SUBJECT: Publication of SCE's Initial Unit Cost Guide Pursuant to D

STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3298 November 15, 2016 Advice Letter 3476-E Russell G. Worden Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA 91770 SUBJECT: Publication of SCE's Initial Unit Cost Guide Pursuant to D.16-06-052 Dear Mr. Worden: Advice Letter 3476-E is effective as of September 21, 2016. Sincerely, Edward Randolph Director, Energy Division

Russell G. Worden Managing Director, State Regulatory Operations September 21, 2016 ADVICE 3476-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Publication of Southern California Edison Company s Initial Unit Cost Guide Pursuant to Decision 16-06-052 In compliance with the California Public Utilities Commission s (CPUC or Commission) Decision (D.)16-06-052, 1 Southern California Edison Company (SCE) hereby submits the initial publication of its Unit Cost Guide relevant to Rule 21. The Unit Cost Guide is included as Attachment A and is attached hereto. PURPOSE Pursuant to Ordering Paragraphs (OPs) 1 and 10, and Attachments A and D of D.16-06-052, SCE submits the first publication of its Unit Cost Guide relevant to Rule 21. BACKGROUND On September 22, 2011, the Commission initiated Rulemaking (R.)11-09-011 to review and, if necessary, revise the rules and regulations governing the interconnecting of generation and storage resources to the electric distribution systems of Pacific Gas and Electric Company (PG&E), SCE, and San Diego Gas & Electric Company (SDG&E), collectively the Investor-Owned Utilities (IOUs). The IOUs rules and regulations pertaining to the interconnection of generation are generally set forth in Electric Tariff Rule 21. 1 D.16-06-052, adopted on June 23, 2016, is entitled Alternate Decision Instituting Cost Certainty, Granting Joint Motions to Approve Proposed Revisions to Electric Tariff Rule 21, and Providing Smart Inverter Development a Pathway Forward for Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company. P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-4177 Fax (626) 302-4829

ADVICE 3476-E (U 338-E) - 2 - September 21, 2016 In compliance with Administrative Law Judge Bushey s August 19, 2015 Ruling, 2 which sets forth the procedural schedule to work on the issues of: (1) behind-the-meter, nonexporting storage interconnection requests, and (2) interconnection cost certainty, the IOUs, along with interested parties (collectively, the Joint Parties), filed joint motions on November 9, 2015 3 and November 18, 2015. 4 Subsequently, on June 23, 2016, the Commission adopted D.16-06-052 (or the Decision) granting the joint motions filed by the Joint Parties. Specifically, in OP 1 of the Decision, the Commission granted the Joint Parties proposals for a Unit Cost Guide, as further specified in Attachment A. 5 Pursuant to OP 10 and the filing and event schedule set forth in Attachment D of the Decision, 6 SCE submits the initial publication of its Unit Cost Guide. The Commission authorized that subsequent versions of the Unit Cost Guide do not need to be filed via an advice letter 7 but the IOUs need to adhere to the annual stakeholder process described in Attachment A, Section 2.h of the Decision. 8 UNIT COST GUIDE The purpose of the Unit Cost Guide is to provide additional cost transparency in support of interconnection provisions included in Rule 21. The Unit Cost Guide is to be published on an annual basis and conform to a set of agreed-upon principles, set forth in Attachment A of the Decision and incorporated into SCE s Rule 21 tariff in Advice 3429-E. 9 SCE has collaborated with the other IOUs to ensure a consistent Unit Cost Guide format and participated in a stakeholder call on August 29, 2016 to solicit feedback from stakeholders and the Commission s Energy Division. The Unit Cost Guide that SCE publishes today as part of this advice filing complies with the Commission s directions in the Decision. 10 The Unit Cost Guide: 2 Administrative Law Judge s Ruling Setting Dates for Filing Final Motions and Granting Motions for Party Status. 3 Motion of Southern California Edison Company (U 338-E), San Diego Gas & Electric Company (U 90-E), Pacific Gas and Electric Company (U 39-E), California Solar Energy Industries Association, Clean Coalition, CODA Energy, and Interstate Renewable Energy Council, Inc., Proposing Pre-Application Report Enhancements and Development of Unit Cost Guide. 4 Joint Motion Supporting Revisions to Streamline Rule 21 for Behind-the-Meter, Non- Exporting Storage Devices. Parties that filed with SCE, PG&E, and SDG&E are the Interstate Renewable Energy Council, Inc., Clean Coalition, Robert Bosch, LLC, and Stem, Inc. 5 D.16-06-052 at p. 47. 6 Ibid., at p. 10. See also Attachment D at pp. 1-2. 7 Ibid., Attachment D at p. 1. 8 Ibid., Attachment A at p. 2. 9 Filed on July 8, 2016 and approved on August 10, 2016: https://www.sce.com/nr/sc3/tm2/pdf/3429-e.pdf 10 Decision at p. 7 and Attachment A.

