Integrated Distribution Planning Process More Than Smart September 8, 2015

Distribution planning fundamentals Adapt grid to satisfy customer needs Utilize engineering and planning criteria focused on safety and reliability Explore and select alternatives balancing reliability, cost, and environmental goals Solutions for capacity, must incorporate power quality measures Not about supply-demand balance Adapt grid to satisfy customer needs by identifying system requirements and mitigations, projects and alternatives

Future Distribution planning process Develop Forecast Customer growth DER projections coordinated with CEC IEPR Identify Distribution Needs Current capacity assessment Planned projects Operational characteristics Operating flexibility System performance Evaluate alternatives Follow deferral framework Traditional projects DER options Cost / Benefit Integrated Distribution Plan Set of projects Grid modernization plan Integrated Capacity Analysis Optimal locations identification Identified DER options and time frame Develop Forecast Customer Service Programs Organic DER Growth Econometric Data Spatial Data (e.g. clustering) Analysis of recorded circuit load profiles Historical load growth Incorporate procured DERs Evaluate resource performance including dependability 8760 forecast by year Forecast of DER by type with typical profiles Identify Distribution Needs Verify asset data – e.g. rating limits, age, etc. Connectivity model verification – relationships between substations and substations and circuits. Evaluate configuration changes Incorporate Future Project Changes on Capacity – Transformer Heat Run Database Protection Database Circuit Model Databases Utilized for ICA, IVVC, circuit planning Future bank increases Future DER portfolios Planned reconfigurations Near-term re-configuration of circuitry to balance loading and/or generation Evaluate project alternatives Determine traditional project Evaluate 8760 profile vs capacity Determine capacity increased necessary to meet forecasted demand Determine Deferral value per year (benefit) Evaluate project cost and calculate deferral value per year (RECC method) Determine other benefits LNMB categories such as: energy, losses, gen capacity, ancillary services, T&D capex, voltage/pq, reliability/resiliency, environmental, rps, renewable integration costs, societal, public safety Determine Portfolios of DERs Determine profile needed to mitigate violation Evaluate physical feasibility Evaluate economic feasibility Consider loading order Evaluate assumed resource profile and compare to need Determine resource mix Perform PV assessment Evaluate EE and DR potential Determine interconnection constraints/limitations Timing considerations Evaluate Methods to Obtain Portfolio Competitive offering SCE owned deployment Focused marketing Incentive mechanisms Determine Portfolio Cost per Year Cost for portfolio obtainment Cost for interconnection upgrades (e.g. breakers, reconductors) Determine Net Benefit per Year Determine which Project to Execute Project initiation (traditional projects) Document scope, cost, need data Obtain approval and submit EPEF and PMWIF Project initiation (DER portfolio) Identify mix of SCE and 3rd party resources Identify timing of resource need Identify avenues of procurement Schedule and launch RFOs Execute Targeted DSM programs Distribution plan Projects to be initiated Project initiation Interconnection process Competitive solicitations Customer program design

Discussion Additional criteria? Resiliency metric? Policy driven needs?