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SmartMeter Program

SmartMeter Program. July 2007 NARUC Summer Meeting Tom Bottorff, Sr. VP Regulatory Relations. Key Messages. PG&E’s SmartMeter program leverages proven technologies PG&E’s SmartMeter program is cost effective Customers will benefit through improved service and bill savings opportunities

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SmartMeter Program

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  1. SmartMeter Program July 2007 NARUC Summer Meeting Tom Bottorff, Sr. VP Regulatory Relations

  2. Key Messages • PG&E’s SmartMeter program leverages proven technologies • PG&E’s SmartMeter program is cost effective • Customers will benefit through improved service and bill savings opportunities • Rates will rise about 1% during the first five years, but decline thereafter • Low income customers are exempt from any rate increase

  3. SAP OUTAGE MANAGEMENT The SmartMeter Program Leverages Proven Technologies – the Dual Network Architecture DCSI Electric powerline carrier network CONSUMER Web Server PG & E Substation Meter Data Management & Storage PUBLIC WIRELESS NETWORK TWACS Substation PLC Communication System Equipment Controller BEA / EAI Hexagram MDMS Fixed Wireless Network System PUBLIC STAR® WIRELESS NETWORK RF Network Data System Collector Controller Unit WELLINGTON POWER CORPORATION Meter & network installation / supply chain management MBC Data Warehouse CC&B Interval billing upgrade IT Systems Integration & Project Management

  4. 4% net positive 90% of costs SmartmeterProgram Will Pay For Itself Costs* Benefits* Demand Response O&M Operations ISTS Deployment $189M Meters Networks Installations IT Systems System Integration Project Management ISTS O&M $191M Field Deployment $1,299M Meter Reading * 20 year Present Value of Revenue Requirement

  5. Customer Benefits • Access to better pricing information • Fewer estimated or inaccurate bills • Faster outage detection and restoration • Remote turn-on / turn-off • No inconvenience due to manual meter reads (e.g., no need to unlock gate or tie up dogs) • Opportunity to lower bills by taking advantage of new tariff options

  6. SmartRate: • SmartRate is voluntary and will be offered to all customers • A premium charge ($0.60 per kwh for residential customers) will be added to current rates during peak hours on designated SmartDays • SmartDays will be called during summer months only (June 1 - September 30), a maximum of 15 times each summer • ASmartRatecredit is given for usage all other hours of the month • Bill will be capped during the first year at otherwise applicable charges

  7. Customer Rate Impacts • Average residential rates will increase by about 1 percent during the first five years • After five years, cost savings will kick in and result in bill decreases • Low income customers are exempt from paying the increase

  8. Future Capabilities • Appliance control and monitoring • Smart thermostat • Enhanced grid monitoring / switching • More tariff options • Pre-paid metering

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