Have you ever considered purchasing an electric vehicle? Want to find out what all the hype is about? Join us for an evening of information and updates on the rollout of electric vehicles in Michigan and the United States.

1. EVS and Smart Grid Integrationana M MedinadTE Energy EVS and Smart Grid Integrationana M MedinadTE Energy Michigan Energy Forum: Electric Vehicle 101 Ann Arbor Spark Joe Malcoun DTE Energy, Strategy and Corporate Development March 3, 2011

3. Electricity is a domestic resourceCO2 Emissions* (gm/mile) 350 Future 225 ICE Hybrid Nuclear & Renewables Coal Natural Gas Gasoline Electricity * 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 30-45 mpg, electric motor at 5 mi/kWh Source: Argonne National Labs GREET Model, DTE Team Analysis

4. 3 MYTH: If we all plug in electric vehicles at night we’ll bring the grid down ILLUSTRATIVE Impact of PEV on Typical Summer Load Profile (Ideal Case)* MW Generation Capacity 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

5. 4 MYTH: Won’t we have to build a whole lot of new power plants? Possible Market Sizing and Resulting Impact on Gasoline Demand* EVs do not create a generation problem, but they may present a distribution challenge. * 300 million cars, 14,000 miles/year average driving, 2.7 mi/kWh average efficiency, 75% electric operation Source: EPA – Transportation and Climate Division, DTE analyses

7. Voltage dips (dimming lights, damage to expensive electronics)

8. Service interruption

9. Transformer failure

10. Measures to address these issues

11. On-vehicle charging control (time/date control)

12. Utility notified at time of PEV purchase

13. SmartGrid technology

14. Battery health greatly increased by charging closer to time of use; supports early morning, off-peak chargingSummer Load3 PEV @ 1.4 kW3 PEV @ 3.3 kW Load shape for warm summer day with 3 PEVs in a neighborhood Peak Capacity Design Capacity` *8-12 smaller, older homes per 25 kVA circuit. Most homes without central AC.

15. DTE Energy is actively involved in helping bring PEVs to the market and enabling a seamless transition to our customers 6 Through DTE Energy Ventures, we are investing capital in promising startups in the advanced battery and electric drive industries Direct Investment We have been awarded a number of research and demonstration grants from the DOE and MPSC to study the interaction of PEVs and our grid Research and Demonstrations DTE is actively involved in both local and national partnerships with automakers, government agencies, battery companies and other utilities Partnerships and Collaboration Last October, the MPSC approved an experimental EV rate program, making Detroit Edison the first utility in the nation with a dual rate option Detroit Edison PV Rate Program

16. The MPSC PEV Pilot Grant has allowed us gain real-world experience with PEVs Conversions and Charging Stations Business of Plugging In AAPS PHEV School Bus

18. Use smart meters to collect vehicle charging data at specific locations

19. Demonstrate charging control techniques

21. Use pre-production PHEV Ford Escape vehicles to establish requirements and develop PHEV/smart grid integration

23. Community Energy Storage units will be used to demonstrate peak shaving, voltage support, renewables integration and ancillary services DTE Energy: Smart Grid Demonstration Project DOE-FOA-36

25. Two charging stations installed at MPSC offices (DTE and LBWL)

26. Drafted language to leverage existing legislation in support of customer incentives, rate structures, etc.

27. Developing educational materials and website

28. Communicate and educate key audiences

29. Ensure positive customer experience purchasing and using PEVs

30. Coordinate stakeholders, funds, policies and programs already available or proposed supporting PEV infrastructure

31. Evaluate rates, infrastructure issues, and possible code changes

32. Michigan Public Service Commission (MPSC)

33. Michigan Dept. of Energy, Labor & Economic Growth (DELEG)

34. Automotive manufacturers

35. Regulated and public utilities

36. Local Governments

37. Electric inspectors and contractors

39. EVSE Suppliers

40. Michigan Public Service Comm.

41. Local Universities

42. MI PEV Taskforce

43. DOE FreedomCar Partnership

44. Time-of-Use Rate:

45. $0.077 Off peak

46. $0.182 On peak*

47. $40/Month Flat Rate

48. $2,500 toward charging station installation

49. Separately metered

50. Website

51. PEV Hotline

52. Point-of-Sale displays

53. Workshops

54. Participate on local events

55. Learn customer preferences and behaviors

56. Understand charge profile and impact on distribution system

57. Streamline existing process to facilitate adoption

58. Understand technology and participate in standards development2009 2010 * On peak hours from 9:00 AM to 11:00 PM

59. What we’re probably not going to do… 11 Very small number of vehicles in the near future Economics don’t make sense for us or consumer Power density is increasing range of vehicles We already sell the electrons…

60. Who to contact for more information? For more information about our program: www.dteenergy.com/pev Or contact our PEV team at: 313-235-7700 (PEV Hotline) pev@dteenergy.com My details: Joe Malcoun 734-302-8218 malcounj@dteenergy.com

61. Plug-ins have a big fuel cost advantage 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

62. 14 Even When Utilizing Electricity from Coal, an Electric Vehicle Produces Less CO2 than a Traditional Gasoline Vehicle* Electric Car w/ Coal CO2 emissions 300 gm / mi Generation -65% Coal has ~1.3X carbon content of gasoline Line losses -4% Electric drive-5% Electric drive ~1.75X more efficient than I/C engine 100% Energy 26% Useful Energy CO2 emissions 400 gm / mi Gasoline Car Internal Combustion -75% Refining-10% 100% Energy 15% Useful Energy * 205 lb/mmBtu CO2 emissions rate (no carbon capture), 10,500 heat rate coal plant, Gasoline engine at 26 mpg, electric motor at 4 mi/kWh with 10% efficiency loss during charging, 25% Plug-in hybrid operation in gasoline mode Source: Argonne National Labs GREET Model, DTE Team Analysis

64. Average efficiency of an internal combustion engine is ~18%

65. Average efficiency of electric drive is ~85%100% 65% Electricity From Coal* 5% 5% 25% Line Losses Usable Energy Electric Drive Generation Energy input 55% 100% Electricity from Natural Gas* 5% 5% 35% Energy input Generation Line Losses Usable Energy Electric Drive * 10,500 heat rate coal plant, 7,500 heat rate natural gas plant, Gasoline engine at 26 mpg, electric motor at 5 mi/kWh Source: DTE Team Analysis