0. Southern California Edison Demand Response Present and Future
Presented by Larry Oliva
Director, Tariff Programs and Services
Demand Response Coordinating Committee
Town Meeting, Washington DC
June 3, 2008

1. Recent Successes in Demand Response
SCE Demand Response today
System peak ,303 MW
Interruptible Large Customer MW
Emergency Res/Sm. Comm MW
Emergency Ag Pumping/Other MW
Price Responsive Programs MW
Total DR 1,397 MW
Total DR % %
SCE technical peak demand reduction potential
If all customers participated similarly %
SCE DR response numbers updated as of 3/31/08.
Per Larry Oliva: Rely on what the CEC says is technical potential of 25 percent. Technical Peak Demand Reduction is the total DR potential if all DR eligible SCE customers participated in DR programs

2. Expanded AC cycling by 225 MW in 2007
Recent Successes in Demand Response
Expanded AC cycling by 225 MW in 2007
Seasonal Incentives based on:
Tons of Cooling
Cycle Strategy (50%, 67%, 100%)
Event Choice (15 events vs. unlimited)
FIXED incentive amounts PAID in advance
Over 320,000 participants
91% of participating A/C Units range in size from 2.5 to 5 tons
88% of participating customers opt for 100% cycling (Maximum $ Incentive)
Average annual residential incentive paid = $140/device

3. Where SCE is Going with DR Dynamic Pricing-The Essential Path
Industries with high cost of capacity transitioned to dynamic pricing, examples:
Airlines
Hospitality
Rental Cars
Shipping
Electric Utilities can benefit
Peak load growth continuing
Regulatory and environmental impediments to build
Real cost escalation of new construction
Technology enablement (metering and controls)

4. EIX Vision for Clean Energy Future
Integration of Information Technology with Energy Technology Delivers Environmental Benefits
Renewable
& Clean Generation
Connected
Home
Connected
PHEV
Smart Grid
SmartConnect
Energy Management& Efficiency
Low Carbon Fuel Mix
Dynamic Pricing
Reduced Cost & Rate Pressures
Meeting Customer Expectations for Value & Environment

5. Empowering Customer Choice
Rates and Rebates
CPP
PTR
TOU Rates
Smart appliances
Connected Home
Smart thermostats
Energy information

6. Load Shaping and Following
Long-Term Opportunities through Plug-in Electric Vehicles
Connected Home
Customer Home Energy Storage Creates Opportunities for Increased Renewables
Enable Net Metering, Discrete metering and Integrated energy management w/Solar Panel

7. Edison SmartConnect Demand Response Goals
Pilots Launch
3K K M M M
Programs
>531 MW
> 72 MW
342 MW
78 MW
410 MW
53 MW
SDP (Res)
SDP (Comrcl)
PCT-ZigBee
Rates
CPP
PTR
TOU Rates
Incremental New DR = 883 MW

8. Rate Tier Position and Tier “Alert” Programs encourage conservation behavior
Tier Position Provides Customer with billing status via webpage: Current billing tier, cost and days left in billing period
Proactive Tier “Alerts” and an In-Home Tier “Position”
Display Device:
Peak
Rebate
Available
Energy Cost Display
$ $ $ $ $.43

9. Next Challenges for SCE Demand Response
Customer adoption of Peak Time Rebates and Dynamic Rates
Move incentive programs to Pay-for-Performance
Integrate retail DR products with CAISO markets
Promote enabling technologies