December 3, 2013 NJTPA Plug it In Event Wayne Wittman - PSEG PSEG’s View on Electric Transportation for New Jersey

2 Introduction PSEG’s Alternative Fuel Vehicle (AFV) Readiness Team was established in 2010 to examine the potential business opportunities surrounding both electric vehicles (EV) and natural gas vehicles (NGV). Some of the areas the team has reviewed and supported over the years includes: EV technology assessment and market adoption projections Distribution systems impacts Vehicle Technology Testing & Analysis EV Charging and NGV Fueling Infrastructure Business Cases Public Education and Outreach Employee EV Ride n Drive and PSEG Workplace Charging Program Working with State officials on developing plans to promote AFV adoption Provide technical guidance and input for the NJ Energy Master Plan Participate in Nationwide AFV Research Efforts (EPRI, EEI) Memberships with NJ Organizations (NJ Clean Cities)

3 EV’s, something old that’s new again! Circa 1914, Mrs. Edison’s Electric Vehicle and Home Charging Station

In 1914, Detroit was the first American city to use EV Taxi’s Detroit’s first electric taxi accumulated more than 46,000 miles in it first two years of operation.

100 years later every major OEM is producing EV’s Since 2008 more than 90,000 highway-capable plug-in electric cars have been sold in the country through March 2013 OEMModelTYPE Electric Range (Miles) Price (US Dollars)* Total Sales to date (Dec March 2013 Nissan LeafBEV73$32,20023,051 General MotorsVoltPHEV40$41,40035,702 ToyotaPriusPHEV14$32,00015,103 TeslaModel SBEV $57, ,0007,400 Total Production 81,256 Nissan LeafTesla Model SChevy Volt Toyota Prius Plugin *Before Federal and State Tax Incentives

6 One reason EV’s are so popular is because electricity makes a great fuel. EV owners also will be motivated both environmentally and economically to maximize electric usage for their vehicles. Assume: $3.50 gasoline; 18 cents/ KWh electricity; CV 30 MPG, HEV and 45 MPG, 37 MPG; size of full charge 4 KWh, 12 KWh, 35 KWh Source: PSEG Average Cost Per Mile By Fuel Source (Daily Mileage = ) $0.12 $0.08 $0.05 $0.00 $0.02 $0.05 $0.06 $0.117 $0.078 $0.076 $0.056 $ CVHEVPHEV13PHEV40AEV Vehicle Type Average Fuel Cost ($/ mile) Electricity Gasoline 40

7 Now that EV’s are here in NJ, how many and when? Source: EPRI, Nov 2012 By 2020, New Jersey may expect to have between 14,000 and 142,000 EV’s on the road. The medium case forecasts 70,000 by New Jersey Electric Vehicle Forecast

EV’s and New Jersey Driving Patterns An EPRI GIS analysis study shows potential corridors for location of public charging stations “Range Anxiety” Source: The Economist

PEV Charging Locations Topology For most PEV owners the primary charge will occur at the home residence; the second highest incidence of charging is expected to occur at or near the place of work; and finally we believe that some PEV owners will want to “top-up” on electricity at a destination. Public Access Charging Destination Workplace Home Private Access Charging Destinations where vehicle is parked for 2 hours or more (e.g. Shopping Mall, Universities, Movie Theatres, Central Business Districts (e.g. municipal parking lots), hotels and restaurants, sports venues, and transport hubs etc.) Public parking near workplace (e.g. on and off-street public parking) Employee private parking (e.g. J&J and other employer campus parking) Home residence garage and driveway parking Daytime and Evening Daytime Nighttime PEV Charge Venues Overnight public parking (e.g. municipal lots)

EV Weekday Load Factor Scenarios Incentive charging rates will help to control unmanaged charging in peak hours to managed charging in off peak hours. Assumptions EPRI’s Medium penetration scenario 100% of PHEV and BEVs are charged at home; as much as possible 80% of these will stagger their charges across lowest priced hours 80% of PHEVs are used by work commuters; most of commuting PHEVs need a full charge, most commuting BEVs only need half a charge. Source: PSEG/EPRI

11 Key Takeaways All of the major auto manufactures in the world are either selling or leasing EV’s right now in NJ. Electricity makes a great fuel and is a less expensive way to operate a vehicle over conventional fossil fuels. The majority of EV charging will occur at home or work and can be managed if need be. Placement of public charging infrastructure must be thoroughly planned out and placed in the right locations. Cost’s of EV’s are coming down. EV’s are reliable, easy to operate, and fun to drive!

Thank You!!!