Institute of Electrical and Electronics Engineers Plug-In Hybrids: Accelerating Progress 2007 Omni Shoreham Hotel, Washington DC September 19, 2007

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1 Institute of Electrical and Electronics Engineers Plug-In Hybrids: Accelerating Progress 2007 Omni Shoreham Hotel, Washington DC September 19, 2007 Andrew Tang Senior Director PG&E Smart Energy Web

2 Introduction Pacific Gas and Electric Company ( PG&E ) is the franchised Utility serving Northern and Central California; Approximately 5.2M Electric customers and 4.2M Gas customers; Customers are well educated and passionate about environmental issues PG&E has transportation programs that encourage the use of electricity, L/CNG and Hydrogen

3 PG&E s Electric Drive Demonstrations Actively evaluating Electric Drive opportunities both for Greening our own fleet and to promote a larger consumer market opportunity First utility to demonstrate V2G in April; Repeated demonstration at Google in June Chair EPRI Infrastructure Working Council Focus on developing infrastructure standards for PHEVs Ford F550 Trouble Truck April 2007: PG&E demonstrates Vehicle supplying power to the Grid Phoenix SUT Ford Escape Dodge Sprinter Van V2G Demonstration at Google Campus June 2007

4 PG&E Challenges Customers expect their utility to be an actively green, innovative, leader while maintaining low rates and bills Increasing energy demands with peak electric load growing faster than offpeak load Current and future state-mandated Renewable Portfolio Standards 20% derived from renewable resources by 2010 and legislation currently in the California Assembly to increase to 33% by 2020 Carbon Caps under AB32 and other Legislation Trend will be towards increasingly cleaner generation sources

5 Electric Load Duration Curve 50,000 45,000 40,000 Last 25% of capacity needed less than 10% of the time 35,000 30,000 MW 25,000 20,000 15,000 10,000 5, ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 Hours per Year Source: California Independent System Operator Corporation

6 Wind Generation: Difficult to Predict How does a Utility plan for resources with this profile? Each Day is a different color. Day 29 Day 9 Megawatts Day 5 Day 26 Average Wind profile pattern in April 2007 Hour

7 PG&E s Diversified Resource Portfolio 2006 Electric Energy Deliveries by Technology PG&E s Energy Portfolio 1 is among the cleanest in the Industry Fossil, 42% Fossil breakdown: 40% natural gas, 1% coal, 1% other Nuclear, 24% Large Hydro, 22% Wind, 2% Small Hydro, 4% Geothermal, 2% Bio-Energy, 4% RPS Renewable 12% 1 Energy portfolio is comprised of all of PG&E s owned generation plus PG&E s power purchases and is based on actual energy delivered

8 Electricity as a Fuel Fuel diversity reduces impact from volatility and promotes stability Significant portion of existing generation fuel mix is currently CO 2 free Approximately 56% of PG&E s energy portfolio is CO 2 free Recent and ongoing legislation promotes cleaner generation mix over time RPS legislation enacted in 21 states Low fuel cost and minimal additional infrastructure required Time of Use rates for EV/PHEV charging can create economic incentives Preferential rates for off-peak consumption Large night-time off peak usage can reduce overall system average rates Improves utilization rates for existing generation portfolio Projected future renewables tend to be an off-peak energy resource

9 Timeshifting Electricity Typical Load Load w/ 1 mil. EVs Vehicle-togrid energy (V2G) System Load (GW) off-peak load Avoid peaker construction off-peak load AM Fill EVs off-peak with renewables PM

10 Communications Network PHEV intersection with the SmartMeter Network Smart charging Incentive based rates Ancillary services V2H/V2G IP-based RF Mesh Network Backhaul Electric and Gas Meter IEEE

11 Industry Challenges - Standardization Standardization required for plug-in vehicles to achieve critical mass penetration Automakers must be able to produce one vehicle for all utility territories Vehicle owners need to be able to travel across utility lines and be billed properly (cellular phone model) Standardization to include charging, metering, and communications domains Required charging infrastructure: Connectors and levels Accurate and discrete measurement of energy delivered Communications protocol standards: Wireless and wired Relevant global standards bodies Institute of Electrical and Electronics Engineers (IEEE) Electric Power Research Institute Infrastructure Working Council (EPRI - IWC) International Standards Organization (ISO) American National Standards Organization (ANSI) SAE International (SAE) European Telecommunications Standards Institute (ETSI)

12 PG&E Corporation is committed to being an environmental leader by providing safe, economical, and reliable products and services in a responsible and environmentally sensitive manner. THANK YOU!

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