National Town Hall Meeting on Demand Response and Smart Grid

1. National Town Hall Meeting on Demand Response and Smart Grid 9 Mark Gaines Director Customer Programs SDG&E and SoCalGas

2. Application Summary Smart Meters to be installed 1.2 million electric meters 900,000 gas meters Cost/Benefits Cost = $576 million Benefits = $724 million 55% from operational improvements 45% from demand response benefits Demand Response Proposal C/I customers > 20 kW – CPP default rate C/I customers < 20 kW – Peak Time Rebate (PTR) 57,000 Thermostats for small C/I Res customers - PTR California Southern California Gas Company San Diego Gas & Electric SDG&E’s Smart Meter Program

3. SDG&E’s Smart Meter Program Implementation Status • Meter installation: • 40,000 installed to date • 200,000 expected by year end • Full deployment by 5/1/2011 • DR Rates: • 1,750 C/I customers > 200 kW • Defaulted to CPP in May 2008 • 75% chose to stay on CPP • 20,000 C/I customers > 20 kW • Will be defaulted to CPP in 2011 • 1.2 million PTR customers will be eligible in 2011 • $.75/kWh rebate w/o automated controls • $1.25/kWh rebate w automated controls World Famous Sea World

4. SDG&E Smart Meter Program World Famous San Diego Wild Animal Park Challenges: • Rate Challenges: • Communicating CPP for > 200 kW • 1 year bill protection between CPP and TOU • On-line rate comparison available • Averaged 1 hour for Account Executives to explain rate to customers • CPP for > 20 kW C/I customers (20,000 customers w/o Account Executives) • Rate design will be simpler (lower CPP rate) • 12 month data available before CPP rate offered • 1 year bill protection between CPP and TOU

5. SDG&E Smart Meter Program Challenges: • IT System Challenges: • Highly complex “spider web” of new systems and system integrations • Data collection • Billing • Data reporting • Rate comparison • Bill presentation • Some implementation delayed • Additional delays possible Gaslamp District

