NASEOCharleston, SC

ET Industry UpdateMay 2, 2017

2

EV Market is Resilient and Growing

• Consumer interest increasing with greater vehicle range• Battery advancements improving EV economics• Automakers making significant investments in EVs• New vehicle models a key driver of growth• EV purchases resilient in period of low gas prices

February 16, 2017 AEP-Southern Dialogue

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Technology Cost Reduction

SOURCE: Department of Energy, Revolution…Now - The Future Arrives for Five Clean Energy Technologies – 2015 Update

-71%

$0

$200

$400

$600

$800

$1,000

$1,200

2009 2010 2011 2012 2013 2014

Mod

eled

Li-i

on b

atte

ry c

ost (

$/kW

h)

U.S. EV Battery Costs

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Improving Cost, Capability

SOURCE: General Motors

2014 SparkMSRP: $27,495Range: 82 miles

2017 Bolt EVMSRP: $37,495Range: 238 miles

2011 VoltMSRP: $41,000Range: 380 mi. total (35 mi. electric)

2017 VoltMSRP: $33,220Range: 420 mi. total (53 mi. electric)

BEV

PHEV

5

Sales Progress

0

5K

10K

15K

20K

25K

2011 2012 2013 2014 2015 2016 2017

U.S. Monthly EV Sales

OtherVolvoHondaHyundai-KiaDaimlerVWFCABMWToyotaFordTeslaNissanGM

SOURCE: Sales data from InsideEVs.com and HybridCars.com

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Sales Progress

SOURCE: International Council on Clean Transportation

Global Annual EV Sales

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43 New EVs Due Out Between 2016-2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Minivan / wagonSUV / CrossoverSports car / coupeLuxury sedanMid-range sedanCity carHatchback

Source:EPRI

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Outlook: Policy

Watch list:• ZEV Mandate • State activity to drive adoption

• Federal Tax Credit • Fuel economy standards

SOURCE: Union of Concerned Scientists SOURCE: Auto Alliance

EV Model Availability by State

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Charging Infrastructure Overview

• Over 80% of charging is likely to occur at home• Workplace and public used much less frequently

• Extended daily travel for BEVs• Increases electric mile share for PHEVs• Substitute when home charging is unavailable

• Business case for public charging is complex• Public quick charging needed for long distance BEV travel

February 16, 2017 AEP-Southern Dialogue

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Outlook: Charging Infrastructure

• Trend: higher power charging• Targeted to needs:

• Home/workplace• Communities• Corridors

• New players and partnerships: • States• Automakers• Electrify America• Electric companies • EV charging companies • All of this is needed, and more

50150

320

Local Highway Inter-city

DC Fast Charge Power Levels (kW)

SOURCE: EVgo

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ZEV Investment Commitment (Appendix C)

Environmental Mitigation Trust (Appendix D)

Amount $2 billion $2.7 billion

Allocation 40% ($800 million) for CA60% ($1.2 billion) for rest of U.S.

Allocated to states according to subject vehicle population

Timing 10 years (four 30-month cycles) Min. 3 years, max 15 years

Entity Spent by VW, subject to approval of EPA and CARB

Administered by a Trustee and lead agencies within each state

QualifiedActivities

Investments§ Infrastructure to support on-road

vehicles (ZEVs)§ Education and outreach§ Other activities that increase

access

Actions§ On- and off-road transportation

applications (retrofit or replace)§ ZEV infrastructure for passenger

cars (up to 15%)§ Diesel Emissions Reduction Act

(DERA) projects

VW Settlement - Summary

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Electric Transportation Strategy

Alabama, Georgia, Gulf, Mississippi, SCS

Growth Leadership Research & Development

Readiness & Education

• PEV Rates & Rider Options

• Programs & Incentives

• Market & Customer Analytics

• Infrastructure

• Residential

• Workplace

• Community

• Education & Outreach

• Internal

• External

• Partnerships & Collaboratives

• EEI

• EPRI

• EDTA/GED

• Clean Cities

• NGOs

• OEMs

• EVSPs

• SO Fleet

• Charging Technology

• Network Operators

• Vehicle Smart Charging

• Wireless

• DC Fast Charging

• Vehicle Technology

• Driveline Efficiency

• VIA truck demonstration

• Alternative Technologies

• Fuel Cell

• CNG

Southern Company

• Commercial & Industrial

• Forklifts

• Seaports

• Mining

• Airports

• Overland Conveying

• Railways

• Med/Heavy trucks

• Refrigerated trucks

• Delivery trucks

• Mass transit

• Residential

• Plug in Electric Vehicles

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• Port of Savannah• 23 Ship to Shore Cranes• Displaced the purchase of more than

4.5M gallons of diesel fuel per year• 41.4 MW

• Port of Mobile• 10 Ship to Shore Cranes• Displaced the purchase of 2M gallons

of diesel fuel per year• 18 MW

13

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What Have We Done?August2016 Georgia Power AlabamaPower GulfPower Mississippi

PowerTOTALSO

PEVsRegisteredinStates 24,4971.4%ofstatevehiclemarket(2015)NewEVsalesdown81%fromH12015toH12016

1,1190.1%ofstatevehiclemarket(2015)NewEVsalesup71%fromH12015toH12016

17,4080.3%ofstatevehiclemarket(2015)NewEVsalesup59%fromH12015toH12016

2710.1%ofstatevehiclemarket(2015)Newsalesup185%fromH12015toH12016

43,295

PEVsRegisteredinSOTerritory

12,895 563 305 39 13,802

CustomersonPEVRate 2,962 271 75 N/A 3,308

ChargersatSOFacilities 122 83 29 35 269

Public Chargers 100 N/A N/A N/A 100Fleet, DemoPEVs 58 39 15 10 122

Employee EVOwners 300 20 10 2 332

RebatePrograms $500business$250residential$100builder

$500business$750residential$1,000vehicle$250dealer