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© 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved

SDG&E’s Smart Green Grid VisionThomas Bialek, PhD, PE

Chief Engineer Technology Innovation Development

May 6, 2009

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Sempra Energy Overview

•Comprehensive energy services company based inSan Diego

Sempra Utilities

SouthernCalifornia Gas

San DiegoGas & Electric

Sempra Global

SempraCommodities

SempraGeneration

Sempra Pipelines& Storage Sempra LNG

Sempra Energy

Regulated utilityproviding service to 3.4million consumers

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Business Overview

Data as of December 31, 2007

IMAGE AREA(may contain multiple images)

California

Southern CaliforniaGas Company

San DiegoGas & Electric

•Largest energy utilitycustomer base in US withover 7.6 million metersserving 29 millioncustomers

•24,000 square miles ofservice territory

•6.5 million gas meters•1.4 million electric meters•SoCalGas is the largest

natural gas distributionutility in nation

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Electric T&D Facilities

•Transmission (500 kV, 230 kV, 138 kV & 69 kV)•1,798 miles overhead•70 miles underground•14,126 structures•17 substations•199 tie-lines

•Distribution (4 kV & 12 kV)•9,351 miles underground (60%)•6,885 miles overhead (40%)•220,362 wood poles•260 substations•952 circuits

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Distribution One Line

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Smart Green Grid Scopeenables new behaviors thatdrive value

•Electric grid evolves toincorporate advances incommunication systems,operational technologies andinformation technologies

•Ubiquitous communicationsbackbone•Distributed sensors•New and/or automated control

methodologies•Real-time ratings

•Operational technologies•Alternative system designs•Distributed Energy Resources•Predictive and condition

based maintenance•Information technologies

•Asset optimization•Operational excellence•Customer participation

ScopeDetect emerging problems and fixthem before they seriously impactquality of service.

Incorporate extensivemeasurements, rapidcommunications, advanceddiagnostics, and feedback controlto return the system stability

Reroutes power flows, changeload patterns, improve voltageprofiles, and take othercorrective steps, within secondsof detecting a problem.

Enable consumers and utilities toadjust loads and distributedresources to integrate withoperations.

Use modern tools to improvedesign and operation withreliability, security, efficiency,and safety as fundamental values

Behavior

To utility Operations, asset

management, distributedgeneration

To consumer Real-time access: information,

choicesTo society

Renewables, jobs, marketopportunities

To regulators Aging assets, competition,

modern economy,environment, reduceddependence on petro

To environment Peak shifting, peak shaving,

reduced emissions

Value

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Attributes of theSmart Green Grid

Self-healing A grid able to rapidly detect, analyze, respond

and restore from perturbations.

Empower and incorporate the consumer The ability to incorporate consumer equipment

and behavior in the design and operation of thegrid.

Tolerant of attack A grid that mitigates and stands resilient to

physical and cyber security attacks.

Provides power quality needed by 21stcentury users A grid that provides a quality of power consistent

with consumer and industry needs.

Accommodates a wide variety ofgeneration options A grid that accommodates a wide variety of local

and regional generation technologies (includinggreen power).

Fully enables maturing electricity markets Allows competitive markets for those who want

them.

Optimizes assets A grid that uses IT and monitoring to continually

optimize its capital assets while minimizingoperations and maintenance costs.

Grid-wide integrated communications Internet for the power grid

Sensing, metering, measurement Digital two-way communication devices Enable generation connect and disconnect Enhance operator information

Advanced control capabilities Computer based grid monitoring Enables dispatch of distributed resource

Advance grid components Energy storage Distributed generation

Decision Support Analytics to guide grid operators Semi-autonomous agent software

Func

tion

al

Tech

nolo

gy

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Modern Grid Initiative

PerformanceEmergencyRestorationRoutine OperationsOptimizationSystemsPlanning

Principle CharacteristicsSelf-healingEmpowers and incorporates theconsumerTolerates security attackProvides 21st century power qualityAccommodates a wide variety ofgeneration optionsFully enables electricity marketsOptimizes asset use; minimizesO&M expenses

Key TechnologiesIntegrated communicationsAdvanced control methodologiesSensing, metering, and measurementAdvanced grid componentsDecision support and human interfaces

MetricsCongestion costsBlackout probabilitySAIFIRestoration timeCAIDIPeak-to-average load ratioCapacity utilization

