The California Experience. Ted Craver Chairman, President, and CEO Edison International 2009 Summer Seminar August 4, 2009
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1 The California Experience Ted Craver Chairman, President, and CEO Edison International 2009 Summer Seminar August 4, 2009
2 2020: California Energy Policy Initiatives Policy Areas RPS Bulk Power Integration RPS Distributed Power Integration Transportation Electrification Energy Efficiency & Demand Resp 20% Renewable Generation ~3500 gwh of EE Savings ( ) 50% of new homes are 35% more efficient than T24 ~100k PEV s* 500 MW of Large Scale Solar Rooftop Generation ~500k PEV s* SmartConnect DR Goals (~1000 MW) 90% of new homes are 35% more efficient than T24 1 Million Solar Roofs statewide 33% Renewable Generation (Proposed) ~ 1mm PEV s* ~7300 gwh of EE Savings ( ) Zero Energy Homes 100% AB32 Reduce GHG Emissions to 1990 Levels by 2025 MRTU Support Technologies 1 st Full Year of MRTU market operation Creation of storage market * SCE estimate of market adoption in SCE s service area 1
3 EIX Strategy for a Smarter, Cleaner Energy Future Innovation in Energy & Information Technologies will Deliver Environmental Benefits & Customer Value EIX is doing its part to reduce greenhouse gas emissions by providing its customers with energy from renewable resources Smart power delivery is needed to manage greater diversity of supply and to optimize existing capacity Smart metering enables customers to save energy and reduce peaks while improving customer service and operational efficiency Plug-in electric vehicles will achieve transportation sustainability and enable distributed energy storage systems 2
4 Transmission: Renewables Integration Increase transmission capacity to integrate more bulk renewable energy resources Implement Synchrophasors & Wide Area Controls to enable enhanced grid monitoring and controls Provide real-time Voltage, VAR & frequency support to mitigate volatility RD&D on advanced inverter technology to significantly improve integration RD&D on large scale energy storage systems 3
5 Distribution Automation Enable distributed energy resources and storage to support customer choice and improve grid stability Develop new technology for dynamic Volt/VAR and harmonics control to provide quality service and enable voltage conservation Minimize customer outages due to distribution system failures through expansive automation Development of superconducting devices such as fault current limiters and transformers Avanti Circuit of the Future 4
6 Edison SmartConnect : Empowering Customers Choice to Manage Cost & Peak Demand Rates Time of Use and Tiered Rates Critical Peak Pricing (CPP) Peak Time Rebate (PTR) Programs Smart Communicating Thermostats Outcome Reduce Peak Load by 1,000 MWs Energy Information Drives Conservation Reduce Residential Energy Consumption by 1% (minimum) Reduce GHG by 365,000 tons/yr Copyright 2008, Southern California Edison Automated Self-Service Remote Service Switch Payment and Billing Options 5
7 2020 PEV Market Penetration Forecast SCE Could Achieve up to 12.8 MMT of CO 2 Savings, Primarily from PEVs Technology Split PEVs Assumption in SCE Service Territory Estimated PEV Penetrations High Case PHEV: 83% BEV: 17% 16% of total vehicle fleet PHEV: 1.33 Million Vehicles BEV:.27 Million Vehicles Total: 1.6 Million Vehicles Medium Case PHEV: 77% BEV: 23% 10% of total vehicle fleet PHEV:.77 Million Vehicles BEV:.23 Million Vehicles Total: 1.0 Million Vehicles Low Case PHEV: 51% BEV: 49% 4% of total vehicle fleet PHEV:.21 Million Vehicles BEV:.19 Million Vehicles Total: 0.4 Million Vehicles 6
8 SCE Smart Grid Development Building on Smart Foundation Built Over the Past Decade ~$1.5 Billion Capital* SmartGrid Development PEV Integration Renewable Integration Tech Dev. Enhanced Outage Management Expanded Distribution Automation Centralized Remedial Action Schemes Phasor Measurement Substation Security Video Surveillance Energy Management System Upgrade Advanced Load Control Smart Metering * Project capital approved by CPUC in SCE s 2009 GRC & SmartConnect program 7
9 What is needed to realize a smarter grid? Intelligent and communicating PEVs that integrate gracefully with the grid Cost effective energy storage at bulk transmission and distribution Commercial products based on open, non-proprietary standards that are secure Seemless and secure telecommunications infrastructure that integrates millions of intelligent devices to produce actionable information that is used to control the electric system Workforce with the skills and knowledge to engineer, build, operate and maintain an electric grid with pervasive information technology embedded 8
10 Observations Smart Grid is a journey that will be 20+ years in the making Personal computing was introduced 30 years ago Portable cell phones were introduced 25 years ago Public Internet was launched 20 years ago Pace of technology adoption will need to consider policy, customer impact, utility operations and asset obsolesce A smarter electric grid will become more interactive with our customers lives thru the home, transportation and workplace 9
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