smartmeter tm steering committee update – april/may 2012

©2011 Pacific Gas and Electric Company. All rights reserved.

SmartMeterTM

Steering Committee Update – April/May 2012

2Steering Committee May 2012 Report

Agenda

► Monthly Updates

► Release Status Update

► Deployment Status Update

► Schedule Update

► Deployment Update

► Budget Status – Expenditures by Workstream

► Budget Status – Benefits

► Issues / Risks Summary

► Program Metrics

► Appendix

► Project Deployment Plan Progress

► Contingency Reconciliation

► SmartMeterTM Acronyms


Release Status Update

Challenges Actions/Status

EAC Funded Budget ITD Scope Schedule Resources Issues Risks

IT Releases: April 30, 2012

Release 1

Release 2

Release 3

Overall

▪ IT has executed against the SmartMeter plan. HAN enablement and Peak Time Rebate roadmaps are in progress.

Overall

▪ Development for all in-scope functionality completed as of 3/30/12▪ Project stabilization work complete for all components except MV90 and NEMs.


Deployment Status Update

Actions/StatusChallenges

EAC 2012 Forecast

(2012 EOY / CPI)

Scope Schedule Resources Issues Risks

Deployment: April 30, 2012

Endpoints (2012 YTD)

Gas Network (2012 YTD)

Electric Network (2012 YTD)

Endpoints

▪ Mass deployment nearly complete. Remaining meter installs in less concentrated geographic areas.

▪ Field Deployment team addressing less common meter types, customized solutions and final installations in areas containing meters left to exchange.

▪ Resources focused on opt-out requests during the months of February through April

▪ Increased number of ‘Unable-To-Complete’ meters due to non-standard meter installations in heavy urban areas (SF) and access refusals related to Customer Choice.

Electric Network

▪ Initial design scope of electric network now complete.▪ Whether additional electric network is necessary is subject to ongoing

review, particularly in light of customers opting-out of SmartMeter™ Program.

Endpoints

▪ Continuing to complete requests for opt-outs in a timely manner while addressing remaining SmartMeter™ installations and UTCs.

▪ Term Sheet developed with installation contractor to finalize 2012-2013 schedule for deployment of remaining meters while recognizing complexity of less common meter types.

▪ Development of NEMS-configured meter pilot underway▪ Development of pilot for Transformer-Rated meter forms is scheduled for

mid-June.

Electric Network

▪ Tracking opt-outs to assess impacts on network. ▪ Working with technology supplier and internal stakeholders to address

network coverage in ‘hard-to-reach’ areas.


Legend

Schedule Update

Benefits

Field Delivery

Approved Milestone (delay)

Meter Reading Reductions (ITD)

As of 4/30/12

Forecasted Milestone (delay)Milestone MetBaseline Milestone

Forecasted Milestone (early) Milestone TBD

IT Release Deployment

SM Operations Center

2013

594 Positions Captured

MarJan Feb JulJunMayApr Aug Sep

All in-scope functionality completed

NovOct Dec2012

Jan

Begin NEMS pilot

Begin SmartMeter Opt-Out Program

Feb Mar

9.0M Meters/Modules in service

Begin NEMS deployment

Begin Transformer Rated Pilot

Release additional work per 2012 – 2013 Deployment Plan


Deployment UpdateAs of June 1, 2012


2012 Budget Status – Expenditures by Workstream

* 2012 capital and expense budgets currently in the process of * 2012 capital and expense budgets currently in the process of revision to align with the revised 2012 – 2013 deployment schedulerevision to align with the revised 2012 – 2013 deployment schedule

Year-to-Date Variance Explanations:

Favorable YTD capital variance ($6.7M) primarily due to a misunderstanding during a staffing change resulting in goods receipts not being entered (#3), fewer electric meter purchases (#4), and a delayed timing of the initial HAN roll-out (#5).Favorable YTD expense variance ($2.6M) primarily due to lower spending than planned in Business Operations/PMO (#7) and Customer (#10).