6. f i g u r a t i o n N 1 5 : M e t e r , C o n AMI I I 1 6 : M e t e r I n s t a l l S e r v i c e O r d e r s AMI Installation MDMA g n i l i l Head - End Vendor B I 1 7 : B u l k M e t e r I n s t a l l U p d a t e r o f s d a MV 90 ( Itron ) e R r e t e IDS M Scheduler I 1 9 : 3 P a r t y S a m p l e M e t e r T e s t D a t a Customer Information System ( CISCO ) r d M e t e AMI Technology Vendor r R M I 2 0 : M a n u f a c e t u r e r M e t e r T e s t D a t a e a s t d e e t r s u o R R & e A S N a r e d t g s e n M l i I l i n B t : a 0 e r t r 5 o a I f v D s a l d r a e D e m ODS a R t o a t a r e s t t u e a C M D Trouble : : 7 g 1 4 n 5 i I l I l i B Call & ? : a Hand - Held n 7 I 4 o I I 2 i N t Outage 1 X : a 6 I F a l M 2 i e l e I : t e 2 r r l Meter Reads a n : R 5 d e e Info a t ? d D O o s S A s W t 4 e s i X - o e u t r I s I r n : R t v s k i n Mainframe Messaging a 2 MRMS e a c s I Portal M e e t O : t C r g a r r U l a d r l e u e P : e e o Scheduler d v d u D i r t p 9 g s n i e t p s i N ( AMI Customer M f a 4 d c I o e R t M t U n t I e t e 7 a o l e i r o I f a a t : t / : i I i c 8 Online Presentment m 5 e p o C 4 a n 4 S t M I s s a e t : , h ? I i : y i 1 o r a I p I 42 : Meter Read Request I & Bill Analysis ) s n M n 8 3 I 1 O n v : I I I c : N e f 0 u 9 6 c I f b h N t I : R 2 : : I 43 : Meter Routes a V I i - r N e l l N 1 a l i : o r e C Mobile N r M C : 1 R 3 g s t n y d M 4 M m I r : e o e 1 u I i M : c f I 44 : Meter Reads & Interval Data a 1 t : e e z n e I a a o t 5 l o : e t 3 l M e t a t e e D : d s e r r e M t e e : Workforce Mgmt Meter Inventory t e i s C R u r M m e r Demand R I 45 : Meter Read Request R c e O t o D E M r e m f o C t e I e e o e E Outage Filter R S f a n n e E s t I r n - 3 e n S o p i Management a t m e r d e e 3 t l v t p Response ( n a 9 t C t n SORT ( MDSI ) i A , y I 46 : Meter Reads & Interval Data r d i r t e a 9 e a a t o n e m a o g t r O y s s e : t c u d n n B : R r , c r e s c y n e s u d ( SAP ) t s i t a s c l s d C l CRM ( SAP ) c o C t / f e n s e R l f n T P , e i t e R & t u D W u o R c / u n o s r t e h r r i R s e r e D m R e a o s e f s Geo Facility E b g t e t s C i f R r S e o s v e f o i s e D c m a B o s t t l r n o e R u q p & k t a t e o o r m i a c w e t e l l i a N e m u m e M n I t q l o i A Mgmt System GFMS e e P n d n ? n o a : i t l n n I 3 1 r s e s e s H n e u s s n u t o y e , t g n n & r s / u W i ) e , s i r r s s g t p s n e s t c ( Enghouse ) R t a B s A e s t c m E Q E o i I R c E e c e I o t l e Interface ( MMI ) t o n u n n I I o l i p N n N n e c q r n i f b i 1 AMI 1 e t s t a f e r n t 9 y n R e b i i I 18 : Meter i l 5 o n l 2 1 D r n r o e o o l r : y g i : g i a e g : : N t l s R d a g e n n l t u r s m y O M r i m D e e y C c Receipt Data C r R s s o d s t f g Data Collection / A s t a l n R U u e u i e e e I / i U a a t F r t c v i s s s I e l q t 4 n e i R 1 - t : s d Outage l o t E u t t t r k i u R a O e r r a e e o o o O v y a n i v X d d e w R t i , g l d , e g n b t Head - end t q e e m m : u i s e o y i Work e e F 6 s N e t , l n t - AMI Installation e e l M I e N D s M k b t t e s r r r r s I A o S X t R e w a : Orders t 3 u t s e P System ( s ) 2 i n I N g Vendor I , 4 I 1 e t M a : c . M M A e e t t e r e : r R 4 & e 2 a N e d I t s w , o r k D a t a & A l a r I 2 5 : O u t a g e V e r i f i c a t i o n R e q u e s t m s Outage , e t c . ) V e r i f i c a t i o n R e s p o n s e I 2 6 : O u t a g e Management Meter Data Management System ( MDMS ) l o I 27 : Restoration Verification Request r t s n System ( OMS ) t l I 28 : Restoration Verification Response o P u F c s R m e R e t r s y D m S d e n t s : n o y i X X t a S a a m g 0 X ) r n i o e l 4 s f b n n a I I o n I p M E s I I I e s N A N d & s 3 R 3 n 1 e d a d 0 & e e 2 : d s a 3 m I S n a I t W : d e a : 3 : e s e e D 3 w 0 D g a a / 4 d n 1 t R V V i I R i e R h 0 l N o D : a a e s : a i P a i r R r ( n t t L r r r e D r e g a e t Meter t t r i o A e a S a t A k r o t t i u u e D i a R t e b w s D e a M t n a a l D e M - a u r t o l I M d l Reads & l v t s b M a e r r : a i t : t M k u a M e : o 2 v e a 8 i 2 t n n l r 1 e e Interval Demand 3 1 t M I e I t N t N t e e I n I : r r 7 I Data ? 3 Response I Weather Data Service Control ( Itron ) r Geo Facility t e e M l a Applications t u Network r i V : LSGIS 3 MDMA 1 ATDI N X I Mgmt System GFMS Engineering Data ( EDW ) Meter t n o i P mapping kWickview r ( Enghouse ) e t e M Reads & l a u Meter Read t r i V : 4 1 N I Interval d a o L Data Mart Data Customer Data ( CDW ) X I 29 : AMI Network AMI Data Warehouse Installation Details Technology IN 7 : AMI Vendor GFMSmdt Network Asset Existing SDG & E Systems LEGEND Meter Data Management System Existing Integration or Planned outside of the AMI Project Planning and Engineering System Meter Asset Management Wave 1 – Meter Installation Support Application Development and Integration ( March , 2007 – July , 2008 ) CIS System or Integration AMI Solution Architecture – Phase 0 System Meter / DR Data Comm . Wave 2 – Billing & Remaining AMI Functionality Application Development and Integration ( January , 2008 Removed at Full AMI { estimate } – January , 2009 ) Deployment Mobile Workforce Management X Outage Management Updated : 12 / 27 / 06 Interface taken off the scope as the result of Phase 0 analysis . Version : Draft 0 . 11 GIS System Future Considerations ? Customer Portals Pending interface , needs verification from business process workshop and final business case decisions . Data Warehouse SDG&E Smart Meter Program Challenges: • IT System Challenges:

7. SDG&E Smart Meter Program Lessons learned to date: • Need 1 person to develop optimal rate design • Objective: Send proper price signals • Need 2 people to develop optimal marketing campaign • Objective: Educate/communicate with res and non-res customers • Need 1000+ people to develop IT systems • Objective: Just make it work! World Famous Torrey Pines Golf Course

8. Questions?