SCE

1
SCEs Balanced Energy Portfolio
Pedro J. PizarroSenior VP, Power
ProcurementSouthern California Edison National
Energy SymposiumJune 15, 2006
2
Southern California Edison Overview

• An Edison International company, SCE is one of
  the nations largest investor-owned electric
  utilities, with more than 120 years of service.
• Serves a population of 13 million people, via 4.7
  million business and residential accounts in a
  50,000-square-mile service area within central,
  coastal and Southern California.
• Delivering that power takes 93,500 circuit miles
  of line connecting 1.5 million poles, 683,000
  transformers and 737,000 area and street lights
  and the days and nights of 13,000 employees.

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Southern California Edison Overview
Surveyors at Big Creek near junction with Pitman
Creek in 1910.

• SCEs history begins in 1886.
• In 1909, the name Southern California Edison was
  born.
• More than 200 predecessors have come together to
  create Southern California Edison.
• From late 1940s through mid 1970s SCE built
  numerous oil- and gas-fired plants to meet the
  increasing electric load.
• In the 1960s and 1970s Edison also built a large
  coastal nuclear plant.
• Today SCEs energy mix includes gas, nuclear,
  coal hydro power and renewable power.

San Onofre Nuclear Generating Station
Big Creek Power House 1 today.
4
SCEs Power Procurement Portfolio(2005 Energy
Mix)
2/3 from non-SCE-owned resources
NOTE Percentages based on SCEs December 2004
forecast, 2003 GRC Request, 2005 ERRA Forecast
Proceeding, 2004 DWR Interim Revenue Requirement
Decision (D.04-01-028), and Final DWR Power
Allocation Decision (D.04-12-014).
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Power Mix Comparison SCE, California and U.S.
Other
Large Hydroelectric
Coal
Renewables
Nuclear
Natural Gas
Sources SCEs Power Content Label -
Projected, March 2006 CECs Net System
Power A Small Share of Californias Power Mix in
2005 Report, April 2006 Energy Information
Administrations Electric Power Annual, November
2005
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SCEs Procurement Objectives Implementation Of
The Loading Order
System Reliability
Price stability

• Resource adequacy
• Local area reliability
• Adequate transmission

• Cost minimization
• Financial risk management
• Optimization of commitments

• Balance objectives through CPUC/CECs
  loading order
• Energy Efficiency
• Demand Response
• Renewable resources
• Distributed Generation
• Clean and efficient fossil-fired generation.

Environmental Considerations

• Resources with lower greenhouse emission
• More efficient resources
• More energy efficiency

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SCEs Renewable Portfolio
100 16 of total system kWh in 2006 (expected)

• The Renewable Portfolio Standard in California
  requires all load serving entities to serve 20
  of their retail customer load with renewable
  energy by the year 2017, preferably by 2010.
• SCE is making every effort to meet this
  requirement. Among the major challenges are long
  transmission development lead times, long project
  lead times, unknown viability of new projects,
  renewables supply/demand and increasing load
  forecast.

Mix percentages by technology based on 2005
renewable portfolio
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Estimated Generation Need in Southern California
MW

• There is significant need for new generation in
  the So. Cal. region.
• The challenge is to encourage investment in new
  generation under retail competition.
• SCE and others have proposed interim solution
• CPUC-approved utility long-term (10-year)
  contracts for new generation capacity to ensure
  system-wide reliability
• Allocate benefits and costs to all customers
• Limit transitional contracts to the minimum
  amount of capacity needed

SCE, PGE, NRG, AES, TURN, CCUE, CURE
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Distributed Energy Resources Collection Of
Different Technologies and Applications

• Distributed generation Primarily small scale
  generation of electric power by a unit sited
  close to the load being served. Typical
  technologies include microturbines, internal
  combustion engines, fuel cells, small gas
  turbines, solar photovoltaic, and combine heat
  and power (CHP).
• Energy Efficiency Products or systems using less
  energy to do the same or better job than
  conventional products or systems. Energy
  efficiency saves energy, saves money on utility
  bills, and helps protect the environment by
  reducing the amount of electricity that needs to
  be generated.
• Demand Response The ability to buy back capacity
  from customers with discretionary demand so that
  others with high and consistent demand levels can
  continue to be served during critical high demand
  periods. DR programs provide incentives to
  curtail electricity demand and reduce load during
  peak periods in response to system reliability.

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Distributed Generation Capacity (2004)
Small scale generation vs. total generating
capacity
100 53,000 MW
100 1,032,000 MW
100 18,000-20,000 MW
SCE
California
U.S.A.

• While Distributed Generation (DG) has several
  undisputed benefits, and it is useful in several
  applications (e.g. emergency backup, combined
  heat and power) it is not an economic generation
  resource option in the large scale in the near
  term.
• DG has significantly higher installation costs
  and emissions output per kWh than central station
  power plants.
• The most competitive DG technologies are still in
  the experimental phase.
• Large scale commercial viability is not proven
  yet.

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Energy Efficiency at SCE

• Business and Residential Energy Programs
• SCE offers its customers one of the largest
  arrays of energy efficiency programs, products
  and services in the nation.
• The programs have
• Paid 258,400 rebates to residential, commercial,
  and industrial customers for energy-efficient
  appliances, lighting, motors, and heating and air
  conditioning systems, totaling more than 140
  million
• Provided over 130,000 residential home energy
  surveys
• Picked up from residential customers more than
  70,000 older, inefficient refrigerators,
  recycling them in an environmentally safe manner
  and
• Assisted builders who constructed nearly 27,000
  thousand new, energy-efficient homes.

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SCEs Forecast of System Level Demand Response
Programs for 2006
22,700 MW
(1,140 MW)
(83 MW)
21,560 MW
21,477 MW
SCE Unmanaged System Peak Demand 2006
Dependable Capacity of Day-Of Reliability Demand
Response (DR)
Non-firm Voluntary Day-Ahead Price Responsive DR
SCE Managed System Peak Demand 2006
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Future Technologies Advanced Meters

• Intelligently Connecting Edison to our Customers

• The California Public Utilities Commission has
  approved the development of a "next-generation"
  electric meterphase 1 of a potential 3-phased
  program to implement an advanced metering
  infrastructure (AMI).
• AMI is an intelligent metering system that
  provides new functionality to meet the needs of
  our customers and our company into the future.
• AMI has the potential to do
• Develop demand flexibility as a resource to
  enhance the electric system reliability
• Reduce power purchase and individual consumer
  costs
• Protect the environment