# Work Stream Budget Actual Variance Budget Actual Variance #

A. Capital (000s)

1 BUSINESS OPERATIONS (PMO) $56 $10 $46 $953 $745 $208 $1,060 $50,048 1

2 SM OPERATIONS $0 $0 $0 $0 $0 $0 $0 $11,310 2

3 SM FIELD DELIVERY $4,258 $1,075 $3,183 $19,702 $17,248 $2,454 $57,202 $418,598 3

4 SM SOLUTIONS $2,873 ($902) $3,775 $4,075 $1,526 $2,548 $21,970 $974,604 4

5 IT $162 $168 ($6) $6,206 $4,739 $1,467 $10,656 $374,365 5

6 Capital Total: $7,349 $350 $6,999 $30,936 $24,259 $6,677 $90,888 $1,828,926 6

B. Expense (000s)

7 BUSINESS OPERATIONS (PMO) $120 $11 $109 $825 $19 $806 $1,955 $26,359 7

8 SM OPERATIONS $0 $0 $0 $0 $0 $0 $0 $56,594 8

9 SM CHANGE MANAGEMENT $50 $114 ($64) $150 $124 $26 $150 $15,008 9

10 CUSTOMER $1,897 $568 $1,329 $2,658 $1,566 $1,093 $13,960 $98,566 10

11 SM FIELD DELIVERY $23 $2 $21 $140 $3 $137 $302 $17,996 11

12 SM SOLUTIONS $0 $7 ($7) $0 $28 ($28) $0 $68,017 12

13 IT $215 $115 $100 $1,310 $769 $541 $5,363 $133,893 13

14 Expense Total: $2,305 $817 $1,488 $5,083 $2,509 $2,574 $21,730 $416,433 14

C. Total: Capital + Expense (000s)

15 BUSINESS OPERATIONS (PMO) $176 $21 $155 $1,778 $764 $1,014 $3,016 $76,407 15

16 SM OPERATIONS $0 $0 $0 $0 $0 $0 $0 $67,904 16

17 SM CHANGE MANAGEMENT $50 $114 ($64) $150 $124 $26 $150 $15,008 17

18 CUSTOMER $1,897 $568 $1,329 $2,658 $1,566 $1,093 $13,960 $98,566 18

19 SM FIELD DELIVERY $4,281 $1,077 $3,204 $19,843 $17,252 $2,591 $57,503 $436,594 19

20 SM SOLUTIONS $2,873 ($896) $3,768 $4,075 $1,554 $2,520 $21,970 $1,042,622 20

21 IT $377 $283 $94 $7,516 $5,508 $2,007 $16,019 $508,258 21

22 Capital + Expense Total: $9,654 $1,167 $8,487 $36,019 $26,768 $9,251 $112,618 $2,245,359 22

Current Month - April Year to Date - April 2012Annual

Budget *

Inception to Date Actual


2012 Budget Status – Benefits

2007 2008 2009 2010 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ITD Actual #

1 Activated Meter Benefits: 111$ 4,705$ 26,055$ 56,313$ 20,269$ 2,479$ 2,587$ 2,599$ 2,626$ 2,473$ 2,515$ 2,557$ 2,600$ 2,644$ 2,689$ 2,734$ 2,780$ 117,744$ 1

2 Mainframe License Benefits: 1,250$ 5,000$ 5,000$ 5,000$ 5,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 21,250$ 2

3 Total: 1,361$ 9,705$ 31,055$ 61,313$ 25,269$ 2,479$ 2,587$ 2,599$ 2,626$ 2,473$ 2,515$ 2,557$ 2,600$ 2,644$ 2,689$ 2,734$ 2,780$ 138,994$ 3

4 2012 Cumulative Actual + Forecast: 2,479$ 5,066$ 7,665$ 10,291$ 12,764$ 15,279$ 17,836$ 20,437$ 23,081$ 25,770$ 28,504$ 31,284$ 4

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Budgeted Benefits:

5 Monthly 2,373$ 2,412$ 2,392$ 2,432$ 2,473$ 2,515$ 2,557$ 2,600$ 2,644$ 2,689$ 2,734$ 2,780$ 5

6 Cumulative 2,373$ 4,785$ 7,177$ 9,609$ 12,082$ 14,597$ 17,154$ 19,755$ 22,399$ 25,088$ 27,822$ 30,602$ 6

Actual / Current Forecast:

