Partnering with Our Customers to Build
California's Energy Future
Southern California Energy Summit
October 5, 2012
Lisa Cagnolatti
Vice President, Business Customer Division
Southern California Edison
Agenda
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SCE’s Public Safety Initiative
Demand Side Management
Edison SmartConnect™
Renewable Energy Roadmap
San Onofre Nuclear Generating Station (SONGS)
2012 Summer Readiness- Exceptional Customer
Engagement
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SCE’s Public Safety Initiative
Public Safety Video
“No Risks”
DEMAND SIDE MANAGEMENT
About Southern California Edison
• One of the Country’s Largest Investor-Owned Utilities
– 50,000 square miles
– 14 million residents
• A National Leader in Demand Side
Management
– 1st or 2nd in the nation for electric energy
savings in each of the last 12 years
– 11 National US EPA ENERGY STAR®
Awards
– More than 8.6 billion kWh saved since 2007
– Enough to power over 1.2 million homes for
an entire year
– Resultant greenhouse gas emission reduction
= 3.9 million metric tons
– Equivalent of taking 750,000 cars off the road
– Largest DR portfolio in California
– Edison SmartConnect™ installing 5 million
smart meters
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California Energy Policy:
A Framework For Energy Efficiency
• California’s Energy Action Plan = Energy resource “loading order”
First
•EE
•DR
Second
Renewable
Energy
Resources
Third
Clean
Distributed
Generation
Fourth
FossilFired
Generation
• California’s Climate Change Policy (AB32) = GHG reductions to:
– 2000 levels by 2010 (11% below “business as usual”)
– 1990 levels by 2020 (25% below “business as usual”)
– Energy Efficiency = Major source of emissions reductions in Scoping Plan
• California Long-Term Energy Efficiency Strategic Plan
– Statewide roadmap to maximize achievement of cost-effective energy efficiency
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California Energy Efficiency
• EE must be cost-effective in California: Societal Benefits > Costs to
Implement
• CPUC establishes energy savings goals for Investor Owned Utilities (IOUs)
• EE integrated into IOU long-term resource planning process
• California Utility Business Model for Energy Efficiency:
– Decoupling Mechanism – Decouples recovery of revenue requirements from
sales
– Program cost recovery included in rates
– Earnings – Opportunity to earn incentives for success of EE programs
• Since 2002, CA IOU EE programs have delivered over $7 billion in net
resource benefits to customers
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SCE Energy Efficiency Portfolio
SCE partners with all customers to save energy, money and help the environment
Core
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Residential Lighting
Energy Upgrade California
Home Efficiency Rebates
Appliance Recycling
Third Party
Targeted
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Lodging EE
Industrial Gases
Comprehensive Petroleum Refining
Cool Schools
Partnership
Energy Leader Partnership Program
• Palm Desert
• City of Beaumont
• South Bay, and more
Low Income
• Energy Savings Assistance
• California Alternate Rates for Energy
• Family Electric Rate Assistance
Emerging
Technology
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Education /
Outreach
• Workforce Education, Training & Outreach
• Green Campus
• K-12 Education
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Commercial EE
Small Business Direct Installation
Agricultural EE
Industrial EE
Technology Assessments
Scaled Field Placements
Demonstration Showcases
Market and Behavioral Studies
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• New Construction
• Plug Load/Consumer
Electronics
• Comprehensive HVAC
Efficient Affordable Housing
Food & Kindred Products
Primary & Fabricated Metals
20+ others
Institutional & Government Partnerships
• UC/CSU
• CA Community Colleges
• CA Department of Corrections & Rehabilitation
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Technology Development Support
Business Incubation Support
Technology Test Centers
Codes & Standards
• Marketing & Outreach
• Mobile Energy Unit
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Cumulative kWh savings
Energy Leader Partnerships
Platinum
Gold
Silver
Valued
•
Partnership between SCE and local governments to help cities and counties with
a sustainability vision
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Helps address demand-side management opportunities in their facilities and
communities
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Tiered incentive structure that offers increasing incentives based on performance
