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Electric Transportation Update

Electric Transportation Update . August 28 th , 2013. Agenda. Plug-in Electric Vehicle (PEV) Adoption PEV Value Proposition Duke Energy Efforts Grid Reliability Fleet Vehicles Customer Support Education, Outreach and Collaboration Summary. Plug-in Electric Vehicle Market.

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Electric Transportation Update

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  1. Electric Transportation Update August 28th, 2013

  2. Agenda • Plug-in Electric Vehicle (PEV) Adoption • PEV Value Proposition • Duke Energy Efforts • Grid Reliability • Fleet Vehicles • Customer Support • Education, Outreach and Collaboration • Summary

  3. Plug-in Electric Vehicle Market • Plug-in Electric Vehicles (PEV) are here to stay • ~120,000 highway speed capable, plug-in electric vehicles on the road today • Sales in 2012 were three times greater than 2011 and growing at twice the rate of standard hybrids compared to their market introduction Source: Electric Drive Transportation Association

  4. Plug-in Electric Vehicle Value Proposition Duke Energy supports PEVs because they … • Save our customers money on fuel Average Annual PEV Savings Miles/Year Energy Efficiency Avg Fuel Rate Annual Fuel Expense Miles/Year Energy Efficiency Avg Fuel Rate Annual Fuel Expense ~$2,000 14,000 14,000 25 mpg 3 Mi/kWh* $0.11 Per kWh $3.50 Per gallon ~$500 Gas-Fueled Yearly PEV savings: over $1,500 ÷ ÷ x x = = PEV *miles per kilowatt hour. Illustrative example only and actual inputs will vary.

  5. Plug-in Electric Vehicle Value Proposition Duke Energy supports PEVs because they … • Play a major role in promoting energy security and diversity Energy Sources and Uses Source: 2012 Congressional Budget Office

  6. Plug-in Electric Vehicle Value Proposition Duke Energy supports PEVs because they … • Support local economic development $1,189,000,000 1.9 Million $336 Billion • Amount of money Americans spent on foreign oil PER DAY in 2012*. • Total employment increase and federal budget deficit reduction, respectively, as estimated by the Electrification Coalition with widespread PEV adoption by 2030 *Source: EIA 2012, avg price of Brent Crude Oil - $112/barrel; 3.9 bbrl imported

  7. Strategic Objectives and Approach Strategic Objectives • Provide safe, reliable, affordable and increasingly clean electricity to power the movement of people and goods • Help advance the infrastructure and technology to support EVs Focus Areas • Grid Reliability - Understand charging technology, customer usage, and impact to ensure grid reliability • Duke Energy Fleet - Vehicle demos to understand the technology and achieve significant fleet penetrations • Customer Support -Provide solutions and answers to our customers to ensure a positive charging experience • Education, Outreach & Collaboration - Sharing what we learn; providing essential and balanced information to customers

  8. Grid Reliability - Duke Energy Grid Impact Analysis PEVs impacts the grid from generation to the customer’s home Transmission Generation • Peak Capacity • Each PEV will add about 0.7 KW to Peak Capacity • By 2021, 51 MW to 156 MW in additional peak capacity may be needed depending on adoption • Transmission • Impacts have yet to be determined (at this point minimal impact is expected) • Sub Station and Circuits • PEV loads added on top of existing load growth will cause infrastructure to be upgraded years earlier Distribution • Local Infrastructure: Residential Transformers and Services • Transformers and cabling currently sized to accommodate existing loads will in some cases exceed design guidelines, thus necessitating upgrades The SE Distribution Planning group and the PEV team conducted a study to determine the impacts of PEVs on the Grid PEVs are not likely to create significant disruptions to the grid in the next several years PEV introduction will require some investment by Duke over the next 10 years to ensure that infrastructure can handle the added load The investments can likely be reduced with managed charging

  9. Grid Reliability • Goal is to ensure that vehicle charging is conducted SAFELY while maintaining the integrity, reliability, and affordability of the power distribution system • Multiple charging station load research projects across several territories to better understand charging technology, customer usage, and grid impacts • BTW, 4 charging stations at Sawyer Point • Completed extensive modeling around system and distribution impacts • Evaluating various communication and smart charging solutions • Conducting research into emerging charging technologies

  10. GM Volt Deployment Project • Overview: General Motors is a recipient of an American Recovery & Reinvestment Act (ARRA) grant award from the DOE program “Advancing Transportation through Vehicle Electrification”. Duke Energy is a participant of this project to help test the vehicles. • Objective: Evaluate the technical performance, system impacts, and user preferences associated with electric vehicle charging • Scope: • 31 Chevy Volts • 50+ facility charging station installations • Duke Energy territory • Duration: • Project active from Dec 2010 – March 2014 • Highlights: ~60 MPG combined; about 36% of miles on electricity; average charge of 6.8 kWh

