CNG STATION PLANNING & DESIGN CONSIDERATIONS

CNG STATION PLANNING & DESIGN CONSIDERATIONS

THE INTEGRYS ENERGY GROUP Integrys Energy Group (NYSE: TEG) Regulated Electric & Natural Gas U:li:es Electric Transmission Non- regulated Retail Services Integrys Transporta:on Fuels EVO Trillium AMP Trillium 2

TRILLIUM CNG A TURNKEY CNG PROVIDER Comprehensive CNG Fueling Solu:ons Fast- Fill, Time Fill, Public, Private and Semi- Public Access Full suite of commodity instruments fixed pricing, cost collars, forward hedge instruments, etc. Compression Equipment High capacity refueling products, manufactured in the USA Temporary and Portable CNG staions Compressed Gas Services CNG staion design, construcion, operaions & maintenance TransacIon management services NFPA and local Fire Code facility upgrades Capital Financing, Equipment Leasing & Grant Services Financing CNG StaIons and Vehicle Conversions CNG StaIon Leasing Grant acquisiions for customers to offset truck and staion costs 3

WHY WE ARE HERE 70% of all oil in the US is used for transportation -1/3 is used by trucking sector (Class 6/7/8) Diesel prices trending upward - Fuel is the second largest fleet expense Volatility makes planning difficult Risk of supply interruptions and shortages always present - Natural disasters World turmoil Domestic economic impact

US AVERAGE RETAIL FUEL PRICES (IN GGE) January, 15 2014 Diesel $3.49/GGE January, 15 2014 CNG $2.09/GGE A fleet using 1,000,000 DGE/year can save ~$1,400,000 on fuel costs 5 Source - http://www.afdc.energy.gov/fuels/prices.html

CNG PRICES ARE MORE PREDICTABLE LESS FUEL VOLATILITY DOE National Average Diesel Price (1) $4.00/gallon National Average Retail CNG Price (2) $2.29/DGE 35% 25% Diesel Price Vola?lity more directly correlated to cost of Crude Oil CNG Price Vola?lity not as directly affected by market cost of Natural Gas 6 (1) Transport Topics, September 23, 2013 (2) NGV Today, September 19, 2013

AS NGVS GROW NATURAL GAS PRICES WILL STAY LOW NGV market expected to grow at an compound annual growth rate (CAGR) of 14.6 percent (1) American Clean Skies Foundation analyzed the impact on CNG pump prices based on various market growth scenarios: Conclusions: Under the most aggressive transportation growth case, gas demand increased about 2% Resulting impact on CNG pump price is about $0.03/DGE 7 (1) EIA Annual Energy Outlook, 2013 (2) American Clean Skies FoundaGon Driving on Natural Gas April, 2013

BASIC DESIGN CONSIDERATIONS ü Customer Profile Proprietary fleet, public access or both Anchor tenant ü Access to UIliIes Natural Gas and Power Proximity to uiliies UIliIes ability to meet requirements (PSI, Throughput) cost- effecively ü OperaIng CharacterisIcs Fueling opions fast fill, Ime fill ü Redundant Equipment CriIcal nature of operaion, technician response Ime 8

TIME FILL STATIONS Time Fill Used for return to base fleets with idle Ime Buffer storage system Generally smaller compression requirements Time- fill posts Fast- fill opions Applicability a funcion of fleet operaions Example 25 trucks @15 gge each in 8 hours = 125 scfm 9

FAST FILL STATIONS 10

FAST FILL CUSTOMER REFUELING EXPERIENCE High rate of deliverability, 80-100 diesel gallon equivalents (DGE) fills in less that 10 minutes StaIon reliability Conveniently located for easy access Fast, reliable and convenient 11

OPTIMAL CNG STATION DESIGN Gas Inlet Customer Dryer Smart Controls Dispenser Compressor Storage Hydraulic Intensifier Hydraulic Intensifier

Natural Gas Dryer Removing Moisture ü Water creates problems for the refueling system and vehicles ü Desiccant type systems are the best ü Operations range from fully automatic regeneration to manual regeneration ü Single or twin towers 13

Storage Systems Storage and Efficiency ü Cascade and buffer type storage systems are widely used ü Buffer storage best for continuous fueling Ongoing refueling operations ü Cascade systems best for intermittent fueling Peak period fueling Typically 3 banks with control logic 14

Smart Controls ü Verify operational status and alarms Dryer Smart Controls Controls Dispenser ü Controls manage the active hoses in large volume stations and the time fill logic in smaller systems Compressor Storage Valve Panel ü Advanced lead/lag logic balance usage of the compressors ü Time of day logic decreases electrical charges by limiting the number of compressors that are allowed to run during Generator peak electrical demand ü Storage pressure determines when to start compressors Equipment control and process op?miza?on 15

STRATEGIC STATION DEVELOPMENT Gas Utility Vehicles Infrastructure Successful deployment of CNG requires seamless integra?on of all three components 16

SUCCESSFUL STATION DEVELOPMENT Station Planning Private or Public Summary of Key CNG Infrastructure ConsideraIons Access to Utilities Fast versus Time Fill Redundancy Maintenance & System Monitoring Successful Infrastructure Model Equipment Selection Performance Lifecycle Cost Smart Controls & Process Efficiency Customer Requirements Process Considerations Robust PM Program Qualified Technicians Response Time Customer Interface Own vs. Lease Tax Credits & Grants Maintenance Services Performance Based RFP Best Value vs. Low Bid 17

THANK YOU QUESTIONS?????? Contact April Dents SE Director of Business Development ajdents@trilliumcng.com