Duke Energy Indiana: Overview of Renewable Energy, Distributed Generation, Energy Storage and Electric Vehicles

1. Duke Energy Indiana:Overview of Renewable Energy, Distributed Generation, Energy Storage and Electric Vehicles July 23, 2013

2. Agenda Duke Energy offerings: • Net metering • Qualifying Facility Tariff • GoGreen Power • Emerging Technology Department • Electric Vehicle • Energy Storage • Commercial Renewable Energy

3. 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

4. Net Metering and Interconnection

5. 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

6. 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

7. 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

8. Emerging Technology Office Technology Categories Supportive Transformational Clean Combustion Water Energy Storage Renewables Electric Vehicles Future Adv. Nuclear Smart Grid Emerging Technology Strategic Objectives External engagement and leadership Technology assessment and development process+ Identify and assess emerging technologies to evaluate opportunities for and threats to Duke Energy’s business model Facilitate technology adoption across impacted business units Shape technical and market development for new technologies • Establish Duke Energy’s public reputation as a leader in understanding, developing and applying technology in the utility industry Identify Opportunities 8

9. Project Plug-IN • Partially funded by DOE • Goal: Deploy EV and Smart Grid related infrastructure • Numerous partners involved throughout the State of Indiana Vehicle Data EVSE Data 9

10. 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

11. Energy Storage Through pilots we understand… …to develop Capital Costs O & M Costs Installation Hurdles Operational Issues Value Streams Business models Regulatory models Understand benefits 11

12. Clay Terrace Energy Storage System Carmel, IN • 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 System attributes Battery + Toshiba microEMS 75 kW / 42 kWh Toshiba Li-Titinate Applications being tested 10 kW solar roof-top 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 Level 2 PEV charging station J1772 up to 3.3 kW charging PEV DC Fast charging station 50 kW Eaton unit

13. Notrees Wind Farm Project Notrees, TX • 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 Applications being tested: • Ancillary Services • Energy Shifting • Avoidance of Wind Curtailment

14. McAlpine Energy Storage System McAlpine Creek Retail Substation, Charlotte, NC • 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 Inverter/Controls Integrated within one container BYD battery 200 kW/500 kWh LiFePO4 System attributes Applications being tested • Installation Sep - Oct 2012, In service 4Q 2012 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 • 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

15. Community Scale Second Life Battery Li-Ion Chevy Volt batteries 24 kW / 30 kWh University of Florida • 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 Battery container Above ground Inverter/Controls 24 kVA capacity System attributes Applications being tested • Planned installation in 2-3Q 2013 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 • Will demonstrate a potential “second-life” battery application. • Increases residual value of PEV’s and may provide low cost source of utility stationary storage.

16. Duke Energy Commercial Renewables Portfolio – Solar (1) Unconsolidated entities

17. Duke Energy Commercial Renewables Portfolio – Wind (1) Unconsolidated entities