Locational Net Benefit Analysis Working Group June 1, am – 3 pm Webinar drpwg.org

Agenda TimeTopicPurpose 1:00 – 1:15Introductions & OverviewIntroductions Purpose of Meeting 1:15 – 2:45Review LNBA Implementation PlansReview LNBA Plans Discuss CPUC Decision process WG Participation 2:45 – 3:00Next Steps and QuestionsSchedule for June 9 th meeting 2

LNBA WG PURPOSE - Pursuant to the May 2, 2016, Assigned Commissioner’s Ruling (ACR) in DRP proceeding (R ), the Joint Utilities are required to convene the LNBA WG to: 1.Refine LNBA Methodologies and Requirements 2.Authorize Demonstration Project B CPUC Energy Division role Oversight to ensure balance and achievement of State objective Coordination with both related CPUC activities and activities in other agencies (CEC, CAISO) Steward WG agreements into CPUC decisions when necessary More Than Smart role Engaged by Joint Utilities to facilitate both the ICA & LBNA working groups. This leverages the previous work of MTS facilitating stakeholder discussions on ICA and LBNA topics. 3 LNBA Working Group Background

May 2 nd, Assigned Commissioner Ruling on ICA May 12 th, 2016 – First Joint Utility meeting on ICA and LNBA June 1, 2016 (Today) – First in person meeting to get input on Joint Utility Implementation plans; June 9, 2016 – In person meeting to discuss LNBA Implementation Plans June 15, 2016 – Joint Utilities file 3 separate LNBA plans to CPUC July, Q1, 2017 – Monthly LNBA WG meetings re/LNBA implementation Q1, 2017 – Joint Utilities submit final LNBA plans to CPUC. 3 DRAFT LNBA Working Group Schedule

Introduction This presentation highlights the joint effort between the three IOUs to develop their implementation plans Information in this presentation represents early work and may change as additional feedback and work is incorporated to the implementation plans 5

Demonstration B Goals Satisfy commission requirements for Demo B Demonstrate locational variability of DERs’ benefits Provide stakeholders with a map that will contain information on specific project details and a heat map of the LNBA results 6

Demonstration B Milestones Five major categories: Planning Area Selection Distribution Upgrade Projects in Selected Planning Area(s) Calculations Visualization of Information Stakeholder Engagement 7

Planning Area Selection Define and identify distribution planning area(s) (DPA) Meet the requirements of the ACR Select areas that are typical of the larger system 8

Projects in Selected DPA(s) Identify distribution upgrade projects within the DPA(s) under two DRP growth scenarios DRP growth scenarios – trajectory and very high DER penetration Document distribution upgrade projects in DPA(s) Location, type of upgrade, timeframe, equipment etc. Include all upgrades identified in planning, reliability and maintenance processes 9

Calculations Identify DER deferrable projects and requirements to meet need Calculate indicative locational net benefits for locations within the DPA(s) Indicative LNB calculated across entire DPA(s) Locations which align with a deferrable T&D project will include T&D deferral benefit For non T&D benefits, IOUs will follow the primary analysis as indicated in Table 2 of the ACR To ensure alignment, the IOUs have enlisted E3 to develop the LNBA methodology for Demo B 10

Visualization of Information Create LNBA map that will: Indicate all project locations with specifics of project needs Overlay LNBA results in the form of a heat map Overlay DER growth forecasts in the form of a heat map LNBA Maps will be provided along with ICA maps 11

Stakeholder Engagement File implementation plan for Demo B Seek feedback from working group on implementation plans Report progress on Demo B Provide monthly updates to Demo B working group Submit final Demo B report Solicit feedback from working group prior to submission of the final report 12

13 Demonstration B LNBA – Gantt Chart OctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptember Final Report Implementation Plan 2016 Status Report to WG: DPA Selections Calculate LNBs & develop requirements Monthly Updates to LNBA Working Group on Demo B progress Develop LNBA Maps and Outputs Select DPAs Status Report to WG: Projects in DPA(s) Status Report to WG: LNB Methodology Deep Dive Status Report to WG: Calculated LNBs and Requirements Status Report to WG: Mapping and Output Format Discussion Identify and Document Distribution Upgrades in DPA(s) Under Two DER Growth Scenarios Status Report to WG: Lessons Learned and Future Refinements