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SM




 2012 Summer Readiness

Irvine City Council Briefing
        May 8, 2012




                          EDISON INTERNATIONAL®
SM




2012 Summer Readiness Briefing
•   Introduction

•   CA Independent System Operator (CAISO)
    Reliability Overview

•   Mitigation Measures
    – Transmission
    – Generation
    – Demand Response and Conservation
    – Customer Communications




                           -1-           EDISON INTERNATIONAL®
SM




2012 Summer Readiness Briefing
•   San Onofre units 2 and 3 are a critical part of meeting the region's
    electricity needs and voltage levels, representing 2,220 MW of
    generation

•   Prospect of a summer without units 2 and 3 is a significant challenge
    that SCE is doing contingency planning around, working with state
    agencies

•   SCE will complete all required inspections and tests prior to restarting
    either unit at San Onofre and is committed to doing every task safely,
    no matter how much time that takes.

•   The company’s number one priority is, and always has been, the
    health and safety of the public and its employees.




                                       -2-                  EDISON INTERNATIONAL®
Summer Readiness

Dennis Peters
California Independent System Operator

May 8, 2012




                               -3 -
Shaping the industry
The ISO, a nonprofit public benefit
corporation, maintains the constant
and reliable flow of electricity for
the health, safety and welfare of
consumers

How?
  Delivering electricity to 80% of
   California consumers
  Facilitating fair and transparent
   wholesale electricity market
  Performing comprehensive
   transmission planning
  Clearing the way for clean, green
   resources to access the grid

                                   -4 -
Who oversees us?

               We are governed by a governor appointed/
               Senate confirmed Five Member Board

               We are regulated by
               FERC Federal Energy Regulatory Commission

               We are compliant with
               NERC North American Electric Reliability Corporation

               We are part of
               WECC Western Electricity Coordinating Council




                      -5 -
Overview of the area and summer reliability challenges
without the San Onofre nuclear power plant

• Los Angeles Basin and San
  Diego areas must have local
  generation to serve all
  consumers
• The ISO already plans for the
  outage of one San Onofre
  generating unit
• ISO must plan for the major
  contingencies where San
  Diego loses eastern
  transmission and the largest
  generator



                                  -6 -
San Diego and the Los Angeles Basin are at risk of
   outages under required planning standards

                San Diego                                      Los Angeles Basin

                     Without both San                                       Without both
                      Onofre units -                                         San Onofre
                    Import capability                                      Units – Total gen
Total gen                   +3048              Total gen                             +9418
Import capability           +2100              Import capability                  +10,771*
Largest generation           -603              Largest generation                    -498**
outage                                         outage
Load                        -4882              Load                                 -19,931
Reserve margin              = -337             Shortfall                            = -240
                                               Notes:
                                               * Transmission import capability is subject to change, as
                                               system conditions change from year to year.
                                               **Largest generating unit outage after both San Onofre
                                        -7 -   units are out of service .
Actions to mitigate the outage risk

• Return Huntington Beach units 3 & 4 to service
• Accelerate Barre-Ellis transmission upgrade
• Complete Sunrise transmission line and related outage planning
• Fully fund Flex Alerts
• Fully utilize available demand response
• Seek additional military and public agency demand response
• Ensure that existing generation is well-maintained and available




                                 -8 -
Where we stand once mitigation measures are
   implemented

              San Diego                                    Los Angeles Basin
                    Without SONGS and
                    with Huntington Beach                           Without SONGS
                    3&4–                                            and with HB 3 & 4
                    Import capability                               – Total gen

Total gen                 +3048                Total gen                +9870
Import capability         +2450                Import capability        +10,771
Largest generation        -603
                                               Largest generation       -498
outage
                                               outage
Load                      -4882
                                               Load                     -19,931
Reserve Margin            = 13                 Surplus                  = 212



                                            -9 -
Demand response will help

• The benefits could be very helpful. The CPUC, CEC and ISO have worked
  with the utilities to identify the functionality and quantify the specific location
  of demand response programs.
   On the critical transmission path:                       78 MW
    Elsewhere in LA where overloads possible:              428 MW
    San Diego:                                             104 MW

• These utility demand response programs cannot replace Huntington Beach
  3 and 4 but can reduce the required run time and increase operating
  margins under hot summer loads.

• The specific reliability problem in southern California requires the response
  to be automated. Current DR programs require manual deployment leaving
  no time for operator action.



