A CNG Overview Justin Stiff Sales Staff Consultant January 13, 2014

A CNG Overview State of the Market and Gas Prices Fueling Stations/Costs Vehicles Legislative Update and Incentives

A CNG Overview Then Now

CenterPoint Energy Proprietary and Confidential Information What Has Changed? CenterPoint Energy Proprietary and Confidential Information

CenterPoint Energy Proprietary and Confidential Information Collaboration Drive Natural Gas Initiative DNGI CenterPoint Energy Proprietary and Confidential Information

CNG World Wide

Stations Nationwide  

United States CNG Stations

The Texas Clean Transportation Triangle SB 20

Houston Area Station Map

Station Development Corridors Northeast Corridor Southeast Corridor Mid Continent Texas Triangle(s) Rocky Mountain Southwest Western USA Game Changer!!

CenterPoint Energy Proprietary and Confidential Information Calculations 1 Mcf= 1,000 cu ft 1Gasoline Gallon Equivalent (GGE)= 125 cu ft = 8 GGE per Mcf 1 Diesel Gallon Equivalent (DGE)=139 cu ft = 7.19 DGE per Mcf CenterPoint Energy Proprietary and Confidential Information

Price Elasticity $3.00 $0.417 $0.3183 $0.13 $0.30 $0.50 $0.524 $2.1893 Price of Natural Gas per Dth Gas Commodity Cost DGE Note 1 Delivery Cost DGE Note 2 Electricity Cost DGE Note 3 Compressor Maintenance Note 4 Capital Amortization Cost DGE Note 5 Federal & State Fuel Tax Note 6 Total DGE $3.00 $0.417 $0.3183 $0.13 $0.30 $0.50 $0.524 $2.1893 $4.00 $0.556 $2.3283 $ 5.00 $0.695 $2.4673 $ 6.00 $0.834 $2.6063 $ 7.50 $1.042 $2.8143 $ 10.00 $1.390 $3.1623 $12.50 $1.737 $3.5093 $15.00 $2.085 $3.8573 Price of natural gas/ 7.194 Delivery Charge of $2.29 per Dth / 7.194, including demand charge Per NGV America. Includes Kwh + demand Per NGV America Federal and State Excise Tax Diesel ($0.244 Federal + $0.28 State)

A CNG Overview State of the Market Fueling Stations/Costs Vehicles Legislative Update and Incentives

CenterPoint Energy Proprietary and Confidential Information Station Types Time Fill CenterPoint Energy Proprietary and Confidential Information

CenterPoint Energy Proprietary and Confidential Information Station Types Fast-Fill CenterPoint Energy Proprietary and Confidential Information

CenterPoint Energy Proprietary and Confidential Information Station Costs CNG estimated installed costs (nominal station size) Cost with 100% redundancy 75 CFM (30 gallons/hr) 75 CFM x 2 $625,000 400 CFM (200 gallons/hr) 400 CFM x 2 $1,200,000 1000 CFM (500 gallons/hr) 1,000 CFM x 2 $1,700,000 CenterPoint Energy Proprietary and Confidential Information

A CNG Overview State of the Market Fueling Stations/Costs Vehicles Legislative Update and Incentives

Vehicles Medium and Heavy Duty Light Duty

A CNG Overview State of the Market Fueling Stations/Costs Vehicles Legislative Update and Incentives

Texas NGV Incentives Texas NGV Grant Program To encourage fleets to increase their use of heavy-duty NGVs. The program is funded with a Texas Emissions Reduction Plan grant through the Texas Commission on Environmental Quality. A variety of vehicles, including street sweepers, forklifts, buses, and garbage trucks, are eligible for grants to help cover the cost of replacing diesel vehicles with NGVs. Estimated $24 million Alternative Fueling Facilities Program Qualified public alternative fueling facilities, up to 50% of station cost. (equipment only) Estimated $3.9 million Alternative Fuel Vehicle (AFV) Grants (Houston-Galveston) Congestion Mitigation and Air Quality (CMAQ) Program Grants are available through the Houston-Galveston Area Council, via the Greater Houston Clean Cities Coalition, for qualified on-road and station infrastructure projects. This grant is for government and private entities in the eight-county Houston-Galveston non-attainment area. Estimated $7.5 million Light-duty Motor Vehicle Purchase or Lease Incentive Max. of $2,500 per vehicle for new light-duty dedicated or bi-fuel natural gas, propane or electric vehicles. Estimate $3.9 million Diesel Emission Reduction Incentive Program (ERIG) Heavy-duty on-road and non-road vehicles; locomotives, marine vessels, stationary equipment. Typically, includes the non-attainment areas and areas of concern for ozone. Estimated $34 million All 2014 Texas state incentives subject to project application approval and available funds.

Texas NGV Incentives All 2014 Texas state incentives subject to project application approval and available funds.

Local Initiatives

Justin Stiff 713-207-9077 Justin.Stiff@centerpointenergy.com