City of Charlottesville – Decarbonization Study Dr. Hua Fang Managing Director – Global Advisory • Introduction to Black & Veatch • Decarbonization Study – Goals and Objectives Today’s Discussion • Study Scope of Work and Timeline • Questions/Answers 2 Black & Veatch Today • 9,200+ professionals in 120+ offices #16 #2 • Headquarters in Overland Park, Kansas, USA Top 500 Power #6 • Employee Stock Ownership Plan structure Design Firms Telecom • Projects in 100+ countries on six continents • $4.0 billion in 2022 revenue #8 Water • Sectors #6 • Commercial; Governments; Industrial & Manufacturing; Solar Mining; Gas, Fuels, & Chemicals; Power; Power Telecommunications; Transportation; Water #4 #8 Hydro Wind Plants Power Mission: Why we exist Building a world of difference through innovation in sustainable infrastructure #11 Vision: What future we aspire to achieve We work relentlessly to solve humanity’s critical infrastructure challenges Sewer & #8 Values: What we believe and how we behave Waste Data Safety | Accountability | Collaboration | Entrepreneurship | Integrity | Centers Ownership | Respect Current Engineering News-Record rankings. 3 Strategic Advisory Key Business Areas and Primary Solution Offerings Strategy & Planning Rates & Regulatory Transaction Services • Decarbonization Strategic Planning • Financial modeling and rate design • Independent Engineering / • Integrated Resource Planning for public power entities Technical Due Diligence • Clean Power Procurement • FERC and State Regulatory Support • Restructuring Advisory Support • Transmission Strategy and Planning • Performance-Based and • Construction and Operations Infrastructure Ratemaking Monitoring • LNG and Other Fuels Strategic Planning • Alternative Regulation Services • Project Development and • Financial Planning, Cost of Service, Valuations • Hydrogen Fuels Strategic Planning and Bond Feasibility Studies • Electricity and Fuel Price • Transportation Electrification Forecasting Strategic Planning • Stormwater Utility Development and Implementation Support • Grid Mod, DER Integration Strategic Planning • Business Operations Reviews • Program Management (PMO) 4 Black & Veatch Strategy & Planning – Decarbonization Study 5 Strategy & Planning Hydrogen Hub Prefeasibility Study Hydrogen Hub Developer Client Need • A prefeasibility assessment and high-level cost estimate for a hydrogen hub capable of producing a large amount of hydrogen from electrolysis using renewable energy resources and guidance on energy requirements and energy production profile assessment to achieve a sustainable capacity factor of the hydrogen production facility. Value Delivered • A successfully designed hydrogen hub that optimizes energy sources, hydrogen production, storage, and transportation technologies. 66 Hydrogen Blending Strategy and Assessment Mid-West Gas Utility Client Need • Achieving a hydrogen blending goal as part of its decarbonization plan and needed guidance on engineering, operational and other system requirements for blending hydrogen into its system and implementation strategies to reach the blending objective. Value Delivered • Assisted Client in identifying the most appropriate strategies to achieve blending goals. • Helped Client reach the second phase towards successful blending operation. Black & Veatch Fleet Electrification Strategy Entergy Client Need • Prepare for and evaluate the business opportunities associated with fleet electrification within their service territory and to understand their role in building and providing infrastructure to those fleets. Value Delivered • Provided a robust business case and strategy for entering the fleet electrification market that best positioned Entergy for immediate and long-term success. Included customer segmentation, market assessment, risk assessment, utility revenue requirements, and competitive analysis to guide their decisions around establishing the business. Black & Veatch • Introduction to Black & Veatch • Decarbonization Study –Goals and Objectives Today’s Discussion • Scope of Work and Timeline • Questions/Answers 9 Decarbonization Study – Goals and Objectives City of Charlottesville Goal: • A 45% reduction in community-wide greenhouse gas emissions by 2030 based on the 2011 inventory year • Carbon neutrality by 2050 Study Objective: • Identify and evaluate potential solutions for the gas utility to align with the community’s greenhouse gas reduction goals 10 • Introduction to Black & Veatch • Decarbonization Study –Goals and Objectives Today’s Discussion • Scope of Work and Timeline • Questions/Answers 11 Project Scope and Timeline • Legality • Support legal review of discontinuing natural gas distribution operations and new connections • Utility System Modeling and Evaluation of Different Pathways • Energy Efficiency • Electrification • Carbon Offsets • Renewable natural gas (RNG) • Certified natural gas • Hydrogen • Financial Impact on Customers (Equity Impact) • Evaluate Gas Utility Operations and Energy Efficiency Programs and propose recommendations • Timeline 1 year to complete Black & Veatch 12 Study Focus and Approach Energy Efficiency Emissions Electrification Impact Carbon Offsets Evaluation of Multiple Pathways Renewable Natural Gas (RNG) Equity Considerations/ Certified Natural Rate Payer Gas Impacts Hydrogen Black & Veatch 13 Questions? © Black & Veatch Corporation, 2023. All Rights Reserved. The Black & Veatch name and logo are registered trademarks of Black & Veatch Corporation. 14 Dr. Hua Fang +1 713-255-3355 Fangh@bv.com Project Director