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Victor Vilaplana VP, Electric & Fuel Procurement September 18, 2014

Victor Vilaplana VP, Electric & Fuel Procurement September 18, 2014. IEPA 33 rd Annual Meeting Energy Procurement, Infrastructure and Policy: Climate Challenges Beyond 2020. SDG&E Background. Customer Base 3.4 million 89% residential 11% commercial and industrial Territory Size

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Victor Vilaplana VP, Electric & Fuel Procurement September 18, 2014

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  1. Victor Vilaplana VP, Electric & Fuel Procurement September 18, 2014 IEPA 33rd Annual Meeting Energy Procurement, Infrastructure and Policy: Climate Challenges Beyond 2020

  2. SDG&E Background • Customer Base • 3.4 million • 89% residential • 11% commercial and industrial • Territory Size • 4,100 square-miles • 2 counties • 25 communities • System • 1.4 million electric meters • 860,000 gas meters • 130 substations • Over 1,700 miles of transmission line

  3. Major Sources of Local Power Four 230 kV lines to SCE Trabuco Margarita Capistrano Laguna Niguel ORANGECO. Cristianitos RIVERSIDE CO. Talega SAN DIEGO CO. Pala Borrego Monserate SAN ONOFRENUCLEAR POWER PLANT Rincon WellheadEscondido Warners San Luis Rey Narrows Lilac Calpeak Peaker Valley Center Ash ENCINA POWER PLANT Escondido Santa Ysabel Esco Palomar Energy Lake Hodges Poway Boulder Creek Pomerado Creelman Penasquitos Sycamore Canyon Descanso Suncrest Substation MEF SRPL Alpine Los Coches Ocotillo El Cajon Kumeyaay Glencliff Loveland Mission Calpeak Peaker Crestwood Old Town TO TIJUANA(CFE) Barrett Miguel Cameron SWPL Boulevard Main Street To North Gila Substation Arizona Border00 Otay Otay Lake IMPERIAL VALLEY ECO MEXICO

  4. Preferred Resources Added Since SONGS Retirement* Renewable Additions In San Diego NRG Borrego Solar 26 MW Sol Orchard Solar 14 Desert Green Solar 6 Otay V&VI Bio Gas 3 49 MW IV Substation Ocotillo Express Wind 265 MW IV Solar 200 Camp Verde Solar 139 Csolar South Solar 130 Centinella Solar 175 SG2 IV Solar 150 1,059 MW Delivered over Sunrise Arlington Solar 127 MW *Capacity values are nameplate • Following the shut down of SONGS in January 2012, SDG&E has added the following preferred resources to its portfolio: • Energy Efficiency: 96 MW • New Roof Top Solar: 155 MW • Residential: 122 MW • Non-Residential: 33 MW • Renewable Power: 1,235 MW • In San Diego and delivered over Sunrise Power Link

  5. SDG&E RPS Goal Status *SDG&E is projected to achieve 33% in 2014

  6. SDG&E’s Customer Profile ** *CEC California Energy Demand 2014-2024 Final Forecast, PGE Mid, SCE Mid, and SDG&E Mid (estimated 2014 Manufacturing, Mining, and Agriculture consumption) (http://www.energy.ca.gov/2013_energypolicy/documents/ demand-forecast_CMF/mid_case/) **CAISO (http://www.ferc.gov/CalendarFiles/20140610083142-Bouillon,%20CAISO.pdf) SDG&E has a very low Industrial load As a result, SDG&E’s load peaks twice during the day – once in the morning and again later in the afternoon and into the evening This is the inverse of peak solar generation time periods

  7. SDG&E’s Typical Rooftop Solar Customer Profile

  8. Path Forward Utilize Peaking Facilities – Recent Achievements • Wellhead Escondido Repower Complete (10 MW increase) • Pio Pico Contract Approved June 2014 • Will facilitate shutdown of 188 MW of 1960’s era peaker plants • Currently before State Court of Appeals (may delay contractual on-line date of September 2015) • Carlsbad Energy Center Application Filed July 2014 Integrate Planning – Siloed Mandates are Ineffective • CHP: results in must take generation when flexibility should be the focus • RPS: requirements are disconnected from the need for local capacity • RAM: intended to jump-start RPS procurement, but continued after IOUs had met/exceeded targets • SB1122: target not related to actual procurement need

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