  11. Chrysler Dodge Ram PHEV Project • Overview: Chrysler Group, LLC, is a recipient of a $48 million American Recovery & Reinvestment Act (ARRA) grant award from the DOE program “Advancing Transportation through Vehicle Electrification”. Duke Energy is a participant of this project to help test the vehicles. • Objective: The purpose of the program is to deploy Dodge RAM 1500 PHEVs demo vehicles to evaluate PHEV truck system design and performance, as well as to test smart charging and reverse power flow. • Scope: • 5 Dodge Ram 1500 PHEVs • Duration: • October 2013 – June 2014

  12. EPRI Plug-in Hybrid Truck Supplemental Program EPRI Program Objectives • Demonstrate and evaluate light and medium-duty PHEVs with all-electric range • Get real-world customer input and build customer familiarity • Quantify performance attributes and environmental impact • Assess production-ready “smart charging” capability for the vehicle • Duke intends to acquire and evaluate 50 PHEV pick-up trucks/vans and up to 10 medium/heavy duty trucks (e.g. bucket truck) over the next 12 months • VIA Series PHEV system w/ 40 mile EV range • Odyne parallel PHEV system providing 3 hours on-site electric operation or 10 miles

  13. Education, Outreach & Collaboration The Envision Center • Located in Erlanger, KY, with a sister center located in Raleigh, NC, gives customers the opportunity to experience the concepts and benefits of smart grid technology. • Provides a high-tech vision of how Duke Energy would leverage today's digital grid and communications technology to improve reliability, promote energy efficiency and improve the environment. • The facility serves two purposes: • Engage customers in conversation about what energy can and will be with digital technology. • Demonstrate some of the benefits that are not possible with obsolete equipment.

  14. Summary • Electricity provides a cleaner, cheaper, and locally produced fuel solution to our transportation challenges • Duke Energy is actively engaged in understanding plug-in vehicle technology and supporting our customer and communities in preparing for widespread adoption • Initial research indicates… • System impacts will be negligible for many years • Isolated transformer upgrades may be necessary at the micro level (as with any new loads) • Simple smart charging solutions can help shift load/avoid peaks if needed • More to learn and adoption rates will be gradual • Suggested resources: www.TheElectricGeneration.org www.GoElectricDrive.com www.duke-energy.com/plugin www.CleanFuelsOhio.gov

  15. Questions?

  16. Recent Public/Private Project

  17. Plug-in Electric Vehicle Value Proposition Annual 4th Highest 8-hr Ozone Difference (ppb): PHEV middle case vs. base case Duke Energy supports PEVs because they … • Help the environment by reducing tailpipe emissions Source: UCS Report “State of Charge” 2012 Source: EPRI/NRDC 2007 Impact Study

  18. Customer Support • Goal is to ensure a positive charging experience and meet customer’s expectations • Constantly reviewing internal customer support processes and assessing the need for new products and services to meet the needs of our customers • Extensive information on our www.duke-energy.com/plugin website • Specially trained call center and email support • Toolkit for account managers

  19. Education, Outreach & Collaboration • Goal is to collaboratively support industry working groups while providing essential, balanced information to stakeholders and customers • PEVs present a new paradigm where multiple stakeholders share the same customer • Duke Energy participates in collaborative… • Research through the Electric Power Research Institute • Industry associations through the Electric Drive Transportation Association • Community planning through DOE, Clean Fuels Ohio, Project Get Ready • Standards development through NIST, SAE, EPA • Economic development efforts • Public/private partnerships • Clean Cities group to develop PEV planning roadmaps

  20. Education, Outreach & Collaboration Charging Station Installation best practices • Following the decision to install a charging station, the next steps are: • Determine the best location for the charging station installation; • Select an appropriate charging station technology, based on the location selection; and • Decide the details of equipment ownership and operation. • Lessons Learned • Through several of our pilots, we have learned installing commercial charging stations is much more complex than residential. The average time to get a charging station installed at a public locations is 4 - 6 months. To support the installation process, Duke requires 1 FTE to manage approximately 5 – 7 customers at a time. • Resources for installation recommendations and best practices: • Advanced Energy’s Charging Station Installation Handbook for Electrical Contractors: http://www.advancedenergy.org/transportation/ • Clean Cities Plug-In Electric Vehicle Handbook for Electrical Contractors: http://www.afdc.energy.gov/publications/ • DOE/Alternative Fuel Data Center – Infrastructure: http://www.afdc.energy.gov/fuels/electricity_infrastructure.html

  21. Duke Energy Fleet Demonstrations • Goal is to be a leader of PEV fleet integration • Founding member of Clinton Global Initiative Pledge • Duke Energy Plug-in Vehicles • Chevy Volts – 31 • Nissan Leafs – 7 • Significant Demonstration Projects • Chevy Volt • Ford Escape PHEV • Chrysler/Ram PHEV Trucks • EPRI PHEV Truck Demonstration

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