Compressed Natural Gas Vehicles: The Road to a Cleaner Future

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Compressed Natural Gas Vehicles: The Road to a Cleaner Future September 12, 2013 Katie Dugan Presented by: Elizabeth Bohan-Leach 2008 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Fleet By The Numbers 74,942 Vehicles 24,840 Wheeled Eq. Units 99,782 Combined Fleet 731M Miles Driven Annually Almost 64% of AT&T s direct emissions come from its fleet! Direct emissions account for 10.6% of AT&T s total GHG emissions 67M Gal. Purchased Annually 5,658 Parking Locations 2

Gaining Experience 2007 Piloted 4 AFVs Initial AFV pilot program 4 Hybrid Ford Escapes deployed in California 2008 Trialed 105 AFVs 65 Passenger hybrid electric vehicles (HEVs) 15 Hybrid electric conversion work trucks 25 Compressed natural gas (CNG) vans 3

Our March 2009 Announcement AT&T To Invest up to $565M to Deploy approximately 15,000 Alternative Fuel Vehicles over a ten year period through 2018 Makes Largest Commitment to Compressed Natural Gas to Date by a U.S. Company 4

AT&T s AFV Mix to Date - National 7,757 AFVs deployed to date 5,554 52 Compressed Natural Gas Service Vehicles Compressed Natural Gas Passenger Cars 2,121 Hybrid Electric Vehicles 27 Extended Range Electric Vehicles 3 Battery Electric Vehicles 5

Why CNG? Compressed Natural Gas Is: CLEAN AFFORDABLE ABUNDANT AMERICAN! 6

CNG Vehicles: Benefits to AT&T Reduced consumption of petroleum-based fuels In 2012, our use of over 3,400 CNG vehicles helped AT&T avoid the purchase of over 2.5M gallons of gasoline Lowered fuel costs Over the past 12 months, nationwide CNG prices have been 41% cheaper than gasoline and 47% cheaper than diesel Fewer greenhouse gas emissions Since 2009, our CNG vehicles have allowed AT&T to reduce the greenhouse gas emissions from its corporate fleet by over 13,500 metric tons Opportunity for improved driver productivity Through the provision of after hours fueling, technicians assigned CNG vehicles are able to spend more time working and less time fueling Page 7

Our Health, Our Safety, Our World EH&S Considerations Less toxic than gasoline Contains a recognizable odorant Primary risk is displaced oxygen in confined space Higher ignition point than gasoline or diesel Lighter than air; dissipates rapidly if released Vehicles are crash tested and must meet all Federal Motor Vehicle Safety Standards Will not contaminate ground or water 20% to 45% less smog producing pollutants* 94% of U.S. natural gas used is domestically produced* Page 8 *Fueleconomy.gov

Roadmap to Success Learn Before You Leap Extensively researched use and safety of CNG as a vehicle fuel and implications to maintenance and repair operations Train and Develop Worked with conversion suppliers to develop a comprehensive training program for field managers and mechanics Deploy Strategically Targeted deployment locations based on availability of public infrastructure and OEM/conversion supplier support network Foster Collaborative Demand Engaged with automakers, aftermarket conversion suppliers, working groups and consortiums to help spark demand for ongoing technological advancement and expanded vehicle options 9

Going Forward: We plan to Expand our knowledge of CNG as a vehicle fuel and its benefits to and implications for our fleet Continue to deploy compressed natural gas vehicles throughout AT&T s service territory Promote the construction of CNG refueling infrastructure through strategic relationships and by fostering demand Support the development of advanced and improved alternative fuel vehicle technologies through selective trial and deployment 10

At the End of the Day OUR MISSION IS: To implement an Alternative Fuel Strategy which contributes to a cleaner environment, reduces our dependence on imported oil, lowers our vehicle operating costs and improves workforce productivity. The Road to a Cleaner Future.

12 Thank You