Duke Energy Indiana:Overview of Renewable Energy, Distributed Generation, Energy Storage and Electric VehiclesJuly 23, 2013

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Agenda

Duke Energy offerings:

Net metering Qualifying Facility Tariff GoGreen Power Emerging Technology Department

Electric Vehicle Energy Storage

Commercial Renewable Energy

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Net Metering* by the Numbers– Duke Energy Indiana

207 current customers: 18 schools 157 residential 32 commercial

Of these, 51 were new in 2012 Current composition:

994 kW solar 1305 kW wind Total = 2299 kW

Of the 207 customers: 176 solar 31 wind

* Rider No. 57

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Net Metering and Interconnection

Net Metering Eligibility Interconnection

•All customer classes•Renewable energy sources•Not more than 1 MW•Located on customer’s premises•Connected in parallel with the company’s transmission or distribution system•Used to offset all or part of a customer’s requirements•Rolling credits for excess generation at retail rate

•Application (Rider No. 80)•Three levels of application (size-based)•Electrical diagram•UL certification of equipment•Site drawing•Insurance•Inspection

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Qualifying Facility Tariff (Rider No. 50)

Available to any customer 2 options:

Energy only Capacity and Energy

Payment is based on proscribed IURC avoided cost methodology Tariff is updated and approved by IURC annually Current tariff:

$.028451/kWh $7.05/kW-month (dependent on capacity factor during on peak periods)

Under a separate tariff (No. 51- Parallel Operation of Customer Owned Generation), Duke Energy Indiana has the option to purchase generator output at a negotiated rate, subject to IURC approval

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GoGreen Power Tariff (Rider No. 56)

Gives customers the ability to support the development of green power sources throughout the state and the region

Customers can purchase a minimum of two 100-kilowatt-hour (kWh) blocks of green power for $2 a month

Price per block has over life of program been reduced from $2.50 to $2.00 and then to $1.00. Agreed with OUCC to further reduce to $0.90 in early 2014 if GoGreen revenues are sufficient.

A 200 kWh commitment equates to about 20 percent of an average residential customer’s electricity use helps to avoid 4,800 pounds of carbon dioxide emissions each year

As of June 30, 2013: 1,359 customers 812,800 kWh per month

GoGreen not subsidized by non-participating customers

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In Development - NC Green Tariff (Google)

Responsive to customers’ desire for a “green power rate” (without having to actually own the assets)

July commitment to file tariff application Filing for Duke Energy Carolinas – NC characterized as a pilot offering Structural elements of program to be included in filing

Program parameters under development: Customers on select rate schedules can participate New and existing load eligible Per customer and aggregate program limits Structure gives consideration to:

Customer alternatives for Green Energy How best to position this initial filing to enable expansion to additional jurisdictions and additional

customer classes Sourcing from Duke Energy-owned resources and the market

Emerging Technology Office

Future Adv. Nuclear

Technology Categories

Emerging Technology Strategic Objectives

RenewablesEnergy Storage

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WaterSmart GridClean CombustionElectric Vehicles

Transformational Supportive

Identify and assess emerging technologies to evaluate

opportunities for and threats to Duke Energy’s business model

Shape technical and market development for new

technologies

Facilitate technology adoption across impacted business units

Technology assessment and development process + External engagement and leadership Establish Duke Energy’s public reputation as a leader in understanding, developing

and applying technology in the utility industry

Extend Current Regulated Business model

Introduce Regulated Growth opportunities

Introduce Commercial Growth Opportunities

Identify Opportunities

Project Plug-IN

Partially funded by DOE Goal: Deploy EV and Smart Grid related infrastructure Numerous partners involved throughout the State of Indiana

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Vehicle Data

EVSE Data

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Electric Vehicle Charging Infrastructure

Duke Energy has installed: 85 residential units 10 units at state parks 10 units at Plainfield campus 39 commercial units Total: 144

Energy Storage

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Energy Storage BenefitsGeneration

Frequency RegulationRenewable Smoothing

Energy ShiftingSpinning and Non-spinning

ReservesLimit Peaker Plant Builds

T & D

Defer System UpgradesImprove Reliability

Renewable SmoothingImprove Power Quality

(Volt / VAR management)

End User

Provide Back Up PowerUtilize lower retail rates

Capital CostsO & M CostsInstallation HurdlesOperational IssuesValue Streams

Through pilots we understand… …to develop

Business modelsRegulatory modelsUnderstand benefits

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Clay Terrace Energy Storage SystemCarmel, IN

System attributesApplications being tested

Major system components:• 75 kW / 42 kWh system capacity• Toshiba lithium titanate battery• 9.8 kW roof-mounted solar• Toshiba microEMS optimization• Eaton 50 kW, Siemens 3.3 kW PEV charging stations Interconnection:• Behind a commercial meter (customer sited)• Interconnected at 208V, 3-phase transformer• Located at Clay Terrace mall in Indianapolis