Key Success FactorsReliabilitySecurityEconomicsPower qualityEfficiency andenvironmental qualitySafety

PrincipleCharacteristics

Performance

Metrics

KeyTechnologies

KeySuccessFactors

PerformanceEmergencyRestorationRoutine OperationsOptimizationSystemsPlanning

Principle CharacteristicsSelf-healingEmpowers and incorporates theconsumerTolerates security attackProvides 21st century power qualityAccommodates a wide variety ofgeneration optionsFully enables electricity marketsOptimizes asset use; minimizesO&M expenses

Key TechnologiesIntegrated communicationsAdvanced control methodologiesSensing, metering, and measurementAdvanced grid componentsDecision support and human interfaces

MetricsCongestion costsBlackout probabilitySAIFIRestoration timeCAIDIPeak-to-average load ratioCapacity utilization

Key Success FactorsReliabilitySecurityEconomicsPower qualityEfficiency andenvironmental qualitySafety

PerformanceEmergencyRestorationRoutine OperationsOptimizationSystemsPlanning

PerformanceEmergencyRestorationRoutine OperationsOptimizationSystemsPlanning

Principle CharacteristicsSelf-healingEmpowers and incorporates theconsumerTolerates security attackProvides 21st century power qualityAccommodates a wide variety ofgeneration optionsFully enables electricity marketsOptimizes asset use; minimizesO&M expenses

Principle CharacteristicsSelf-healingEmpowers and incorporates theconsumerTolerates security attackProvides 21st century power qualityAccommodates a wide variety ofgeneration optionsFully enables electricity marketsOptimizes asset use; minimizesO&M expenses

Key TechnologiesIntegrated communicationsAdvanced control methodologiesSensing, metering, and measurementAdvanced grid componentsDecision support and human interfaces

Key TechnologiesIntegrated communicationsAdvanced control methodologiesSensing, metering, and measurementAdvanced grid componentsDecision support and human interfaces

MetricsCongestion costsBlackout probabilitySAIFIRestoration timeCAIDIPeak-to-average load ratioCapacity utilization

MetricsCongestion costsBlackout probabilitySAIFIRestoration timeCAIDIPeak-to-average load ratioCapacity utilization

Key Success FactorsReliabilitySecurityEconomicsPower qualityEfficiency andenvironmental qualitySafety

Key Success FactorsReliabilitySecurityEconomicsPower qualityEfficiency andenvironmental qualitySafety

PrincipleCharacteristics

Performance

Metrics

KeyTechnologies

KeySuccessFactors

PrincipleCharacteristics

PrincipleCharacteristics

PerformancePerformance

MetricsMetrics

KeyTechnologies

KeyTechnologies

KeySuccessFactors

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Vision Statement

• will provideenvironmental and economic benefit bytransforming the energy value chain viaan evolving energy and informationnetwork that is resilient, open, anddynamic; enabling the activeparticipation of customers, utilities, andsuppliers in energy usage and supplydecisions.

“Green”

Resilient

Quality-focused

Opportunistic

Motivating

Accommodating

Efficient

Intelligent

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Energy Flow

Future Vision - SDG&E’s

Smart Market Smart Utility Smart Customer

Wind

Nuclear

Fossil ConditionBasedMaintenance

Mobile Field ForceBattery Storage Self-HealingGrid

Smart HouseWith Solar

Plug-In Hybrid

Home EnergyControl Device

Fuel Cell

Smart Office

Solar

Smart Meter

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What does it mean to keyStakeholders?

• Effectively manageenergy to meetspecificpersonal/householdgoals such as cost,availability, andenvironmental impact

•Generate their ownelectricity and sell itback to the grid

• Reduction in utilitybills

• Prevent outagesbefore they occur bysensing potentialfailures

• Reduce peak load bycommunicating withcustomers

• Extend asset life bysensing and managingthe stress placed onaging equipment

• Reducing powerdemand to takeadvantage of off-peaksupply such as wind

•Maintain a sufficient,cost effective powersupply while managingstringent GHGemissions

