, eConfirm – ICE’s electronic trade confirmation platform – has quickly become the energy industry’s preferred method of trade confirmation and recently extended its reach to the interdealer broker community. And in September, ICE entered into a merger agreement to acquire the New York Board of Trade (NYBOT), the world’s leading soft commodity exchange, for approximately US$1 billion. The transaction will consist of 10.297 million shares of ICE common stock and US$400 million in cash. NYBOT Members overwhelmingly approved the merger in a special meeting held in early December, with ICE “the perfect partner,” according to NYBOT Chairman Frederick Schoenhut. ICE will be able to utilise NYBOT’s commodities clearinghouse (pending regulatory approval) and expects the merger to close in early 2007. By putting efficient electronic trading onto computer screens and challenging the status quo, ICE has opened the energy markets up to a new investor base, lowered costs and advanced efficient execution mechanisms – just as commodities generally have gone from a niche market to a key portfolio component. ICE also continues to develop its resource base by opening new telecommunications hubs to improve access and reduce connectivity costs to ICE’s electronic trading platform (as well as hosting training and marketing activities) in New York, Singapore, and London I

Commodities Now December 2006 7 3 Energy Broker of the Year 3

This was the first year that the award of Broker of the Year was put to the vote, and for the second year running the recipient of the Award is TFS ENERGY. The company has been a major player in the global energy markets for two decades, going from strength to strength. Brokers have traditionally been the innovative force in the developing energy markets. TFS Energy has consistently been a leader in this innovation and the past year has been no exception. With the growing of the coal market, the year started with TFS Energy bolstering its US coal desk by bringing in expertise from the coal industry to put the emphasis on developing a broader and more dynamic coal market for atypical quality product variations. Furthermore, in January 2006, the company launched an anonymous EEX-cleared trading screen for German power, in response to the demands of traders for the security of clearing and the anonymity of an exchange when they trade. Announcing the development, David Jenkins, director of European energy operations, said: “By combining these two functions, with the liquidity of the OTC markets, we are confident we are giving traders the best of both worlds.” TFS Energy also continued to be active in the weather market, and in May it completed a successful Dutch auction for an end-user wishing to hedge cool weather exposure in Chicago. Finalists: The auction was oversubscribed in terms of the capacity that was available in the market. And in November the company announced that its weather derivatives division had completed a • Amerex Brokers LLC series of auctions that placed in excess of US$10m of aggregated risk into the market. • Evolution Markets Inc. Another example of the company constantly seeking to develop new services to meet evolving • ICAP Energy market needs saw it create a dry freight brokerage group in the US in the summer, called TFS Spectron Freight. Chief executive David Pinchin said: “Establishing the freight and shipping service is a • TFS Energy natural extension of our commodities business, and will add value to our clients by enabling • them to buy, sell, hedge and transport commodities such as coal, petroleum or pulp and paper.” And last but not least in the list of achievements this year, TFS Energy has practiced what it preaches by offsetting its 2006 emissions from its global employees’ business and personal electricity consumption and air travel through the purchase of verified emission reductions from a solar project in Laos. TFS Energy brokers OTC physical and derivative products, exchange-traded futures and options and is the only fully- integrated OTC and exchange-traded broker in the business. With over 150 brokers, it provides clients with integrated execution and clearing services for the full spectrum of energy products, and in 2006 the company also opened a retail electricity division. In winning this award last year we commended TFS Energy for its forward looking, innovative approach. It has continued in 2006 where it left off in 2005 and is the worthy recipient of Energy Broker of the Year, 2006 I

3 Energy Business Awards, 2007 3

THE ENERGY BUSINESS AWARDS 2007 – A TWO STAGE PROCESS Would you like your company to be considered for an Award in 2007? It’s simple. Nominations to the Energy Business Awards 2007 will open in July and conclude at the end of October, 2007. There are 10 categories in which to enter, for your own company or a third party. You will be informed if your company is selected as one of the 5 finalists in each category. In November 2007, all categories will then be open to voting from the energy business community. Voting is conducted exclusively online through the Energy Business website. Participants can vote in as many categories as they wish. All multiple votes will be destroyed. Votes received from company employees for their own organisation will be taken into consideration. The Energy Business Awards 2007 are also open to sponsors – either for individual Awards or the process in its entirety. Contact Olivia Campbell [T: + 44 (0) 20 7584 0000, E: [email protected]] for more details. energy-business.com

The Energy Business Awards are produced by Isherwood Production and Jeremy Wilcox. Isherwood Production are the UK based publishers of Commodities Now magazine, WorldPower and other specialised intelligence. Jeremy Wilcox is an independent journalist and advisor to the energy markets.

Commodities Now 8 December 2006