Electric Operations Overview

Tom Wright Director, Substation Maintenance & Construction

October 29, 2014

2 Electric Ops Organization

Strategic Business Management (Strategic Planning, Work Planning, Continuous Improvement, Metrics & Governance)

Transmission Operations

• Construction of new transmission & substation assets in accordance with California Independent System Operator (CAISO)

• Consolidated grid Operations

• Line & Substation Maintenance

• Transmission system automation

Asset Management (System Data Capture)

Asset Management • System Safety • Asset Strategy • Operational Risk and

Compliance • Central Engineering and

Standards

Exe

cutio

n

Work Type Orientation

Asset Management Pat Hogan

EVP Electric Operations

Geisha Williams

Transmission Operations

Gregg Lemler

Distribution Operations Greg Kiraly

Strategic Business Management

Bill Arndt

Distribution Operations

• Customer Service Delivery, New Business, Rule 20A, WRO Capacity, Reliability estimating and packaging, and customer interface

• Restoration & Operations

• Maintenance • Execution of

Reliability & Compliance Programs (Primarily geographically organized field crew operations with some local budget flexibility)

Catastrophic Emergency

Preparedness Barry Anderson

Asset Management

• System Safety • Reliability Strategy • Asset Strategy • Operational Risk &

Compliance • Central

Engineering, Mapping & Standards

Catastrophic Emergency

Preparedness • Enterprise

infrastructure risk mitigation

• Logistics & mutual aid

• Coordinate Internal & External stakeholders

• Asset damage modeling

• Enhance facility, IT & Operational Technology resilience capabilities

Dire

ctio

n

Energy Procurement Fong Wan

Power Generation Randy Livingston

Power Generation

• Provides approximately 5,400 MW Capacity of Utility Owned Generation through our Hydro, Fossil & Renewable Power Plants

• Maintains and Operates: 67 Hydro

Powerhouses with 107 Operating Units

98 Reservoirs and 170 Dams

400 miles of water conveyance

140,000 acres of land

3 fossil power plants

13 photo-voltaic or fuel cell sites

Energy Procurement

• Manages the electric and gas portfolio to ensure reliable energy supply while reducing costs and risk

• Provides safe, reliable, and reasonably priced electricity and natural gas to our customers in an environmentally sensitive manner

• Monitor future policies and market structures to benefit customers and protect interests of shareholders

T&D Overview: Electric System

Electric T&D consists of:

• Transmission lines, substations and the distribution system:

– 5.4 million electric customers

– 70,000 square mile service area

– 18,600 miles of transmission lines

‒ 143,000 miles of distribution lines

‒ 860 substations

‒ 3,200 main line cables

‒ 1.0 million transformers

‒ 2.4 million poles (including towers)

Smart Grid functionality restores the balance Hydro Power Plants

Nuclear Power Plants

Natural Gas Generators

Distribution Substations

Solar Farms / Power Plants

Wind Farms

Transmission LinesUtility-scale StorageUtility-scale Storage

Distributed StorageDistributed Storage

Plug-in Electric Vehicles

Rooftop Solar

SmartMeters

Smart Grid functionality restores the balance Hydro Power Plants

Nuclear Power Plants

Natural Gas Generators

Distribution Substations

Solar Farms / Power Plants

Wind Farms

Transmission LinesUtility-scale StorageUtility-scale Storage

Distributed StorageDistributed Storage

Plug-in Electric Vehicles

Rooftop Solar

Customers

SmartMeters

Electric T&D Network

3

Electric Distribution Quick Facts • We operate 4kV, 12kV, 17kV, 21kV, 34kV, and

44kV distribution systems ‒ System Design

• Radial distribution system • High feeder utilization (71%)

‒ Automation • Currently deploying mobile technology to

field workforce • Increasing SCADA visibility

(today 60%) • Deploying feeder automation

‒ Network Systems • San Francisco: 1,114 units;

10 network groups, 57 circuits • Oakland: 221 units; 2 network groups, 12

circuits ‒ Distribution Control Centers

• Highly decentralized (13 control centers)

• Consolidation effort underway

Electric Distribution System

5

Electric Transmission Quick Facts We operate 60kV, 70kV, 115kV, 230kV and 500kV Transmission systems • System is designed:

‒ To withstand the loss of a single element (N-1) or multiple elements

‒ To meet North American Electric Reliability Corporation (NERC) reliability standards

‒ To integrate through 4 inter-ties; (1) Pacific Northwest, (2) Southern California Edison, (3) PacifiCorp, and (4) NV Energy in Nevada

• Focus on Automation ‒ Deploying Modular Protection Automation Control

• Increasing SCADA penetration (today 71%) • Grid Control Center consolidation in 2011 • Upgrading transmission supply projects to San Francisco

and northern San Mateo County ‒ Potrero-Embarcadero 230 kV Project submitted to the

Commission for approval ‒ Moraga-Potrero 230 kV Project, working with the

California Independent System Operator (CAISO) on project need and plan of service

Transmission Line competition is changing the environment

John Day

Marion

Big EddySlatt

Buckley

Summer Lake

Malin

Alvey

DixonvilleMeridanCapt Jack

Round Mt

Olinda

TeslaMoss Landing

Diablo Canyon

SylmarVincent

MidwayGates

Los Banos

Tracy

Table MtDC

VacaDixon

Intertie

Metcalf

Grizzly

Electric Transmission System

6

Delivering on Our Promise

Public / System Safety Employee Safety Compliance Emergency Preparedness Reliability Customer Satisfaction Work Efficiency

Delivering on Our Promise: Emergency Preparedness

Delivering on Our Promise: Public / System Safety

Delivering on Our Promise: Reliability

Delivering on Our Promise: Employee Safety

Delivering on Our Promise: Work Efficiency

Delivering on Our Promise: Customer Satisfaction

Delivering on Our Promise: Compliance

02,0004,0006,0008,000

10,00012,00014,000

Projected Industry Hiring vs. Expected Attrition for Lineworkers, Engineers, and Technicians

Attrition Retirement Hires

Power Generation

As of September 1, 2014, Power Generation (all non-nuclear generation) is now part of Electric Operations.

This provides a review of upcoming work in our Hydro

Projects for 2015. We have ongoing maintenance of our fossil and Photo-voltaic plants which are already under contract.

10

Number of Projects by Work Type 11