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TriEagle is a proud member of the Crius Energy family of brands. NATURAL GAS COMPANY A Brief History: Starting in December 2010, a new market design was introduced to Texas. In the past, the Texas grid was divided into four large congestion management zones, which transitioned to more than four thousand smaller nodes. In general, the transition allows for greater granularity on the grid and more direct allocation of some of the energy costs that were spread across larger areas. Currently: Congestion charges, especially in the West Zone, have become a heated topic of con- versation in the Texas Market. Because of large increases in load, congestion prices skyrocketed in 2012, peaking at almost $30 per MWh in October. While other markets have been more mild, the potential is always there for similar increases. Exposure: From the beginning, TriEagle has taken the philosophy that customers should be pro- tected from potential spikes in congestion charges. That’s why we never require customers to have these charges passed-through. TriEagle hedges these charges in advance by purchasing CRRs, or Congestion Revenue Rights. Protection: As an electric provider, we are much better positioned to manage the risks associated with these charges than an individual customer. All TriEagle products include these congestion charges as part of the energy price, with no surprises for our customers. All information is pulled from Crius Internal Databases, NYMEX NG and ERCOT, as of December 2016. All materials published on this document are for information purposes only. TriEagle Energy makes no representations or warranties, express or implied, as to the quality, accuracy, completeness, or reliability of the information provided herein. TriEagle Energy accepts no responsibility for any loss, damage, costs or expense (whether direct or indirect) incurred as a result of any error, omission or misrepresentation of any information herein. All Rights Reserved | ©2016 TriEagle Energy | TriEagle Energy is a member of the Crius Energy family of brands. CONGESTION CHARGES BY ZONE SINCE NODAL IMPLEMENTATION TEXAS NODAL MARKET STRUCTURE About Us: TriEagle Energy is a Texas-based retail energy provider specializing in commercial and small industrial businesses. With innovative products, outstanding customer service, and competitive pricing, thousands of business customers have entrusted their power needs with TriEagle since 2003. TriEagle Energy, LP 2620 Technology Forest The Woodlands, TX 77381 1-877-933-2453 [email protected] www.trieagleenergy.com

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Page 1: Texas Nodal Market Structure

TriEagle is a proud member of the Crius Energy family of brands.

NATURAL GAS COMPANY

• A Brief History: Starting in December 2010, a new market design was introduced to Texas. In thepast, the Texas grid was divided into four large congestion management zones, which transitionedto more than four thousand smaller nodes. In general, the transition allows for greater granularityon the grid and more direct allocation of some of the energy costs that were spread across largerareas.

• Currently: Congestion charges, especially in the West Zone, have become a heated topic of con-versation in the Texas Market. Because of large increases in load, congestion prices skyrocketed in2012, peaking at almost $30 per MWh in October. While other markets have been more mild, thepotential is always there for similar increases.

• Exposure: From the beginning, TriEagle has taken the philosophy that customers should be pro-tected from potential spikes in congestion charges. That’s why we never require customers to havethese charges passed-through. TriEagle hedges these charges in advance by purchasing CRRs, orCongestion Revenue Rights.

• Protection: As an electric provider, we are much better positioned to manage the risks associatedwith these charges than an individual customer. All TriEagle products include these congestioncharges as part of the energy price, with no surprises for our customers.

All information is pulled from Crius Internal Databases, NYMEX NG and ERCOT, as of December 2016. All materials published on this document are for information purposes only. TriEagle Energy makes no representations or warranties, express or implied, as to the quality, accuracy, completeness, or reliability of the information provided herein. TriEagle Energy accepts no responsibility for any loss, damage, costs or expense (whether direct or indirect) incurred as a result of any error, omission or misrepresentation of any information herein. All Rights Reserved | ©2016 TriEagle Energy | TriEagle Energy is a member of the Crius Energy family of brands.

CONGESTION CHARGES BY ZONE SINCE NODAL IMPLEMENTATION

TEXAS NODAL MARKET STRUCTURE

About Us:

TriEagle Energy is a Texas-based retail energy provider specializing in commercial and small industrial businesses. With innovative products, outstanding customer service, and competitive pricing, thousands of business customers have entrusted their power needs with TriEagle since 2003.

TriEagle Energy, LP

2620 Technology Forest The Woodlands, TX 773811-877-933-2453customercare@trieagleenergy.comwww.trieagleenergy.com