1. SCE Smart Grid Development Paul De Martini October 6, 2009

2. CA 2020: Energy Policy Initiatives ~3500 gWh of EE Savings (2009 – 11) 2020 2018 2016 2014 2012 2010 20% Renewable Generation AB32 Reduce GHG Emissions to 1990 Levels by 2025 1 Million Solar Roofs statewide 500 MW of Large Scale Solar Rooftop Generation ~7300 gWh of EE Savings (2012 – 2020) ~ 600k PEV’s* SmartConnect DR Goals (~1000 MW) Zero Energy Homes 100% 50% of new homes are 35% more efficient than T24 90% of new homes are 35% more efficient than T24 33% Renewable Generation (Proposed) * SCE estimate of market adoption in SCE’s service area 1 st Full Year of MRTU market operation ~100k PEV’s* ~25k PEV’s* Policy Areas Creation of storage market RPS Bulk Power Integration RPS Distributed Power Integration Transportation Electrification Energy Efficiency & Demand Resp MRTU Support Technologies

4. SCE SmartGrid Vision A Smarter Grid will provide environmental benefits associated with improved asset, system, and energy efficiency Grid Control & Asset Optimization Renewable, DER & Storage Integration Smart Metering Smart Customer Solutions & PEVs Workforce Effectiveness Integrate and manage new sources of renewable and distributed energy supply and storage Maximize workforce productivity, effectiveness, and safety by using enabling tools Improve capital efficiency and assets using better intelligence and technology for optimal system planning & operations Enable the grid to automatically adjust to changing loads and supply requirements Empower customers to become “active” participants in the energy supply chain managing their own energy consumption

5. SCE RD&D Approach Effective strategies for technology adoption and adaptation – co-development of emerging technologies by exception

6. SCE Smart Grid Development ~$1.5 Billion Capital SmartGrid Development Building on Smart Foundation Built Over the Past Decade

9. Engaging Customers in the Supply Chain © Copyright 2008, Southern California Edison

10. For more information on SCE’s Smart Grid strategy, news, and updates, go to: www.sce.com/smartgrid