ADVICE 3476-E (U 338-E) - 3 - September 21, 2016 Includes cost information for facilities generally required to interconnect generation to the utility s Distribution system; Reflects a forecasted annual adjustment for five years to provide an estimate for future procurement timing; Includes illustrative scenarios reflecting stakeholder input; Describes various requirements for interconnection facilities and distribution upgrades; and, Provides utility operation and maintenance and recovery cost calculation method calculations, and includes the assumptions used in those calculations. Consistent with the Decision, the Unit Cost Guide will not be binding for actual facility costs 11 and will not replace any project-specific study costs, but rather, the Cost Guide is intended to be used as a point of reference for projects that are considering the existing study processes. 12 Furthermore, per Attachment A of the Decision, the Unit Cost Guide is provided only for additional cost transparency and developer reference availability. No cost information is required for this advice filing. This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to OP 1 and 10 of D.16-06-052, this advice letter is submitted with a Tier 1 designation. EFFECTIVE DATE This advice filing will become effective on September 21, 2016, which is the same date as filed. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be submitted to: 11 Ibid. 12 Ibid.

ADVICE 3476-E (U 338-E) - 4 - September 21, 2016 CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: EDTariffUnit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Telephone (626) 302-4177 Facsimile: (626) 302-4829 E-mail: AdviceTariffManager@sce.com Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above. In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B and R.11-09-011 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 302-4039. For changes to all other service lists, please contact the Commission s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.

ADVICE 3476-E (U 338-E) - 5 - September 21, 2016 For questions, please contact Shiela Linao at (626) 302-4506 or by electronic mail at Shiela.Linao@sce.com Southern California Edison Company RGW:sl:jm Enclosures /s/ Russell G. Worden Russell G. Worden

CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company (U 338-E) Utility type: Contact Person: Darrah Morgan ELC GAS Phone #: (626) 302-2086 PLC HEAT WATER E-mail: Darrah.Morgan@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 3476-E Tier Designation: 1 Subject of AL: Publication of Southern California Edison Company s Initial Unit Cost Guide Pursuant to Decision 16-06-052 Keywords (choose from CPUC listing): Compliance AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 16-06-052 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL: Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information: Resolution Required? Yes No Requested effective date: 9/21/16 No. of tariff sheets: -0- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: N/A Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: None 1 Discuss in AL if more space is needed.

Protests and all other correspondence regarding this AL are due no later than 20 days, after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: EDTariffUnit@cpuc.ca.gov Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Facsimile: (626) 302-4829 E-mail: AdviceTariffManager@sce.com Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com

