Vendor Briefing May 26, 2006

1. AMI Overview & Communications TCM Vendor Briefing May 26, 2006

2. Intelligently Connecting Edison to our Customers SCE seeks to leverage a 2-way communications infrastructure with 5 million intelligent metering devices on our distribution network to create lasting value for our customers and our operations • Enable Energy Smart Customers • Integrated information from utility • Payment options (e.g., pre-payment) • Outage & service condition information • Support rate option innovations • Manage Distributed Resources • Economic dispatch of load resources • Dispatch of load for grid management • Intelligent net metering • Management of distributed energy resources • Operational Efficiencies • Field communication links to distribution • Revenue cycle improvements • Situational data in near real-time • Wholesale - retail markets integration • Built with the future in mind • Upgradeable WAN/HAN communications • Leverage open architecture principles in system design • Future customer service offerings

3. SCE Advanced Metering Infrastructure • Address fundamental cost drivers from last business case • Add functionality to system: • Maximize the potential value from load control for both grid reliability and demand response • Increase field automation and efficiency • Identify additional uses for system based on tangible customer and SCE business value AMI Program is employing a multi-phased approach to development and deployment of a next generation advanced metering infrastructure over a 7 ½ year timeframe.

4. Billing & Billing & Customer Customer Delivery Delivery Energy Energy Field Services Field Services Installation & Installation & Customer Customer Interface Interface Procurement Procurement / System / System Maintenance Maintenance Service Service Recovery Recovery Multiple clients read Multiple clients read Customer reduces Customer reduces Distribution Distribution Real Real - - time time AMI system AMI system Utility installs, Utility installs, demand and energy demand and energy demand in demand in operator curtails operator curtails operations operations recovers after recovers after provision and provision and data automatically data automatically response to response to customer load customer load curtails (or limits) curtails (or limits) power outage, power outage, configure the AMI configure the AMI from customer from customer pricing event pricing event for grid for grid load for load for communications communications system system premises premises management management economic economic or equipment or equipment dispatch (ES&M) dispatch (ES&M) failure failure Utility remotely limits Utility remotely limits Customer reads Customer reads Distribution Distribution Utility procures Utility procures Utility maintains Utility maintains or connects/ or connects/ recent energy recent energy operators operators energy and energy and the AMI system the AMI system - - disconnects disconnects usage and cost at usage and cost at optimize network optimize network settles wholesale settles wholesale over its entire life over its entire life - - customer customer site site based on data based on data transactions transactions cycle cycle collected by the collected by the using data from using data from AMI system AMI system the AMI system the AMI system Utility detects Utility detects Customer uses Customer uses Customer Customer Utility upgrades Utility upgrades tampering or theft at tampering or theft at pre pre - - payment payment provides provides AMI system to AMI system to - - - - customer site customer site services services distributed distributed address future address future generation generation requirements requirements Multiple clients Multiple clients Distribution Distribution Meter reading for use the AMI use the AMI operator locates operator locates - - - - - - gas & water utilities system to read system to read outage using outage using data from devices data from devices AMI data and AMI data and at customer site at customer site restores service restores service Business Use Cases (Scenarios) SCE Brainstorming

5. SCE AMI Technology Assessment Approach Goal: Competitive commercial products available from at least three meter and three communication vendors that meet SCE’s minimum requirements for performance and price by the end of Phase I

6. Technology Capability Maturity (TCM) Vendors’ Road Map & State of Technological Maturity SCE’s Business, System & Architecture Requirements Value to SCE • Credit & collections service limiting • Contract demand • Planned outage safety • Customer moves • Prepayment • Emergency / economic curtailment

7. Programmable Disconnect Switch (illustrative example) • Customer moves • Emergency curtailment (supply constraints) • Economic curtailment (high price) • Staged restoration during interruption anomaly • Prepayment services • Credit & collection service limiting • Customer side load sensing • Possible theft detection following switch opening • Possible customer owned generation following switch opening • Contract demand • Planned outage safety mechanism • Proactively activate switch in affected area to ensure no load side voltage Target AMI Phase I capability set Commercially available & deployed (>1,000 units), current limiting, voltage sensing, 200 Amp, integrated device Targeted Maturity Level 5 4 3 2 1

8. Conceptual Architecture Refinement & Level Setting AMI USE CASES, REQUIREMENTS, COST/BENFITS & VENDOR ASSESSMENTS Initial distilled set of prioritized requirements Vendor Assessments RFI responses and interview results Rank vendors on capability hierarchies Map requirements to components Refine conceptual models to match vendor capabilities Screen vendors AMI Roadmap Short-list of vendors coupled with a clear conceptual AMI architecture 8

9. Technology Capability Maturity Communications Scales

10. Communication – Architecture Flexibility Value to SCE • Prepayment • Configurable Intervals & Tariffs • Non-usage messaging to customer • Security management • Contract meter reading • Upgrades & flexibility in the future

11. Communications - Availability Value to SCE • Basic Automated Meter Reads • Remote troubleshooting • Security management • Predictive Maintenance • Remote maintenance • Upgrades & flexibility in the future

12. Communications – HAN (Home-Area Network) Value to SCE • Demand Response • Price Response • Load Control for Grid reliability • Economic dispatch • Contract meter reading • Message receipt validation (DR) • Prepayment

13. Communications – Interoperability – Meters to Comm Value to SCE • Lower total cost of ownership • Contract meter reading • Enable third parties to use AMI • AMI performance optimization • Risk mitigation against technology obsolescence

14. Communications - Reliability Value to SCE • Maintenance improvements • Predictive maintenance • Longer service life improves total cost of ownership

15. Communications - Scalability Value to SCE • Flexibility in tariff design • Contract meter reading • Measurement interval flexibility • Power Quality monitoring • AMI extensibility in the future • Enable third parties to use AMI

16. Communications - Security Value to SCE • Security management • Tamper & theft detection • Remote Disconnect • Demand Response • Distribution automation • All other command & control

17. Communications – Serviceability/ Maintainability Value to SCE • Self-tests & remote troubleshooting • Remote & Predictive Maintenance • High QoS • Outage detection • Optimized network installation • Reliable automated meter reading

18. Communications – Throughput (Daily) Value to SCE • Basic meter reading • Contract meter reading • Measurement interval flexibility • Power Quality monitoring • AMI extensibility in the future • Flexibility in tariff design

19. Communications –Throughput (On-Demand) Value to SCE • Basic meter reading • Contract meter reading • Measurement interval flexibility • Power Quality monitoring • AMI extensibility in the future • More efficient customer service

20. Communications – WAN-NAN Value to SCE • Basic meter reading • Two-way communications with each premise • High QoS • AMI flexibility in the future • Improved total cost of ownership