1. PG&E’s Distribution Resources Planning READ AND DELETE For best results with this template, use PowerPoint 2003 Planning the “Networked Grid“ Integrated Distribution Planning Building the Networked Electricity Grid Post Conference Workshop Mark Esguerra, P.E. March 17, 2016

2. “Systems Check” Tools & Technology Data & Data Analytics Processes People 2

3. 3 Advanced Planning Tools and Data Sets PG&E upgraded its planning tools 4 years ago to enhance planning process and accuracy Load and DER Hourly Profiles - Load profiles for every distribution feeder - Compares load profiles against representative DER hourly profiles to determine hourly impact -LoadSEER developed by Integral Analytics Geospatial Distribution Feeder Models - Simulate power flow effects on distribution lines granular down to final line transformers - Utilizes advanced automation scripting features - CYMDIST by CYME International

4. Determine Distribution Grid’s Baseline 4 How much DER can the distribution system host? ―Hosting Capacity Granularity of assessment ―Area ―Substation ―Feeder ―Line section Location matters Time matters

5. Streamline the Interconnection Process 5 Initiation and Application Planning and Studies Interconnection Agreement Project Implementation Permission to Operate Online Application Portal Staffing adjustments and process improvements Application simplification

6. Integrated Distribution Planning Process (IDPP) Assumptions, Scenarios & Scope Distribution Planning Assessment Distribution Grid Needs Evaluate Options Distribution Portfolio Distribution Grid Studies Thermal Voltage Protection Safety and Reliability Develop forecasts, assumptions and planning scenarios. Integrated Distribution Planning Framework Prioritize Grid Needs Locational Net Benefit Analysis Investment framework/technical Feasibility Implement “Wires” alternatives for locations deemed infeasible for DERs Implement “Wires” Solution 1 2 5 3 4 6 Distribution Grid Needs Load Serving Capacity DER Hosting Capacity DER Aggregator Requirements Coordination with Transmission Planning Sourcing Process to satisfy needs identified in IDPP Sourcing Process to Satisfy IDPP Needs

7. Assumptions and Scenarios Load Forecast Start with System Level – Utilize CEC’s IEPR (top down) forecast to establish system forecast. Distribution Planning Area – Utilize historical loading, economic indicators & temperature data to develop 1-in-10 year temperature adjusted load forecast down to distribution planning areas. Substation Bank and Feeder Levels – Utilize demographic economic, historical customer class consumption data at transformer and feeder level to simulate and forecast new customer growth geospatial. DER Forecast Factor existing and planned DERs Develop multiple DER Growth Scenarios – Future Efforts: DER profiles to be incorporated into load shapes just as loads are incorporated and accounted for towards forecasts. » Lessons learned from pilots » Multiple use application devices System Level Local Variables Forecast 7 1 Customer Shapes Total Feeder Shape DER Shapes

8. Distribution Planning Assessment Various Levels of Planning Granularity Distribution Planning Area – Holistic longer term view of an area’s development, such as a subdivision – Identify development of new substations Substation Capacity – Increase station capacity – Installation of additional or replacement of existing substation transformers Distribution Line Feeder – Construction of new distribution feeders or reinforcement of existing feeders Feeder Components – Installation of new or replacement of existing distribution devices 8 2 Thermal Capacity Voltage and Power Quality Protection Safety and Reliability

9. Distribution Grid Needs Load Serving Capacity Assessment – Distribution capacity needs as a result of load growth DER Hosting Capacity Assessment – Distribution capacity needs as a result of DER growth DER Aggregator Assessment – Distribution grid performance to ensure CAISO registered DER Aggregators can safely and reliably deliver to the grid. Distribution Operational Requirements – Distribution switching flexibility requirements Coordinate Distribution and Transmission Planning Analyses – Coordination of IDPP analysis with CAISO’s Transmission Planning Process (TPP) 9 3 Thermal Capacity Voltage and Power Quality Protection Safety and Reliability

10. Integrated Distribution Planning Process (IDPP)Sourcing Process to Satisfy IDPP Needs Assumptions, Scenarios & Scope Distribution Planning Assessment Distribution Grid Needs Evaluate Options Distribution Portfolio Distribution Grid Studies Thermal Voltage Protection Safety and Reliability Develop forecasts, assumptions and planning scenarios. Next Steps – Sourcing Process Prioritize Grid Needs Locational Net Benefit Analysis Investment framework/technical Feasibility Implement “Wires” alternatives for locations deemed infeasible for DERs Implement “Wires” Solution 1 2 5 3 4 10 Distribution Grid Needs Load Serving Capacity DER Hosting Capacity DER Aggregator Requirements Coordination with Transmission Planning Sourcing Process to satisfy needs identified in IDPP 4,5

11. Conclusions Importance of advance planning tools, data and data analytics – Forecasting, and Automated Analysis – Data Exchange and Storage Determine Distribution Grid’s Baseline to host DERs – Granularity, location and time of day matters Review Interconnection, Planning and Procurement Processes – Scalable for higher penetrations of DERs? Additional opportunities for integration and coordination? – DER growth can happen rapidly Grid Modernization will be required – Leverage learnings from pilots People – Training and development – Organizational alignment – Partner with others that are going through DER experiences 11