© 2007 San Diego Gas & Electric Company. All copyright and trademark rights reserved.

Smart Meters and SDG&E’s VisionTed RegulyDirector, Smart Meter ProgramSan Diego Gas and Electric

May 9, 2007Metering America

SDG&E’s Vision of the Future

• Fundamental premises• Build a system supporting both SDG&E and State’s

requirements for reliable electric energy• Inform our customers on consequences of consuming

energy at peak usage periods• Work with customers to manage their electric load• Anticipate technology changes and adopt to them when it

makes sense• Operate our business efficiently and reliably

SDG&E’s Vision of the Future cont.

• Three primary technologies• Meter technology both monitors electric consumption and

communicates with consumer; gas modules tie in to system

• Two-way communication infrastructure between SDG&E and all individual electric meters and gas modules

• Software that collects meter data and integrates with other utility applications

• “Smart Grid”• As technologies advance we envision Smart Metering as

an enabler for our smart grid roadmap• Distributed generation (DG), self-healing network, etc.

Vision: Meter/Modules/Enabling Technology

• Meter and meter communication system• Gateway between the utility and the consumer. • Remote disconnect.• View meter communication system as access to the

consumer’s programmable communicating thermostat (PCT) and other enabling technology.

• PCT functions• Utility controls load by communicating with PCT

• Grid reliability demand-response (DR) program • For economics or calls a price responsive DR program

• Two-way communication customer confirms DR event, but A/C was not on

• Notification PCT no longer receiving/responding to communication network

Vision: Meters cont.

• Meter must support remote firmware upgrades• Ability to add new features such as power quality, new

markets, distribution system asset optimization, pre-pay• New customer services, medical alerts, home security,

etc. • Meter also network sensor

• Meter should be capable of not only recognize net metering, but also participate in distributed generation

Vision: Communications

• Designed for two-way information flow• New services could be added

• Require high-speed communications

• Home area network (HAN)• Open industry standards, non-proprietary, inter-operability• Working with the other CA IOU’s as directed by the CPUC

• Secure means of sending information between SDG&E and end points (tolerant of attacks)

• Communications infrastructure supports our long-term vision to collect:• Power quality information• New sensor data for smart grid, building automation designs• Grid state (monitoring, automation)

Vision: Optional Communications Requirements

• Smart Meters also support future technology upgrades and process improvements to enhance the capabilities of Electric Operations, Gas Operations, back-office field and mapping support, and Customer Care, etc.• Implementing smart enterprise-wide technology and process

improvements that make our operations more efficient

• This would support plans for micro-grid communication and control, autonomous, self-healing systems

• Other potential benefits: intelligent alarming, electronic maps,remote SCADA-based controls, restoration switching analysis, planned switching, etc.

Vision: Software (Application)

• Ability to leverage outage management systems to detect outages

• Ultimately enable transmission and distribution (T&D) operations to sense and review information from many data sources• Either aggregation or as finely detailed as necessary

• Communicate with consumer whereby system designed to add new functionality as customers require

• Provide DR and energy efficiency information to consumer via PCT, in-home display, other enabling technology

• May offer consumer centralized energy management system or allow use of information to manage own system

Smart Meters are Foundational

The Smart Home

Smart Meters

Intelligent Appliances

Self-heal;Self-sense

Real-time Analytics

Intelligent Dispatch

Central Automated Operations

TODAY

FUTURE

�Vision for the future is to optimize

use of technology to improve service to

customers and operational

efficiency

Vision: Customer, Customer, Customer

• SDG&E is committed to exceptional customer experience

• Smart Meter success hinges on customers embracing the data it provides• Need to make it simple/easy

• Focus on Smart Meter customer benefits • Enhanced customer service• Improved outage management• Greater control over energy usage/bills• Reduced need to access property

• Looking at services/products can we develop that provide an exceptional customer experience with Smart Meters• Potential offerings: proactive notification, personal rate options

analysis • Customer initiatives

• Interaction channels, office of the future, virtual enterprise• EE/DR• Innovative rate programs

• Peak Time Rebate• Enabling technology• Education

Next Steps

• CPUC approved April 12, 2007• Achieves Demand Response• California Energy Commission goals• Full deployment

• Technology and Installation RFP May 10th• Select technology Q4 2007• Meter rollout 2008 – 2011

• Continue monitoring market place

For any additional information, please contact the

SDG&E Smart Meter Program Office atSmartMeterPO@SempraUtilities.com

Or visit us at www.sdge.com/smartmeter