1. 1 TTP Texas Technology Partners Sierra Club Earth, Wind and Fire Energy Summit The Future of Energy Fuel Sources Texas Technology Partners www.texastechnologypartners.com Mark Armentrout marmentrout@yahoo.com www.texastechnologypartners.com marmentrout@yahoo.com October 4, 2014 TTP Texas Technology Partners

2. 2 TTP Texas Technology Partners Sierra Club Earth, Wind and Fire Energy Summit The Future of Energy Fuel Sources Consider the uses of energy

3. 3 TTP Texas Technology Partners Sierra Club Earth, Wind and Fire Energy Summit The Future of Energy Fuel Sources WTI crude oil futures price 10/1/2014: $90.73/bbl down$2.07 from week earlier down$11.31 from year earlier Natural gas futures price 10/1/2014: $4.023/mmBtu up$0.112 from week earlier up$0.414 from year earlier Natural gas inventories 9/26/2014: 3,100 Bcf up112 Bcf from week earlier down373 Bcf from year earlier Crude oil inventories 9/26/2014: 356.6 mmbbl down1.4 mmbbl from week earlier down7.1 mmbbl from year earlier Weekly coal production 9/20/2014: 18.833 million tons down0.343 million tons from week earlier ? Source::DOE/EIA Consider the prices of energy Consider the availability of energy

4. 4 TTP Texas Technology Partners Sierra Club Earth, Wind and Fire Energy Summit The Future of Energy Fuel Sources EIA Fuel Source Projections in Billions of Kilowatts

5. 5 TTP Texas Technology Partners Electric Utility Structure in Competitive Market Competitive Generation Competitive Retail Electric Providers (REPs) Customer Regulated utilities prohibited from selling electricity or other competitively available energy services, or from discriminating among generators or among REPs/retail customers Regulated Open Access Transmission & Distribution Providers (TDSPs) (Source: ERCOT)

6. 6 TTP Texas Technology Partners Ten ISO/RTOs in the US ERCOT is one of ten North American ISOs/RTOs ISOs/RTOs serve 67% of U.S. population Goal: Efficiency and impartiality for wholesale deregulation Independent System Operators (ISOs) are single-state or multiple-state entities established under Order 888 of the Federal Energy Regulatory Commission. Regional Transmission Operators (RTOs) perform similar or expanded services across a multi-state area, and have been approved by FERC as meeting the requirements of FERC Orders 2000 and 2001. ISOs perform equivalent services but tend to be smaller in geographic size, or are not subject to FERC jurisdiction (as in Canada and central Texas).

7. 7 (Source: ERCOT) Summer Peak Day Load Shape with Fuel Mix MW $/MWh $25 - $75 $3001 TTP Texas Technology Partners

8. 8 TTP Texas Technology Partners Retail Electricity Deregulation

9. 9 TTP Texas Technology Partners The Oil and Gas Picture – All Reservoir Types

10. 10 TTP Texas Technology Partners Gas! Gas! Gas! – Price Forecasts

11. 11 TTP Texas Technology Partners Shale Plays in the Lower 48

12. 12 TTP Texas Technology Partners US Shale Play Production History

13. 13 TTP Texas Technology Partners Where is the wind?

14. 14 TTP Texas Technology Partners Where is the Sun?

15. 15 TTP Texas Technology Partners Electric Vehicles – Where are they going? What is the fuel source for plug in cars?

16. 16 TTP Texas Technology Partners Texas Technology Partners www.texastechnologypartners.com Mark Armentrout marmentrout@yahoo.com marmentrout@yahoo.com Thank You