7 Monthly 3,724$ 4,244$ 4,019$ 4,118$ 2,473$ 2,515$ 2,557$ 2,600$ 2,644$ 2,689$ 2,734$ 2,780$ 7

8 Cumulative 3,724$ 7,968$ 11,987$ 16,106$ 18,579$ 21,094$ 23,651$ 26,251$ 28,895$ 31,584$ 34,318$ 37,098$ 8

9 YTD Variance 1,351$ 3,183$ 4,811$ 6,497$ 6,497$ 6,497$ 6,497$ 6,497$ 6,497$ 6,497$ 6,497$ 6,497$ 9

*

**

#

($ in thousands)

2011 and 2012 SmartMeter Balancing Account (SBA) actuals and forecasts consistent with the GRC Settlement of $0.92 electric / $0.02 gas activated meter-month savings and the discontinuation of mainframe license savings already captured in the 2008 base year results

2012 benefits, budget versus actual and forecast, do not include meter reading costs and benefits which are being recorded in the Meter Reading Memorandum Account beginning on January 1, 2011.

($ in thousands)

SmartMeter Balancing Account (SBA) Credits *

2012 Benefits, Budget vs. Actual and Forecast **

Remaining BudgetActual


Issues Summary

Target Resolution Date

Issue Impact Status Summary

Ongoing

Increasing number of installations affected by access refusals and desire for customer choice program.

Increased costs, increase in unable to complete (UTC) back-log, customer change management.

Communicating with customers about the new SmartMeter Opt-Out Program to facilitate customer elections.


Risks Summary

# Created On I P ScorePrev. Score

Risk Impact Status SummaryAssoc. Issue

1 9/30/2011 5 4 20 20 Increased forecast deployment costs and external resources requirement

Key drivers: Delays in deployment, resource availability and installation complexity

Increased installation costs and contract resources required to complete remaining installations effectively and timely

Pursuing identified opportunities to increase installation efficiency within ongoing operations and adherence to scope.

2 9/1/2011 5 3 15 15 Network deployment and performance in ‘hard-to-reach’ areas can not be completed successfully.

Key drivers: Network performance in ‘hard-to-reach’ areas and availability of alternate solutions.

Deployment delays, resource planning and increased costs.

Pursuing resolution of network coverage in ‘hard-to-reach’ areas with technology supplier, including potential alternate network solutions.


Program Metrics

March '12 April '12 Variance AnalysisMetric Key Performance Indicator Actual Target Var Actual Target Var Actual Target Var Actual Target Var

P1SM Earnings Contribution ($M -

estimated)5.8$ 5.8$ -0.5% 5.8$ 5.8$ 0.0% 23.3 23.3 -0.1% 71.2$ 70.8$ 0.6%

P2 OSHA Recordable Rate (YTD) - 0.51 - 0.51 - 0.51

P3 MVI Recordable Rate (YTD) - 0.98 - 0.98 - 0.98

C1Customers enrolled in

SmartRate (net)21,845 (track only) 21,731 (track only)

C2# of CPUC escalated Customer

Complaints8 (track only) 7 (track only) 24 (track only)

C10Customer Complaint Rate

(escalated to CPUC)0.033% (track only) 0.035% (track only) 0.019% (track only)

D1Meters/Modules Installed -

Electric & Gas24,529 24,000 2.2% 19,808 19,000 4.3% 127,065 127,000 0.1% 400,000 400,000 0.0%

D5 UTC Rate 26.6% 15.0% 77% 15.0% 15.0% 0.1% 19.2% 15.0% 28% 15.0% 15.0% 0.0% See Deployment Status Update on page 4

D7 UTCs open beyond 90 days 223,661 (track only) 226,842 (track only)

D8 CPI - Endpoints $150.11 $111.24 $128.45CPI target under review in conjunction with revised deployment plan

