San Onofre Nuclear Energy Summer Readiness Report

EDISON INTERNATIONAL®

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2012 Summer Readiness

Irvine City Council Briefing

May 8, 2012


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2012 Summer Readiness Briefing

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• Introduction

• CA Independent System Operator (CAISO) Reliability Overview

• Mitigation Measures – Transmission– Generation– Demand Response and Conservation– Customer Communications


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2012 Summer Readiness Briefing

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• San Onofre units 2 and 3 are a critical part of meeting the region's electricity needs and voltage levels, representing 2,220 MW of generation

• Prospect of a summer without units 2 and 3 is a significant challenge that SCE is doing contingency planning around, working with state agencies

• SCE will complete all required inspections and tests prior to restarting either unit at San Onofre and is committed to doing every task safely, no matter how much time that takes.

• The company’s number one priority is, and always has been, the health and safety of the public and its employees.

Summer Readiness

Dennis PetersCalifornia Independent System Operator

May 8, 2012

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Shaping the industryThe ISO, a nonprofit public benefit corporation, maintains the constant and reliable flow of electricity for the health, safety and welfare of consumers

How? Delivering electricity to 80% of

California consumers Facilitating fair and transparent

wholesale electricity market Performing comprehensive

transmission planning Clearing the way for clean, green

resources to access the grid

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Who oversees us?

We are governed by a governor appointed/Senate confirmed Five Member Board

We are regulated byFERC Federal Energy Regulatory Commission

We are compliant withNERC North American Electric Reliability Corporation

We are part ofWECC Western Electricity Coordinating Council

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• Los Angeles Basin and San Diego areas must have local generation to serve all consumers

• The ISO already plans for the outage of one San Onofre generating unit

• ISO must plan for the major contingencies where San Diego loses eastern transmission and the largest generator

Overview of the area and summer reliability challenges without the San Onofre nuclear power plant

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San Diego and the Los Angeles Basin are at risk of outages under required planning standards

Total gen +3048Import capability +2100Largest generationoutage

-603

Load -4882Reserve margin = -337

Without both San Onofre units -

Import capability

San Diego

Total gen +9418

Import capability +10,771*Largest generation outage

-498**

Load -19,931Shortfall = -240

Without both San Onofre

Units – Total gen

Los Angeles Basin

Notes: * Transmission import capability is subject to change, as system conditions change from year to year.**Largest generating unit outage after both San Onofre units are out of service .- 7 -

Actions to mitigate the outage risk

• Return Huntington Beach units 3 & 4 to service

• Accelerate Barre-Ellis transmission upgrade

• Complete Sunrise transmission line and related outage planning

• Fully fund Flex Alerts

• Fully utilize available demand response

• Seek additional military and public agency demand response

• Ensure that existing generation is well-maintained and available

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Where we stand once mitigation measures are implemented

Total gen +3048Import capability +2450Largest generationoutage

-603

Load -4882

Reserve Margin = 13

Without SONGS and with Huntington Beach 3 & 4 –Import capability

San Diego Los Angeles Basin

Total gen +9870

Import capability +10,771

Largest generation outage

-498

Load -19,931

Surplus = 212

Without SONGSand with HB 3 & 4 – Total gen

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Demand response will help

• The benefits could be very helpful. The CPUC, CEC and ISO have worked with the utilities to identify the functionality and quantify the specific location of demand response programs.

On the critical transmission path: 78 MWElsewhere in LA where overloads possible: 428 MWSan Diego: 104 MW

• These utility demand response programs cannot replace Huntington Beach 3 and 4 but can reduce the required run time and increase operating margins under hot summer loads.

• The specific reliability problem in southern California requires the response to be automated. Current DR programs require manual deployment leaving no time for operator action.

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2012 Mitigation Measures

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• Transmission – Del Amo-Ellis Loop-In Project– Creates additional transmission capacity to serve South Orange

County

– Prevents line overloads and improves voltage stability

– Modifies existing transmission lines and structure upgrades

– Accelerated to be completed by June 1, 2012


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2012 Mitigation Measures continued

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Generation – AES Huntington Beach Units 3 and 4 (450 MW)•Ordered by CAISO

•Returning Units 3 and 4 to service

•Provides needed generation and voltage support


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Demand Response Capability• Existing Demand Response capability at substations

surrounding SONGS:– Summer Discount Plan (AC Cycling) – 48 MW of existing SDP

resources– Potential to add 5 to 8 MW– Base Interruptible Program – 30 MW of existing BIP resources

• 10 for 10 Program (5 to 10 MW reduction potential)– Commercial customer receives bill credit for usage reduction– 10% bill credit for 10% reduction– Compares usage from summer 2012 to summer 2011– Program period: July 1- Sept. 30, 2012– Available in Orange County only– Only bundled customers not already on DR

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Demand Response Capability continued

• Save Power Day (Peak Time Rebate) program (10 MW+ reduction potential in south Orange County)– Available to all residential customers with smart meters– Messaging to customers via notification signup and other

customer outreach

• Direct Install Program– For small business customers– Free installation of lighting and HVAC controls– SCE and City of Irvine partnership– Available June 2012

• Conservation outreach (statewide Flex Alert, local)– Energy conservation messages in all customer communications

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Collaboration and Communication with Irvine and Community

• SCE is actively reaching out to:– Public Safety and essential use facilities– Irvine Unified School District– University of California, Irvine– Irvine Valley College– Irvine Chamber of Commerce– Irvine Ranch Water District– Home Owners’ Associations (HOAs)– Community based organizations– Medical baseline/critical care customers– Other

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Questions?

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Technology

San Onofre Nuclear Energy Summer Readiness Report