2. 2
• A regulated investor-owned utility
• Energy services to 15 million people:
– 5.1 million Electric accounts
– 4.2 million Natural Gas accounts
• 70,000 square miles, diverse topography
• 123,054 circuit miles electric distribution
lines and 18,610 circuit miles of
interconnected transmission lines
• Peak load: 22,554 MW on July 25, 2006
• Largest solar customer base in the country,
more than 40% of total installed solar
PG&E: RANKED GREENEST UTILITY IN THE U.S.
Serves 5% of the U.S. population but emits less than 1%
of the total CO2 emitted by the utility sector
3. 3
WHAT MAKES CA“GREEN”? GENERAL (1)
• Blend of low-carbon resources:
Hydro, nuclear, eligible renewables,
natural gas, minimal coal
• Long-standing State policies:
Promoting a lower carbon footprint
• 30+ years of energy efficiency programs
facilitated by “decoupling” of rates and
incentives
• California Energy Action Plan preferred
loading order:
1. Customer Energy Efficiency
2. Demand Response/Dynamic Pricing
3. Renewables
4. Distributed Generation
5. Clean gas-fired plants
4. 4
WHAT MAKES CA“GREEN”? EV CHARGING (2)
Average (532)
Low (219)
HEV Historical
Cumulative PG&E Service Territory
PEV Market Adoption Scenarios
High (845)
ThousandsofEVs
6. 6
WHAT MAKES CA“GREEN”? SMART METERS (3)
• Largest US deployment
• Automated meter reading for all customers
• 10 million meter upgrades by mid-2012
• Frequent meter reads (daily for gas, hourly or 15
minute intervals for electric)
• Enhanced customer energy management
7. OPPORTUNITIES IN THE ENERGY SPACE
7
Technology
• Generation
• Transmission/Distribution
• Demand Management
Policy
• Legislation
• Market Rules
• Regulation Specific Market
Attributes
• Demographics
• Weather
• Physical Constraints
8. 8
CALIFORNIA’S ENERGY HISTORY
• 1980s: PURPA -
In response to the energy crisis
• 1990s: Electric Restructuring -
“The Market Will Provide”
• 2000s: Renewable Portfolio
Standards (RPS)
• 2010s: GHG Regulation –
Cap and Trade
9. Data Sources: PG&E’s 2002 Corporate Environmental Report, PG&E’s Preliminary 2012 RPS Volumes Report and
PG&E’s Spring 2012 Long Term Rate Forecast. Last updated March 06, 2013
2012 Preliminary
Actual
19% of total bundled
retail sales
2020 Projected
33% of total
bundled retail sales
2002 Actual
11% of total bundled
retail sales
RENEWABLE PORTFOLIO: PAST, PRESENT, FUTURE
Total RPS-Eligible Procurement
~14,000 GWh
Projected RPS-Eligible Procurement
~28,000 GWh
Total RPS-Eligible Procurement
7,504 GWh
9
10. Customer-scale Utility-scale
Net Energy Metering
Utility Owned
California Solar Initiative
Available
PG&E
Programs
Feed-in Tariff Programs
Renewables RFO
Self Generation Incentive Program
PG&E RENEWABLE ENERGY PROGRAMS
PV RFO
System Size 1 kW 1 MW 100 MW ++20 MW100 kW 3 MW
Solar Water Heating (CSI Thermal)
Renewable Auction Mech.
in regulatory proceeding
10
11. CUMULATIVE SOLAR INTERCONNECTIONS
More than 85,000 grid tied solar installations; Roughly 1/3 of all grid tied
PV in the U.S. is in PG&E’s service area; more than ~900 MW (AC Rating)
727
1,949
3,796
6,893
9,712
14,058
20,629
36,412
27,156
1620
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
32,000
34,000
<2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
#OfInterconnections
36,000
38,000
11
12. INTERMITTENCY OF WIND AND SOLAR POSE
CHALLENGES AS PENETRATION INCREASES
As seen in “15 PowerPoint
Slides That Shook the Earth,”
-greentechmedia.com, Aug. 2010
13. THE NET LOAD SHAPE IS CHANGING
Load&NetLoad(MW)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
20,000
22,000
24,000
26,000
28,000
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
0:00 1:30 3:00 4:30 6:00 7:30 9:00 10:30 12:00 13:30 15:00 16:30 18:00 19:30 21:00 22:30 0:00
Load Net Load Wind Solar
Load, Wind & Solar Profiles – High Load Case
January 2020
Wind&Solar(MW)
8,000 MW
in 2 hours
6,300 MW
in 2 hours
13,500 MW
in 2 hours
8,000
MW in 2
hours
6,300
MW in 2
hours
13,500
MW in 2
hours
Load, Wind, & Solar Profiles
Source: CAISO
13
15. BALANCING FUNCTION - AREA CONTROL
Hour Ahead Schedule
Incremental Energy
Decremental Energy
Day Ahead Schedule
Real Time Load
MW
Time
Real-Time Economic Dispatch
Every 5 minutes
Upward Regulation
Ancillary Services
• Regulation
• Spinning Reserve
• Non-Spinning
Reserve
• Replacement
Reserve
• Voltage Support
• Black Start
capability
Downward Regulation
15
16. 16
• Automated home
energy management
• Plug-in hybrid electric
vehicle SmartCharge™
• Integrated local
generation and storage
• Automated transmission
and distribution
• Automated meter reading
• Electric field vehicles
SMART GRID IS A JOURNEY
Today
Integrate existing
services to new
platform
Future
Enable future services
and foster innovation
Near Term
Transform existing services
Years