D14Total Weeks of Inventory on

Hand - Electric Meters10 6 57.5% 11 6 73.9%

D15Total Weeks of Inventory on

Hand - Gas Modules9 6 42.7% 8 6 27.1%

O4 Transition Aging - Average Days 188 (track only) 319 (track only) 168 (track only) 152 (track only)

O5 SM Billing accuracy % (SA) 99.95% 99.88% 0.1% 99.95% 99.88% 0.1% 99.95% 99.88% 0.1% 99.88% 99.88% 0.0%

O6 SM Billing timeliness % (SA) 99.97% 99.81% 0.2% 99.97% 99.81% 0.2% 99.97% 99.80% 0.2% 99.79% 99.79% 0.0%

O7SM % Bills not estimated

(BSEGs)99.95% 99.90% 0.1% 99.95% 99.90% 0.1% 99.95% 99.90% 0.1% 99.90% 99.90% 0.0%

B2Meters Activated - Electric &

Gas (end of month)61,525 (track only) 54,683 (track only) 524,416 (track only) 850,412 (track only)

Month Results Month Results 2012 Year End ForecastYTD


Project Deployment Plan Progress

Combined Gas and Electric Plan, Target, and Actuals (Cumulative)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

EOY2007

Q108 Q208 Q308 EOY2008

Q109 Q209 Q309 EOY2009

Q110 Q210 Q310 EOY2010

Q111 Q211 Q311 EOY2011

Q112 Q212 Q312 EOY2012

Q113 Q213

TargetBus Case PlanActual

# in Thousands


Contingency Reconciliation


SmartMeterTM Acronyms

Acronym Definition Acronym DefinitionABS Advanced Billing System MARA My Account Re-ArchitectureAFCI Arc Fault Circuit Interrupter MDMS Meter Data Management SystemAMI Advanced Metering Infrastructure MLPP Meter Location Problem ProjectAP Access Point MPSC Meter Power Status CheckApps Applications MV-90 Multi Vendor - 90ASM Automated Storage Management MVI Motor Vehicle IncidentsBDG Business Development Group NEMS Net Energy Metering ServicesCC&B Customer Care and Billing NIC Network Interface CardCEDSA Centralized Electric Distribution System Assets OIR Order Instituting RulemakingCoE Center of Excellence OIS Outage Information SystemCPI Cost Per Install OMT Outage Management ToolsCPUC California Public Utilities Commission Ops OperationsDART Distribution Asset Reconciliation Tool OSHA Occupational Safety and Health AdministrationDC Data Center PCR Project Change RequestDCU Data Collector Unit PCT Programmable Communicating ThermostatDR Disaster Recovery PDP Peak Day PricingDRA Division of Ratepayer Advocates PDR Project Decision RequestDSCI Distribution Control Systems, Inc. PE Perfomance Engineering CompanyEA Ecologic Analytics PMO Project Management OfficeEAC Estimate at Completion PTR Peak Time RebateED Energy Division QBR Quarterly Business ReviewEMR Electric Meter Reader RCDC2 Remote Disconnect Phase 2EMT Electric Meter Technician Rev. RevisionEOM End-of-Month RF Radio FrequencyEON Emergency Outage Notification RFA Request For AuthorizationEOY End Of Year RV Restoration ValidationFA Functional Area SBA SmartMeter Balancing AccountsFD Field Delivery SM SmartMeterGE General Electric Co. SM Apps SmartMeter ApplicationsGFI Ground Fault Interrupter SMU SmartMeter UpgradeHAN Home Area Network SR Service RequestHC Head Count TBD To Be DeterminedIHD In-Home Devices TechArch Technical ArchitechtureISTS Information Systems and Technology Services TIC Technology Innovation CenterIT Information Technology TLM Transformer Load ManagementITD Inception To Date TOU Time Of UseIVR Interactive Voice Response UIQ Utility IQ - SSN softwareKC Knowledge Center UTC Unable To Complete (meter installation)KVAR Kilo-Volts-Amps Reactive YTD Year-To-DateLOB Line of Business

SmartMeter Acronyms

smartmeter tm steering committee update – april/may 2012

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