1 R Reliability Reporting (PU Code §2774.1) Workshop II, Day 1 California Public Utilities Commission May 26, 2015, 10:00 a.m. – 4:00 p.m. David Lee, Dave Erickson, and Sreekumar Gopakumar, Energy Division Staff

Safety and Emergency Information In the event of an emergency, please calmly proceed out the exit. In the event that we do need to evacuate the building: Go out of the exit and you will be on Golden Gate Avenue. Proceed west to Franklin Street. Turn north onto Franklin Street. Turn west onto Turk Street and proceed to Gough Street. Our assembly point is Jefferson Square Park on Turk and Gough Streets. 2

Other Information Call in information: Conference phone line: Participant code: WiFi Access: login: guest password: password Restrooms: Through the Main Lobby toward the Cafeteria Reliability Website: All presentations will be posted on the reliability website

4 Workshop Agenda Morning 10:00 – 10:20 am: Safety, Housekeeping, Workshop Goals, Introductions 10:20 – 11:20 am: Describe program(s) for reliability improvement (Each IOU) a.Describe how reliability improvement projects are defined and paid for 11:20 – 12:10 pm: Define deficiency as referenced in the code: a.Discuss methodology used by each to determine reliability problems. b.How can “deficiency” be characterized in terms used by the utility to identify reliability problems? 12:10 – 1:15 pm:Lunch

Afternoon Agenda 5 2:15 – 4:45 pm: Discuss how Commission can best review reliability improvement plans to determine whether cost-effective remediation is being conducted on “deficient” circuits or areas. (Recommended times below): 2:15 – 2:45 pm: How is a “repeated deficiency in an area” meaningfully characterized in terms used by the utility? 2:45 – 3:15 pm: How should “cost-effective remediation” be defined and how does it relate to utility practices? 3:15 – 3:25 pm: Break 3:25 – 4:25 pm: How should the Commission ensure that remediation projects proposed by the utility are, in fact, the most effective projects at improving areas that are “deficient”? 4:25 – 4:45 pm: Mitigating factors that might impede remediation of deficient areas including safety 4:45 – 5:00 pm: Wrap up and Adjourn

Workshop Purpose to educate stakeholders on existing reliability improvement program and project selection process for each utility. to discuss how the Commission can best review reliability improvement plans to determine whether cost-effective remediation is being conducted on “deficient” circuits or areas. 6

Workshop Goals and Objectives robust addition to record on the case. improved understanding of existing reliability improvement programs and project selection processes. develop consensus on recommended approach for each utility to report on reliability improvement data, reporting schedule and review process for the CPUC to ensure that cost effective remediation is occurring, subject to mitigating safety factors. 7

8 Thank you! For Additional Information: David Lee or Dave Erickson