                                          - 10 -
SM




2012 Mitigation Measures
• Transmission – Del Amo-Ellis Loop-In Project
   – Creates additional transmission capacity to serve South Orange
     County

   – Prevents line overloads and
      improves voltage stability

   – Modifies existing transmission
      lines and structure upgrades

   – Accelerated to be completed
      by June 1, 2012




                                   - 11 -             EDISON INTERNATIONAL®
SM




2012 Mitigation Measures continued


 Generation – AES Huntington Beach
 Units 3 and 4 (450 MW)
 •Ordered by CAISO

 •Returning Units 3 and 4 to service

 •Provides needed generation and
        voltage support




                                  - 12 -   EDISON INTERNATIONAL®
SM




Demand Response Capability
•   Existing Demand Response capability at substations
    surrounding SONGS:
     – Summer Discount Plan (AC Cycling) – 48 MW of existing SDP
       resources
     – Potential to add 5 to 8 MW
     – Base Interruptible Program – 30 MW of existing BIP resources

•   10 for 10 Program (5 to 10 MW reduction potential)
     – Commercial customer receives bill credit for usage reduction
     – 10% bill credit for 10% reduction
     – Compares usage from summer 2012 to summer 2011
     – Program period: July 1- Sept. 30, 2012
     – Available in Orange County only
     – Only bundled customers not already on DR


                                    - 13 -               EDISON INTERNATIONAL®
SM




Demand Response Capability continued

• Save Power Day (Peak Time Rebate) program (10
  MW+ reduction potential in south Orange County)
   – Available to all residential customers with smart meters
   – Messaging to customers via notification signup and other
     customer outreach

• Direct Install Program
   –   For small business customers
   –   Free installation of lighting and HVAC controls
   –   SCE and City of Irvine partnership
   –   Available June 2012

• Conservation outreach (statewide Flex Alert, local)
   – Energy conservation messages in all customer communications



                                    - 14 -               EDISON INTERNATIONAL®
SM




Collaboration and Communication with Irvine
and Community
• SCE is actively reaching out to:
   – Public Safety and essential use facilities
   – Irvine Unified School District
   – University of California, Irvine
   – Irvine Valley College
   – Irvine Chamber of Commerce
   – Irvine Ranch Water District
   – Home Owners’ Associations (HOAs)
   – Community based organizations
   – Medical baseline/critical care customers
   – Other
                              - 15 -              EDISON INTERNATIONAL®
SM




Questions?




             - 16 -   EDISON INTERNATIONAL®

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Irvine City Council Briefing on 2012 Summer Electric Grid Readiness

