1. Leading the Way in Electricity TM Tariff Programs & Services Customer Services Business Unit Overview of Demand Response At Southern California Edison Prepared for the California Energy Commission Lawrence Oliva, Director - TP&S March 3, 2008

2. Copyright © 2008, Southern California Edison CSBU Tariff Programs & Services www.sce.com/RebatesandSavings 2 What is Tariff Programs and Services? 58 person division that develops and operates SCE’s demand response and load shifting resources TP&S, Energy Efficiency and Customer Experience Management report to SCE’s Customer Programs and Services Department Current active DR programs range from: –Radio Load Control (SDP, AP-I) –Emergency Interruptible Rates (I-6, BIP) –Voluntary Price Response (DBP, CBP, CPP) –Forward Resource Contract (EnerNOC)

3. Copyright © 2008, Southern California Edison CSBU Tariff Programs & Services www.sce.com/RebatesandSavings 3 Demand Response Highlights of 2007 SCE countable DR (adjusted for performance) is 1,324 MW or 5.7% of total SCE system peak (23,300 MW) – Most DR in California Summer Discount Plan (AC Load Control) –increased by 225 MW since Aug 2006 –largest DLC Program in California (583 MW) Large Interruptible Resource – 639 MW of 30 minute DR available for emergencies Growing Price Response - 42 MW day of, day ahead in four different programs

4. Copyright © 2008, Southern California Edison CSBU Tariff Programs & Services www.sce.com/RebatesandSavings 4 2007 SCE DR Program Activities CommitmentProgramParticipantsMWs2007 Events None Demand Bidding 1,20016.522 None CPP 436.312 CommitmentProgramParticipantsMWs2007 Events Annual Summer Discount Plan 298,0005836 Annual Ag Pump plan 479460 CommitmentProgramParticipantsMWs2007 Events Annual Interruptible 5616290 Monthly Capacity Bidding 978.521 X-Term 3 rd Party 96113 Price Responsive Firm/Dispatched Firm Non-Firm

5. Copyright © 2008, Southern California Edison CSBU Tariff Programs & Services www.sce.com/RebatesandSavings 5 Potential Future of Price Responsive DR for SCE 0 200 400 600 800 1000 1200 1400 MWs 200820092010201120122013 YEARS Forecasted Price Response Programs MWs DR Contracts (Pending) SmartConnect Current Price Response Programs Target: 5% of Peak Demand

6. Copyright © 2008, Southern California Edison CSBU Tariff Programs & Services www.sce.com/RebatesandSavings 6 Plans for DR with Edison SmartConnect Meters Edison SmartConnect TM (AMI for all customers), SCE demand response enabled programs include: –Residential Peak Time Rebates (PTR) –TOU and Critical Peak Price rates Available for residential Default TOU for C&I above 20kW, optional CPP –Enabling Technology using two-way Programmable Communicating Thermostats (PCT) Enabling technology for dynamic pricing (CPP) Available for Residential and Commercial applications

7. Copyright © 2008, Southern California Edison CSBU Tariff Programs & Services www.sce.com/RebatesandSavings 7 DR Roadmap with Edison SmartConnect 2008 2009 2010 2011 File Tariffs for New Rates Non-ZigBee PCT “Research” Project ZigBee PCT “Pilot” Project Trial Pilot Launch ZigBee PCT Device Development Rates A/C Load Control SDP New Devices = 60k SDP Non-SmartConnect Installations only SDP Non-SmartConnect Installations only ZigBee PCT “Target Marketing” Develop Education/ Marketing Plans & Mat’ls Customer Education Imp Plans and Test Customer Response Enhance Plans and Materials - Launch Programs/ Services File Tariffs Rebate plan Thermostat plan PTR Pilot Thermostat Pilot Remote Serv Switch Online Usage Data (1 st Qtr) PTR program Thermostat Programs Remote meter reading Online Usage/Cost tools SCE.com Bundles Continue existing dynamic rates New rates approved 4 th quarter New dynamic rates Meter rollout 5.3 mil meters