AMI Applications at SDG&E Metering America March 24, 2009 Ted M. Reguly Smart Meter Program Director SDG&E

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1 AMI Applications at SDG&E Metering America March 24, 2009 Ted M. Reguly Smart Meter Program Director SDG&E 2008 San Diego Gas & Electric Company. All copyright and trademark rights reserved

2 About Sempra Energy Ranked 210 on the Fortune 500 list Headquartered in San Diego 29 million customers worldwide 14,000 employees worldwide Revenues of $11 billion in 2008 Net income of $1.1 billion in 2008 Ranked #2 on Fortune Magazine s Most Admired Companies in the Electric and Gas Utility industry (2008) 2

3 Sempra Energy Sempra Global Sempra Utilities Sempra Generation Sempra LNG Sempra Pipelines & Storage RBS Sempra Commodities* Southern California Gas San Diego Gas & Electric Regulated utility providing service to 3.4 million consumers 3

4 San Diego Gas & Electric Service area 4,100 square miles, covering two counties, 25 cities Owns 1,835 miles of electric transmission lines and 21,601 miles of electric distribution lines Operates two compressor stations, 166 miles of natural gas transmission pipelines, 8,100 miles of distribution pipelines and 6,197 miles of service lines 4,500 employees Solar Electric Power Association (SEPA) ranked SDG&E No. 4 among U.S. utilities for installed solar power and power capacity California San Diego Gas & Electric Southern California Gas Company 4

5 Program Overview $572MM Capital/O&M approved by CPUC April 2007 Install 1.4 million smart/ami electric meters for all customers Solid-state electric meter technology with ZigBee chip 2-way communications 4 channels Electric interval data reads Residential hourly, C&I 15 mins. Remote disconnect/connect integrated within 200 amp meter Programmable load limiting switch On demand reads, demand reset Adding module to existing 900,000 gas meters Daily gas reads ZigBee; talks via electric meters 5

6 Program Overview cont. Next-day data for customers online/phone Home area network (HAN) - ZigBee Local connectivity to remote devices, load control technology Case includes 57K programmable communicating thermostats (PCTs) for Small/Medium C&I 55% Operational benefits, 45% Demand Response Support price responsive tariffs (TOU, CPP, PTR, etc.) Information systems, MDMS, integration with legacy systems Firmware downloadable to the meter/module Remote device configuration/firmware & feature updates Tamper/theft Voltage Outage/restoration Advanced security architecture focused on end-to-end solution 6

7 Project Approach Vendor and technology neutral as possible Vertical integration where it makes sense Open standards, standards-based architecture Interoperability, future-proofing Thorough RFP process Consistent focus on business improvement Recognize this is nascent technology This is not business as usual Risk management Phased release approach Rigorous testing Robust security architecture Walk before running Focus on internal and external stakeholders It s all about the customer 7

8 Smart Energy Ecosystem Energy Flow Solar Power Smart Meter Smart Grid and OpEx Smart Home Smart Office Fuel Cell Energy Storage Biofuels CO2 Enhanced Oil Recovery Gas Storage 8

9 Accomplishments Started Mass Deployment on 3/16/09 Smooth cut over exceeded expectations Day-to-day deployment activities running well Business process design and automation Moved all IT systems into Production: new and legacy Completed SDG&E infrastructure build out on schedule/on budget Completed successful 5K endpoint test Solid partnerships continue to support milestone delivery 9

10 Lessons to Share Learn from other utilities Put more emphasis on cross-functional interdependencies Deep dive into requirements before you move to design Go to the task level early IT programs/systems integration are complex Frequent internal and external communications Scope, scope, scope 10

11 Mass Deployment Schedule 2009 Mass Deployment Starts Plan to install 200K electric meters/gas modules Slow ramp-up Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan Customer Mailings Start Online Presentment Available in My Account: Usage Information Only No $s Starts with Residential and Small C&I Installs Simple Billing Customers Only -Continually Research and Refine Processes and Collateral- 11

12 Mass Deployment Schedule First Summer of Smart Meter Enabled Residential Rate (PTR) for installed customers By end of 2011, complete installation of 1.4M electric meters and upgrade of 900,000 gas meters Program Complete Q Q Q Q Q Q Q Q Enhanced Online Presentment Available: Residential Rate Peak Time Rebate (PTR) including Cost/$s Medium and Large C&I Installs Start Complex Billing Available Time-of-Use HAN devices expected to be commercially available Large Assigned Account Meters To Be Changed Out (these are the existing communicating meters via MV-90) Smart Meter Enabled Rates Residential & C&I (PTR/CPP-D/CPP-S) for installed customers -Continually Research and Refine Processes and Collateral- 12

13 SDG&E Future Vision 13

14 Home Area Network (HAN) Vision CA IOU s AMI HAN Vision (June 07) Enable responsive, smart energy environments within the home that are gracefully integrated with people Satisfy higher customer experience expectations Demand response enabler Direct load control In-Home notification of peak day events and price Programmable communicating device/thermostat communication Energy conservation enabler Enables energy information for customers Near real time energy feedback Ubiquitous deployment provides market catalyst for enabling commercial energy innovations 14

15 HAN The Future Areas identified as necessary longer term priorities: OpenHAN certification process Develop common testing criteria Compliance with requirements Encourage new HAN devices Distributed generation metering Plug-in vehicle energy measuring Appliance communication & optional control modules New program development Work with DR, EE and conservation programs Investigate integrating with Web-presentment 15

16 16

17 Home Area Network (HAN) Emerging market in terms of capabilities RFP now underway Demand Response (DR) and Load Control Basic metering [measurements, historical information, etc] Pricing [rate information, price tiers, TOU rate] Text messages [short ~80 characters] Security Open standards and protocols that comply with nationally recognized non-proprietary standards, inter-operability (working with the other CA IOU s) Supports three types of communications: public price signalling, consumer specific signalling and control signalling Supports solar/distributed generation, plug-in hybrid metering, gas and/or water meter communications, back office to Internet Type of information/devices customers will eventually see Real-time usage data (unlike next day with online presentment) Programmable communicating devices/thermostats (PCTs) In Home Displays (IHDs) Load Control Devices Energy Management Systems, etc. Sub-metering and prepayment systems 17

18 Online Presentment Basic usage presentment Residential solution from Itron Provided to customers with meter(s), validated data via My Account Next day information Includes carbon calculation Looking at adding Tiers Third party presentment providers Customer co-design process to develop tools/offers Employees and customers participating in testing/developments 18

19 Foundational To Smart Grid Optimize use of technology to improve service to customers and operational efficiency SMART GRID 19

20 Sempra Utilities Network Vision Lower total cost of ownership Reduce complexity Increase service level availability, improve reliability 20 20

21 Information available on Internet 21

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