Benefits

• Experience the best of both worlds, a natural gas price that adjusts according to the market but with a fixed component to provide a measure of stability.



• Your Fixed Natural Gas price portion stays the same for the entire 5 year agreement and the variable portion adjusts on each calendar quarter.



• If market prices decrease, the variable portion will be adjusted down^**. If market rates increase, the price cap^* ensures that the total price will never exceed the price cap.



• You have the option to secure a new 5 Year Fixed Price Plan at any time during your contract without penalty^†.

The ultimate Natural Gas Price Protection Plan

At Direct Energy we don’t stop thinking of the customer and we listen to what they’re telling us. Many customers have told us that they’re apprehensive about securing a 5 year natural gas plan when they believe that natural gas prices are too high. Yet they’re also aware of the advantages of securing a natural gas rate which protects them from potential price increases. Introducing the Variable Price Protection Plan, the plan that gives the customer the best of both worlds – flexibility and stability.

The Variable Price Protection Plan is the answer to customer concerns. It offers the customer the opportunity to lock in 50% of their consumption for 5 years at a fixed price while at the same time allowing them to take advantage of quarterly variable pricing for the other 50% of their consumption. If prices go down, you’ll benefit. If prices go up, you’re protected by a price cap^*. It’s the best of both worlds!

There are two components that make up the Variable Price Protection Plan:

The Fixed Natural Gas price portion of your price provides you with the stability that the customer is looking for while the Variable Gas price portion allows the customer to take advantage of market rates.

Fixed Natural Gas Portion - Direct Energy will secure a fixed price that is charged on half of the customer’s consumption and is secured for the length of the 5 year agreement term.

Variable Gas Portion - The variable gas price portion makes up the second half of the customer’s price and is adjusted every calendar quarter^**. The variable price is posted on the Direct Energy website approximately 30 days in advance of each calendar quarter.

See below for more details on how this plan works.

Samples of how the Variable Price Protection Plan works^††.

Below is a sample of how your agreement price would be determined and adjusted when there is an increase or decrease in your variable price portion. The natural gas prices and scenarios in the sample are used for demonstration purpose only.

As an example, for a customer who signs up in June 2009, their variable price will be 33.3 ¢/m³ for 50% of their consumption until September 30, 2009 (variable price which would be subject to quarterly price changes for the remainder of the 5 year agreement term) and the customer's fixed price of 36.5 ¢/m³ will be applied to the remaining 50% of their consumption for the 5 year agreement term.

Variable Prices for Q1 2010

Market prices are volatile, and can change frequently. In order to provide the latest market price, Direct Energy sets the variable customer charge component of the price 30 days in advance of the calendar quarter. The variable prices for Q1 2010 are:

The Monthly Average Price may change on a monthly basis thus the Energy Charge which you will be required to pay may also change accordingly on a monthly basis.