SCE Smart Grid Overview Kimberly Davis February 18, 2010

2 © Copyright 2009, Southern California Edison Agenda What is a Smart Grid? What is driving Smart Grid initiatives? What is SCE doing to make the Smart Grid a reality in California? How will the Smart Grid impact the Workforce? How will the Smart Grid impact Higher Education?

3 © Copyright 2009, Southern California Edison What is a Smart Grid?

4 © Copyright 2009, Southern California Edison So What Makes a Grid Smart? Combination of energy, engineering and information technology A Smart Grid involves adding millions of smart electronic devices to the grid –i.e., wireless technologies, meters, and chargers in electric cars Adding the ability to: –Send and receive high resolution data –Produce actionable information –Use that information for more sophisticated intelligence and control The Smart Grid will allow: –More efficient and effective transmission of power –Integration of more intermittent renewable generation –More efficient and effective maintenance practices –Faster restoration when outages are unavoidable –Increased customer choice

5 © Copyright 2009, Southern California Edison What is driving Smart Grid initiatives?

6 © Copyright 2009, Southern California Edison ~3500 gWh of EE Savings (2009 – 11) CA 2020: Energy Policy Initiatives % Renewable Generation AB32 Reduce GHG Emissions to 1990 Levels by Million Solar Roofs Statewide 500 MW of Large Scale Solar Rooftop Generation ~7300 gWh of EE Savings (2012 – 2020) ~ 600k PEV’s* SmartConnect DR Goals (~1000 MW) Zero Energy Homes 100% 50% of New Homes are 35% More Efficient than T24 90% of New Homes are 35% More Efficient than T24 33% Renewable Generation (Proposed) * SCE estimate of market adoption in SCE’s service area 1 st Full Year of MRTU Market Operation ~100k PEV’s* ~25k PEV’s* Policy Areas Creation of Storage Market RPS Bulk Power Integration RPS Distributed Power Integration Transportation Electrification Energy Efficiency & Demand Response MRTU Support Technologies

7 © Copyright 2009, Southern California Edison What is SCE doing to make the Smart Grid a reality in California?

8 © Copyright 2009, Southern California Edison SCE is doing its part to reduce greenhouse gas emissions by providing its customers with energy from renewable resources Smart power delivery is needed to manage greater diversity of supply and to optimize existing capacity Smart metering enables customers to increase energy conservation and reduce peaks while improving customer service and operational efficiency Plug-in electric vehicles will achieve transportation sustainability and enable distributed energy storage systems Innovation in energy technology will deliver environmental & customer benefits while supporting energy policy initiatives SCE Strategy for a Clean Energy Future

9 © Copyright 2009, Southern California Edison Integrate and manage new sources of renewable and distributed energy supply and storage Maximize workforce productivity, effectiveness, and safety by using enabling tools Improve capital efficiency and assets using better intelligence and technology for optimal system planning Enable the grid to automatically adjust to changing loads and supply requirements Empower customers to become “active” participants in the energy supply chain managing their own energy consumption SCE Smart Grid Vision Grid Control & Asset Optimization Renewable, DER & Storage Integration Smart Metering Smart Customer Solutions & PEVs Workforce Effectiveness A smarter grid will provide environmental benefits

10 © Copyright 2009, Southern California Edison Provide real-time voltage support to mitigate volatility associated with intermittent renewable energy resources Increase transmission capacity to integrate more bulk renewable energy resources Integrate large scale energy storage systems as a parallel power source for intermittent renewable energy supply Renewables Integration SCE leads the nation in renewable power, procuring 13 billion kWh’s per year

11 © Copyright 2009, Southern California Edison CA Renewables Portfolio Standard 20% by 2010 Possibly 33% by 2020 (statute under consideration) California Solar Initiative (CSI) Goal to install 3,000 megawatts (MW) of new, customer-owned solar photovoltaic projects by –The CPUC provides incentives for all solar installations in existing structures. CA Carbon Reduction Law (AB 32) Reduce greenhouse gasses (GHG) by 25% by 2025 California law and policy is driving the need for a smarter grid Renewable & DER Growth

12 © Copyright 2009, Southern California Edison The need: The growing complexity of interconnected electric grids increases the threat of blackouts and other challenges, facilitating the need for a smarter electric grid with wide-area measurement Hardware: Phasor measurement units (PMUs) help identify remote system disturbances, in advance, to prevent wide- scale power outages Software: Power System Outlook (PSO) is a real-time tool that enables operators and engineers to quickly and affordably analyze synchrophasor measurement system data from a large power grid Phasor technology enables real-time system monitoring and reduces outages Synchrophasor Measurement System