Attachment A SCE Unit Cost Guide

Southern California Edison Unit Cost Guide dated September 21, 2016 In accordance with Attachment A to Decision D16-06-052, the Unit Cost Guide represents facilities generally required for interconnection. Unit Cost Guide is not binding for actual facility costs and is provided only for additional cost transparency and developer reference. For reference, Ft = Per Foot Category 1-12/16kV 480 volt transformer - includes 100' Sec. cable length Item # Equipment Unit Cost Notes 1 2 300kva & Sec. Cable $35,000 3 500kva & Sec. Cable $44,000 4 750kva & Sec. Cable $51,000 5 1000kva & Sec. Cable $66,000 6 7 1500kva, Sec. Cable & fuse cabinet 2500kva, Sec. Cable & fuse cabinet (Fuseing); Used with an External Fuse Cabinet $92,000 $173,000 Category 2 - Overhead to Underground (UG)- Set Pole and make up Cable # Equipment Unit Cost Notes 1 Pri 1/0 Cable from New Pole 200' $30,000 2 Pri 350 Cable from New Pole 200' $34,000 3 Pri 1000 Cable from New Pole 200' $40,000 # Equipment Unit Cost Notes 1 OH Primary Service $16,000 2 New Conductor Extension from POI to PCC $120/ft Category 4 - Underground to Underground - Cable with Terminators # Equipment Unit Cost Notes 1 Pri Low Ampacity Cable undg feed 400' $15,000 1/O XLP 2 Pri High Ampacity Cable undg feed 400' $34,000 350XLP 3 Pri High Ampacity Cable undg feed 400' $36,000 1000XLP 4 5 6 Category 3 - Overhead (OH) Service 7 New underground cable and connections (ft) $25/ft 1/O XLP 8 New underground cable and connections (ft) $50/ft 350XLP - 1000XLP Category 5 - Metering # Equipment Unit Cost Notes 1 Secondary Meeting $5,266 2 12KV/16KV - 50/400 Amp Demand $14,600 3 33kV Pole Top Mtrg $108,300

Southern California Edison Unit Cost Guide dated September 21, 2016 In accordance with Attachment A to Decision D16-06-052, the Unit Cost Guide represents facilities generally required for interconnection. Unit Cost Guide is not binding for actual facility costs and is provided only for additional cost transparency and developer reference. For reference, Ft = Per Foot # Equipment Unit Cost Notes Used for Interconnection switch and not used for 1 33kV Automatic Recloser $131,000 telemetry 2 12/16kV Gas switch with Automation $56,000 Used for Interconnection switch and not used for telemetry 3 Centralized Remote Terminal Unit $6,100 0.99 MVA-9.99 MVA 4 Dedicated Remote Terminal Unit $140,000 Greater than 9.9 MVA 5 Bi-directional watt transducer $49,300 6 Data Point addition and existing HMI $9,500 7 # Equipment Unit Cost Notes 1 12 & 16kv Omni Pole Switch (switch itself and handle) $12,500 2 Padmounted Gas Switch (without SCADA) $48,000 3 12/16kV 1200 KVAR Capacitor Bank & Pole $32,200 4 12/16KV 1200 KVAR Capacitor Bank on Pad $55,100 5 12/16kV regulator 3-228s $180,000 6 33kV Regulator 3-690/722 $274,000 7 Category 6 - Telemetry Category 7 - System Equipment 8 Pole Mounted 12kV Grd detector $30,300 9 Ground Bank $60,500 10 Reconductor (Per ft) - OH - Urban $180/ft 11 Reconductor (Per ft) - OH - Rural $130/ft 12 Reconductor (Per ft) - UG $80/ft 13 14 15 Overhead Fuse Replacement $3,300 16 Average of Padmount and Overhead Average of small and large

Southern California Edison Unit Cost Table - September 21, 2016 - Acronym Table Acronym Description IOU (if used) ITCC Income Tax Component of Construction All CICA Contributions is Aid of Construction All IF Interconnection Facilities All PCC Point of Common Coupling All POI Point of Interconnection All ESR Electrical Service Requirements SCE UG Under Ground All OH, OVH Over Head All DER Distributed Energy Resource All DG Distributed Generation All IC Interconnection Customer All SLD Single Line Diagram All ROW Right of Way All BLM Bureau of Land Management All AFUCD Allowance of Funds Used During Construction SDGE CNF Cleveland National Forest SDGE SCADA Supervisory Control and Data Acquisition All RTU Remote Terminal Unit All GS Gas Switch All PME Pad Mount Equipment All COO Cost of Ownership PGE

