1. EDISON INTERNATIONAL® SM Water Energy Nexus Charley Wilson Urban Water Institute February 21, 2013

2. EDISON INTERNATIONAL® SM Overview What is the Water Energy Nexus? Why is it important to system reliability. What you can do to assure system reliability.

3. EDISON INTERNATIONAL® SM Water-Energy Nexus The interdependencies among water and energy resources and infrastructure. At a policy level, California considers the scope of its water- energy nexus to include climate-related impacts, including greenhouse gas emissions. Since the California Energy Commission (CEC) issued its landmark finding in 2005. The Water-Energy Team of the Climate Action Team (WET-CAT) adopted and is implementing a multi-agency water-energy strategic plan. The CEC has increased requirements for water and energy efficiency in buildings through revisions to the California Building Standards Code.2 California Department of Water Resources now requires consideration of the water-energy nexus in competition for Integrated Regional Water Management Planning grants, and has also included elements of the states water-energy- climate nexus in the California Water Plan. The CPUC directed the states energy investor-owned utilities (IOUs) to include the water-energy nexus in their 2013-2014 Energy Efficiency portfolios.

4. EDISON INTERNATIONAL® SM The Water And Power Partnership Water represents nearly 20% of the electricity consumed in the state Energy costs are a significant portion of most water agency budgets AB 32 impacts

5. EDISON INTERNATIONAL® SM Annual Water-Related Electric Consumption by Segment of the Water Use Cycle

6. EDISON INTERNATIONAL® SM Energy Consuming Segments of Californias Water-Use Cycle Refining Estimates of Water Related Energy Use in California, Navigant Consulting for the California; Energy Commission Public Interest Energy Research division (PIER), CEC 500 2006 118, 2006.

7. EDISON INTERNATIONAL® SM Parallel Concerns

8. EDISON INTERNATIONAL® Cost of Service is Increasing Faster Than Energy Sales Resulting in Higher Customer Rates Rates = Cost of Service Energy Sales Public policy is driving up the cost of energy; additional investments are needed for grid reliability Energy efficiency and distributed generation offer customers options to better manage usage and avoid escalating rates

9. EDISON INTERNATIONAL® SM System Reliability Price Stability Environmental Considerations Balance objectives through CPUC/CECs loading order: – Energy Efficiency; Demand Response – Renewable Resources; Distributed Generation – Clean and Efficient Fossil-Fired Generation SCE Public Policy Objectives Integration of Renewables Must Consider and Satisfy These Objectives

10. EDISON INTERNATIONAL® SM Biomass 7% Geothermal 53% Solar 6% Wind 29% Small Hydro 5% 2010 Renewable Resources (14.5 billion kWh) 2010 2020 89% Increase SCE 2010 Renewable Resource % of Total Delivered Portfolio: 19.4% SCE has contracts in place to reach the 20% RPS goal in 2010, and is working toward the 33% RPS goal by 2020. SCE Delivers More Renewable Power Than Any Other Utility in The Country 20% RPS 33% RPS 15.0 Billion kWh 28.3 Billion kWh

11. EDISON INTERNATIONAL® SM The LA Basin: Challenges And Potential Solutions Recent studies show need for 2400-3600 MW of West LA Basin to replace OTC plants Local transmission grid (220kV) runs from the coast to serve load Re-powering at beach sites may face stiff opposition LA Basin is a non-attainment area and AQMD rule 1304 is one of the few sources of emissions offsets for new generation Ormond Beach El Segundo Redondo Beach Mandalay Alamitos Huntington Beach

12. EDISON INTERNATIONAL® SM Forces Influencing Southern California Infrastructure Development

13. EDISON INTERNATIONAL® SM The Role of Nuclear Energy in California San Onofre provides baseload generation – 24 hours a day, 7 days a week, regardless of weather conditions, unlike wind and solar. Nuclear energy provides voltage support, which keeps the electrons moving through the grid across the region. Nuclear energy is by far the largest source of carbon-free generation and in 2011, provided 24 percent of SCEs electricity generation mix. 37 percent of the states emission-free power generation is supplied by nuclear energy facilities that can produce large amounts of electricity day and night, and without constraints.

14. EDISON INTERNATIONAL® SM Water Sector Opportunities

15. EDISON INTERNATIONAL® SM HHH Investing in Efficiency

16. EDISON INTERNATIONAL® SM Using Water Over And Over Again: Recycling

17. EDISON INTERNATIONAL® SM How SCE Can Help Technical assistance to identify and evaluate projects Free energy audits, pump efficiency testing, and engineering evaluations Free training classes/workshops Incentive funding for qualifying projects Energy Efficiency: both new construction and replacement Demand Response: both new construction and replacement Self Generation: solar, wind, biogas, and now in-conduit hydro Contact your SCE Account Manager/Executive early in the planning process. Engage in Regulatory and Legislative process

18. EDISON INTERNATIONAL® SM Conserve Invest Educate Participate Summary