to fund new city/county EE projects
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Results:
– 112 cities and counties participating from 2010 - 2012
– 1 city has reached Platinum; 9 cities have reached Gold
– 56,000,000 kWh saved in municipal facilities since 2010
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Energy Leader Partnerships
Here in the Coachella Valley
• SCE works closely with local government customers in this region
under the Energy Leader Partnership Program to develop deeper
energy savings and demand response participation
– Ultimately, it is hoped that each city will be viewed as leading by example in the
broad area of sustainability and energy conservation for the community to follow
• From Beaumont in the west, to Blythe in the east, and the many
Coachella Valley communities in between, energy efficiency projects
are aggressively developed and completed to continually reduce
each government’s cost of doing business
• Here are just a few of the types of projects under way or already
completed:
– HVAC, Lighting, Server Virtualization, Pumping and Fluid Movement, Waste
Water Treatment Plant Efficiency Upgrades, Energy Efficient Street, Walkway,
and Parking Lot Lighting
– The Partnerships in the Coachella Valley have even promoted the retrofit of
home pool pumping equipment and small business direct installation efforts
EDISON SMARTCONNECT™
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Edison SmartConnect™ Program Objectives
• Create lasting customer value through cost-effective advanced
metering technology solutions
− Create a design to support federal
and state energy policy objectives
− Support SCE’s strategy for
modernizing the electric infrastructure
with smart technologies leading to an
intelligent grid
− Provide a catalyst for industry
innovation toward next-generation
technology based on added
functionality and open, flexible
solutions
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Edison SmartConnect™
SCE’s Smart Metering Program Overview
• Approximately 5 Million Existing
Electric Meters Will be Replaced With
“Smart” Meters by the end of 2012
− Business case approved by CPUC in 2008
• 2012 Program Status
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4.7+ Million Smart Meters Installed
Daily Install Average: 8,000+
Installers: 300 (average)
Approximately 266,000 Customers
Enrolled in Budget Assistant
− Nearly 486,000 Customers Enrolled in
Save Power Day Incentive Alerts
− Generating Interval Data Bills for 4 Million
Customers
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Edison SmartConnect™
Customer Experience
SCE.com
Community
Forums
Email
Surveys
Zip code look up
SCE.com
Local
Government
Briefing
Assessments
Press
Releases
Phone
Surveys
YouTube
Channel
Bill Onserts
1. Pre-Installation
Employee
Information
Focus
Groups
Corix Call
Center
Pre-installation
letter
6. Customer
Feedback
Community
Forums
How to read
your meter
2. Meter
Deployment
Corix Call
Center
Direct Mail
Email & Web
Solicitations
Targeted
program
enrollments
Social
Media
Enrolls in
New Rate
Participation
New Devices
Meter
install
Discovery
Customer
Enrolls
Activation
Save
Power
Days
Community
Forums
4. Incentive
Campaigns
Targeted
Campaign
SCE.com
3. COTO, Interval
Billing & Web
Access
Carl & Eddy
Movie Trailers
Email & Web
Solicitations
Budget
Assistant
Direct Mail
Get
Connected
Random
Meter install
survey
5. Edison
SmartConnect
Enabled Programs
Telemarketing
Mail: Upcoming
Programs
Door
hanger
Smart Energy
Experience
Get
Connected
Customer
Enrolls
Direct Mail
My Account
Online Ads
Social Media
Targeted
program
enrollments
Buckslips
Telemarketing
Shared
Mail
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Edison SmartConnect™ Benefits
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Rates & Programs
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Time of Use Rates
Summer Advantage Incentive (CPP)
Save Power Day Incentive (PTR)
Budget Assistant
Enabling technology
Energy Information Drives
Conservation Behaviors
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More timely energy usage information
Forecasted cost and demand
Usage history
Reduce peak load by 1,000 MWs
Reduce residential energy
consumption by 1% (minimum)
– Reduce GHG by 365,000 tons/yr
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Automation Self-Service
– Remote service switch
– Improve customer experience
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RENEWABLE ENERGY
ROADMAP
Current State
• SCE leads the nation in renewable
energy, delivering approximately
15.5 billion kilowatt-hours of
renewable energy to customers in
2011
– That’s enough to power over 15
million homes each month!
