Weekly Brief

Pacing Along the Energy Evolution

Julian Kaufmann, Senior Vice President, CAMS

Julian Kaufmann, Senior Vice President, CAMS

Julian Kaufmann is responsible for corporate and business development activities across all of the operations at CAMS. With over 20 years of experience, Mr. Kaufmann is an experienced originator of both power and gas commodity deals, specializing in long-term structured transactions. He has also successfully led several mergers and acquisitions (M&A) activities. Before joining CAMS, Mr. Kaufmann worked at Progress Energy Ventures and Aquila Energy, to lead various commercial functions. He holds a bachelor’s degree from Clemson University and an MBA from Iowa State University.

Evolution in the energy sector has witnessed fast-paced progress with implementing eco-friendly alternatives and net-zero goals. At this speed, on-time compliance with the changing paradigm is important. Julian Kaufmann highlights the multifaceted developments of different energy verticals in this interview.

Expanding expertise to deliver changes

My career in the energy sector has provided me with a comprehensive understanding of the industry, which directly benefits our clients at CAMS. Starting as a transmission and distribution (T&D) engineer at Florida Power and Light, I gained crucial insights into power reliability and customer needs. This experience is invaluable in understanding our clients' operational challenges.

My time at Aquila Energy and Progress Energy Ventures exposed me to both regulated and deregulated markets, providing a unique perspective on the complexities our clients navigate. This knowledge is particularly beneficial when advising on asset optimization strategies and M&A.

Joining CAMS in 2008 allowed me to leverage my wholesale market expertise to expand our client base. As Vice President of Business Development, I have been instrumental in growing CAMS' service offerings across power, midstream and exploration and production (E&P) sectors. This aligns with CAMS' mission to provide comprehensive infrastructure management solutions.

My journey has equipped me with a deep understanding of energy production, distribution and consumption, enabling CAMS to offer unparalleled insights to our clients. The relationships I have built throughout my career have been crucial in expanding CAMS' reach and reputation in the industry.

“CAMS' risk management philosophy is central to our origination strategy. We focus on optimizing value without exposing our clients to undue risk.”

Navigating the power and gas origination in regulatory environment

At CAMS, we recognize that energy origination is fundamentally about relationships and trust. Our approach combines deep industry knowledge with a commitment to understanding each client's unique needs.

We pride ourselves on our comprehensive understanding of asset capabilities, market dynamics and the regulatory landscape. This allows us to structure deals that maximize value while ensuring compliance. Our team stays ahead of regulatory changes, particularly in environmental and North American Electric Reliability Corporation (NERC) requirements, to provide our clients with strategic advantages.

CAMS' risk management philosophy is central to our origination strategy. We focus on optimizing value without exposing our clients to undue risk. This approach has consistently led to successful deals and long-term client relationships.

Our extensive experience across various energy markets in the U.S. allows us to navigate the complex regulatory patchwork effectively. We leverage this expertise to help our clients capitalize on opportunities while mitigating regulatory risks."

The sparks of the evolution

Over the past 15 years at CAMS, I have witnessed significant shifts in the energy management landscape. The industry has evolved from a focus on traditional power generation to a more diverse, technology-driven sector.

Key trends we have observed and are prepared to address include:

• The integration of renewables with conventional power sources

• Increasing demand for reliable, 24/7 power supply

• The rise of hybrid investment strategies in energy assets

Looking ahead, CAMS is well-positioned to lead in

• Developing and managing hybrid energy models

• Optimizing decentralized energy systems and microgrids

• Leveraging artificial intelligence (AI) and Internet of Things (IoT) for advanced energy management

• Capitalizing on infrastructure investment opportunities across the energy spectrum

At CAMS, we are not just observing these trends; we are actively shaping the future of energy management. Our expertise across various energy verticals allows us to provide comprehensive solutions that address the evolving needs of the industry.

Optimizing energy assets

At CAMS, our asset optimization strategies are tailored to each client's unique goals and risk profile. Our approach includes:

♦ Aligning with owner objectives: We internalize the goals of clients, ensuring our strategies are in perfect sync with their investment timelines and risk tolerance

♦ Leveraging best practices: Our management of diverse assets allows us to identify and rapidly deploy industry-leading practices across our clients' portfolios.

♦ Fostering innovation: We encourage over 2000 energy professionals to contribute ideas, driving continuous improvement and new business opportunities.

♦ Implementing disciplined management: From zero-based budgeting to advanced performance metrics, we enhance returns through rigorous financial and operational management.

♦ Entrepreneurial approach: We consistently seek creative solutions to reduce costs, increase revenue and improve operational performance.

♦ Owner's mindset: Our team acts with an owner's perspective, aligning our efforts with cliental objectives while navigating complex regulatory and technological landscapes.

These strategies provided tangible benefits to clients, including improved operational efficiency, enhanced asset performance and optimized financial returns.

Five fundamentals of success in the energy sector

For young professionals aspiring to excel in the energy sector, I recommend focusing on:

♦ Technical versatility: Develop expertise across conventional and renewable technologies, including emerging areas like energy storage and smart grids. At CAMS, we value professionals who can adapt to evolving energy landscapes.

♦ Regulatory intelligence: Understand the complex regulatory environment, including Federal Energy Regulation Commission (FERC) and NERC requirements. This knowledge is crucial for navigating the intricate energy markets we operate in.

♦ Financial acumen: Develop skills in asset management, M&A, and power purchase agreements. These are core competencies at CAMS and essential for success in energy deal-making.

♦ Relationship building: Cultivate a strong professional network. At CAMS, we leverage our relationships to create value and identify new opportunities.

♦ Adaptability and innovation: The energy sector is rapidly evolving. We seek professionals who can think creatively and adapt quickly to new challenges.

Companies like CAMS offer exciting opportunities to work on cutting-edge projects across various energy verticals. We encourage young professionals to seek roles that provide diverse experiences and opportunities for growth in this dynamic industry.