1. The Transition to a High DER Future
Through Vision, Strategy, and Technical Innovation
AEE Southern California Annual Conference
Eric Nunnally
Southern California Edison
September 22, 2016

2. SCE and the Utility Business
Transmission
500kV & 230kV
33kV, 16kV, 12kV & 4kV
Distribution
Customers
Generation
SCE and the Utility Business
115kV & 66kV
Our “Wires Business”
~50,000 mi2 territory
1.4 million power poles
725,000 transformers
103,000 miles of power lines
3,100 MW owned generation
SCE owns less than 20% of its power generation needs
The rest is procured on a competitive market
Revenue Decoupling
SCE earning are not directly affected by changes in electricity sales
Promotes energy conservation

3. Distributed Energy Resource (DER) Integration Status
Examples of SCE’s DER activities include:
Over 5,000 interconnection of roof-top solar per month,
totaling to over 180,000 customers, expected to nearly
quadruple by 2025
Approximately 70,000 customers have adopted
plug-in electric vehicles, expected to more than double
in the next two years
Contracted 260 MW for energy storage contracts in 2014, enough
to power nearly 40,000 homes. Recently signed another 125 MW
as part of our preferred resources pilot
SCE’s integration of DERs continues to grow in both quantity and importance
Providing customer choice
Helping achieve environmental goals
Providing reliability and other services to the grid
Distribution grid modernization will play a crucial role in allowing customers and grid operators to realize the full value of distributed resource technology

4. Policy Drivers Towards a Clean Energy Future
Multiple Proceedings Underway
AB 327 Distribution Resource Plan (DRP)
Integrated Distributed Energy Resource (IDER) Proceeding
Net Energy Metering Successor Tariff
Integrated Resource Planning
Mandates and Targets
SB % Renewable Portfolio Standard (RPS) by 2030
50% increase in building Energy Efficiency by 2030
Zero emission vehicles
1325 MW Energy Storage
SB 32 – 40% below 1990 emission levels by 2030
SCE’s strategy for the future is to facilitate California’s low carbon goals and enable customer choice by modernizing the distribution system, improving productivity, and managing costs
Long-Term Industry Trends
Technology
Increasingly Distributed
Falling Costs for Solar, Wind and Batteries
Changing Load Profiles and Flattening Demand
Policy
Environmental Sustainability
Renewable Portfolio Standards (RPS)
Transportation Electrification
Customers
More Choices
Grid-Interactive Resources
Conservation and Self-Generation
Technology
Customer technology innovation and adoption
Demonstration Projects
Grid Modernization

5. Distributed Energy Resources
ELECTRIC VEHICLE INTEGRATION
ROOFTOP SOLAR PV
BATTERY ENERGY STORAGE
FLEXIBLE LOAD
Emergence of the “prosumer”
Some DERs add load to the system (EVs), others reduce load at certain times (solar PV, energy efficiency, demand response)
DERs can have positive or negative impacts on the grid depending on size, location, and technology
Electric grid is in common to all loads and resources connected, fundamentally changing how utilities plan and operate
Prepare the workforce of the future across the energy sector with Knowledge, skills, and training for workforce of the future 8

6. Integrate DER Forecasting & Planning
Improve ability to forecast DER adoption and evaluate DER Portfolio solutions as alternatives to conventional wires investments.
Illustrative
Increased Capacity Rating (Typical Wires Solution)
Forecasted Load Profile
Solar PV
Capacity Rating
New Load Factor Adjusted Capacity Rating
Energy Storage
Energy Storage
Net Load Profile with DER Portfolio Solution
Demand Response
Energy Efficiency

7. Substation Load Profile with Forecast Overload
Illustrative
Increased Capacity Rating (Typical Wires Solution)
Forecasted Load Profile
Capacity Rating

8. Alter Substation Load Profile Using DER Portfolio
Solar Can Impact Load Profile During Daytime Hours
Illustrative
Forecasted Load Profile
Solar PV
Capacity Rating
Net Load Profile

9. Alter Substation Load Profile with DER Portfolio
Energy Efficiency Programs can Permanently Reduce Load Profile
Illustrative
Forecasted Load Profile
Solar PV
Capacity Rating
Net Load Profile
Energy Efficiency

10. Alter Substation Load Profile Using DER Portfolio
Demand Response Programs can Temporarily Reduce Load Profile
Illustrative
Forecasted Load Profile
Solar PV
Capacity Rating
Net Load Profile
Demand Response
Energy Efficiency

11. Alter Substation Load Profile Using DER Portfolio
Energy Storage can be Dispatched to Prescriptively Reduce Load Profile
Illustrative
Forecasted Load Profile
Solar PV
Capacity Rating
Energy Storage
Net Load Profile
Demand Response
Energy Efficiency

12. Alter Substation Load Profile Using DER Portfolio
Energy Storage Also Requires Charging Which Will Impact Load Profile
Illustrative
Forecasted Load Profile
Solar PV
Capacity Rating
Energy Storage
Energy Storage
Net Load Profile
Demand Response
Energy Efficiency

13. Alter Substation Load Profile Using DER Portfolio
Customized DER Portfolios Can Address Capacity Needs On Distribution
Illustrative
Increased Capacity Rating (Typical Wires Solution)
Forecasted Load Profile
Capacity Rating
Net Load Profile with DER Portfolio Solution

14. Alter Substation Load Profile Using DER Portfolio
Operators Need Visibility to DER Portfolio Performance in Real Time
Illustrative
Increased Capacity Rating (Typical Wires Solution)
Forecasted Load Profile
Solar PV
Capacity Rating
Energy Storage
Energy Storage
Net Load Profile with DER Portfolio Solution
Demand Response
Energy Efficiency

15. Greater Interaction With and Control of DERs
Increase DER Portfolio dependability by integrating DERs into planning and operations. Capabilities required to meet the growth of Distributed Energy Resources (DERs) on SCE’s distribution system.
Monitor
Analyze
Real Time Situational Awareness
Short Term & Long Term Grid & DER Forecasting
Control
Optimize
Grid Reconfiguration
DER Dispatching
Micro-grid Management
Optimizing Voltage, Power Flow, & Protection
What this means to Distribution Planning and Operations.
New automated equipment on the distribution system
New software solutions for operations and planning organizations
Increased levels of inbound data to operations
Requires more granular Demand Side Management data for Grid Planning

16. Greater Interaction With and Control of DERs
Enhance capabilities through advanced field automation, back office upgrades, and technology software solutions for planning & operations.

17. A smart, more dynamic and secure power grid
Means building smarter energy infrastructure that will improve system safety, reliability and visibility, while delivering the benefits of a smart grid to customers
Advanced Capabilities
Communications Networks
Technology Platforms
Development of intelligent substations and advanced automation of distribution circuits
Improving the customer experience, infrastructure planning, and addressing Cybersecurity
Expansion of fiber and radio communications to enable high speed and high bandwidth to support automation and analytics
Grid Reinforcement
Making the grid more robust through an integrated planning, asset management, and technology strategy
Edison.com. SCE whitepaper, The Emerging Clean Energy Economy: Customer-Driven. Modernized. Reliable 7

18. The Future Grid will Benefit all Customers
Thank you.
SCE’s DRP, DERiM, and additional information : 10