1. Utility Perspectives on Electrification of the Vehicle
Knut Simonsen
Sr. Vice President, Strategy and M&A
President, Energy Ventures
November 15, 2009

2. Plug-in EV’s nothing new!
1900s – 2x EVs compared to ICE Detroit was the first American city to use electric taxi cabs Note curb-side charging port
1914 Detroit

3. Electric drive technologies
Today
Plug-in Electric Vehicles (PEV)
Internal Combustion Engine (ICE)
Engine
Transmission
Differential
Engine
Transmission
Motor
Batteries
Differential
Mechanical Coupling
Hybrid Electric Vehicle (HEV)
Differential
Engine
Transmission
Mechanical Coupling
Batteries
Motor
Plug-in Hybrid Electric Vehicle (PHEV)
Engine
Motor
Batteries
Generator
Extended Range Electric Vehicle (EREV)
Motor
Batteries
Battery Electric Vehicle (BEV)
Miles
Electric only: ~
Larger battery and less emissions

4. Electric drive technologies and annual electricity consumption
Annual Electricity Usage per Vehicle*
(kWh)
75% of Americans drive less than 40 miles on their daily commute
40 miles electric only - achieves similar GHG reduction as BEV - Limited need for public charging
BEVs will require faster charge rates and more daytime charging to address range “anxiety” - Needs public charging infrastructure
* Assumes a vehicle drives 12,500 miles / day, PHEV and EREV electric usage varies depending on drive characteristics, Chevy Volt-type vehicle at 5 mi/kWh

5. In addition to technology advances, multiple factors are aligning to support a successful launch of PEVs
U.S.A.
Rest of World
Policy
$2.4 Billion in U.S. stimulus dollars directed at advanced automotive batteries
European Union target of 95 grams of CO2/km by 2020
=> 60 mpg
Climate
Significant activity in Washington on federal climate legislation
China’s commitment to building 500,000/year hybrid and electric vehicles by 2012
Energy Security
Push for a domestic fuel source and fear of the return of high gas prices
Urban smog in emerging mega-cities

6. Plug-ins have a big fuel cost advantage …
… but BIG upfront premium today
~$15,000 premium over regular car reduced by $7,500 tax credit
but for now, disadvantaged on purchase price
Plug-ins have a big fuel cost advantage …
US example
Fuel Cost Comparison* ($/Mile)
$12,500 - $17,500 fuel savings over 10 years*
* Gallon of gasoline equivalent price computed comparing ICE mileage of 26 mpg to PEV mileage of 5 mi/kWh at $0.10/kWh, 12,500 miles per year, undiscounted

7. Summary of current PEV incentives
USA
Goal of 1 million by ‘15
Up to $7,500 / vehicle
Canada
Ontario: up to C$10,000 / veh
Green license plate: 5 yrs of HOV, special parking
China
25 mil cars and 100 mil e-bikes!
Most are 1st time car buyers
100% tax on reduced for PEVs
13 cities picked for roll-out
$8,800 for taxi and gov’t
Skip ICE tech to focus on PEV
Japan
PEVs ~$16,000 incentive plus reduced road tax and registration
8 cities picked for pilots
France
$2.2 B for 1 mil. charge points
$7,500 / vehicle through ‘12 UK
>$400 mil infrastr and auto
$8,500 / vehicle, London lead

8. Electric drive reduces GHG emissions and our addiction to imported oil
Freedom from petroleum: electricity a domestic resource
350
Future
ICE
Hybrid
Coal
Natural Gas
Nuclear, Wind, Solar, etc.
Gasoline
Electricity (by source)
* 204 lb/MMBtu CO2 emissions rate (no carbon capture), 9,500 heat rate coal plant, 7,500 heat rate natural gas plant, ICE engine at 26 mpg, Hybrid drivetrain between mpg, electric motor at 5 mi/kWh
Source: Argonne National Labs GREET Model, DTE Team Analysis

9. Infrastructure in place for broad PEV adoption
ILLUSTRATIVE
Impact of PEV on Typical Summer Load Profile (Ideal Case)* MW
10% market share**
* PHEV is likely to also contribute to increased load during peak hours. Illustrative example of electric utility load – similar to Detroit Edison
** Estimated 600,000 cars and light trucks (does not include diesel trucks, buses, etc), 12,500 miles per year, 3.0 mi/kWh average efficiency, 75% electric operation
Source: DTE analyses, EPRI/NRDC Report

10. 25 kVA Transformer with Uncontrolled PEV Load*
Uncontrolled charging could lead to localized outages if not properly managed
Potential problems
Voltage dips (dimming lights, damage to expensive electronics)
Service interruption
Transformer failure
Measures to address these issues
On-vehicle charging control (time/date control)
Utility notified at time of PEV purchase
SmartGrid technology
Load shape for warm summer day – adding 3 PEVs to a neighborhood
25 kVA Transformer with Uncontrolled PEV Load*
Summer Load kW kW
Peak Capacity
Design Capacity`
* 8-12 smaller, older homes per 25 kVA circuit. Most homes without central AC.

11. Can PEVs absorb excess off-peak wind generation in the future?
Windy Spring Day (~60% cap. factor)
Generation and Load Profile in MISO – 2020 Estimate
Illustrative Example MW
The answer is yes – however: - Need ~10% of vehicles to be PEV by ‘20 - ’25
Wind tends to blow more at night when electric demand is at its lowest
Creates carbon free transportation
Wind generation
Noon
6 PM
Midnight
6 AM
Noon
April 11
April 12
* Assumes 20% RES requirement with 15% from wind (based on actual 2009 data – scaled up 5.4x for 2020)

12. US Utility industry pledge: Accelerate adoption of plug-in electric vehicles

13. What should utilities and regulators be working on today?
Home Charging
Streamlined process for customer is #1 priority
MiniE/EV1 home install: days average with up to $3,000 installation cost
Integration with utility system planning can avoid localized transformer issues
Develop PEV rates and capture benefits from flexible nature of demand
Consider a “behind-the-meter” home charging station installation service offering
Customer / Stakeholder Education
Be ready to handle customer questions, carbon equation
Update building codes to include 240V outlet in new home garages
Work with state and local inspection agencies to create a streamlined permitting/inspection process for plug-in EV charging stations
Public Charging
How much, how soon?
Form public / private partnerships to install high visibility charge spots
Create pilot programs today to “work out kinks” while vehicle volumes are low