Metering Americas April 24, 2006 Advanced Metering

© 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

© 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

© 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

© 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

© Copyright 2006, Southern California Edison 6 Technology Capability Maturity (TCM) A.Customer reset B.Unlimited set points C.Commercially available & in use now (>1,000 units) D.Current limiting capabilities E.On/Off disconnect F.Voltage sensing G.200 Amp rating H.Integrated device (nearly same physical size) Disconnect 5.A-H 4.B, C, D, E, F, G, H 3. C, D, E, F, G, H 2. D, E, F, G, H 1. E, F, G, H 0. Collared Solution 11 Vendors’ Road Map & State of Technological Maturity SCE’s Business, System & Architecture Requirements

© Copyright 2006, Southern California Edison 7 Programmable Disconnect Switch (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 Disconnect 5.A-H 4.B, C, D, E, F, G, H 3. C, D, E, F, G, H 2. D, E, F, G, H 1. E, F, G, H 0. Collared Solution11 Target AMI Phase I capability set Commercially available & deployed (>1,000 units), current limiting, voltage sensing, 200 Amp, integrated device

© 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