• Use of ElectricVehicles will reduceGHG contribution

Customer Utility Environment

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Foundational To Smart GridS

MA

RT

GR

ID

Optimize use oftechnology to improve

service to customers andoperational efficiency

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SDG&E Smart MeterProgram

•$572 million capital project installing1.4 million electric and 900,000 gasmeters in service territory by Q4 2011•Two-way communication meters•Remote disconnect and Home Area

Network capability•Opportunity for real-time pricing and in-

home servicesInitial Test Phase - 5kMeters to be Installed

Q2 2008

Begin Mass Meter Installation

Q2 2009

Complete MeterInstallation

Q4 2011

2007 2008 2009 2010 2011

Final CPUCDecision

April 2007

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OpEx 20/20 –Smart Grid Foundation

•OpEx 20/20 includes 20 enterprise technology and process initiativesthat will upgrade capabilities over a 15 year period in:•Transmission & Distribution for Electric and Gas Operations•Back-office Field and Mapping Support•Customer Services Field•Customer Contact Centers•IT Infrastructure and Network

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OpEx 20/20 Initiatives

Our Customers

Our Assets

Our Field Processes

Geographic Info System (GIS)Asset Mgmt SystemOutage Mgmt SystemCondition Based Maintenance Operational Analytics

Outbound DialingEnhanced Self-Service Options

Work Mgmt SystemForecast/Schedule/Dispatch/MobileReal-time RoutingElectronic Design

Service Oriented ArchitectureEncryption & AuthenticationIdentity & Access ManagementEnterprise Info & Analytics

TechnologyFoundations

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•Operational initiatives•Outage Management System/Distribution Management System•Condition Based Maintenance –Smart Substations•Feeder automation system technologies

•Pilots of autonomous, automated switching, 7 circuits 2nd Q09 (self-healing)

•Department Of Energy funded Smart Grid Research•Grid Design: Utility-owned DG and Consumer-owned DG

•Pending CEC funded Smart Grid Research

•Other Smart Grid Initiatives•Advanced conductor R&D•DER incorporated into the planning process•Real Time Phasor Measurement Data•Real Time Equipment Ratings•Distribution Fault Location•Predictive Analytics

•Green Initiatives•Sustainable Communities•PHEV

Smart Green GridInitiatives

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•Key points•The OMS/DMS initiative will identify the area and customers out of

service and enable faster restoration times

•The OMS/DMS initiative will enable enhanced monitoring of thedistribution system, resulting in controlling actions to mitigate voltage andpower flow problems

•The OMS/DMS initiative is a key enabler to future Smart Gridapplications

•Why is this so important?•The enhanced control of the distribution system results in increased

public safety, better response to adverse events and increased operatorsituational awareness

What is OMS/DMS?

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Current StateFuture State

Manually Design Switching plans toresolve un-planned outages usingmanually maintained operatingmaps

Select Switching Plan fromautomatically calculated scenarios.Uses Real Time Information fromSCADA and CBM monitors

OMS/DMS

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Smart Substations

• Use technology (hardware/software) to assess the condition andperformance of substation transformers and breakers to makebetter maintenance decisions

• Technology: Sensors will provide diagnostic information to facilitate amore focused maintenance strategy

• Software will enable analysis of measured data•Maintenance is shifted from “Time-Based”to

an “As-Needed”basis

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Project Vision

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•Implementation of Feeder Automation SystemTechnology (FAST) Pilot•First step towards implementation of the Smart

Grid/Self-Healing concept•Switches on the SDG&E electric distribution system will

operate automatically•Piloting two different approaches•Decentralized –Uses distributed intelligence with point to point

communications•Centralized –Uses the SCADA Master for direct point to multi-point

communications with switches in the field

Self-Healing Grid

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Self Healing GridCentralized Approach

•Relies on existing hardware•Relies on existing communication system•Software costs & Circuit modeling costs

SCADA Master 42-4

442

-45A

E

SCADAMate

SCADAMate

Substationfault

416-

T2-5

51

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Self Healing GridDe-centralized Approach

•Requires specific field hardware•Localized communication•Limited software and circuit modeling costs

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Stepping Over theThreshold: The Next 10Years

•Smart Meters•Microgrid•Technology

Upgrades•Solar and Other

Renewables•Sunrise Powerlink

Smart Green Grid

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Energy Storage Perspective -Wind

figure 2. Wind turbine power curve.Typical Output of Wind Turbine Versus Wind Speed

