1. 1 SCE – Lessons Learned from Pricing Experiences July 31, 2014

2. Tiered TOU rate – 2014 participation level is 15,100 customers Conducted targeted marketing campaign in 2011 and 2012 to generate enrollments Target Audiences - Likely Benefiters – Tier 5 (6 out of 12 months) – NEM Accounts – Did not conduct customer specific rate analysis Solicitation Tactics – Direct Mail – Email – Follow-up Outbound Telemarketing Summer Retention – Bill Onsert (summer season & price change reminders) Off-Peak Savings Plan

3. 3 2011 Results2012 Results 81,000 targets 6,300 enrollments 7.8% adoption rate Two touch direct mail solicitation to 81K service accounts in Q4 Enrollment Rates: Tier 5 Response = 6.9% (5,300) NEM Response = 20.5% (1,000) One touch direct mail solicitation to 91K service accounts in April Enrollment Rates: Tier 5 Response = 4.6% (3,700) NEM Response = 6.4% (700) 91,566 targets 4,400 enrollments 4.8% adoption rate Off-Peak Savings Plan Campaign Results Other Results: Incoming Calls – 3,400 calls into dedicated 800 number (from Oct 2011 to Sep 2012) Approximately 600 requests received requesting rate analysis Enrollment Channel Analysis (2012): Business Reply Card – 86% Outbound Calling – 12% Customer Contact Center – 2% Attrition – By the end of 2012, our attrition was at 6%. 95% of attrition was related to customers wanting to get off the program.

4. 4 Observations and Lessons Learned Effective targeting / Messaging: Targeting right customers is critical to achieving desired adoption rates Creating compelling, easy to understand marketing materials / talking points to drive enrollments is key Conversion rates from 2011/2012 experiences suggest we did this well Attrition: However, escalated calls and attrition was higher than expected. Suggests the need to revisit messaging. While messaging stressed that summer bills may be higher, as customers experienced TOU, we did see customers wanting to opt off as opposed to waiting for winter months Enrollment Channels: Majority of customers preferred the postcard enrollment. Customer self-service options may be more convenient for customers and cost- effective and we would like to pursue those channels

5. 5 Non-Residential – Mandatory Time-of-Use Transition 2014

6. 6 High-Level ME&O Efforts

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8. 8 Observations and Lessons Learned Conducted message testing with customers to develop a message platform that would best resonate with customers, informed directly by customers. Multi-touch, multi-channel effort worked well in driving awareness Increased customer awareness of the TOU transition from 9% in Wave 1 (July 2013) to 47% in Wave 2 (December 2013) Social media efforts received minimal customer response. Will be looking at different social media platforms for Wave 2 Critical to ensure preparedness of customer facing personnel with appropriate training and resources so they can effectively handle customer inquiries Throughout transition, incoming call volumes were fairly minimal. We are now seeing a slight uptick in calls due to summer bills.

9. 9 Residential Peak Time Rebate To date, PTR is the only default residential program we have implemented Brief Background: –As customers received their smart meter, they were automatically placed on SCE’s Save Power Day (or PTR) program. –Significant marketing effort accompanied smart meter rollout. –Marketing focused on program education and encouraged customers to opt-in to event notification services. –In addition, customers were automatically enrolled to receive event notifications if they had an SCE MyAccount –By late 2012, had achieved 20% enrollment (800K customers) on event notification (73% automatically enrolled) –Event awareness was driven by event notifications. Planned use of broadcast media channels to generate awareness did not occur. Key Findings: –Load impact studies showed: Opt-in customers driving load reduction Load impacts from defaulted customers were not statistically different from zero Current Status: –In accordance with Commission directive, program was transitioned to opt-in program in early 2014. –Currently have 370K customers enrolled in program