Change the Economics of a Community or Property You Don’t Yet Serve with Portable CNG

1. Change the Economics of a Community or Property You Don’t Yet Serve with Portable CNG

2. What NG Advantage Does Today

3. #1 It Does NOT compete with LDCs.Would be open to building a compressor station on LDC assets or investment.#2 It trucks CNG to stranded properties.#3 Pricing is at a premium of typical LDC rates.#4 It leaves when the pipeline arrives.

4. How Does It Work 1. Compressor site on pipeline 2. Delivered in composite containers 4. Empty trailers return for refilling 3. Customer Off-Load Station

5. First Region Completed Q3 2014Next Regions Under Development

6. Milton Compressor Station Operational Q2 2013

7. Pembroke, NH Compressor StationOperational Q2 2014 Building in partnership with one of T Boone Pickens’ companies, Clean Energy Fuels

8. CNG Transport Trailers Hexagon Lincoln TITAN trailer ready for delivery by hauling partner, J.P. Noonan

9. Sample Off-Loading Station Asphalt plant Operational Q2 2013

10. Dispatcher 24/7

11. NG Advantage’s Customers: Paper Industry

12. NG Advantage’s Customers: Industrial

13. NG Advantage’s Customers: Medical

14. NG Advantage Became VT Gas’Largest Customer in 6 months

15. Good for Economic Development and Public Relations Lawrence Miller, Sec. of Economic Dev. Gov. Peter Shumlin & ex-Gov. Jim Douglas LT. Gov. Phil Scott

16. Case Studies • Hospitals • Asphalt Plants • Paper Mills

17. Why This is Hard • SCADA tools for knowing • when trailer is full • when to start filling • when to switch over to 2nd trailer • Telemetry on trucks & compressors • Telemetry to monitor customer site • Video to monitor and help drivers • $5MM per compressor station • $500,000 trailers • Fully filling trailers in heat and cold • Routing trailers so they get to customers “just-in-time” • Fully emptying trailers • Multiple sources of gas • Relationship with trucking firm Technology Logistics

18. NG Advantage Can Expand the Service of an LDC

20. Cost of Pipeline Extension Pipeline and Gas Journal - March 2014 • A 24 inch diameter pipeline extension costs $100,000.00 per inch-mile or $2,400,000.00 per mile. • “Gas pipeline cost per inch-mile The cost of building natural gas pipeline(1) infrastructure varied between $30,000 and $100,000 per inch-mile(2) from 1993 to 2007 (Figure 8), according to the study. Through 2004, increases in pipeline construction costs were generally modest. After 2004, however, costs began to escalate dramatically, nearly doubling previous levels by 2006. This was due, in part, to high world commodity prices, especially the price of steel. Costs have declined recently and the several year cost run-up is expected to only be temporary. Since all three cases have similar GDP assumptions, input costs are assumed to be the same in all cases. Construction costs are projected to decline through 2010. After 2010, costs resume a general upward pattern consistent with the pre-2004 cost trends, which are slightly less than the assumed future inflation rate of 2.5 percent per year. • The study finds the cost of pipeline construction is divided roughly equally between materials, labor and miscellaneous. In 2007, materials costs accounted for over 35 percent of total costs, but have since declined. The miscellaneous category includes engineering, surveying, administration, and environmental costs. Costs for right-of-way account for 8 to 9 percent of total construction costs. This component has recently increased at a slightly faster rate than the other components. It is projected that the labor and right-of-way components will grow slightly faster than the other components, as skilled labor remains a premium commodity and pipeline permitting and siting continue to increase in complexity. The cost of materials is projected to increase at a rate slightly less than inflation and account for about 25 percent of total pipeline construction costs by 2030. • In all cases, cumulative transmission pipeline expenditures are similar through 2012, but they diverge thereafter. Considering the time required for pipeline planning, permitting and construction, it will take a few years before policy shifts such as those assumed in the High Gas Growth Case and the Low Electric Growth Case affect natural gas infrastructure investment. Pre-2012 pipeline infrastructure projects are already in advanced planning or already under construction, so they are not likely to be affected much by policy changes.”

21. Together We Can Serve a Customer You Will Be Bringing the Pipeline To • Pipeline extension planned for 3 years away • Keeps company viable until pipeline arrives • Customer will convert its burner/boiler now • Customer will be ready when pipeline arrives • Customer will have relationship with the LDC now • NG Advantage leaves when pipeline arrives

22. Together We can Serve a “Stranded” Cluster For a Lot Less • LDC puts in assets: pipes, one access point & meter • LDC sells interruptible contract to companies, installs meters at each facility • LDC owns customers • NG Advantage trucks CNG 24/7 • Customers have political stake in future pipeline extension to save more $ • When pipeline arrives • Customers – no change but save more money • LDC – bills as usual, conversions already done • NG Advantage - leaves

23. Together We Can Serve a Community for a Lot Less • Community or center of town must have: • Large anchor tenants • Small businesses & residential • Existing pipes or LDC can install (capital expenses better for rate of return) to each customer • One point of entry and meter for NG Advantage • Individual meters for each local customer • Questions • Will 20% add on apply to new customers like these? • Will the PUC need to approve them paying a different rate than other customers? • Source of backup fuel ? Maybe central heating plant

24. How? • Sign a huge facility or gather enough smaller ones ie: industrial park • Install infrastructure • Provide one point of entry to gas network or a heating plant • Sell to all customers • Train and convert all customers • Petition for a new CNG rate class – NG Advantage’s cost built into distribution rate • LDC invest in NG Advantage’s infrastructure, compressor station or trailer If large enough, NG Advantage will: • Build a compressor station or truck from an existing station • Provide tractors and trailers • Build Off-Loading Station at LDC’s point of entry location OEM NG Advantage Sell to customers, let NG Advantage provide the delivery

25. Back To The Future Montpelier, Rutland and St. Johnsbury, Vermont • Pipes to each business and residence • One access point for propane • Delivered by train **** • Today bio mass steam to each downtown business & State office buildings in Montpelier Burlington, VT (MGP) • Methane to each residence and business • Coal arrived by barge to gasification plant Municipal Propane Municipal Methane

26. NG Advantage Can Provide Peaking Service to Capacity Constrained Distribution Systems

28. #1 For application on physically constrained portions of the distribution system.#2 Meet peaking demands on design cold days.#3 Serve as an interim solution to allow for addition of new customers until expansion is possible.#4 It leaves when the pipeline arrives.

29. How Does It Work 1. Compressor site on pipeline 2. Delivered in composite containers 4. Empty trailers return for refilling 3. Customer Off-Load Station

30. NG Advantage LLC P.O. Box 817 Milton, VT 05468 www.NGadvantage.com 802 760.1167 Mary Evslin VP of Marketing