Solar Metering and Performance Monitoring Exposition

June 4, 2007

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The PG&E SmartMeter program:► will deploy a system for automated meter reading – hourly meter reads for

electric, and daily meter reads for gas

► includes two separate systems: a power line carrier system for electric and a radio frequency system for gas

► involves an upgrade to both gas and electric meters – approximately 10 Million meters will be upgraded

► will be deployed over a five year period. An initial, paced deployment began in Bakersfield in November, 2006. Deployment efforts are scheduled to conclude in late 2011

► will introduce additional capabilities over time, including outage management and remote connect/disconnect (for a subset of electric customers)

► will enable the introduction of demand-response rates for residential and small business customers

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Customers► Receive usage information to better understand and manage their bills, and be able to

participate in energy efficiency and demand response programs► Experience less inconvenience and intrusion by no longer needing to unlock gates and tie up

dogs for monthly meter reads► Reduction in the causes of delayed, inaccurate and estimated bills► Experience faster outage detection and restoration times► Opportunity to turn service on and off remotely

Overview: Benefits

► Experiences reduced operating costs

► Improved billing efficiency through reduced exceptions processing

► Experiences improved customer satisfaction

► Accomplishes goal of lower procurement costs

► Achieves reduced energy theft

► Provides improved outage management

PG&E

► Supports the CPUC’s price-responsive tariff requirements

CPUC/State

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ISTS O&M $191M

FieldDeployment

$1,299M

ISTSDeployment

$189M

Meter Reading

Operations

Costs

Meters

Networks

Installations

IT Systems

System Integration

Project Management

O&M

Demand Response

Benefits (100%)

► The SmartMeter program has a positive business case: Projected benefits exceed projected costs by 4%► Operational efficiencies (including meter reading savings) account for approximately 86% of benefits► Demand response (i.e. reduction in procurement costs) accounts for about 14% of benefits, and promises

to provide an additional positive return on our investment

SmartMeter Program - Business Case

Remote turn on / off

Outage detection

Service restoration

Avoided dispatches / truck rolls

Call volume reductions

Records exception reductions

Complex billing

Capacity planning

4% delta

40%

46%

14%

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SmartMeter Dual-Network Architecture

CONSUMER

PUBLICWIRELESSNETWORK

PUBLICWIRELESSNETWORK

LOAD RESEARCH

OUTAGE MANAGEMENT

Customer Information System

PLC System

Controller

Web Server

AMIInterface System

RF Network System

Controller

Substation Communication

Equipment

PG & E Substation

Electric powerline carrier network

Data Collector

Unit

Fixed Wireless Network System

Meter DataManagement

& Storage

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Substation Communication Equipment (SCE)

ModulationTransformerUnit (MTU)

OutboundModulationUnit (OMU)

Control and Receiving Unit (CRU)

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SmartMeter electric module “under the glass”

Standard electromechanical

meter

SmartMeterElectric Module

(Remote Communication Equipment – RCE)

Completed Retrofit

The SmartMeter enabled electric meter will look much like standard electromechanical meter, but will include a SmartMeter electric module (i.e. remote communications equipment, or RCE)

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The SmartMeter Radio Frequency (RF) network for gas

Reading File

NetworkControlCluster

Gas meter withmeter Transmission Unit (MTU)

i.e. SmartMeter gas module

WACS

MTU Sends Reading Messages

DCU Sends Data

DataCollector

Unit(DCU)

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RF network is designed for redundancy

► On average, each gas meter will be read by at least 3 data collector units (DCUs)

► The DCU reception range is approximately 1 mile

► A single DCU can handle up to 50,000 meters

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Deployment volumes for SmartMeter gas and electric meters will ramp to a peak of over 12,000 meters per day

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

Inst

alls

pe

r D

ay

Endpoints

Includes gas and electric meters

Deployment Month

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Deployment volumes of SmartMeter gas and electric meters – annual view

Gas and electric endpoint installations

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2006 2007 2008 2009 2010 2011

10.3 Million meters will be upgraded by the end of deployment in 2011

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Support for solar requirements

► Current SmartMeter technology supports net metering only

► A separate measure of generation would require a second meter

► PG&E continues to monitor and evaluate advances in automated metering technologies

► The CPUC asked PG&E to evaluate new technologies on an ongoing basis

► We evaluate against the solar requirement for a separate measure of generation

► Some new technologies provide this capability and we are looking at these carefully