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Change the Economics of a Community or Property You Don’t

Yet Serve with Portable CNG

What NG Advantage Does Today

#1 It Does NOT compete with LDCs.

Would be open to building a compressor station on LDC assets or investment.#2 It trucks CNG to stranded properties.#3 Pricing is at a premium of typical LDC rates.#4 It leaves when the pipeline arrives.

1. Compressor site on pipeline 2. Delivered in composite

containers

3. Customer Off-Load Station4. Empty trailers return for refilling

How Does It Work

First Region Completed Q3 2014

Next Regions Under Development

Milton Compressor Station Operational Q2 2013

Pembroke, NH Compressor Station

Operational Q2 2014

Building in partnership with one of T Boone Pickens’ companies, Clean Energy Fuels

CNG Transport Trailers

Hexagon Lincoln TITAN trailer ready for delivery by hauling partner, J.P. Noonan

Sample Off-Loading Station

Asphalt plant Operational Q2 2013

Dispatcher 24/7

NG Advantage’s Customers:Paper Industry

NG Advantage’s Customers:Industrial

NG Advantage’s Customers:Medical

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NG Advantage Became VT Gas’Largest Customer in 6 months

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Good for Economic Development and Public Relations

Gov. Peter Shumlin & ex-Gov. Jim Douglas

LT. Gov. Phil Scott

Lawrence Miller, Sec. of Economic Dev.

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Hospitals Asphalt Plants Paper Mills

Case Studies

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Why This is Hard

Technology Logistics

SCADA tools for knowing◦ when trailer is full◦ when to start filling◦ when to switch over to 2nd

trailer Telemetry on trucks &

compressors Telemetry to monitor

customer site Video to monitor and

help drivers

$5MM per compressor station

$500,000 trailers Fully filling trailers in

heat and cold Routing trailers so they

get to customers “just-in-time”

Fully emptying trailers Multiple sources of gas Relationship with

trucking firm

NG Advantage Can Expand the Service of an LDC

Expand Your

Territory

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Pipeline and Gas Journal - March 2014

A 24 inch diameter pipeline extension costs $100,000.00 per inch-mile or $2,400,000.00 per mile.

“Gas pipeline cost per inch-mile The cost of building natural gas pipeline(1) infrastructure varied between $30,000 and $100,000 per inch-mile(2) from 1993 to 2007 (Figure 8), according to the study. Through 2004, increases in pipeline construction costs were generally modest. After 2004, however, costs began to escalate dramatically, nearly doubling previous levels by 2006. This was due, in part, to high world commodity prices, especially the price of steel. Costs have declined recently and the several year cost run-up is expected to only be temporary. Since all three cases have similar GDP assumptions, input costs are assumed to be the same in all cases. Construction costs are projected to decline through 2010. After 2010, costs resume a general upward pattern consistent with the pre-2004 cost trends, which are slightly less than the assumed future inflation rate of 2.5 percent per year.

The study finds the cost of pipeline construction is divided roughly equally between materials, labor and miscellaneous. In 2007, materials costs accounted for over 35 percent of total costs, but have since declined. The miscellaneous category includes engineering, surveying, administration, and environmental costs. Costs for right-of-way account for 8 to 9 percent of total construction costs. This component has recently increased at a slightly faster rate than the other components. It is projected that the labor and right-of-way components will grow slightly faster than the other components, as skilled labor remains a premium commodity and pipeline permitting and siting continue to increase in complexity. The cost of materials is projected to increase at a rate slightly less than inflation and account for about 25 percent of total pipeline construction costs by 2030.

In all cases, cumulative transmission pipeline expenditures are similar through 2012, but they diverge thereafter. Considering the time required for pipeline planning, permitting and construction, it will take a few years before policy shifts such as those assumed in the High Gas Growth Case and the Low Electric Growth Case affect natural gas infrastructure investment. Pre-2012 pipeline infrastructure projects are already in advanced planning or already under construction, so they are not likely to be affected much by policy changes.”

Cost of Pipeline Extension

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Together We Can Serve a Customer You Will Be Bringing

the Pipeline To• Pipeline extension planned for 3

years away• Keeps company viable until pipeline

arrives• Customer will convert its

burner/boiler now• Customer will be ready when

pipeline arrives• Customer will have relationship with

the LDC now• NG Advantage leaves when

pipeline arrives

LDC puts in assets: pipes, one access point & meter LDC sells interruptible contract to companies, installs meters at

each facility LDC owns customers NG Advantage trucks CNG 24/7 Customers have political stake in future pipeline extension to

save more $ When pipeline arrives

Customers – no change but save more money LDC – bills as usual, conversions already done NG Advantage - leaves

Together We can Serve a “Stranded” Cluster For a Lot Less

Community or center of town must have: ◦ Large anchor tenants◦ Small businesses & residential◦ Existing pipes or LDC can install (capital expenses

better for rate of return) to each customer◦ One point of entry and meter for NG Advantage◦ Individual meters for each local customer

Questions◦ Will 20% add on apply to new customers like these?◦ Will the PUC need to approve them paying a different

rate than other customers?◦ Source of backup fuel ? Maybe central heating plant

Together We Can Serve a Community for a Lot Less

How?

OEM NG Advantage Sell to customers, let NG Advantage provide the delivery

Sign a huge facility or gather enough smaller ones ie: industrial park

Install infrastructure Provide one point of entry to

gas network or a heating plant

Sell to all customers Train and convert all

customers Petition for a new CNG rate

class – NG Advantage’s cost built into distribution rate

LDC invest in NG Advantage’s infrastructure, compressor station or trailer

If large enough, NG Advantage will:

Build a compressor station or truck from an existing station

Provide tractors and trailers

Build Off-Loading Station at LDC’s point of entry location

Municipal Propane Municipal Methane

Montpelier, Rutland and St. Johnsbury, Vermont Pipes to each business and

residence One access point for

propane Delivered by train

**** Today bio mass steam to

each downtown business & State office buildings in Montpelier

Burlington, VT (MGP) Methane to each

residence and business

Coal arrived by barge to gasification plant

Back To The Future

NG Advantage Can Provide Peaking Service to Capacity

Constrained Distribution Systems

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#1 For application on physically constrained portions of the distribution system.#2 Meet peaking demands on design cold days.#3 Serve as an interim solution to allow for addition of new customers until expansion is possible.#4 It leaves when the pipeline arrives.

1. Compressor site on pipeline 2. Delivered in composite containers

3. Customer Off-Load Station4. Empty trailers return for refilling

How Does It Work

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NG Advantage LLCP.O. Box 817

Milton, VT 05468www.NGadvantage.com

802 760.1167

Mary EvslinVP of Marketing