Southern California Edison Cost Table Assumptions - Unit Cost Table Dated September 21, 2016 General labor overtime: based on 6-10 work schedule. General contingency factor: 35% - SCE Standard Contingency Policy used for preliminary project estimating based on AACE guidelines. Unit cost guide assumes facilities are constructed under an Engineer, Procurement and Construction (EPC) agreement. All facilities are owned by SCE. Unit costs exclude generator's responsibility for Income Tax Component of Contribution (ITCC), (these will be added to total cost estimates, if required) along with O&M Replacement (both discussed under example assumptions) Unit costs exclude environmental monitoring, licensing and mitigations. Unit cost are given w/out the benefit of any preliminary & final engineering. Unforeseen conflicts and/or scope will increase costs. These unit costs do not include: right-ofway & easements requirements, environmental engineering/mitigation, GO 131-D engineering /permitting, other permitting, associated SCE/3rd Party under-build work, etc. A signed Interconnection Agreement is required before final design/engineering can start. Construction will not commence until all of the above conditions have been addressed. Unit costs do not include the construction of UG ducts and structures (civil construction).

Southern California Edison Unit Cost Guide Dated September 21, 2016 - Variability Illustrative Discussion The impacts identified below are only examples of items based upon historic experience. While effort has been made to include numerous examples, this list is not meant to be viewed as all inclusive and is for illustrative purposes only. Impacts are not always know in advance and final estimates are driven by project specific conditions as reviewed during the system review process. Examples of Potential Factors Effecting Rule 21 Estimated or Actual Costs 1 3rd Party or Multi-Party Easements Example: Roof top solar project on leased building. Significant added coordination to obtain easements. Leasing tenant and/or developer failed to engage building owner of need for interconnection facilities in advance of proceeding with project. This issue is compounded when the site plans and drawings provided do not include surveyed property lines. Even with approval, 3rd party easements require additional document preparation, review and processing. 2 City Restrictions Example: Traffic control in a school area limited work to 9:00 AM to 2:00, doubled project duration (days) of project, impacted efficiency and doubled traffic control and number of resource mobilizations (Road moratorium, customer research) 3 Local Jurisdiction Improvements Example: Long term city plan for road widening. Required existing pole to be set back to get jurisdictional permits. Critical that customer communicate plans with city well in advance to determine required upgrades or improvements. 4 Outage Coordination Utilities make best efforts to balance impacts to all customer when taking outages. Multiple customer needs must be considered. While there is obligation to get service connected impact to existing customer(s) must be considered. 5 Pole Height Restrictions Deteriorated pole condition requires a replacement. Under build requires pole change and taller pole is restricted by view or other issues. Local airport restrictions on pole height. 6 Underground Impairments & Structure Limits Errors in customer base map for underground. Mapping can not forecast underground structure volume available for new facilities. Overcrowded structures can be an issue. 7 Undisturbed Grounds Customer environmental survey work does not take into account potential utility work. 8 Customer Base Map Quality Low quality customer base maps requiring field visits, surveying and multiple back and forth communication to get correct details. Often causes months of delay to project construction. 9 Neighboring Customer Impacts Customer on circuit with seasonal operation would be excessively impacted by outage. Circuit with high level of critical care customers. Generator required to support outage. Construction anticipated in winter months or during storm season. 10 Topology What appeared to be "drainage channel" was classified as waterway and required long span crossing 11 Customer Civil Work A high number or projects see delays in start and completion of customer civil work that extends project duration and can result in added crew trips to site for re-starts. Heavily impacts crew scheduling. 12 Requested Project Timing Construction anticipated in winter months or during storm season.

