Centrica Energy Implements PCI Solution for Short-Term and Long-Term Power Optimisation.

LONDON & NORMAN, Okla. -- Centrica Energy, the UK's largest supplier of residential gas and electricity, has completed implementation of software and workflow automation solutions for short-term and long-term power optimisation from Power Costs, Inc. (PCI). The implementation of the PCI system spans four business areas within Centrica's Power Business Unit and was completed in just over six months.

"Our objective was to procure and implement a single comprehensive decision-support system that provides optimisation analytics for our short-term operations and long-term hedging of our asset and load portfolios," said Sarwjit Sambhi, Centrica Energy Director, Power Business Unit. "We partnered with PCI to meet this objective, and have successfully completed implementation of their system which is now helping us achieve the lowest possible overall cost by optimally scheduling our generation resources and suggesting trading strategies that take advantage of any profit-making opportunities. We will receive significant value from the PCI system through optimisation of our complex portfolio of multiple combined-cycle power stations, bilateral contracts, brokered trades, and markets."

Centrica's implementation of the PCI Generation Supply Management System (GSMS) includes PCI GenTrader for short- and long-term power portfolio optimisation and PCI GenPortal for business process management and deployment of customised processes. One of the highlights of the implementation was the development of PCI Deal Analyst, which optimally fills an open or residual position with available trade products for a given short- or long-term time horizon. Together, the PCI products will enable Centrica to extract maximum value from their portfolio and markets in which they operate.

"The PCI system architecture has allowed us to meet some core objectives in providing our business with an adaptable enterprise infrastructure to allow for near- and long-term changes," said Constantine Vaitsas, Centrica Energy Head of Business Solutions & Atlas Transformation Director. "Our partnership with PCI has shown that we can collaborate to meet an aggressive implementation schedule. This implementation spanned four areas within the power business unit and together we delivered the solution on time and within budget. Now that the foundation of the PCI system is in live operation, we are looking to PCI to further expand the capabilities to meet future strategic initiatives that such an enabling technology platform can provide."

PCI Vice President Jason Kram said, "PCI is very pleased to have implemented our Generation Supply Management System at Centrica and expand our business presence in Europe. Before beginning our implementation, Centrica performed an extensive review of the capabilities of PCI's solution. In addition, they visited multiple customer sites to directly observe the software in action and understand how PCI has achieved market leadership in generation supply management in North America. Today, we are delighted to see our software in production and providing value-added decision support to Centrica. Based on the success of this milestone we are looking forward to a strong and long-lasting partnership with Centrica Energy."

About Centrica

Formed in 1997 as a result of the demerger of British Gas plc into Centrica plc and BG plc, Centrica is the largest residential supplier of gas and electricity in the UK. Centrica is also the largest domestic central heating and gas appliance installation company in the UK.

Centrica Energy sources the gas and electricity to supply customers through its own upstream gas production and electricity generation facilities and through wholesale and gas trading activities. Centrica Storage is a separately managed business which provides gas storage services for a wide range of customer including other businesses within the Centrica Group. Centrica has also made strong inroads into the North American market since its first acquisition of Direct Energy in August 2000. Centrica continues to export its successful strategy into Europe with ventures in Belgium and Spain.

About Power Costs, Inc.

Power Costs, Inc. (PCI) is a leading provider of generation supply management and optimisation software. PCI has grown steadily since its incorporation in 1992 by providing best-of-breed software, superior customer support, and value-added services. PCI software is used to optimise nearly half of all generation in the United States and is recognized for delivering solutions that are critical for operations and for asset, financial and risk management. The company's client base includes energy companies that collectively participate in all markets. For additional information regarding PCI, visit the company's website at www.PowerCosts.com or call 405.447.6933.