1 – active management of combined solar, storage and PEV charging (Micro-grid application) a) testing energy management system and sizing of a behind-the-meter system

2 – Energy shifting

3- Renewable Smoothing

4 – customer-sited installation aspects

PEV DC Fast charging station50 kW Eaton unit

10 kW solar roof-topBattery + Toshiba microEMS75 kW / 42 kWh Toshiba Li-Titinate

Level 2 PEV charging stationJ1772 up to 3.3 kW charging

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Notrees Wind Farm Project

Notrees, TX

Applications being tested:

Major system components:• 36 MW / 24 MWh• Xtreme Power Advanced Lead Acid Technology• Co-located at site of 156 MW Wind Farm in Notrees, Texas• Began commercial operation in December 2012• 50:50 Cost share with DOE

• Ancillary Services• Energy Shifting• Avoidance of Wind Curtailment

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McAlpine Energy Storage SystemMcAlpine Creek Retail Substation, Charlotte, NC

System attributes Applications being tested

Major system components:• 200 kW / 500 kWh system capacity• BYD battery and inverter system

• All components integrated within on container• Lithium-iron-phosphate battery (BYD) Interconnection:• Located on a 24 kV distribution circuit• Interconnected immediately outside of the substation• Adjacent to 50 kW solar facility on McAlpine test circuit

1 – consolidated inverter/battery

2 – energy shifting applications a) dispatched based on schedule, local load peaks, etc

3 – integration with solar in a microgrid a) will be configured with switches, solar, and load to create an autonomous microgrid that disconnects from the circuit

4 – solar output smoothing/firming

• Installation Sep - Oct 2012, In service 4Q 2012

BYD battery200 kW/500 kWh LiFePO4

Inverter/ControlsIntegrated within one container

• Interconnected next to a 50 kW solar facility in a planned islandable micro-grid scheme that will use the battery for grid frequency/voltage regulation.

x

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Community Scale Second Life BatteryUniversity of Florida

System attributes Applications being tested

Major system components:• 24 kW / 30 kWh system capacity• Li-ion batteries designed for use in a Chevy Volt• 24 kVA inverter system – ABB Interconnection:• Located on a 120V/240V split single phase service• At least one customer will be connected via the CES unit• Specific customer TBD

1 – use of recycled electric vehicle batteries a) represents a potential low cost source of utility storage b) supports PEV economics

2 – community-scale storage applications a) energy shifting b) islanding/back-up power c) automatic voltage control

• Planned installation in 2-3Q 2013

Inverter/Controls24 kVA capacity

• Will demonstrate a potential “second-life” battery application.

• Increases residual value of PEV’s and may provide low cost source of utility stationary storage.

Battery containerAbove ground

Li-Ion Chevy Volt batteries24 kW / 30 kWh

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Duke Energy Commercial Renewables Portfolio – Solar

Solar Projects State % Owned Installed Capacity (MW)

Blue Wing TX 100% 14

Solar Star I NC 100% 1

Taylorsville NC 100% 1

Bagdad AZ 100% 15

Solar Star II NC 100% 5

RP Orlando FL 100% 5

Re Ajo AZ 100% 4

Martin’s Creek NC 100% 1

Murphy’s Farm Power NC 100% 1

CS Murphy Point NC 100% 1

NC Renewable Properties NC 100% 1

Washington White Post NC 100% 12

Black Mountain AZ 100% 9

Gato Montes AZ 100% 5

Indu Solar Holdings (1) various 50% 7

Total net-owned Installed Capacity 82 MW

(1) Unconsolidated entities

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Duke Energy Commercial Renewables Portfolio – Wind

Wind Projects State % Owned Installed Capacity (MW)

Sweetwater 1,2,3 (1) TX 50% 133

Sweetwater 4,5 (1) TX 47% 151

Ocotillo TX 100% 59

Happy Jack WY 100% 29

North Allegheny PA 100% 70

Notrees 1A TX 100% 91

NoTrees 1B/1C TX 100% 62

Silver Sage WY 100% 42

Campbell Hill / Three Buttes WY 100% 99

Kit Carson / The Burlington CO 100% 51

Shirley WI 100% 20

Top of the World WY 100% 200

Cimarron / DS Cornerstone (1) KS 50% 66

Laurel Hill PA 100% 69

Ironwood / DS Cornerstone (1) KS 50% 84

Los Vientos I TX 100% 200

Los Vientos II TX 100% 202

Total net-owned Installed Capacity 1,628 MW(1) Unconsolidated entities

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