1. SmartMeter Program Overview Jana Corey Director, Energy Information Network Pacific Gas & Electric Company

2. 2 Pacific Gas and Electric Company ► Energy Services to about 15 M People: ► 5.2 M Electric Customer Accounts ► 4.4 M Natural Gas Customer Accts ► 70,000 square miles with diverse topography ► ~20,000 Employees ► Regulated by the California Public Utilities Commission (CPUC)

3. 3 Balancing Competing Priorities Reliable Service Reasonable Cost Smart Grid Environmental Sustainability

4. 4 Smart Grid Will Enable A Sustainable Electric System Efficient Electric Delivery Renewable Electric Generation Managed Electric Demand

5. 5 PG&E’s SmartMeter Program ► Automated meter reading for all customers ► 10 million meter upgrades ► A communications network ► IT systems ► Frequent meter reads - daily for gas, hourly or 15 minute interval for electric ► Enhanced customer benefits over time ► Automated meter reading ► Secure online access to detailed energy usage data ► Better billing; reduction in call volumes ► Outage management ► Remote connect / disconnect, load-limiting ► Home area networking

6. 6 Data Collector Unit Radio Frequency Gas Network Network Access Point Radio Frequency Mesh Electric Network SmartMeter Dual Network Architecture

7. 7 SmartMeter Timeline Key Functionality Milestones 2007 Replatform IT systems for high data volumes Anchor bill on automated reads 2008 Bill on interval reads (for select customers) Secure customer online access to interval usage data Successful rollout of SmartRate (res. CPP) 2009 (targeted) Outage management Electric remote connect / disconnect 10.1 million meters installed December 2008 – 1.7 million meters installed Millionth meter installed 9/5/08 2007 2008 2009 2010 2011 2005 - Project start 2006 - Vacaville Test Fall 2006 – Begin Full Deployment

8. 8 SmartMeter Deployment Challenges ► Meter Issues ► Meter access ► Obstructed meters ► Multiple meter designs ► Handling for special meter types (e.g. TOU meters) ► Evolving Electric Technologies ► Maintaining deployment momentum ► Vendor Issues ► Ramping supply chain to deliver required volumes ► Deployment vendor resource flexibility ► Network Siting ► Availability of overhead structures for RF network equipment ► Optimizing Realization of Program Benefits Variety of obstructed gas meters

9. 9 SmartMeter IT Challenges ► Scale & Complexity ► Establishing IT platform to handle huge volumes of data ► Scaling meter data management ► Integration complexity – many system interfaces ► Standards ► Immature industry standards ► Driving an open, standards-based solution with multiple vendors ► Vendors ► Vendors’ early-stage products; limited experience and resources ► Distributed Computing ► How to best leveraged distributed processing capacity ► Ensuring robust security

10. 10 Successful deployment of SmartRate pricing plan Recruitment ► 10,000 voluntary participants in summer 2008 Experience ► Across 9 called events, achieved average residential customer reduction of 16.6%, and an average non-CARE residential customer reduction of an impressive 22.6% ► 7 of 10 customers saw a reduction in their cumulative summer bills Retention ► 90% of customers intend to stay on the plan in 2009 Rollout follows SmartMeter program deployment

11. 11 ► Displays energy usage by billing cycle, month, or week ► Displays hourly electric usage by day ► Ability to overlay temperature ► SmartRate customers view usage “framed” by peak periods ► Customer service reps able to view same graphs online Online Customer Access to Usage Information

12. 12 SmartMeter™ Electric Meter Network Access Point Smart Grid Expands Sensing And Control Into Customer Premise Public Wireless Network In-Home Network

13. 13 Home Energy Management Basic Enhanced Advanced  Simple high-low indicator  More comprehensive in- home displays (usage, cost, time)  Programmable Communicating Thermostat (PCT)  Fully automated intelligent energy management system  Other automated/ programmable appliances  Electric vehicle charging / storage  Distributed generation and storage

14. 14 End-Use Technologies Home Area Network (HAN) Energy displays Smart appliances & electronics Programmable communicating thermostat Advanced lighting controls Customer generation / storage monitoring controls Smart xEV charger Integrated Energy Management Usage information & analysis Pricing options – variable, pre-pay Automated demand response Time-based lighting Fully-leveraged customer generation and storage capability Time- or rate-based xEV charging Devices Services Smart Grid Pervasive Sensing, Communication, Computing, and Control SmartMeter Automated Metering Infrastructure Infrastructure

15. 15 Martinez, CA office building electricity use with and without automated demand response, June 21, 2006 Automated Energy Management Generates Negawatts

16. 16 Home Area Network AMI/SmartGrid Time-shifting Electricity Smart Grid Enables Electric Vehicle Smart Charging GWh

17. 17 At PG&E, We Are Committed to Sustainability

18. 18 Discussion