1. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved Update for Low Income Public Meeting August 13, 2008

2. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved We’re starting to recreate our relationship with customers and transforming our company

3. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved SDG&E’s Business Case Overview Approved April 2007 Since then field tests complete and conducted 2 nd RFP Install 1.4 million smart/AMI electric meters for all customers Solid-state electric meter technology 2-way communications 4 channels Next-day data for customers online/phone Remote disconnect/connect integrated within meter Programmable load limiting switch Adding module to existing 900,000 gas meters Home area network (HAN) Local connectivity to remote devices, load control technology Programmable communicating thermostats (PCTs) for Small/Medium C&I Vendor and technology neutral

4. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved SDG&E’s Business Case Overview cont. Electric interval data reads – residential hourly, C&I every 15 mins. Daily gas reads On demand reads, demand reset Support price responsive tariffs (TOU, CPP, PTR) Information systems, integration with legacy systems Firmware downloadable to the meter Remote device configuration/firmware & feature updates Tamper/theft Voltage Outage/restoration Security architecture

5. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved 2-Way Communications

6. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved Schedule Q4 2007 – Field tests complete Q2/3 2008 – Initial installations of technology in Tierrasanta July 2008 – Final technology contract signed with Itron (meters/modules/networks comms) Will be responsible for managing installation vendor Q1 2009 – Mass installations begin 2011 – Mass installations complete

7. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved 2008 Initial Installations 3,500 electric meters 2,000 gas meter modules Network communications Test vendor performance Meter readers will manually reading

8. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved Integrated Communications Test everything possible that will be used in mass deployment – dress rehearsal Maintain positive customer experience Manage expectation of functionality

9. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved Monthly Deployment Rate 2.3 Million Electric Meters and Gas Modules Preliminary DRAFT

10. © 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved For More Info Internet: www.sdge.com/smartmeterwww.sdge.com/smartmeter E-Mail us at: smartmeter@semprautilities.comsmartmeter@semprautilities.com Thank you!