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

Metering America March 24, 2009

Ted M. Reguly Smart Meter Program Director

SDG&E

AMI Applications at SDG&E

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About Sempra Energy

Ranked 210 on the Fortune 500 listHeadquartered in San Diego29 million customers worldwide14,000 employees worldwideRevenues of $11 billion in 2008Net income of $1.1 billion in 2008Ranked #2 on Fortune Magazine’s Most Admired Companies in the Electric and Gas Utility industry (2008)

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Sempra Generation

Sempra Pipelines & Storage

Sempra LNG

RBS Sempra Commodities*

Sempra Global

Sempra Energy

San Diego Gas & Electric

Southern California Gas

Sempra Utilities

Regulated utility providing service to 3.4 million consumers

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California

Southern CaliforniaGas Company

San Diego Gas & Electric

San Diego Gas & Electric

• Service area 4,100 square miles, covering two counties, 25 cities

• Owns 1,835 miles of electric transmission lines and 21,601 miles of electric distribution lines

• Operates two compressor stations, 166 miles of natural gas transmission pipelines, 8,100 miles of distribution pipelines and 6,197 miles of service lines

• 4,500 employees• Solar Electric Power Association

(SEPA) ranked SDG&E No. 4 among U.S. utilities for installed solar power and power capacity

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Program Overview

$572MM Capital/O&M approved by CPUC April 2007

• Install 1.4 million smart/AMI electric meters for all customers• Solid-state electric meter technology with ZigBee chip

• 2-way communications• 4 channels

• Electric interval data reads• Residential hourly, C&I 15 mins.

• Remote disconnect/connect integrated within 200 amp meter

• Programmable load limiting switch

• On demand reads, demand reset• Adding module to

existing 900,000 gas meters • Daily gas reads• ZigBee; talks via electric meters

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Program Overview cont.

• Next-day data for customers online/phone• Home area network (HAN) - ZigBee

• Local connectivity to remote devices, load control technology • Case includes 57K programmable communicating thermostats (PCTs)

for Small/Medium C&I • 55% Operational benefits, 45% Demand Response• Support price responsive tariffs (TOU, CPP, PTR, etc.)• Information systems, MDMS, integration with legacy systems • Firmware downloadable to the meter/module• Remote device configuration/firmware & feature updates• Tamper/theft• Voltage• Outage/restoration• Advanced security architecture

focused on end-to-end solution

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Project Approach

• Vendor and technology neutral as possible• Vertical integration where it makes sense

• Open standards, standards-based architecture • Interoperability, future-proofing• Thorough RFP process• Consistent focus on business improvement• Recognize this is nascent technology

• This is not business as usual• Risk management

• Phased release approach• Rigorous testing• Robust security architecture• Walk before running

• Focus on internal and external stakeholders• It’s all about the customer

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Smart Energy “Ecosystem”

Energy Flow

Gas Storage

Energy Storage

Enhanced Oil RecoveryCO2

Fuel Cell

Smart Home

Smart Office

Solar Power

Smart Grid and OpEx

Biofuels

Smart Meter

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Accomplishments

• Started Mass Deployment on 3/16/09 • Smooth cut over – exceeded expectations• Day-to-day deployment activities

running well

• Business process design and automation

• Moved all IT systems into Production: new and legacy

• Completed SDG&E infrastructure build out on schedule/on budget

• Completed successful 5K endpoint test

• Solid partnerships continue to support milestone delivery

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Lessons to Share

• Learn from other utilities

• Put more emphasis on cross-functional interdependencies

• Deep dive into requirements before you move to design• Go to the task level early

• IT programs/systems integration are complex

• Frequent internal and external communications

• Scope, scope, scope

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Mass Deployment Schedule 2009

Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 2010+

Mass Deployment

Starts

Slow ramp-up

Customer Mailings

Start

Online Presentment Available in My Account: Usage

Information Only – No $s

Starts with Residential and Small C&I Installs

Simple Billing Customers Only

Plan to install 200K electric meters/gas modules

-Continually Research and Refine Processes and Collateral-

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Mass Deployment Schedule 2010-2011

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

First Summer of Smart Meter Enabled Residential Rate (PTR) for installed customers Program Complete

Enhanced Online Presentment

Available: Residential Rate

Peak Time Rebate (PTR) including

Cost/$s

Smart Meter Enabled Rates Residential & C&I (PTR/CPP-D/CPP-S)

for installed customers

Large Assigned Account Meters To Be Changed

Out (these are the existing “communicating”

meters via MV-90)

-Continually Research and Refine Processes and Collateral-

Medium and Large C&I Installs Start

Complex Billing Available Time-of-Use

By end of 2011, complete installation of 1.4M electric meters and

upgrade of 900,000 gas meters

HAN devices expected to be commercially

available

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SDG&E Future Vision

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Home Area Network (HAN) – Vision

• CA IOU’s AMI HAN Vision (June ’07)“Enable responsive, smart energy environments within the home that are

gracefully integrated with people”

• Satisfy higher customer experience expectations

• Demand response enabler• Direct load control• In-Home notification of

peak day events and price• Programmable communicating

device/thermostat communication

• Energy conservation enabler• Enables energy information for customers• Near real time energy feedback

• Ubiquitous deployment provides market catalyst for enabling commercial energy innovations

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HAN – The Future

Areas identified as necessary longer term priorities:

• OpenHAN certification process• Develop common testing criteria• Compliance with requirements

• Encourage new HAN devices• Distributed generation metering• Plug-in vehicle energy measuring • Appliance communication & optional control modules

• New program development• Work with DR, EE and conservation programs• Investigate integrating with Web-presentment

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Home Area Network (HAN)• Emerging market in terms of capabilities – RFP now underway

• Demand Response (DR) and Load Control• Basic metering [measurements, historical information, etc]• Pricing [rate information, price tiers, TOU rate]• Text messages [short ~80 characters]• Security• Open standards and protocols that comply with nationally recognized non-proprietary

standards, inter-operability (working with the other CA IOU’s)• Supports three types of communications: public price signalling, consumer specific

signalling and control signalling• Supports solar/distributed generation, plug-in hybrid metering, gas and/or water meter

communications, back office to Internet

• Type of information/devices customers will eventually see• Real-time usage data (unlike next day with online presentment) • Programmable communicating devices/thermostats (PCTs)• In Home Displays (IHDs)• Load Control Devices• Energy Management Systems, etc.• Sub-metering and prepayment systems

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Online Presentment

• Basic usage presentment • Residential solution from Itron• Provided to customers with meter(s),

validated data via My Account• Next day information• Includes carbon calculation• Looking at adding Tiers

• Third party presentment providers

• Customer co-design process to develop tools/offers• Employees and customers participating

in testing/developments

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Foundational To Smart GridS

MA

RT

GR

ID

Optimize use of technology to improve

service to customers and operational efficiency

2020

Sempra Utilities Network Vision

• Lower total cost of ownership• Reduce complexity• Increase service level availability, improve reliability

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• Information available on • Internet www.sdge.com/smartmeter