Smart Grid Update 2011 Supplier Conference Kevin Dasso Senior Director Technology & Information Strategy October 27, 2011
Agenda PG&E Smart Grid overview Implementation Approach Smart Grid Baseline Upcoming milestones Smart Grid Baseline and Customer-related Projects Spending Categories New Smart Grid Project Spending Categories and Benefits Engaging PG&E Regarding Opportunities Questions?
A Smart Grid Overlay with intelligence and automation Sense Communicate Compute Control Power Plants Transmission Networks Substations Distribution Networks Consumers
Smart Grid Context Smart Grid is only one of many tools PG&E is using to achieve two ends: Delighted Customers and Realized Energy Policy Goals Utility Operational Capabilities Utility Initiatives & Projects Delighted Customers Energy Policy Goals Smart Grid-enabled Capabilities Smart Grid Project Portfolio
Implementation Approach Standards definition Shape and validate the standards that will underlie future smartgrid implementations Testing Prototyping and testing of smart-grid technologies before piloting Accelerate technology development and ensures standards compliance early on Develop preliminary customer communications to support pilots Controlled Pilots Implement tested technologies in a real-world but controlled setting to demonstrate value Work with customers to prepare for the new technologies and services Targeted deployment PG&E Service Area in Northern & Central California Extend pilots to targeted roll-outs based on benefits Insights used to feed the next cycle of technology deployment
Smart Grid Baseline Smart Grid Baseline Investments Are a Subset of the Company s Entire Portfolio of Projects Core Utility Infrastructure Investments PG&E-owned generation facilities Transmission and distribution system Smart Grid Baseline Investments PG&E projects that meet Smart Grid OIR objectives and align with PG&E Smart Grid vision Leverage integration of communications and advanced technologies Smart Gridrelated Customer Programs Ongoing customer programs, tools, and services that leverage Smart Grid investments
Upcoming milestones November 28, 2011: PG&E submits its plan to the CPUC for a Home Area Network (HAN) pilot for up to 5,000 customers January 27, 2012: PG&E submits its plan for providing access to customer usage data with permission using an industry standard data exchange protocol July 1, 2012: The CPUC is expected to issue its final decision on PG&E Smart Grid Deployment Plan August 2012: PG&E will file its Notice of Intent regarding its 2014 General Rate Case
Smart Grid Baseline and Customerrelated Projects Spend Categories Baseline Projects: In service as of 12/31/10 Approved by a regulatory decision and currently in-flight, with a planned service date before 2020 Remaining spend: Smart Utility projects: $970M Engaged Consumer projects: $340M Smart Energy Markets projects: $60M Foundational and Cross-cutting Infrastructure: $60M Total Baseline: $1,430M Customer-related Smart Grid Projects: Programs that provide tools and information to consumer, currently in place or under development SmartMeter enabled information presentment tools SmartMeter enabled timevarying pricing products Customer energy efficiency Demand Response Distributed Generation Electric Vehicle Readiness
New Smart Grid Project Spending Categories and Benefits Proposed New Smart Grid Projects & Initiatives Engaged Consumers Smart Energy Markets Smart Utility Foundational and Cross-Cutting Infrastructure Capital: $25 - $55M Capital: $30 - $50M Capital: $630 - $835M Capital: $115 - $295M Economic Benefits Potential Incremental Benefits Reliability Benefits Environmental Benefits Non-Quantifiable Benefits Avoided Energy Procurement Costs: $600 - $1,400M Avoided Capital Investments: $240 - $360M Avoided O&M Costs: $140 - $195M SAIDI and SAIFI: 10-20% reduction CO 2 Reduction: 1.5M 2.1M Tons, $15 - $84M Customer Empowerment New Pricing Programs New DR & Energy Efficiency Programs Reduced Environmental footprint Increased Renewable Resources and Distributed Generation
Engaging PG&E Regarding Opportunities If you are a current supplier to PG&E please contact Ben Moglen (bsmc@pge.com) Upon receiving your materials, Ben will route your opportunity to the correct owner within Smart Grid for evaluation If you are not a current supplier to PG&E please go to www.pge.com on how to register as a potential supplier Minimum Requirements include: General Liability, Auto, and Worker s Compensation certificates of insurance that meet PG&E s minimum requirements of $1 million policy for each area of coverage. Proof that your company has been operating for at least 2 years and performing similar work that is being contracted for, or evidence of equivalent experience. Ability to provide five current references from satisfied customers following completion of similar work. Evidence that your company has a good credit rating and is financially stable. A U.S. Federal Taxpayer ID number or country equivalent taxpayer identification. Ability to collect and pay appropriate sales tax and other taxes to proper agencies. Ability to utilize Electronic Data Interchange (EDI) for receiving orders, confirming orders and invoicing.
Questions?