Navy Utilizes RMI's KnowRiskExchange Process for Retail Power Procurement

Chicago - April 26, 2005 - The Department of the Navy in San Diego successfully utilized Risk Management Incorporated's (RMI) KnowRiskExchange Process, a new online retail power procurement platform, through contractual arrangement with Western Area Power Administration for its 2005, 2006 and 2007 power purchase requirements.

The online platform offered the Navy more competitive prices and control than previous manual purchasing methods. The KnowRiskExchange allows end-users as well as suppliers to interact electronically in an anonymous and transparent online platform in real-time.

Through the web-based platform, approximately 3,000,000 MWh were purchased to date, with many major name suppliers participating in the bidding.

As part of the KnowRiskExchange Process, RMI also assisted the Navy with the development of a multi-year procurement plan, including statistically based price targets, and the selection of suitable creditworthy suppliers. Through the KnowRiskExchange Process, RMI will continually monitor credit exposure and creditworthiness of suppliers for the Navy.

As noted by Armando Abad, Utility Business Team Leader for Naval Facilities Engineering Command, Southwest Division, "Having experts in the field assisting us with the development of a sound procurement plan, and more importantly, having someone help us monitor and execute to the plan on an on-going basis, has provided us many tangible as well as intangible benefits."

The KnowRiskExchange ( www.knowriskexchange.net ) electronic platform offers a valuable and efficient alternative to a manual Request for Proposal (RFP) or an online reverse auction process in retail power procurement. Headquartered in Chicago, RMI (www.riskmgmt.net) is a leader in energy risk management consulting and brokerage in both the public and private sectors.

For Additional Information Contact:
Shane Mathis, Principal
Risk Management Inc.
Phone: 785-232-2252
Email: shane@riskmgmt.net

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