SOUTHERN CALIFORNIA EDISON SM Local Capacity Requirements (LCR) RFO for New Resources and Other SCE Solicitations Stu Hemphill September 26, 2013

SOUTHERN CALIFORNIA EDISON SM Page 1 SCE’s LCR Procurement Authorization D orders SCE to procure the following resources by 2021 to meet LCR need due to the expected retirement of OTC units –Authorizes bilaterally negotiated AB1576 “cost of service” PPAs –West LA Basin gas-fired generation beyond minimum consistent with the preferred loading order –Moorpark Sub-Area has no specific technology requirements (consistent with loading order) West LA Sub-Area Moorpark Sub-Area: MW in Ventura/Big Creek

SOUTHERN CALIFORNIA EDISON SM Page 2 RFO Schedule TimelineEvent September 12, 2013RFO documents issued December 2, 2013 Deadline to submit Non-binding Notice of Intent to Offer December 16, 2013 Deadline to submit Indicative Offer and completed Offer Submittal Package January 30, 2014Shortlist notification May 22, 2014Deadline to complete negotiations of Agreement(s) May 29, :00Deadline to submit Final Offer June 26, 2014 Last date for notification of successful Offers and to sign Agreements SCE will run a two round RFO process Bidders Conference will likely occur on October 16 –Check the RFO website for details

SOUTHERN CALIFORNIA EDISON SM Page 3 LCR RFO Commercial Highlights SCE has prepared seven pro-forma contracts: –Energy Efficiency –Demand Response –Energy Storage –Resource Adequacy Pro forma contracts are intended to capture the majority of the offers, but can be customized to meet any offer –SCE regularly negotiates the terms of its pro forma contracts LCR RFO documents can be found at on.sce.com/lcrrfo –Questions should be directed to –Renewable –Combined Heat and Power –Conventional Gas-Fired

SOUTHERN CALIFORNIA EDISON SM Page 4 LCR Challenges Geographic constraints – Western L.A. basin Timing – resources need to be available in 2021 Availability of 50 MW of energy storage? Availability of emissions permits Resource counting

SOUTHERN CALIFORNIA EDISON SM Page 5 Highlights of SCE’s Track 4 LTPP Testimony CPUC’s LTPP Track 4 is intended to identify incremental need due to the closure of SONGS SCE has requested 500 MW of initial additional authority that would be procured through its LCR RFO –The remainder of any Track 4 procurement authorization provided to SCE would be purchased in a separate solicitation SCE has proposed to develop sites for 500 MW of contingent generation to backstop its proposed Preferred Resource Pilot –If needed, these contingent generation projects would be secured from the market through a competitive process for IPP construction and ownership under a PPA with SCE SCE has also proposed to contract for “options” for up to 1000 MW of generation as a backstop for transmission development and LTPP planning assumptions not materializing –SCE would sign PPAs with a termination right for SCE that would cover the IPP’s project development costs

SOUTHERN CALIFORNIA EDISON SM Page 6 SCE Solicitations SolicitationTimeline RAM5/6/13 – 9/30/13 (similar schedule in 2014) RA RFO8/22/13 – 9/27/13 SPVP9/4/13 – 2/3/14 CHP RFO9/12/13 – 4/1/14 LCR RFO9/12/13 – 6/24/14 CAM Energy AuctionsAuctions close 10/21/13 (El Segundo & Walnut) Re-MATBi-monthly starting 11/1/13 RPS RFOExpected 12/13 – 9/14 GHG Offset RFOAnticipated Q1, 2014 All Source RFOAnticipated 7/14 – 10/14 Transmission RFOAnticipated Q3, 2014 Energy Storage RFOAnticipated 12/14