1. 1 Water/Energy Relationship at SDG&E 17 April 2014San Diego Gas & Electric Presentation

2. SDG&E Water Connection 17 April 2014San Diego Gas & Electric Presentation2

3. One Year’s Difference in Snowpack 17 April 2014San Diego Gas & Electric Presentation3

4. Nexus 417 April 2014San Diego Gas & Electric Presentation

5. San Diego “Au Natural” 17 April 2014San Diego Gas & Electric Presentation5

6. 6 History of the Water/Energy in California Water – Energy Relationship in CA Water-related energy use is about 20% of total electric consumption and 30% of total therm consumption in California Water-related energy use End uses: heating, cooling, on-site pumping Upstream uses: surface conveyance, groundwater pumping, treatment, distribution Downstream uses: waste water pumping and treatment Upstream and downstream water-related energy use in California About 12.5 Billion kWh/yr embedded upstream and downstream of the water customer In Southern California, majority is due to conveyance 17 April 2014San Diego Gas & Electric Presentation

7. Current Energy Division Policy Current Policy does not allow IOUs to claim embedded savings Methodology of calculating the embedded savings needs to be agreed upon and unified Right now only “DIRECT” energy savings can be claimed Currently there is no agreement on how much embedded energy usage is in transfer/conveyance/ heating of water or where the savings can be claimed After a CPUC workshop held in May 2013 it was determined energy intensity varies widely by region Navigant has been hired by the CPUC to determine energy intensity by region w/in the State 717 April 2014San Diego Gas & Electric Presentation

8. Water/Energy Uses Water infrastructure requires energy use in almost every segment and facility. The typical energy consuming segments of the water infrastructure: Supply and Conveyance - Reservoirs, canals, pump stations and groundwater pumps that produce and transport raw, untreated water. Examples include many of the facilities that the State Water Project and Colorado River Aqueduct operate. Water Treatment Water Distribution Wastewater Collection Wastewater Treatment Recycled Water Treatment Recycled Water Distribution 17 April 2014San Diego Gas & Electric Presentation8

9. Water Conservation and Energy Savings Direct vs. Indirect Energy Savings Direct energy savings are those that appear on the customer’s energy meter Indirect energy savings do not appear on the customer’s energy meter Occur upstream and downstream of the customer Are due to the customer’s reduction in use of some other resource Energy embedded in water upstream and downstream of a water customer can be saved if that customer reduces their water use Direct water savings = Indirect energy savings Estimated embedded energy intensity for urban water throughout California Southern California: 13,000 kWh/MG 17 April 2014San Diego Gas & Electric Presentation9

10. Three Levels of Water/Energy Efficiency Type of measure Example opportunities 1. Energy savings associated with water Efficient water heater 2. Combined water and energy savings for end user Low flow showerhead 3. Water conservation only (upstream/ embedded energy) High efficiency toilet 17 April 2014San Diego Gas & Electric Presentation10

11. SDG&E’s History w/San Diego County Water Authority SDG&E has a twenty plus year relationship with SDCWA Through our decades-long Partnership some of our achievements include: –Giving out half a million low-flow showerheads –Helping small businesses w/water equip installations, at low or no-cost –Making high-efficiency washers affordable for customers through our joint rebate program Established a formal Institutional Partnership with SDCWA in 2008 17 April 2014San Diego Gas & Electric Presentation11

12. SDG&E Efforts for 2013-2014 Program Cycle What’s New in 2013-2014? –Institutional Partnership with San Diego County Water Authority Per the Decision the CPUC mandated efforts for Water/Energy Nexus include: –Leak Loss Detection –Pressure Management –This effort will be rolled out to SDCWA and member agencies –Two of the more successful SDG&E Water Pilot programs have been incorporated as part of this effort: A landscape efficiency component will be made available to commercial properties with an excess of 4 irrigated acres using monitored weather technology sensors A North County detention center will be retrofit with flush valve controllers, low flow shower heads and toilets 1217 April 2014San Diego Gas & Electric Presentation

13. Leak Loss Detection High value targets will be those w/high energy intensity and/or embedded energy coupled with high levels of leakage Acoustic leak detection equipment will be utilized to “listen” for leaks and make corrections Water loss through leakage is directly related to system pressure. Reducing pressure, where possible, will reduce leakage 17 April 2014San Diego Gas & Electric Presentation13

14. Pressure Management Basic tenets of program will remain the same as in the original SCE pilot held in 2008-2009. Water loss through leakage is directly related to system pressure and, where possible, will reduce pressure Pressure Zones or entire systems may have gradually been increased due to low pressure complaints and/or poor design Zones can be adjusted either with current equipment in place or with installation of flow-modulated pressure reducing valves 17 April 2014San Diego Gas & Electric Presentation14

15. WaterSmart Landscape Efficiency Project The program targets commercial properties with at least four acres of irrigated landscaping. An audit is performed and landscape equipment will be repaired/replaced/added to and monitored for up to a year. CA Landscape Contractors Assn (CLCA) will be administering the program. SDCWA will provide monies for materials for the program as part of their participation in the Partnership. SDG&E will cover admin and labor costs. There is no cost to the end user. A minimum of 20% savings is the goal for this program. 17 April 2014San Diego Gas & Electric Presentation15

16. North County Detention Center Water Retrofit Flush valve controllers, low flow showerheads, low flow toilets will be installed at facility Material funding will be provided by SDCWA Parlaying existing Partnership relationship between the County of SD and SDCWA 400 acre feet of water savings achieved at Bailey prison during 2008-2009 water pilot 17 April 2014San Diego Gas & Electric Presentation16

17. UC Davis Study UC Davis was hired by PG&E to do an energy intensity study within their region in partnership with EBMUD SDG&E has hired UC Davis to do a similar study with an appropriate water district in our territory This effort is being co-funded by the SDCWA Partnership, Emerging Technology, and the EM&V group 17 April 2014San Diego Gas & Electric Presentation17

18. What We Prefer San Diego to Look Like 17 April 2014San Diego Gas & Electric Presentation18

19. What We Prefer San Diego to Look Like 17 April 2014San Diego Gas & Electric Presentation19

20. The End! Questions? http://www.sdge.com/rebates- finder/business http://www.sdge.com/buyers-guide/399 17 April 2014San Diego Gas & Electric Presentation20