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Energy Storage Procurement Workshop:

PG&E Perspective

Daidipya PatwaJan 14, 2013

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Emphasis on Core Goals

Our goals are to provide electric service for customers that that is:

• Safe

• Reliable

• Environmentally Sound

• Affordable

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Procurement Based on Need Determination

• LTPP is an established process that determines needs and provides procurement authorization.

• Procurement authorizations should be based on need determinations.

• Procurement should compare all resource alternatives on costs and benefits to meet the identified needs.

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PG&E Does Not Support Targets

• PG&E supports a technology neutral approach where all technologies compete on equal footing.

• PG&E does not support targets, mandates, or carve-outs, which result in higher customer costs and inefficiencies.

• Energy Storage Request for Information (RFI) helps to understand different technologies and capabilities.

• RFI helps to ensure that RFOs are inclusive and energy storage competes on equal footing.

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Support Additional Demonstration Programs• California has lack of operating experience with newer

storage technologies.

• PG&E supports additional demonstration programs or market tests to increase experience.

• Storage has many proclaimed benefits. Demonstration projects substantiates the benefits to the system.

• Each utility has unique portfolio and system, realized value of storage varies with each utility.

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Vaca-Dixon Substation

South Bay Office Complex

Future Demonstrations

Commissioned 2012 Q3 Commission Date TBD Commission Date TBD

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Thank You