• This constitutes about 21.1% of the
energy we deliver to customers
• In 2011, SCE signed 15 contracts for
920 megawatts of renewable power
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SCE Renewable Portfolio
Actual 2011 Renewable Resources:
21.1% of SCE’s portfolio
Renewable Resources
(billion kWh)
28.3
Small Hydro 6%
Solar 6%
83%
Increase
Biomass 6%
Geothermal
47%
15.5
Wind 35%
California’s Renewable Policy (SBx1-2)
Requires a 33% standard by 2020
2011
Actual
Deliveries
2020
33% RPS
Goal
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Renewable Energy Challenges
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Intermittent Power
– Some renewable energy sources like wind and solar are intermittent and must be
backed up by additional conventional power sources to maintain system reliability
– Ramping up and down those backup power sources can also present a
challenge in terms of planning
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Cost of Infrastructure
– The California Public Utilities Commission (CPUC) found that achieving the
Renewables Procurement Standard (RPS) of 33% by 2020 will require new
generating facilities, transmission lines, and other grid infrastructure at an
estimated cost of $115 billion
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Building New Transmission Lines
– California needs new transmission lines to bring renewable power from remote
areas to population centers
– Building a new electricity transmission line is a huge undertaking
– New transmission lines get approved via lengthy, multi-agency permitting
procedures, often taking up to 10 years
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Customer Opinions
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While customers overwhelmingly support renewables in principle, they
are less enthusiastic about paying for them
– Customers don’t understand the “true cost” of integrating more renewable
power into the grid, both in terms of dollars and impact to reliability
47%– Any increases in costs are shouldered by a small subset of customers
37%
28%
21%
12%
7%
Strongly
Support
26%
12%
6%
Somewhat Somewhat
Support
Oppose
Strongly Don’t Know/
Oppose
N/A
In Principle
4%
Strongly
Support
Somewhat Somewhat
Support
Oppose
Strongly Don’t Know/
Oppose
N/A
With Modest Price Increase
Sources: FM3 and Winner & Associates – May 2011
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SAN ONOFRE NUCLEAR
GENERATING STATION
(SONGS)
The Role of Nuclear Energy
in California
• San Onofre provides “baseload” generation
– Can produce large amounts of electricity 24 hours a day, 7 days a
week, regardless of weather conditions and without constraints
• Nuclear energy provides voltage support
– Keeps the electrons moving through the grid across the region
• Nuclear energy is by far our largest single source of emissionfree generation
– Provides 24% of SCE’s carbon-free electricity generation mix
– Nuclear energy facilities in California supply 37% of the state’s
emission-free power generation
San Onofre Units 2 & 3
• Started construction in 1974
• Combined units 2 & 3 generate
2,200 megawatts
• Unit 2 was taken out of service
Jan. 9, 2012 for a planned outage
• Unit 3 was safely taken offline
Jan. 31, 2012 after station
operators detected a small leak in
a steam generator tube
Testing and Evaluation
• Extensive inspections and testing showed tube wear in the
steam generators in both units
• Unexpected tube-to-tube wear was found predominantly in
Unit 3
• Extensive inspections of Unit 2, based on the wear found in
Unit 3, identified only one pair of tubes displaying what could
be early indications of tube-to-tube wear
• The manufacturer’s computer modeling used during the
design phase did not accurately predict the vibration-causing
environment in the steam generators
Restarting SONGS
SCE will not restart the plant until the utility and the Nuclear
Regulatory Commission are satisfied that it is safe to do so
Safety Our number one priority is protecting the health and safety
of the public and our employees
Responsibility SCE takes seriously the responsibility of running the plant
safely – and the trust the public places on us to safely
provide reliable and clean energy
Transparency We are committed to keeping our customers, our
communities and the public informed on the progress and
plans for San Onofre, and we will continue to do that
Next Steps at San Onofore
• SCE will outline the actions it must
take before any restart in a report
to the Nuclear Regulatory
Commission
• The Nuclear Regulatory
Commission will hold public
meetings to keep the community
informed
• The Nuclear Regulatory
Commission will thoroughly
review all documents and must
approve all repair and operating
plans
2012 SUMMER READINESS –
EXCEPTIONAL CUSTOMER
ENGAGEMENT
Summer Readiness
• SCE & CAISO routinely plan for an outage of one SONGS unit
• Long term loss of both units presents significant challenges
• Summer readiness mitigation measures activated:
1. Transmission lines were upgraded
2. The gas powered plants in Huntington Beach were temporarily restarted
3. Significant customer outreach
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Tremendous Support from
Our Customers
• Unprecedented customer response
– Conservation efforts by residents and businesses
– Customers helped avoid major power outages during our August heat
wave
• 10 for 10 Program
– Approximately 20% of OC businesses reduced their load 10% or more
as compared to last summer
• Individual customer efforts
– Two industrial customers changed their operation during the August
heat wave and together shifted over 90 megawatts of load to a time
when the system was less stressed
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SCE Social Media Channels
Facebook.com/SCE
@SCE
@SCE_Business
@SCE_SONGS
LinkedIn: Business Energy Solutions Group
YouTube.com/sce
sce.com/businessvideos
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