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

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

3. A CNG Overview
Then
Now

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

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

6. CNG World Wide

7. Stations Nationwide

8. United States CNG Stations

9. The Texas Clean Transportation Triangle
SB 20

10. Houston Area Station Map

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

12. 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

13. 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)

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

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

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

17. 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

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

19. Vehicles
Medium and Heavy Duty
Light Duty

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

21. 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.

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

23. Local Initiatives

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