13 © Copyright 2009, Southern California Edison Enable distributed energy resources and storage to support customer choice and improve grid stability Prevent catastrophic system failures through innovative real time power system analytics and grid technologies Minimize customer power disruptions due to distribution system failures through expansive automation Avanti - Circuit of the Future Expand smart technology deployment from investments over the past decade Transmission & Distribution Automation

14 © Copyright 2009, Southern California Edison Choice to Manage Cost & Peak Demand –Dynamic Pricing Options –Optional Demand Response Programs Smart Communicating Thermostats –Outcome Reduce Peak Load by 1,000 MWs Energy Information Drives Conservation –Reduce Residential Energy Consumption –Reduce GHG Automated Self-Service –Remote Service Switch –Payment and Billing Options © Copyright 2008, Southern California Edison Smart Metering: Edison SmartConnect™ Enable customers to increase energy conservation and reduce peak loads

15 © Copyright 2009, Southern California Edison Zero Net Energy Home Engaging Customers in the Supply Chain

16 © Copyright 2009, Southern California Edison Tehachapi Wind Energy Storage Project (TSP) Deploy and evaluate an 8 MW utility-scale lithium-ion battery technology to improve grid performance and aid in the integration of wind generation into the electric supply. The project will evaluate a wider range of applications for lithium-ion batteries that will spur broader demand for the technology, bringing production to a scale that will make this form of large energy storage more affordable

17 © Copyright 2009, Southern California Edison Irvine Smart Grid Demonstration (ISGD) Will demonstrate an integrated, scalable Smart Grid system that includes all of the interlocking pieces of an end-to-end Smart Grid system - from the transmission and distribution systems to consumer applications like smart appliances and electric vehicles. The project will focus on the interoperability and interactions between technologies and systems working at the same time - such as communications networks, cyber-security requirements, and interoperability standards. Sub-project: –Workforce of the Future: Identify the Organizational Impacts and Educational Curriculum Development to Produce the Next Generation Utility Worker

18 © Copyright 2009, Southern California Edison How will the Smart Grid Impact the Workforce?

19 © Copyright 2009, Southern California Edison Workforce Safety & Productivity Enhance the safety and effectiveness of the future smart grid workforce SCE is implementing technological innovations to enable the efficient management and transfer of data by personnel to achieve the objectives of a smarter grid and create an even more productive and safer field workforce: –Safer and more reliable system operations –More cost-effective system maintenance –Elimination of field manual data input –Transparent data collection and maintenance

20 © Copyright 2009, Southern California Edison Smart Grid Workforce Impact The Smart Grid can help create durable jobs for Americans At SCE, we directly employ around 16,000 people –51% minority and female employees, representing the diversity of the customers we serve Energy investments will create or save 3.5 million jobs – nearly 400,000 in California (source: President Obama EVTC Speech) Energy efficiency programs create over 1,100 jobs, many of them in the low-income communities we serve Established breakthrough partnerships with service territory universities and community colleges to train and retrain young people to fit the well-paid jobs demanded by the power industry in the future – from linemen to electrical engineers

21 © Copyright 2009, Southern California Edison How will the Smart Grid impact Higher Education?

22 © Copyright 2009, Southern California Edison Educational Preparation The technology requires Engineers with a multi-discipline understanding, as it pertains to the electric power system: –Knowledge of the interplay between information technology and electrical, power, communications, controls, and electronics engineering –Ability to use the most current software and hardware tools for power system modeling and analysis, specifically with ubiquitous distributed generation –Knowledge of current ‘Smart’ equipment available to the utility and the standards that guide their development and use –Knowledge of the technical requirements of planning, constructing, operating, and maintaining an electrical power system

23 © Copyright 2009, Southern California Edison For more information on SCE’s Smart Grid strategy, news, and updates, go to:

24 © Copyright 2009, Southern California Edison Back-up

25 © Copyright 2009, Southern California Edison On March 19, 2009, SCE’s Electric Vehicle Technical Center hosted President Barack Obama The ingenuity of the scientists, engineers, and workers at companies like Southern California Edison will create the new jobs and new industries of tomorrow Federal government will invest $15 billion a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel- efficient cars and trucks that are built right here in America “Day by day, test by test, trial by painstaking trial; the scientists, engineers, and workers at this site are developing the ideas and innovations that our future depend upon.” President Obama Visits Edison EVTC - President Obama

26 © Copyright 2009, Southern California Edison What is Needed to Realize a Smarter Grid? Intelligent and communicating PEVs that integrate gracefully with the grid. Cost effective energy storage at bulk transmission and distribution. Commercial products based on open, non-proprietary standards that are secure. Seamless and secure telecommunications infrastructure that integrates millions of intelligent devices to produce actionable information that is used to control the electric system. Workforce with the skills and knowledge to engineer, build, operate and maintain an electric grid with pervasive information technology embedded.