1. Heat Storm: Update on CPUC Follow-up Actions Steve Larson Executive Director California Public Utilities Commission September 14, 2006

2. 2  PG&E highest temperatures in 34 years  Peak load 13% higher than last year  SCE one in ten year event  Peak load 3.6% higher than last year  SDG&E one in 25 year event  Peak load 11% higher than last year  ISO Peak: 50,270 MW – 11% higher than 2005. Reserves were at 5%. The Heat Storm Was an Extraordinary Event Throughout the State (1)

3. 3  Storm affected electricity grid during weeks of July 17 and July 24  138 deaths attributed to the heat storm  The electric distribution infrastructure took a beating  Transformers failed  PG&E 1200  SCE 1375  SDG&E 170  Customers lost distribution service, most for short times  PG&E 1.3 million  SCE 1.1 million  SDG&E 45,000 The Heat Storm Was an Extraordinary Event Throughout the State (2)

4. 4 ISO, Generators, Utilities, Firefighters, and Customers Rose to the Occasion  ISO operated the grid efficiently and flexibly  Generators kept the power plants operating  Utility crews replaced blown transformers  Firefighters protected the grid  Customers responded to Flex Your Power calls Your Power calls

5. 5 PUC Action Plan Underway Now I.Increase Targeted Energy Efficiency II.Increase Demand Response III.New Local Generation

6. 6 Increase Targeted Energy Efficiency  PG&E and SCE now soliciting additional third party programs using 2006-2008 program budgets.  Looking for innovative, targeted energy efficiency programs focusing on high-demand areas.

7. 7 Increase Demand Response I. Increased Air Conditioner Cycling II. Demand Response Programs For This Summer III. Demand Response Programs For 2007 and Beyond Beyond

8. 8 Increase Air Conditioner Cycling  Peevey Assigned Commissioner Ruling August 15  Directs Edison to bring 300 MW more online by Summer 2007  Directs PG&E, SDG&E to report on opportunities

9. 9 Increased Demand Response Programs for this Summer  E-4009: No advice letter. Initiated by Energy Division. Adopts a new triggering mechanism for the Demand Reserves Partnership program for the purpose of increasing demand response for the remainder of this summer.  E-4011: SDG&E AL 1811-E. Approves modifications to SDG&E’s C&I 20/20 Program for the purpose of increasing more demand response for the remainder of this summer.  E-4012: PG&E AL 2870-E. Approves a modification to the Demand Bidding Program (PG&E/SCE/SDG&E) for the purpose of increasing demand response for the remainder of this summer.  E-4018: PG&E AL 2880-E. Approves re-opening PG&E’s Interruptible tariff for remainder of 2006 but not 2007.

10. 10 Demand Response Programs for Next Summer and Beyond  Peevey Assigned Commissioner Ruling August 9  Directed new demand response proposals August 30th.  Received proposals for new and expanded existing programs.  Commission decision in November.

11. 11 New Local Generation  Five New Generators for Edison, and Requests by PG&E and SDG&E  Peakers  Dispatchable  Supports local distribution system

12. 12 Increased Use of Cooling Centers (1)  PG&E  31 Cooling Centers PG&E separately refers approximately 300 customers who self-identify as “heat sensitive” to Rotating Outages Cooling Stations. PG&E is also expanding its efforts to inform its customers about how to take care of themselves in the event of extreme heat.

13. 13 Increased Use of Cooling Centers (2)  SCE  38 Cooling Centers  SCE has outreach program for targeted populations through informational fliers, public service announcements, targeted mailings, targeted events, local newspapers, and through established partnerships with businesses and other community-based organizations.  In response to lessons learned during the last heat wave, SCE contractors have implemented grass roots door-to- door outreach within farm-worker communities, senior housing, and low-income housing developments to inform vulnerable populations of the availability of Cool Center sites.

14. 14 Increased Use of Cooling Centers (3)  SDG&E  San Diego County has 150 Cooling Centers  SDG&E provides partial support to San Diego County’s Cool Zones Program through its CARE program.  Outreach for the Cool Zones program is a collaboration between SDG&E and the County of San Diego. A kick-off event was held which received local media attention, and the County also promotes Cool Zones through its own methods.

15. 15 Taking Stock and Planning for the Future  Is our forecasting good enough?  Are we out of the woods for this summer?  What does next summer look like?  What about the future?

16. 16 Temperature Trends in the Last 100 yrs Summer

17. 17 Distribution of Maximum Temperatures: June - September Pasadena Berkeley Fresno Maximum Temperature 0 50 100 150 200 250 5861646770737679828588919497 100103106109 Temperature (F) Number of Days 1950-19741975-2000 Maximum Temperature 0 50 100 150 200 250 300 53565962656871747780838689929598 102 Temperature (F) Number of Days 1925-19491950-19741975-2000