March 13, 2012

Smart Grid Workforce Implications at SDG&E

© 2012 San Diego Gas & Electric Company. All trademarks belong to their respective owners. All rights reserved.

Energy Forum/Smart Grid Summit

Smart Grid

“The smart grid is not a single technology, but rather a broad

range of interconnected, inter-operable technologies –

including distributed generation, energy storage, wireless sensor

networks, software and computing – that can give customers

the ability to reduce costs, improve efficiency, and

enhance the environment that we live in by several means. “

Mike Niggli, President and COO of SDG&E

Smart Grid Workforce

A broad range of interconnected, inter-operable PEOPLE –

including experts in Engineering, IT, Telecommunications, Field

Services, Data Analytics, Customer Service, Innovation,

Marketing, Project Management… that can give customers the

ability to reduce costs, improve efficiency, and enhance

the environment that we live in by several means.

SDG&E’s Smart Grid Roadmap

• SDG&E’s roadmap includes smart grid investments in 9 programs:

SMART

GRID

Customer

Empowerment

Renewable

Growth

Electric

Vehicle

Growth

Security

Reliability & Safety

Operational Efficiency

SG RD&D

Integrated & Cross-cutting

Systems

Workforce Development

Confidential Draft - Internal Use Only

http://sdge.com/smartgrid

Smart Grid Deployment Plan Objectives

Engage customers and other stakeholders to create a Smart Grid Deployment Plan that reflects the region’s priorities and values – not just those of the utility.

Align the organization so that it can continue the cultural change necessary to create the Utility of the Future.

Analyze a wide range of potential projects oriented toward “smart” technologies and services – prioritizing cost vs. benefits, both financial and societal.

Comply with CPUC decisions, state and federal policy

SB 17 and D.10-06-047

Confidential Draft - Internal Use Only

Methodology

Presents a comprehensive plan that includes 64 projects in 9 programs

The plan is not a request for funding – it is a “policy guide for future investments”

8 officers, 18 directors, 150+ managers and staff helped develop the plan

Two-Way dialogue with 25+ stakeholder groups

Aligned to SDG&E Strategic Plan

Collaborated with the Environmental Defense Fund to value environmental benefits

Partnering with the Office of the Information and Privacy Commissioner of Ontario on the implementation of customer privacy policies (DPP)

Confidential Draft - Internal Use Only

Cost & Benefits Estimates

7

Category Cost Estimates

2006 - 2020

Benefits Estimates 2011 – 2020

and Terminal Values Previously authorized investments

(Smart Meter, OpEx 20/20 Smart Grid projects)

$1,042 MM $1,378 MM

2012 Test Year General Rate Case $1,424 MM $966 MM - $2,263 MM

Other active applications (Demand Response, Dynamic Pricing)

$237 MM $29 MM - $139 MM

Estimated incremental investments – CPUC

$299 MM - $364 MM $253 MM ‐ $491 MM

Estimated incremental investments – FERC

$466 MM - $555 MM $434 MM ‐ $906 MM

Societal and Environmental Benefits $760 MM - $1,939 MM

Totals $3,468 MM - $3,622 MM $3,820 MM - $7,116 MM

Confidential Draft - Internal Use Only

Operational Efficiency: Condition Based Maintenance

LTC energy is measured at

the control cabinet on the

other side of the bank

TRANSFORMER

COOLING

ANALYSIS

DISSOLVED

GAS

ANALYSIS

TRANSFORMER

ANALYSIS

TRANSFORMER

BUSHINGS

ANALYSIS

9

Operational Efficiency: Outage and Distribution Management

9

• Paperwork

• Manual processes

• Labor intensive

• Software systems are not fully integrated

• Unplanned outages are reported by customers

• Limited ability for specialized reports

• Near real time data

• Automated process

• Integration with more systems

• Faster outage restoration times

• Better management of customer expectations

• System generated reports

• System generated switching plans

Current State Future State

Research, Development & Demonstration: SDG&E Borrego Springs Microgrid Project

Project

Description

In cooperation with the US Department of Energy and the California Energy Commission,

SDG&E and 10 public and private sector partners will develop a “microgrid” project - a small

version of its electric grid which takes advantage of local distributed energy resources and

state-of-the-art controls to enhance grid operations – to achieve a >15% reduction in feeder

peak load and improve system reliability.

Current

Status

•Site Selection complete – Borrego Springs

•Finalizing system requirements and high level design

•Developing customer communication plan

•Collaborating with environmental agencies to satisfy permitting requirements

Energy

Storage

Micro turbine

Rooftop PV Solar

Utility-scale Energy Storage

Distributed Generation Home Energy System

Ground PV Solar Array PHEVs

Switches &

Power

Electronics

Conceptual illustration courtesy of National Energy Technology Laboratory

Distributed Energy

Resources

Utility-scale Energy Storage

Rooftop PV Solar

Micro-turbines

Building Energy Storage

Community Energy Storage

Distributed Generation

Home Energy System

PHEVs

Ground PV Solar Array

Grid Resources

Capacitor Banks

Voltage Regulators

Automated Switches

Power Electronics

Communications

Information

Electricity Pricing

DER status

Demand Response

Programs

Network status

Community Objectives

Load and Resource

Profiles

© 2010 San Diego Gas & Electric Company. All copyright and trademark rights reserved 11

The Connected Home of the

Future Energy Storage Smart Appliances Interactive User Portal

Electric Vehicle

Charging Station

HVAC Programmable Gateway

Communicating Thermostat Pool

Pump

SmartMeter In Home Energy Display

Solar Panel

Empowering Customers

Customer usage data for download in a simple, common format

Download up to 13 months of data in both .csv and .xml

Uses ESPI file format

Collaboration with other California utilities