1. CEC 08-DR-1 Efficiency Committee Workshop 3/3/08

2. Smart Meter Benefits Enhances reliability and outage detection, and quicker restoration Gives customers more control over their everyday energy usage, opportunity for lower bills Improves customer service and allows for a more proactive workforce

3. Supporting California’s Energy Goals Smart Meter technology will help drive demand response and dynamic pricing. Smart Meter Demand response refers to the reduction of customer energy usage at times of peak usage in order to help address system reliability. Demand Response Retail prices for energy consumed that offer different prices during different time periods. Dynamic Pricing

4. High Level Program Schedule  Launched Smart Meter Program  Formed Program Management Office  Established team and governance  Develop detailed program and staff plans STARTPLANBUILDINSTALL 2007200820092010-11 Initiate detailed business process workshops Prepare for installation Begin high-level internal communications Institute new business processes Development of AMI technology infrastructure  Pilot functionality for selected customers  Communicate detailed information to organization  Begin to train impacted groups  Deploy new rates (Peak Time Rebate) Install AMI Network Infrastructure Go-Live of technology systems Install electric & gas meters Manage customer experience program enhancements Manage internal and external communications Continue to train impacted employees Ensure organization is aligned with new technology and processes Sustain change Provide knowledge Transfer from program team to employees

5. Mass Deployment – 2.3 Million Meters

6. Smart Meter: Foundational Smart Home Smart Meter DG; storage Self-heal; Self-sense Real-time Analytics Intelligent Dispatch Central Automated Operations TODAY FUTURE Future Vision: Use technology to improve:  customer service  operational efficiency Smart Grid

7. Pool pump Smart Meter and HAN TV EV / PHEV Smart Meter AMI Network to meter Photo Voltaic cells Battery storage Electric H/W heater DryerWasherRefrigeratorOven HAN PCT IHD w/ EMS Utility Room Family Room Kitchen HAN Gas Meter Water Meter Internet

8. Programmable Communicating Thermostats (PCTs) Policy Issues: SDG&E/SCG support mandating PCTs in all new construction and remodels SDG&E/SCG support giving customer’s choice to participate in DR programs Title 24 and Title 20 are logical points of regulations for PCTs Need public education about benefits of PCTs and their choice to participate Technology Issues; SDG&E/SCG supports CEC’s reference design of PCTs PCTs are a more customer friendly tool to achieve DR than AC cycling Concerned about default statewide DR communication system which will be redundant to IOUs Smart Meter systems

9. Demand Response Rates Peak Time Rebate: Provides rebates for conservation on event days $.75/kWh for unaided demand response $1.25/kWh for automated demand response (PCT, pool pump controller) Event period: 11:00 AM and 6:00 PM Applicable to all residential and commercial < 20kW Implementation w/ meter installation: May 2009 - 2011 Default Critical Peak Pricing: Provides cost based rates and proper price signals Event period: 11:00 AM and 6:00 PM Applicable to all C&I customers >20kW Customers can opt-out to a TOU rate Implementation w/ meter installation: Spring 2008 for approx. 2,000 large C&I customers Fall 2009 - 2011 for approx. 18,000 other C&I customers