Project Examples - Southern California Edison Unit Cost Table Dated September 21, 2016; examples provided below are for illustrative purposes only and are not binding for actual facility costs Scenarios < 1MW: Scenario 1 Unit Quantity Cost ($) Category Supporting Comments Interconnection Facilities 500 kva trans /cable EA 1 $44,000 (1) 480V metering EA 1 $5,000 (5) Riser w/cable EA 1 $30,000 (2) Project Total: $79,000 Tax Component (if applied/see assumption 1 ) $27,650 Monthly Interconnection Facilities Charge $300 (see assumption 2/Replacement with Additional Cost ) This is a 0.380 MW, 480V solar generator interconnecting to an OH service located on a low DG penetration 12 kv circuit. Based on the size of the project, standard Interconnection Facilities are required: new riser pole, primary cable, new padmount transformer secondary metering cable. The main feeder did not require any Distribution Upgrades. Scenario 2 Interconnection Facilities 750 kva w/cable EA 1 $51,000 (1) Ground Detector EA 1 $30,000 (7) 1/0 Primary cable FT 400 $34,000 (4) 480V meter EA 1 $5,000 (5) Total $120,000 Tax Component (if applied/see assumption 1) $42,000 Monthly Interconnection Facilities Charge $480 (see assumption 2/20 Year Replacement and No Additional Cost) Scenarios 1MW: Scenario 3 Interconnection Facilities Pad G.S. w/automation EA 1 $56,000 (6) 1500 kva w/cable EA 1 $92,000 (1) PME-5 w/cable EA 1 $26,000 (7) 480V meter EA 1 $5,000 (5) Riser w/cable EA 1 $30,000 (2) Centralized RTU EA 1 $6,100 (6) Total $215,100 Distribution Upgrades Voltage Regulator EA 1 $180,000 (7) Total $180,000 Scenario 4 Unit Quantity Cost ($) Interconnection Facilities Pad G.S. w/auto EA 1 $56,000 (6) 350 Cable EA 1 $34,000 (2) 12 kv meter EA 1 $14,000 (5) Centralized RTU EA 1 $6,100 (6) Total $110,100 Distribution Upgrades Reconductor 1500 of OH to 336 ACSR EA 1 $195,000 (7) Total $195,000 Scenario 5 Interconnection Facilities Pad G.S. w/auto EA 1 $56,000 (6) 1/0 Primary cable EA 1 $15,000 (4) 16 kv meter EA 1 $14,000 (5) Centralized RTU EA 1 $6,100 (6) Total $91,100 Distribution Upgrades Remote Automatic Recloser EA 1 $96,000 (6) Bi-directional Watt transducer EA 1 $49,300 (6) Data point addition to HMI EA 1 $9,500 Total $154,800 This is a 0.675 MW, 480V induction generator interconnecting to an existing underground service located on a low DG penetration 12 kv circuit. Based on the size of the project, standard Interconnection Facilities are required: primary cable, new padmount transformer, padmount ground detector and secondary metering and cable. The main feeder did not require any Distribution Upgrades. This is a 1.5 MW, 480V solar generator interconnecting downstream of an existing Automatic Recloser on a 12 kv circuit. Based on the size of the project, standard Interconnection Facilities are required: riser pole, primary cable, padmount gas switch, padmount PME switch, padmount transformer, secondary metering and cable. Since this project is 1 MW but <10MW telemetry is required. In addition, the solar project triggers a high voltage condition on the circuit. As a result, a Voltage Regulator is install to mitigate the high voltage condition. This is a 2.0 MW, 12 kv solar project interconnecting to an existing underground service located on a high penetration DG, 12 kv circuit. Based on the size of the project, standard Interconnection Facilities are required. Primary cable, padmount gas switch, Remote Control Switch for automation, an primary metering. The addition of the generator triggered a thermal overload on the feeder. Thus, a line reconductoring is necessary to alleviate the thermal overload. This is a 3.0 MW, 16 kv solar generator interconnecting at the end of the line on an existing overhead service. Base on the size of the project new Interconnection Facilities are triggered: riser pole, primary cable, padmount gas switch, Remote Control Switch for automation, primary metering and associated wiring and telemetry. The addition of the generator triggers the installation of an Automatic Recloser to detect end of line faults. It also triggers reverse power flow back (MW/MVAR) at the SCE substation. As a result, a transducer and data point addition to an existing RTU is required to monitor watts and reactive power. Scenario 6 Interconnection Facilities Pad G.S. w/auto EA 1 $56,000 (6) Ground Bank EA 1 $63,000 (7) Riser w/cable EA 1 $40,000 (2) 16 kv meter EA 1 $14,000 (5) This is a >1 MW, 16 kv synchronous generator interconnecting to an existing overhead service. Based on the size of the project, standard Interconnection Facilities are required: riser pole, padmount gas switch, Remote Control Switch for automation, ground detector and primary metering. The ground bank would be dependent on the grounding configuration of the Generating Facility. If the step transformer is connected Delta/Y-grounded (Delta on the gen side), then the ground bank would not be required.