  • 1. SM 2012 Summer Readiness Irvine City Council Briefing May 8, 2012 EDISON INTERNATIONAL®
  • 2. SM 2012 Summer Readiness Briefing • Introduction • CA Independent System Operator (CAISO) Reliability Overview • Mitigation Measures – Transmission – Generation – Demand Response and Conservation – Customer Communications -1- EDISON INTERNATIONAL®
  • 3. SM 2012 Summer Readiness Briefing • San Onofre units 2 and 3 are a critical part of meeting the region's electricity needs and voltage levels, representing 2,220 MW of generation • Prospect of a summer without units 2 and 3 is a significant challenge that SCE is doing contingency planning around, working with state agencies • SCE will complete all required inspections and tests prior to restarting either unit at San Onofre and is committed to doing every task safely, no matter how much time that takes. • The company’s number one priority is, and always has been, the health and safety of the public and its employees. -2- EDISON INTERNATIONAL®
  • 4. Summer Readiness Dennis Peters California Independent System Operator May 8, 2012 -3 -
  • 5. Shaping the industry The ISO, a nonprofit public benefit corporation, maintains the constant and reliable flow of electricity for the health, safety and welfare of consumers How?  Delivering electricity to 80% of California consumers  Facilitating fair and transparent wholesale electricity market  Performing comprehensive transmission planning  Clearing the way for clean, green resources to access the grid -4 -
  • 6. Who oversees us? We are governed by a governor appointed/ Senate confirmed Five Member Board We are regulated by FERC Federal Energy Regulatory Commission We are compliant with NERC North American Electric Reliability Corporation We are part of WECC Western Electricity Coordinating Council -5 -
  • 7. Overview of the area and summer reliability challenges without the San Onofre nuclear power plant • Los Angeles Basin and San Diego areas must have local generation to serve all consumers • The ISO already plans for the outage of one San Onofre generating unit • ISO must plan for the major contingencies where San Diego loses eastern transmission and the largest generator -6 -
  • 8. San Diego and the Los Angeles Basin are at risk of outages under required planning standards San Diego Los Angeles Basin Without both San Without both Onofre units - San Onofre Import capability Units – Total gen Total gen +3048 Total gen +9418 Import capability +2100 Import capability +10,771* Largest generation -603 Largest generation -498** outage outage Load -4882 Load -19,931 Reserve margin = -337 Shortfall = -240 Notes: * Transmission import capability is subject to change, as system conditions change from year to year. **Largest generating unit outage after both San Onofre -7 - units are out of service .
  • 9. Actions to mitigate the outage risk • Return Huntington Beach units 3 & 4 to service • Accelerate Barre-Ellis transmission upgrade • Complete Sunrise transmission line and related outage planning • Fully fund Flex Alerts • Fully utilize available demand response • Seek additional military and public agency demand response • Ensure that existing generation is well-maintained and available -8 -
  • 10. Where we stand once mitigation measures are implemented San Diego Los Angeles Basin Without SONGS and with Huntington Beach Without SONGS 3&4– and with HB 3 & 4 Import capability – Total gen Total gen +3048 Total gen +9870 Import capability +2450 Import capability +10,771 Largest generation -603 Largest generation -498 outage outage Load -4882 Load -19,931 Reserve Margin = 13 Surplus = 212 -9 -
  • 11. Demand response will help • The benefits could be very helpful. The CPUC, CEC and ISO have worked with the utilities to identify the functionality and quantify the specific location of demand response programs. On the critical transmission path: 78 MW Elsewhere in LA where overloads possible: 428 MW San Diego: 104 MW • These utility demand response programs cannot replace Huntington Beach 3 and 4 but can reduce the required run time and increase operating margins under hot summer loads. • The specific reliability problem in southern California requires the response to be automated. Current DR programs require manual deployment leaving no time for operator action. - 10 -
  • 12. SM 2012 Mitigation Measures • Transmission – Del Amo-Ellis Loop-In Project – Creates additional transmission capacity to serve South Orange County – Prevents line overloads and improves voltage stability – Modifies existing transmission lines and structure upgrades – Accelerated to be completed by June 1, 2012 - 11 - EDISON INTERNATIONAL®
  • 13. SM 2012 Mitigation Measures continued Generation – AES Huntington Beach Units 3 and 4 (450 MW) •Ordered by CAISO •Returning Units 3 and 4 to service •Provides needed generation and voltage support - 12 - EDISON INTERNATIONAL®
  • 14. SM Demand Response Capability • Existing Demand Response capability at substations surrounding SONGS: – Summer Discount Plan (AC Cycling) – 48 MW of existing SDP resources – Potential to add 5 to 8 MW – Base Interruptible Program – 30 MW of existing BIP resources • 10 for 10 Program (5 to 10 MW reduction potential) – Commercial customer receives bill credit for usage reduction – 10% bill credit for 10% reduction – Compares usage from summer 2012 to summer 2011 – Program period: July 1- Sept. 30, 2012 – Available in Orange County only – Only bundled customers not already on DR - 13 - EDISON INTERNATIONAL®
  • 15. SM Demand Response Capability continued • Save Power Day (Peak Time Rebate) program (10 MW+ reduction potential in south Orange County) – Available to all residential customers with smart meters – Messaging to customers via notification signup and other customer outreach • Direct Install Program – For small business customers – Free installation of lighting and HVAC controls – SCE and City of Irvine partnership – Available June 2012 • Conservation outreach (statewide Flex Alert, local) – Energy conservation messages in all customer communications - 14 - EDISON INTERNATIONAL®
  • 16. SM Collaboration and Communication with Irvine and Community • SCE is actively reaching out to: – Public Safety and essential use facilities – Irvine Unified School District – University of California, Irvine – Irvine Valley College – Irvine Chamber of Commerce – Irvine Ranch Water District – Home Owners’ Associations (HOAs) – Community based organizations – Medical baseline/critical care customers – Other - 15 - EDISON INTERNATIONAL®
  • 17. SM Questions? - 16 - EDISON INTERNATIONAL®