120%100% Typical Operation

80%60% Fast Ramp Cutoff

40%20%0%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30Wind Speed ( m/s)

56 IEEE power & energy magazine march/april 2009

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Energy Storage Perspective -Wind

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Energy Storage Perspective -Solar

From a SunPower Presentation

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Energy Storage Perspective –Electric Vehicles

“This morning, we are announcing our partnership with Nissan to help bring one-hundredall-electric vehicles to San Diego. This regional partnership is aimed at assessing zeroemission mobility for the San Diego region, and the first step in delivering all the benefitsthat can come along with it a reality. In this partnership, SDG&E and SANDAG willcoordinate the deployment of electric vehicles throughout the region. SDG&E has enteredinto this agreement to lead the charge for the region, and assist others in incorporatingthese vehicles into their fleets and daily.”

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SEu Smart Grid ProjectsTo-Date

Includes projects pending CPUC approval

2009 2010 2011 2012 2013DOE/CEC Microgrid

Solar Power Initiative

Sustainable Communities

Self Healing Grid Pilot

PHEV Integration

Grid Communications

Enhanced Outage and Distribution Management

Smart Substations

Geographic Information System

Asset Investment

Customer Enhancements

Mobile Field Force Deployment

Smart Metering - SDG&E

Smart Metering - Gas

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Practical Implementation?

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Roadmap Approach

Opt

imiz

esA

sset

san

dO

pera

tes

Effi

cien

tly

Sel

f-H

ealin

g

VISION Key Strategic Themes

Current and Future Projects & Initiatives

2020

Utility

Customer

Regulator

3rd Party

The Smart Green Grid is a business transformation that has distinct keythemes at different phase of development.

Mot

ivat

es&

Incl

udes

the

Cus

tom

er

Res

istA

ttack

s

Pro

vide

sP

ower

Qua

lity

for

21st

Cen

tury

Nee

ds

Acc

omm

odat

esA

llG

ener

atio

nan

dS

tora

geO

ptio

ns

Ena

bles

Pro

duct

s,S

ervi

ces,

&M

arke

ts

Seven Smart Grid characteristics as defined by DOE

Pointof

View

2010 2015

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Automated outage detection,restoration, and customernotificationExpanded SCADA & line devicesSelf Healing Grid technologies inplace

Traditional utility relationship withcustomer is changing due to moremature new services for customersLoad control with DRBundled servicesDER Aggregation (including PHEV)

Major regulatory issues are solvedData ownership and accessCross jurisdictional conflictsT&D renewables strategy

Smart Green GridRoadmap

Energy Policy Goals

Deploy base technologiesSmart meters installedOMS/DMS systemMicrogrid Pilot

New Customer programs offered byUtilities

Dynamic PricingEE, Demand ResponseHAN, Energy Management

Many Smart Grid components areinitially deployed

Self-healing-grid technologies infull deploymentMicrogrid technology deployed

and self sustaining communityconcept demonstratedPHEV infrastructure pilots

Customer supply side & storagedecisions become the norm

Significant DER PenetrationAdditional Microgrids wherecost effective“Customers as resources”

PHEV adoption rises- utility becomes"gas station of the future“

PHEV adoption emerges as acritical component of DERCharging infrastructure in placePHEV rates in place (charge &discharge)

Advanced grid technologies in placeCBM, Cable DiagnosticsAdvance Energy Storage tosupport RPS goalsSelf-healing grid is a reality

20% RenewableEnergy penetration

33% RenewableEnergy penetration

2016California Solar Initiative

3000 MW30% Greenhouse Gas

emission reduction fromprojected levels

2010

2009 - 2011

2020

2016 - 20202012 - 2015

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Summary & Next Steps

•Historically, SDG&E has been proactive in incorporating newtechnologies.

•We fully believe and endorse the need to create a power grid thatmeets the growing and changing needs of customers.

•Many significant challenges need to be overcome to “do it right”.•Advancements in IT and communication systems are accelerating and

provide opportunities to achieve operational efficiencies, streamlineprocesses and incorporate new technologies.

• Incorporate modern grid technologies and building blocks whenavailable and cost effective.

•Alignment of Smart Grid Vision: federal, state and industry• Follow-through on foundational initiatives• Roadmap for the future

•Coordinate proceedings•Guidance to industry•RD&D for new technologies currently not cost effective

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