Project Examples - Southern California Edison Unit Cost Table Dated September 21, 2016; examples provided below are for illustrative purposes only and are not binding for actual facility costs Centralized RTU EA 1 $6,100 (6) Total $179,100 Scenario 7 Interconnection Facilities 33 kv RAR EA 1 $131,000 (6) 9000' 336 ACSR EA 1 $1,170,000 (7) 33 kv OH meter EA 1 $108,000 (5) Dedicated RTU EA 1 $140,000 (6) Total $1,549,000 Distribution Upgrades 1000' of 4/0 to 750 cable upgrade EA 1 $30,000 (7) Total $30,000 This is >10 MW, 33 kv solar generator interconnecting to an existing overhead service. Based on the size of the project, new Interconnection Facilities are required: pole line extension, Automatic Recloser and 33 kv poletop metering and a Dedicated Remote Terminal Unit. The main feeder experience a high voltage condition and a line recoductor is required to mitigate the voltage. EXAMPLE DEVELOPMENT ASSUMPTIONS: 1. ITCC (Income Tax Component of the Contribution): For purposes of the example assumptions, the ITCC rate is assumed to be at 35% (based upon standard depreciation) 2. The Interconnection Facilities Charge (O&M) is determined in accordance with GRC Authorization Provided in Rule 2.H (2015 Southern California Edison General Rate Case, 15-11-021 authorized rate from January 1, 2016). Please note that the rate is subject to change based on future filings. For the Interconnection Facilities Charge Replacement Options, Interconnection Applicant would pay the following as provided in Examples 1 and 2: Customer Financed with Replacement at Additional Cost = 0.38%, With Replacement for 20 yrs at No Additional Cost = 0.40% 3. Removal Costs are case dependent and determined based upon actual costs and are not prepared utilizing a proxy percentage. 4. ITCC and Interconnection Facilities Charge are reflected in examples 1 and 2; same methodology can be utilized in other shown examples.

SCE Escalation Factor - Unit Cost Guide Dated September 21, 2016 ESCALATION OVERVIEW : Current SCE Unit Cost Guide Escalation Factors (consistent with CAISO) is in 2016 Constant Dollars. SCE s cost estimating is done in 2016 constant dollars and then escalated over the years during which the project will be constructed, arriving at project costs in 2016 Constant Dollars Escalated to OD Year. Current escalation rates used to arrive at escalated dollars are derived as follows: 2015-2025 - Q3 2015 IHS Global Insight Forecast of Transmission Capital escalation for the Pacific region (JUEPT@PCF) DEFINITIONS : Project Cost in 2016 Constant Dollars represents the cost of the Project if all costs were paid for in 2016. Project Cost Escalated to OD Year represents the cost of the Project if all costs were paid for in the OD Year. Mathematical formula: Constant Dollars Escalated to OD Year = Cost in Constant Dollars x Escalation Factor to OD year CURRENT SCE ESCALATION RATES : 2016 2017 2018 2019 2020 2021 Escalation Rate 1.37% 2.22% 2.47% 2.63% 2.62% 2.58% Escalation Factors 1.0000 1.0222 1.0474 1.0750 1.1032 1.1316 Factors listed above consistent with CAISO unit cost guide.