Pacific Power Smart Grid Report 2016 OPUC Public Meeting December 6, 2016

Presenters Curtis Mansfield Jake Barker Pacific Power Vice President, T&D Operations Jake Barker PacifiCorp Manager, Engineering Technical Services & Smart Grid

Pacific Power and Oregon Public Utility Commission Smart Grid Goals Alignment Docket UM 1460 - Order No. 12-158 Enhance the reliability, safety, security, quality, and efficiency of the transmission and distribution systems Enhance customer service and lower costs Enhance the ability to save energy and reduce peak demand Enhance the ability to develop renewable resources and distributed generation

Pacific Power’s Smart Grid Strategy Ensure that smart grid investments provide service at reasonable and fair prices by comparing products and solutions in a financial model to identify the most beneficial solutions Institute cost-effective standards and equipment specifications that enable implementation of smart grid-compatible devices, either through retrofitting where appropriate or through replacement due to equipment obsolescence or failure Provide customers with tools and understanding to change usage for their benefit Leverage broad resources at our disposal including smart grid technology lessons learned across Berkshire Hathaway Energy’s four investor-owned utilities Research industry projects and work with organizations to enhance Pacific Power’s understanding of smart grid technologies

Pacific Power’s Smart Grid Objective Leverage smart grid technologies that optimize the electrical grid when and where it is economically feasible, operationally beneficial, and in the best interest of customers

The Cornerstone of Pacific Power’s 2016 Smart Grid Activities Oregon Advanced Metering Infrastructure (AMI) Pacific Power announced plans in April 2016 to install an AMI system in Oregon

Oregon AMI Overview Pacific Power will deploy state of the art electronic digital hardware and software in a secure network that will capture interval data with continuously available two-way remote communications and control. AMI will also enable other business processes and transformations. A few initial benefits include: System Operations Benefits Improved network management – prevent transformer overloading Improved network performance analytics – power quality and outage detection Improved outage response and system planning Improved integration of distributed generation Financial and Environmental Benefits Operating cost savings pay for investment CO2 reduction from reduced truck rolls Customer Service Benefits Improved visibility of daily and hourly power consumption via a web portal Improved billing accuracy

Positioning Customers for Long-Term Benefits AMI provides a platform for Pacific Power to leverage future smart grid applications AMI turns meters into sensors to the benefit of demand response, distribution automation, distributed energy resources and energy efficiency programs

Oregon AMI Project Timeline Progress updates will be provided to the OPUC. First customer scheduled to go live by December 31st, 2017 and final customer transferred August 2019

Distribution Automation Deployment of equipment with progressive capability Installed 40+ Fusesaver devices in Oregon resulting in reduced customer outages from temporary fault incidents 349 electronic reclosers (fault current indication) are distributed throughout Oregon service territory with the capability of retrofitting with communication modules Evaluate recloser communications capability with AMI

Distribution Automation (continued) Perform study of distribution automation potential in Oregon Defined steps for preferred outcome Determined criteria and requirements for location selection For example: circuits with strong ties, existing SCADA, critical loads, etc. Identified preliminary list of potential candidate sites Comprehensive list of potential sites in Appendix H of the 2016 Report Pilot project in Walla Walla, Washington Investigate AMI integration with distribution automation Respond to a questionnaire developed by the AMI network vendor to further investigate Distribution Automation integration with the AMI network

Transmission System Monitoring Dynamic Line Rating (DLR) Sensors to monitor the conditions that impact the real-time temperature and loading ability of a transmission line Assessment of West-of-Populus line project Inconclusive due to low line-loading Evaluation of thermal replicating relays (Soda Springs, Idaho area) Remedial Action Scheme deemed more cost-effective PacifiCorp transmission will continue to look for transmission constraints and other opportunities where dynamic line rating and/or thermal replicating relays may be viable solutions

Transmission System Monitoring Synchrophasors The Steady-State and Dynamic System Model Validation Standard (NERC Reliability Standard MOD-033) is a new model validation standard proposed to establish consistent validation requirements to facilitate collecting accurate data and building of planning models to analyze the reliability of the interconnected transmission system Compliance will facilitate improved system reliability Locations were determined based on criteria in PRC-002 and are located throughout the Company’s service territory Initial locations are provided in Appendix D of the 2016 Report Deadline for compliance is July 1st, 2019

Distributed Energy Resources (DER) and Renewable Resource Enhancements Potential use of DER to defer traditional solutions DER Alternatives Template Created through cross-platform effort with BHE Applied to Redmond 5D22 circuit (Redmond, Oregon) Traditional solution deemed cost-effective option

Distributed Energy Resources (DER) and Renewable Resource Enhancements (continued) New standards and equipment specifications: Regulator controls with bi-directional functionality Pacific Power is participating in the re-draft of IEEE 1547 and will incorporate the final standard into company policies IEEE 1547 addresses smart inverter requirements and how smart inverters support the stability, reliability and efficiency of the grid Tentative release Q1 2018

Distributed Energy Resources (DER) and Renewable Resource Enhancements (continued) Centralized Energy Storage - Oregon House Bill 2193 Pacific Power is working with the Commission on guidelines for the 5 MWh requirement Areas under investigation include: infrastructure deferment, electric vehicle charging infrastructure, and other use cases Propose project by 2018 and procure by 2020 Electric Vehicles - Oregon Senate Bill 1547 Pacific Power presented an overview of the proposal to stakeholders and solicited feedback for purpose of the program application Finalize program filing before December 31, 2016 CYME – Engineering Distribution Analysis Software Pacific Power fully installed CYME as of August 2016 CYME will be primary distribution planning tool starting January 2017 Pilot program for distribution substation metering Identified initial locations in Bend and Hood River Substation metering technical requirements are in Appendix G Provides data to determine DER penetration levels

Demand Side Management Demand Response and Time-of-Use Pricing Leveraged early lessons learned to increase participation to fulfill irrigation time-of-use (TOU) pilot allotment Increased the potential for customer bill savings Concentrated the pilot in a location where customers were more acutely aware of the cost of electricity Conducted in-person outreach with the opportunity for potential participants to ask questions Irrigation Load Control Pilot in Oregon Approved by the Commission on May 4, 2016 Successfully tested on August 29, 2016 Pacific Power provides a semi-annual update to stakeholders

Smart Grid Timeline to 2020

Questions?