Dynamic Distribution Grids © 2012 San Diego Gas & Electric Company. All trademarks belong to their respective owners. All rights reserved. Neal Bartek Smart Grid Projects Manager A National Town Meeting on Demand Response & Smart Grid June 26, 2013

Subsidiary of Sempra Energy Regulated public utility Provide safe & reliable energy service to 3.4 million consumers -1.4 million electric meters -840,000 natural gas meters 4,100 square mile service territory in San Diego & southern Orange Counties (25 cities) Owns 1,835 miles of electric transmission lines and 21,601 miles of electric distribution lines Operates two compressor stations, 166 miles of natural gas transmission pipelines, 8,100 miles of distribution pipelines and 6,197 miles of service lines 4,500 employees San Diego Gas & Electric 2

Dynamic Distribution Grids Drivers Dynamic Grid Tools Real Life Example Agenda 3

4 Drivers – Growing Need for Flexibility starting in 2015 Significant ramping will be required in both AM and PM to accommodate renewable production Governor has a plan for 12 GW of DER (> 1 GW for SDG&E) Coordinated operation of various DER can help mitigate ramping requirements for baseload generation

System Net of Wind & Solar 5 Drivers – Renewable Variability/Intermittancy Advanced forecasting capabilities for dispatching DER Distributed controls for smoothing spikes

Drivers – Growth in Commercial/Residential Solar Generation Net Energy Metering (NEM) production “hides” load Ability to create voltage issues and excess equipment operations

Drivers – Fast Forward to Historical growth is significantly higher than the 18% shown. Rule 21 is being revisited to consider requiring “smart” inverter functionality Smart Inverters have the ability to respond to control signals from the utility ~ 12% of forecasted 5000 MW peak load

More than 25,000 rooftop solar installations in San Diego, highest per capita rate in country Produce more than 184 MW of clean electricity 8 Drivers – San Diego’s Solar Rooftops

9 Microgrids: Manage DER Manage voltage and power quality at local level Dynamic Grid Tools – Microgrids

Support the integration of renewable resources Improve reliability and power quality Support emergency operations Ability to “ride through” outages Optimize energy usage Enable participation in new markets for demand response and ancillary services 10 Dynamic Grid Tools – Microgrid Opportunities

Replace existing OMS and install new DMS system with integrations to GIS, CIS, AMI, SCADA, Crew Dispatching … WENT LIVE SEPTEMBER 29, 2012! ► Paperwork ► Manual processes ► Software systems are not fully integrated ► Most Unplanned outages are reported by customers ► Near real time data ► Automated process ► Integration with many systems ► Faster outage restoration times ► Improved outage communications Present Future PAST NOW Dynamic Grid Tools – Outage / Distribution Management System (OMS/DMS)

Utilize advanced technologies to integrate and manage distributed resources within the Smart Grid Budget: $8.0M DOE and $2.8M CEC plus matching funds from SDG&E and partners Benefits:  Integrate and leverage various generation and storage configurations  Reduce the peak load of feeders and enhance system reliability  Enable customers to become more active participants in managing their energy use Customer Energy Management Substation Energy Storage Community Energy Storage Distributed Energy Resources Home Energy Storage Microgrid Controller Feeder Automation System Technology 12 Borrego Springs Microgrid Demonstration Project

April 8,

14 Thank you! Neal Bartek, /