Smart Meter Program Overview Jana Corey Director Energy

Smart. Meter Program Overview Jana Corey Director, Energy Information Network Pacific Gas & Electric Company

Pacific Gas and Electric Company ► Energy Services to about 15 M People: ► 5. 2 M Electric Customer Accounts ► 4. 4 M Natural Gas Customer Accts ► 70, 000 square miles with diverse topography ► ~20, 000 Employees ► Regulated by the California Public Utilities Commission (CPUC) 2

Balancing Competing Priorities Environmental Sustainability Reasonable Cost Reliable Service Smart Grid 3

Smart Grid Will Enable A Sustainable Electric System Renewable Electric Generation Efficient Electric Delivery Managed Electric Demand 4

PG&E’s Smart. Meter Program ► Automated meter reading for all customers ► 10 million meter upgrades ► A communications network ► IT systems ► Frequent meter reads - daily for gas, hourly or 15 minute interval for electric ► Enhanced customer benefits over time ► Automated meter reading ► Secure online access to detailed energy usage data ► Better billing; reduction in call volumes ► Outage management ► Remote connect / disconnect, load-limiting ► Home area networking 5

Smart. Meter Dual Network Architecture Radio Frequency Mesh Electric Network Access Point Data Collector Unit Radio Frequency Gas Network 6

Smart. Meter Timeline 10. 1 million meters installed Key Functionality Milestones 2007 Replatform IT systems for high data volumes Anchor bill on automated reads 2008 Bill on interval reads (for select customers) Secure customer online access to interval usage data Successful rollout of Smart. Rate (res. CPP) 2009 (targeted) Outage management Electric remote connect / disconnect 2005 - Project start December 2008 – 1. 7 million meters installed Millionth meter installed 9/5/08 2006 - Vacaville Test Fall 2006 – Begin Full Deployment 2007 2008 2009 2010 2011 7

Smart. Meter Deployment Challenges ► ► Meter Issues ► Meter access ► Obstructed meters ► Multiple meter designs ► Handling for special meter types (e. g. TOU meters) Evolving Electric Technologies ► ► ► Vendor Issues ► Ramping supply chain to deliver required volumes ► Deployment vendor resource flexibility Variety of obstructed gas meters Network Siting ► ► Maintaining deployment momentum Availability of overhead structures for RF network equipment Optimizing Realization of Program Benefits 8

Smart. Meter IT Challenges ► ► ► Scale & Complexity ► Establishing IT platform to handle huge volumes of data ► Scaling meter data management ► Integration complexity – many system interfaces Standards ► Immature industry standards ► Driving an open, standards-based solution with multiple vendors Vendors ► ► Vendors’ early-stage products; limited experience and resources Distributed Computing ► How to best leveraged distributed processing capacity ► Ensuring robust security 9

Successful deployment of Smart. Rate pricing plan Recruitment ► 10, 000 voluntary participants in summer 2008 Experience ► Across 9 called events, achieved average residential customer reduction of 16. 6%, and an average non-CARE residential customer reduction of an impressive 22. 6% ► 7 of 10 customers saw a reduction in their cumulative summer bills Retention ► 90% of customers intend to stay on the plan in 2009 Rollout follows Smart. Meter program deployment 10

Online Customer Access to Usage Information ► Displays energy usage by billing cycle, month, or week ► Displays hourly electric usage by day ► Ability to overlay temperature ► Smart. Rate customers view usage “framed” by peak periods ► Customer service reps able to view same graphs online 11

Smart Grid Expands Sensing And Control Into Customer Premise Network Access Point Public Wireless Network Smart. Meter™ Electric Meter In-Home Network 12

Home Energy Management Advanced Enhanced Basic § Fully automated intelligent energy management system § More comprehensive inhome displays (usage, cost, time) § Simple high-low indicator § Programmable Communicating Thermostat (PCT) § Other automated/ programmable appliances § Electric vehicle charging / storage § Distributed generation and storage 13

End-Use Technologies Infrastructure Devices Services Home Area Network (HAN) Integrated Energy Management Energy displays Usage information & analysis Smart appliances & electronics Pricing options – variable, pre-pay Programmable communicating thermostat Automated demand response Advanced lighting controls Time-based lighting Customer generation / storage monitoring controls Fully-leveraged customer generation and storage capability Smart x. EV charger Time- or rate-based x. EV charging Smart. Meter Automated Metering Infrastructure Smart Grid Pervasive Sensing, Communication, Computing, and Control 14

Automated Energy Management Generates Negawatts Martinez, CA office building electricity use with and without automated demand response, June 21, 2006 15

GWh Smart Grid Enables Electric Vehicle Smart Charging Time-shifting Electricity Home Area Network AMI/Smart. Grid 16

At PG&E, We Are Committed to Sustainability 17

Discussion 18