1. Natural Gas as a Transportation Fuel Justin Stiff Staff Sales Consultant 1 TPTA March 28, 2012

2. NATURAL GAS: America’s new energy landscape Abundant, Affordable, American 2

3. Natural Gas A foundation fuel for our energy security  A better source of energy security and economic stability exists within our borders and those of our Canadian neighbors  Our nation is the largest producer of natural gas in the world.  Over the last decade, U.S. shale gas production has increased 12‐fold and now comprises about 25 percent of total U.S. production. 3

4. Abundance & Energy Security 4 Game Changer!!

5. 5 Abundance & Energy Security Responsible Resource Development

6. Abundance & Energy Security 6 Source: EIA Annual Energy Outlook 2010

7. 7 Jobs & Economy Creating Jobs in American Communities

8. 8 CNG Transportation Fuel LNG Expanding Markets

9. Transportation Sector: Role of Natural Gas 9

10.  Do we have enough natural gas?  Do we have the infrastructure?  What are the benefits?  What are the costs? 10 Choosing Natural Gas Vehicles

11. 22 Source: EERE, Clean Cities Alternative Fuel Price Report, July 2011  CNG costs about $1.90 less than diesel on a per diesel gallon equivalent basis.  The high fuel price differential and oil price volatility is causing commercial fleets to consider alternative fuel vehicles. Current Retail Fuel Prices Gasoline $ 3.23 Diesel $ 3.65 CNG $ 1.75 Alternative Fuel Prices versus Diesel

12. CNG Simple Payback Analysis Type of VehicleShuttle Bus Incremental Cost$40,000 Incentives$10,000 Net Incremental Cost$30,000 Annual Mileage40,000 Annual Mileage Fuel Efficiency (mpg)5 Gallons of Fuel / Year 8,000 Petroleum Fuel Cost per Gallon$3.65 Natural Gas Cost per GGE$1.75 Annual Fuel Savings$15,200 Simple Payback (years)2 12CenterPoint Energy Proprietary and Confidential Information

13. 13 Cleaner for Vehicles

14. 14 DFW to Austin-San Antonio to Houston. 15 new stations offering public LNG and CNG. Government incentives for fleet owners and station builders. Cooperative effort between natural gas producers, fleet customers and state government. Texas Triangle NGV Project

15. 15 Light Duty Market Potential

16. 16CenterPoint Energy Proprietary and Confidential Information Houston Metro Projects

17. 17 Outreach & Awareness www.houstongvalliance.org

18. Justin Stiff 713-207-9077 justin.stiff@centerpointenergy.com 18