SDG&E Generation Additions Jim Avery Chief Development Officer

All-Source Local Reliability RFO CPUC Authorized SDG&E to procure 500 – 800 MW of local resources – Resources must be shown they are incremental to assumed additions included in need study RFO Timeline: – Released: September 2014 – Bids Due: January 2015 – Short List: June 2015 – File Contracts with CPUC: Q (estimated) SDG&E’s A requesting authority to enter into a long-term Power Purchase Tolling Agreement with the Carlsbad Energy Center Project was approved by the CPUC in May 2015 – SDG&E’s Advice Letter incorporating the Decision’s requirements was approved in July 2015 – Application for Rehearing currently pending before the CPUC – Expected online date November

Preferred Resource Procurement The Sunrise Powerlink – the ultimate super highway to renewables 33% RPS in 2015 RPS – What’s next? 3

Borrego Springs Micro Grid Borrego Springs was selected for: Isolated community of 2,800 customers Over 70 miles from EHV transmission network Long transmission and radial nature creates challenges High concentration of solar – both distributed and central station Ability to island the entire community Replicable utility scale model 4 The project integrates: 26 MW central station PV 1 MW rooftop solar 4.65 MWh central station storage 0.15 MWh distributed storage 3.6 MW generation Advanced switching, protection, and control capabilities to improve reliability and power quality