Pacific Gas and Electric Company

Presented to IDCEnterprise Data Center Forum

Leading Energy Efficiency in High Tech:PG&E’s Program & Service Portfolio

Roland RisserSan Francisco, California

June 18, 2007

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Discussion Points

What is driving the emphasis on energy efficiency in the Information Technology/Data Center/High Tech sectorWhat’s happening on the ground with PG&E, leading high tech companies, and utilities across the nationWhat are the likely developments in the near termA challenge: Leadership

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But First, Why Energy Efficiency?

Customers expect/love the programsAll customers benefit through lower ratesPG&E has the opportunity to benefit financiallyEnergy efficiency products and services are the cornerstone of our commitment to environmental responsibility

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30 Years of Energy Efficiency Success

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US CA Western EuropeCourtesy Art Rosenfeld, California Energy Commission

Per Capita Energy Usage 1960 - 2004

• Energy efficiency programs have helped keep per capita electricity consumption in California flat over the past 30 years

• PG&E’s programs alone have avoided the release of over 125 million tons of CO2 into the atmosphere over the same period

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30 Years of Energy Efficiency Success

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U.S. California Washington, D.C.

Per Capita Energy Usage 1960 - 2004

Courtesy Art Rosenfeld, California Energy Commission

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PG&E’s Focus on High Tech

PG&E serves Silicon Valley – almost all of the High Tech industry leaders have a presence here

They have their own facilities, and they are bringing solutions to the energy challenges of their customers

The focus is primarily on data centers and IT infrastructure

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Our Direct Market

A total load of 400-500 MW (2.5% of total, compared to 1.2% nationally)

“Enterprise” centers are known

“Corporate” centers are hidden in office buildings and campuses

“Closet” servers are invisible

The key challenge for enterprise and some corporate data centers is space, cooling, and power supply constraints

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Response to Power/Space/Cooling

Energy efficiency comes to the forefront, but primarily due to growth and constraints

Some industry leaders recognize an environmental responsibility opportunity

However, some companies are chasing “cheap power,” and new data centers are still built to traditional, lower efficiency standards

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In Fact, Intense Growth Rates…

IT workload growth is multiples of GDP for most companies, and can be 10x of GDP for some sectors (financial services, web businesses)

All companies facing huge growth rates in data storage

When your back is up against the wall for IT capacity, you might consider…

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…”Instant” Data Centers

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Where’s the Data Center?

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Here’s the Data Center!

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Targeted Markets – Meeting customer needs

To optimize energy savings opportunities in diverse markets, we need to understand the different customer needs by market sectorPG&E moved to a market-focused portfolio instead of a program portfolio for energy efficiency in 2006Results are a greatly expanded portfolio of product and service offerings, superior customer satisfaction, and better program performance

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Data Center Offerings pre-2006

Audits, incentives that addressed cooling systems only:

High-efficiency equipment (chillers, pumps, fans, etc.)Air- and water-side economizersVFD’s

What we were missing:Anything having to do with operations “inside the white room”

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What We Were Missing

Energy use in a high-performance data center (LBNL/PG&E Study)

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New Initiatives in 2006

Incentives for energy-efficient computing equipment (Rip & Replace only)

Incentives for virtualization/consolidation

Incentives for airflow control systems

Incentives for high efficiency UPS and power distribution systems

Integrated, high quality, technical services

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New/Coming in 2007

Incentives for energy efficient computing equipment (new installations)

Focus and incentives on efficient data storage technologies (just announced: MAID)

Retro-commissioning program for airflow management

80+ program for computing equipment (2nd Q)

Rebates for PC management software (Now)

Incentives for conversion to thin-client systems

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Results & Utility Industry Leadership

Industry agrees that a third to a half of data center energy use can be addressed through cost-effective, reliable energy efficient technologies and strategies

PG&E announces formation of national utility coalition to extend program adoption

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Predictions

Near term winners:

Widespread adoption of Virtualization 1.0 for computing and data storage

Focus on efficient data storage technologies

Equipment metrics place high emphasis on efficiency as part of performance

Early adoption of Virtualization 2.0: IT load following and demand response

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Predictions

Mid-term winners:

Evolutionary power conditioning, management, and delivery systems

Virtualization 3.0: fully integrated, holistic data center power management

Long-term winners:

Backup cooling systems, demand management

Truly “green” data center designs

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The Challenge

What does leadership in this market look like?

IT and facility operations staffs working together

A data center that uses multiple strategies to drive high efficiency

Equipment providers driving premium efficiency as well as performance

Utilities partnering with customers to provide solutions

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More Information

Visit www.pge.com/hightech

Contact our segment lead with feedback and suggestions:

Customer Energy Efficiency245 Market StreetSan Francisco, CA 94105

Mark Bramfitt, P.E.Principal Program ManagerHigh Tech Energy Efficiency

Office: (415) 973-2933Mobile: (415) 244-1640EMail: MJB9@pge.com