1. Emerging Technologies James Culp Lead Alternative Energy Strategist September 16, 2009 ADVANCED VEHICULAR TECHNOLOGIES: DRIVING “GREEN LABOR” GROWTH

2. Overview l Progress Energy Update l Project Get Ready l Financing Opportunities For Projects And Job Creation l Conclusion 2

3. PHEV or EREVALL ELECTRIC Production Demo/Concept Saturn VUE Chevrolet Volt Ford Escape PHEV VW Golf TwinDrive Toyota FT-EV Mini-E Mitsubishi iMIEV Dodge CircuitSubaru R1e Ford/Eaton Trouble Truck Toyota Prius PHEV Chrysler 200CCadillac Converj Mercedes BlueCell Chrysler: Jeep or Minivan BYD 3DFMFord Van Nissan ? ? Ford Car ? Tesla Fisker Karma Smart Chrysler Minivan 3

4. 4 l Hybrid Conversions w Standard hybrids converted to plug-in with an after-market battery kit l Dual-Mode Plug-in Hybrid (PHEV) w Gas engine and electric motor work together to optimally power the drive train l Extended Range Electric Vehicle (E-REV) w Capable of medium range, high speed all- electric drive with small engine as generator l Battery Electric Vehicles (BEV or EV) w Greater battery capacity for long range, all- electric drive and no back up engine Tesla Roadster Chevy Volt Toyota Prius

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6. l Plug-In Hybrid Electric Vehicle (PHEV) demonstrations w 7 converted Priuses, 2 Ford Escapes, Bucket Truck w UF Prius conversion w City of St. Petersburg Ford Escape conversion l Significant public outreach and education l Technical consultant and strong collaborative efforts l Research and development (EPRI, AE, V2Green, etc) l Evaluating business models for charging solutions and relationship to renewable energy l Partnering with OEMs, counties, cities, and non-profits 6 How is Progress Energy Supporting Vehicle Technologies that will Lead to Job Creation?

7. Grants Awarded: Transportation Electrification l Progress Energy among utility partners in both Ford and GM proposals 7 Chevy Volt (EREV)

8. Grant Submitted: Smart Grid l Tomorrow’s Smart Grid will have the potential to provide efficient off-peak plug-in electric vehicle (PEV) charging, on-peak vehicular energy storage utilization, and two way communications l Smart Grid team submitted proposal for $520M project on 06AUG09 l Request was for $200M of DOE funding (Award in 60 – 90 days) l 3 year project l Includes a number of complementary technologies l Interconnecting Smart Grid projects will span both PEF and PEC l Smart Grid development and integration will require green labor 8

9. Are We Ready To Plug In? http://www.leftlanenews.com/gm-begins-testing- preproduction-chevy-volt-prototypes-video.html 120 VAC standard plug 9

10. Project Get Ready: Education, Outreach and Collaboration 10 l PGN and Rocky Mountain Institute (RMI) leadership role in NC vehicle electrification efforts l RMI model provides: w Best practices w Networking w Leadership w “Action templates” w Menu: http://www.projectgetready.com/docs/Project_Get_Ready_Menu_Mar16.pdf l Goal: Leverage PGN experience, secure OEM participation with early technology release, and engage key stakeholders to enable and accelerate the adoption of electric vehicles and PGN smart charging infrastructure. http://projectgetready.com/

11. l Held August 4, 2009 at OC Environmental Protection Division l Included representatives from PGN, Nissan North America Inc, Orange County, the City of Orlando, DOE Clean Cities, the Florida Electric Auto Association, OUC, the Florida Solar Energy Center, the University of Central Florida, and NASA. l Topics Covered: w Electric transportation technology w Benefits of vehicle electrification w State of industry and expected OEM release dates w Vehicular charging and utility impact w Nissan Leaf EV early release in late 2010 l Attendees were very interested in continuing the Project Get Ready process Project Get Ready: Orange County Meeting 11

12. l Nissan North America, Inc presentation at OC meeting l Potentially interested in an early release of Nissan Leaf EV in our area w Strong commitment and collaborative effort required w Expectation of 300+ vehicle placements w “Hand raiser” at http://www.nissanusa.com/leaf-electric-car/opt-in/en/index.jsp l New vehicles will have flex 120/240 VAC charge voltages l Fast charging is expected to be available 1 – 1.5 years after release l Interested in US manufacturing if initial release is successful l Green workers will be required for vehicle and parts manufacturing, maintenance, smart charging infrastructure, lithium ion battery recycling, etc. Project Get Ready: OEM Participation 12

13. Financing Projects And Green Jobs American Recovery and Reinvestment Act (ARRA) Funding: l Federal agency direct competitive grants l Federal agency direct noncompetitive grants (“Block Grants”) l Federal “pass through” funding with states administering grants l www.progress-energy.com/stimulus Internal Funding: l Budget planning process l New construction, building retrofits/upgrades, fleet vehicles, education and outreach, etc. 13

14. Conclusion Thank you! 14