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Southern California EdisonDemand Response Present and

Future

Presented by Larry OlivaDirector, Tariff Programs and Services

Demand Response Coordinating CommitteeTown Meeting, Washington DC

June 3, 2008

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• SCE Demand Response today– System peak 23,303 MW– Interruptible Large Customer 627 MW– Emergency Res/Sm. Comm. 607 MW– Emergency Ag Pumping/Other 56 MW– Price Responsive Programs 107 MW– Total DR 1,397 MW– Total DR % 5.9 %

• SCE technical peak demand reduction potential– If all customers participated similarly 30 %

Recent Successes in Demand ResponseRecent Successes in Demand Response

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Recent Successes in Demand ResponseRecent Successes in Demand Response

Seasonal Incentives based on:

• Tons of Cooling• Cycle Strategy (50%, 67%, 100%)• Event Choice (15 events vs. unlimited)• FIXED incentive amounts PAID in advance

• Over 320,000 participants • 91% of participating A/C Units range in size from 2.5 to 5 tons• 88% of participating customers opt for 100% cycling (Maximum $ Incentive)• Average annual residential incentive paid = $140/device

Expanded AC cycling by 225

MW in 2007

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Where SCE is Going with DRDynamic Pricing-The Essential Path

• Industries with high cost of capacity transitioned to dynamic pricing, examples:– Airlines– Hospitality– Rental Cars– Shipping

• Electric Utilities can benefit– Peak load growth continuing– Regulatory and environmental impediments to

build– Real cost escalation of new construction– Technology enablement (metering and controls)

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EIX Vision for Clean Energy Future

5%

20%

9%

59%7%

Energy Management& Efficiency

Low Carbon Fuel Mix

Integration of Information Technology with Energy Technology Delivers Environmental Benefits

Smart GridRenewable

& Clean Generation

SmartConnect Connected Home

Connected PHEV

• Dynamic Pricing

• Reduced Cost & Rate Pressures

• Meeting Customer Expectations for Value & Environment

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Connected Home

Smart appliances

Smart thermostats

Energy information

Empowering Customer Choice

CPPResidential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

PTRRates and Rebates

Residential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

TOU RatesResidential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

Small Commercial

1 kW – 20 kW

Small Commercial

1 kW – 20 kW

Small Commercial

1 kW – 20 kW

Medium Commercial

20 kW – 200 kW

Medium Commercial

20 kW – 200 kW

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Long-Term Opportunities through Plug-in Electric

Vehicles

Enable Net Metering, Discrete

metering and Integrated energy

management w/Solar Panel

Customer Home Energy Storage

Creates Opportunities for

Increased Renewables

Connected Home

Load Shaping and Following

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CPPResidential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

SDP (Res)

Residential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

SDP (Comrcl)

2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

Pilots Launch

Programs>531 MW

> 72 MW

342 MW

78 MW

410 MW

53 MW

Incremental New DR = 883 MW

PTR

Rates

Residential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

PCT-ZigBeeResidential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

Small Commercial

1 kW – 20 kW

Small Commercial

1 kW – 20 kW

Small Commercial

1 kW – 20 kW

Medium Commercial

20 kW – 200 kW

Medium Commercial

20 kW – 200 kW

Residential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

TOU RatesResidential

Single FamilyMulti Family

Residential

Single FamilyMulti Family

Small Commercial

1 kW – 20 kW

Small Commercial

1 kW – 20 kW

Small Commercial

1 kW – 20 kW

Medium Commercial

20 kW – 200 kW

Medium Commercial

20 kW – 200 kW

3K 703K 2.2M 3.7M 5.1M

Edison SmartConnect Demand Response Goals

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Rate Tier Position and Tier “Alert” Programs encourage conservation behavior

Rate Tier Position and Tier “Alert” Programs encourage conservation behaviorTier Position Provides Customer with billing status via webpage: Current billing tier, cost and days left in billing period

Proactive Tier “Alerts” and an In-Home Tier “Position” Display Device:

$.19 $.22 $.33 $.38 $.43Energy Cost Display

PeakRebate Available

Tier 5 $0.43

Tier 4 $0.38

Tier 3 $0.33

Tier 2 $0.22

Tier 1 $0.19

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Next Challenges for SCE Demand Response

• Customer adoption of Peak Time Rebates and Dynamic Rates

• Move incentive programs to Pay-for-Performance

• Integrate retail DR products with CAISO markets

• Promote enabling technologies