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

2. www.sce.com/ami © Copyright 2006, Southern California Edison 2 Intelligently Connecting Edison to our Customers 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 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

3. www.sce.com/ami © Copyright 2006, Southern California Edison 3 SCE Advanced Metering Infrastructure 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. 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

4. www.sce.com/ami © Copyright 2006, Southern California Edison 4 SCE Brainstorming SCE Brainstorming Business Use Cases (Scenarios) --- Distribution operator locates outage using AMI data and restores service Multiple clients use the AMI system to read data from devices at customer site Meter reading for gas & water utilities Utility upgrades AMI system to address future requirements -- Customer provides distributed generation Customer uses pre-payment services Utility detects tampering or theft at customer site Utility maintains the AMI system over its entire life- cycle - Utility procures energy and settles wholesale transactions using data from the AMI system Distribution operators optimize network based on data collected by the AMI system Customer reads recent energy usage and cost at site Utility remotely limits or connects/ disconnects customer Utility installs, provision and configure the AMI system AMI system recovers after power outage, communications or equipment failure Real-time operations curtails (or limits) load for economic dispatch (ES&M) Distribution operator curtails customer load for grid management Customer reduces demand in response to pricing event Multiple clients read demand and energy data automatically from customer premises Installation & Maintenance Field Services / System Recovery Energy Procurement DeliveryCustomer Interface Billing & Customer Service --- Distribution operator locates outage using AMI data and restores service Multiple clients use the AMI system to read data from devices at customer site Utility upgrades AMI system to address future requirements -- Customer provides distributed generation Customer uses pre-payment services Utility detects tampering or theft at customer site Utility maintains the AMI system over its entire life- cycle - Utility procures energy and settles wholesale transactions using data from the AMI system Distribution operators optimize network based on data collected by the AMI system Customer reads recent energy usage and cost at site Utility remotely limits or connects/ disconnects customer Utility installs, provision and configure the AMI system AMI system recovers after power outage, communications or equipment failure Real-time operations curtails (or limits) load for economic dispatch (ES&M) Distribution operator curtails customer load for grid management Customer reduces demand in response to pricing event Multiple clients read demand and energy data automatically from customer premises Installation & Maintenance Field Services / System Recovery Energy Procurement DeliveryCustomer Interface Billing & Customer Service

5. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 6 Technology Capability Maturity (TCM) Value to SCE  Customer moves  Prepayment  Emergency / economic curtailment  Credit & collections service limiting  Contract demand  Planned outage safety SCE’s Business, System & Architecture Requirements Vendors’ Road Map & State of Technological Maturity

7. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 8 Conceptual Architecture Refinement & Level Setting AMI USE CASES, REQUIREMENTS, COST/BENFITS & VENDOR ASSESSMENTS Vendor Assessments RFI responses and interview results Initial distilled set of prioritized requirements 8 Map requirements to components Rank vendors on capability hierarchies Refine conceptual models to match vendor capabilities AMI Roadmap Screen vendors Short-list of vendors coupled with a clear conceptual AMI architecture

9. www.sce.com/ami © Copyright 2006, Southern California Edison 9 Technology Capability Maturity Communications Scales

10. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 11 Communications - Availability Value to SCE  Basic Automated Meter Reads  Remote troubleshooting  Security management  Predictive Maintenance  Remote maintenance  Upgrades & flexibility in the future

12. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 13 Communications – Interoperability – Meters to Comm Value to SCE  AMI performance optimization  Risk mitigation against technology obsolescence  Lower total cost of ownership  Contract meter reading  Enable third parties to use AMI

14. www.sce.com/ami © Copyright 2006, Southern California Edison 14 Communications - Reliability Value to SCE  Maintenance improvements  Predictive maintenance  Longer service life improves total cost of ownership

15. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 16 Communications - Security Value to SCE  Security management  Tamper & theft detection  Remote Disconnect  Demand Response  Distribution automation  All other command & control

17. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 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. www.sce.com/ami © Copyright 2006, Southern California Edison 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