Utility Needs and Smart Grid for Major Storm Events July 11, 2013 Edward Gray, PE Director – Transmission and Distribution Engineering

PSE&G Overview Demographics Electric System PA Consulting Awards Approximately 2.2 Million Electric Customers Service Territory 2,600 square miles Electric System 274 Switching and Substations 68% of Customers in 13kV Automated Loop Scheme SCADA Control at 32% of Customer Circuits OMS, GIS and Crew Mobile devices since 2002 PA Consulting Awards National Reliability Rewards 5 of the last 8 years ReliabilityOne Award Mid-Atlantic Last 11 years 2

Recent Major Storm Events 4 Largest Storm Events have occurred in the last 3 years Start Date End Date Storm Name Rank Extended Customers Interrupted 10/27/12 11/15/12 Hurricane Sandy 1 2,014,516 08/27/11 09/04/11 Hurricane Irene 2 872,492 10/29/11 11/06/11 Wet Snow Storm 3 674,512 03/13/10 03/20/10 Nor'Easter 4 607,403 3

Hurricane Sandy - Impacts and Response 2 million Customers impacted 90% lost power during the event 14 Switching Stations affected – 33% 7 Flooded, 6 Out, 1 Bus Section Failure 51 transmission lines out, all Station Issues – 33% 96 PSE&G Substations affected – 39% 20 Flooded, 76 Out Planning immediately was focused on prioritizing transmission lines to be reenergized to restore switching and substations with the largest customer counts Work began immediately after flood waters receded at the stations and once wind gusts dropped below 40 mph in the divisions 4

Major Storm Events – Common Themes Multiple Damage locations on Circuits 48,000 tree locations in Hurricane Sandy Loop scheme ineffective Damage behind fuses/devices after initial power loss Scalable logistics key to restoration Work identification, Assignment and Execution with mutual aid crews Loss of device communication Telephone lines lost Customers demand improved communications 5

Logistics Challenge – Sandy Mutual Assistance Timeline Sandy Starts 6

PSE&G Proposed Solutions Energy Strong Filing Focused on Major storm events Hardening and Resiliency investments Resiliency Investments include Smart Grid elements Microprocessor Relays and SCADA Distribution Management System Fiber Optic Communication Network Storm Damage Assessments Enhanced Customer Communications Contingency Reconfiguration 7

Microprocessor Relays and SCADA System Visibility Microprocessor Relays and SCADA Microprocessor relays on distribution feeders or circuits SCADA in every substation Visibility and control of 26kV, 13kV, and 4kV circuits Distribution Management System System to visualize, control, collect and analyze all monitored points from each Distribution station. Improve visibility to support restoration decision making 8

Communication Network High Speed Fiber Optic Network Install communications infrastructure to support the System Visibility efforts. Backbone Transmission OPGW Fiber network Fiber reliability proven to be good through major events Satellite Communications Pilot satellite communications system to serve as a back-up communications system 9

Storm Damage Assessment and Customer Communications Advanced Distribution Management System Incorporate outage information Add-on analysis applications such as load flows and state estimations Enhanced Storm Management Systems Integrated mobile application to capture plant damage Confirmed Plant Damage location visibility Expand Communication Channels Mobile devices and two-way SMS capabilities Customers choose the notifications they receive. 10

Contingency Reconfiguration Strategies Focus on Priority Customers Hospitals, Infrastructure, Government, First responders Minimize outages and increase restoration options Increase sections on 13kV loops Increased use of branch reclosers Increase tie points 11

Thank You for Your Attention, Questions? 12