Duke Energy Electric Transportation

November 2017

Lang Reynolds – Electric Transportation Manager

Duke Energy - Electric Transportation

Electric Transportation = Economic Development

Fuel and maintenance cost savings remain in-state.

Improved air quality facilitates continued industrial recruitment.

Automakers are expanding electric drive manufacturing and supply chain.

Downward rate pressure preserves attractive electricity costs.

2

Electric Transportation Market – Not Just EVs

3

Road

Non-Road

North Carolina – EV Sales Trends

4

0.09%

0.37%

0.86%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

2011 2012 2013 2014 2015 2016

EV Market Share

NC National Average

7,416

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 2012 2013 2014 2015 2016 2017 YTD

NC Cumulative EV Registrations

Future Growth and Grid Impacts

5

Current Forecast:

2030 Peak Load Impact

(Unmanaged) Summer (HE17) DEC 79 MW

DEP 44 MW

Winter (HE08) DEC 11 MW

DEP 6 MW

290,770

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Current Forecast: Cumulative DEC+DEP EV Registrations

Unmanaged Managed

Source: Pacific Gas & Electric

Grid Impacts of Electric Transportation

Managed charging loads are key to maximize grid benefits of EV charging.

Source: ChargeCarolinas Data

Duke Energy Initiatives Past and Present

ChargeCarolinas:

2012-2013 DE installed +100 residential L2 EV charging stations.

EEI Fleet Electrification Commitment:

5% of all fleet purchases must be plug-in electric (DE fleet >10,000 vehicles).

100% of new sedans are now plug-in electric.

Electric Transportation Infrastructure Grants (NSR Settlement).

$3.0M total to be distributed 2017-2021

$1.0M - 200 public L2 EV charging stations.

$1.5M - Truck Stop Electrification and Electric Transport Refrigeration Unit deployment.

$0.5M – Electric transit bus charging infrastructure.

7

NC EV Charging Infrastructure Grants

8

Future Considerations

Electrification of transportation is a global trend.

North Carolina lags other US states in adoption of electric transportation.

No adverse grid impacts have been experienced from EV adoption; none are expected in the near future.

Current regulatory environment does not favor encouraging adoption.

- Found Revenue Clause

9

Appendix

10

Automaker OEM Electrification Announcements

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Source: EPRI

Aggressive Global Commitment to Transportation Pollution

12

13

Barriers to Adoption

Awareness Infrastructure Cost