AGENDA SLIDE PLACEHOLDER Agenda Topic Time Presenter Background

AGENDA SLIDE PLACEHOLDER Agenda: Topic Time Presenter Background on Phase II and Phase III Functions Volt-var and Volt-watt monitoring and reporting proposal Feedback on proposed Joint IOU methodology Manufacturers’ plan on logging Smart Inverter function activation 30 minutes Energy Division Relevant Deadline Feb 22, 2019 20 minutes Joint IOUs Oct 1, 2018 30 minutes Open discussion Moderated by Roger Salas and Will Chung Oct 1, 2018 Communications strategy 15 minutes Moderated by How can SIWG, the IOUs, and Energy Division make industry aware of upcoming deadlines and help them prepare? Ongoing Behind the Meter Voltage Rise 15 minutes Moderated by What are the impacts? Who are the Energy Division interested parties? Background on SI Function 4: Set Active Power Mode and 7: Dynamic Reactive Support 10 minutes Roger Salas Dec 26, 2018 Rule 21 Alignment with IEEE 1547 15 minutes Future Discussions 15 minutes Moderated by What is the value proposition? What are Energy Division the downsides? What elements are not aligned? Moderated by What SIWG items need to be discussed in Energy Division subsequent meetings Next Steps: Action Items and Meeting Schedule 15 minutes Moderated by Energy Division 15 minutes Relevant Questions 1

Volt/Watt, Volt/Var, Voltage Complaint Reporting Requirements Resolutions E-4898 and E-4920 established a reporting requirement and provides the following key dates: • Oct 1, 2018 – IOUs to file a Tier 1 Advice Letter on a monitoring and reporting framework for Volt Watt, and Volt Var • Three months after Commission Decision – Begin Volt Var Reporting • Three months after mandatory activation of Volt Watt (Feb 22, 2019) – • Begin Volt Watt Reporting • Begin Voltage Complaint Process Reporting 2

Volt Var with Reactive Power Requirement • Volt Var Default Setting (See Rule 21 Section Hh. 2. j. for more information) • “To better understand how often Volt Var with reactive power priority is utilized to curtail real power, we direct the utilities, in conjunction with the SIWG, to investigate the feasibility of developing a monitoring and reporting methodology specific to Volt Var with reactive power priority. ” • E-4920 Ordering Paragraph 3: “The utilities shall each file a Tier 1 Advice Letter by October 1, 2018 proposing a monitoring and reporting framework specific to Volt Var with reactive power priority, or describing why a framework is not feasible. If the Commission approves a reporting requirement, the IOUs shall file quarterly reports via Tier 1 Advice Letter for one full calendar year, i. e. four reports, starting three months after the Commission approves the reporting requirement. Following these first year reports, the IOUs shall file annual reports via Tier 1 Advice Letter starting on the anniversary of the Commission approving the reporting requirement. No sooner than five years after the Commission approves the reporting requirement, the IOUs may file, via Tier 2 Advice Letter(s), proposals regarding continuation and/or modification of the reporting requirements. ” 3

Volt Watt Requirement • Volt Watt Default Setting (See Rule 21 Section Hh. 2. m. for more information) • “We order the IOUs to work with the Smart Inverter Working Group to • E-4898 Ordering Paragraph 5: “Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric shall work with stakeholders to develop standardized reporting methodologies to monitor the frequency and amount of voltage excursions and, in consultation with the Commission’s Energy Division, shall each file a Tier 1 Advice Letter on the proposed methodologies by October 1, 2018. “ develop a reporting methodology to ensure that the appropriate voltage data is obtained. ” 4

Voltage Complaint Process • The IOUs manage power quality and maintains voltage within ANSI requirements. • “In the event that customers, with or without DERs, experience voltage issues, these customers can and should report these issues to the utility. ” • Volt Var and Volt Watt are both capable of curtailing real power to address voltage concerns however: – “Any real power losses from the proposed Volt Var setting are expected to be de minimis” – “In many and probably most cases, the impact on a DER customer will be de minimis – i. e. the function [Volt Watt] will be called upon extremely infrequently” • “we order the IOUs to report on their voltage complaint resolution process. Specifically, we order the IOUs to report on how many voltage complaints were received with categories for both DER and non-DER customers, whether the complaint was from the customer or a third-party on behalf of the customer, the duration it took to resolve each complaint, whether the voltage issue was on the utility side or the customer side of the meter, the method for resolving the voltage issue, and the cost of the method for resolving the voltage issue. ” 5

IOU Proposal on Voltage Monitoring and Reporting • IOU Proposal for monitoring and reporting when voltage complaint is received – Utility AMI data will be utilized to determine which side of Utility Meter is experiencing voltage issues – Smart Inverter should log when Volt/Var and/or Volt Watt activates – AMI Data is not capable of determining which SI function activates and the estimated curtailment Voltage Complaint logged Use Smart Meter to determine which side of meter If Customer Side & DER exists, request data from Customer If Utility Side & DER exist, request data from Customer and proceed with fixing issue Resolve Voltage Issues (Customer or Utility Responsibility) Poll Data for Utility Report on Voltage Complaints & Impact via Volt/Watt & Volt/Var 6

SI Logging Volt Watt / Volt Var Activation • “PG&E stated in its reply comments that it would be open to considering additional reporting if smart inverters are capable of collecting the data and if the data is provided to the utilities in a consistent manner. In response to comments, we direct the utilities, in conjunction with the SIWG, to investigate the feasibility of developing a monitoring and reporting methodology specific to Volt Var with reactive power priority. ” • “The IOUs argue that they do not have the ability to track or record impacts to DER for activating the function, and they are not privy to the data produced by the DER owner/operator which they claim is the only one that could calculate any curtailment. The IOUs further contend that even if DER owners/operators notified the utility, there is no straightforward way to verify the accuracy of the information. “ • “We encourage stakeholders to provide their own data as well to compare with the IOU data and better inform the Commission. ” 7

Feedback on Voltage Monitoring and Reporting 8

Functions 4 and 7 Background E-4898: “we approve the proposed tariff revisions for Function 4 and Function 7 as proposed and order the IOUs to each file a Tier 2 Advice Letter no later than eight months after the approval of this Resolution. The Tier 2 ALs shall clarify the technical requirements for Functions 4 and 7. The IOUs are ordered to work with the SIWG to clarify these requirements. “ 4. Set Real Power Mode 7. Dynamic Reactive Current Support Mode Sets the real power level at the reference point as a percent of maximum real power capability or to specific real power value SWIG Discussion Points • • Function was not included as part of IEEE 1547 -2018 edition Differentiation between function 3 and function 4 is not clear Use cases need development Technical specification need to be developed Shall provide reactive current support in response to dynamic variations in voltage(rate of voltage change) rather then reactive power performance caused by changes in steady state voltage levels. • This function provides dynamic reactive current support in response to a sudden rise or fall in the voltage at the PCC SWIG Discussion Points • • A Dynamic Voltage Support Function is allowed under IEEE 1547 -2018 edition (under mutual agreement) Use cases need development Technical specification may need further refinements depending on use cases (Flicker and PQ issues) Testing under IEEE 1547. 1 may not be available for inverter certification 9