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SDG&E RDSI Project OverviewSDG&E Borrego SpringsMicrogrid Demonstration ProjectDOE Peer ReviewNovember 3, 2010 San Diego Gas & Electric Company. All copyright and trademark rights reserved.

SDG&E Borrego Springs Microgrid Project SummaryUtilize advanced technologies to integrate and manage distributed resources within the Smart GridBudget: 15.2M ( 4.1M SDG&E, 7.5M DOE, 2.8M CEC, and 0.8M partners)Benefits: Reduce the peak load of feeders and enhance system reliability Accommodate various generation and storage configurations2010Goal:Successfully resolve DOE audit, negotiate contracts for remaining partners, and engage/informBorrego Springs community San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #2

Department of EnergyProject Overview San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #3

Project Benefits Allow more power to be delivered through existing infrastructure and reduce the need to build more in thefuture Increase in the reliability and security of the grid by adding elements that make the grid more stable andreconfigurable. Allow Utility to utilize and control customer-owned resources Optimize the design of circuit operations for microgrid capabilities given DG, demand response, automatedresponse, and other advanced tools San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #4

Project Objectives Achieve 15% reduction in feeder peak load Demonstrate capability of Volt-Amps-Reactive (VAr) management Develop a strategy and demonstrate:–––––Integration of AMI into Microgrid operationsSelf-healing networks through the integration of Feeder Automation System Technologies (FAST)Integration of an Outage Management System/Distribution Management System (OMS/DMS) into MicrogridoperationsIntentionally island customers in response to system problemsInformation/tools addressing the impact of multiple DER technologies San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #5

Project strategies Design and demonstrate a smart grid that incorporates sophisticated sensors,communications, and controls in the following ways:––– Intelligently incorporate solar power generators on homes and businesses into the electrical delivery system.Enable coordinated Demand Response (DR) programs whereby heavy electrical use during peak demand periods can bemoderated to prevent electrical supply emergencies.Integrate and control multiple distributed generation and electrical energy storage devices to operate the grid in a morecost-effective and reliable manner, benefiting customers and electrical rates.This project will proactively identify and apply leading-edge technologies to improve thesecurity and reliability of electricity supply and to lower costs to consumers. San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #6

Project torolaPacificNorthwestNationalLaboratory San Diego Gas & Electric Company. All copyright and trademark rights reserved.UniversityofSan DiegoProprietary - Internal Work productSlide #7

Project ManagementSDG&EPrime ContractorMicrogrid TeamNeal Bartek - Project ManagerTom Bialek – Principal InvestigatorGil Montes - Project ManagerRon Jordan – Principal EngineerAlisha Stamps – Project AccountantIBMProject Management OfficKhalid BehairySDG&ETelecom TeamSDG&EIT TeamScott DevittBrian DeanGreg SmithMike CalcagnoOracleOMS/DMS SupplierMike GahaganSDG&ESmart Grid TeamTom BialekJosh GerberHorizon Energy GroupSolution ArchitectureSteve PullinsJohn WestermanSDG&EAccounting TeamPaul AcostaLockheed MartinSystem IntegrationRuss Birdsey San Diego Gas & Electric Company. All copyright and trademark rights reserved.SDG&EOMS/DMS TeamSDG&ECustomerPrograms TeamThomas VanJulia MendozaEric DrabbDave GreeneSteve LyonMotorolaTelecom InfrastructureMike KochPNNLDER DesignRob PrattProprietary - Internal Work productSDG&EAMI TeamSteve MikovitsTom LoganSDG&EDistrib Engrg TeamJose CarranzaEllis JonesByron SchlovainUniv of San Diego/EPICRegulatory DesignScott AndersSlide #8

Di Intest grrib at Put ion haed o seSy f T 2:s I ecnt hne g olra ogtio ien sTestingO Phan ptim asedAn izat 3:al ionysisMicrogrid Project OverviewEs Pt a habBa lish se 1De an sel me :ve d K ine ntlo e s ofpm yentsand San Diego Gas & Electric Company. All copyright and trademark rights reserved.Final Report and DocumentationImplementation Plan for Large Scale DeploymentCost/Benefit Analysis for Large Scale DeploymentFe.Sce eder Optim gna rtinio Te sPInte DLMgrationIntegOMS f rationorMic ofrogInteridgrationof St orageIntegrationof FInteASgraTtionof ExistingDG&VKeARyDevelopPilometNnt setworkAnalysisandBaselining 5ge ingatS estITDSgstineTIDS4geStagtinseSI TD3geStagstineTIDS2gedStaute stingbirist ion TeDt1gegraSta s IntetemSysProprietary - Internal Work productSlide #9

Project Status San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #10

Phase I: Establishment of Baselines & .0Demonstration of Compliance with DCAAAudit RecommendationsComplete1aRevise the SOPO and Develop a ProjectManagement Plan (PMP)Complete1bSite SelectionComplete1cAnalyze AES SolutionsComplete1dNegotiate AES Pricing and Obtain CostQuotesComplete1eInstall Initial Field HardwareComplete2.0Define Baseline and Measure PerformanceIn Process2.1Pilot Network Analysis and BaseliningIn Process2.2Key DevelopmentsIn Process San Diego Gas & Electric Company. All copyright and trademark rights reserved.Q1Q2Q32010Q4Q1Q2Q32011Q4Q1Q2Proprietary - Internal Work productQ32012Q4Q1Q2Slide #11Q32013Q4Q1

Site Selection – Borrego Springs, CAKey Strengths: High concentration of customer-ownedsolar generation Potential to realize advanced reliabilityenhancements Opportunity to demonstrate self-sufficientcircuit Extendable to service territory San Diego Gas & Electric Company. All copyright and trademark rights reserved.Borrego SpringsProprietary - Internal Work productSlide #12

Borrego Substation Conceptual CircuitIllustrationLegendMG AreaBorrego SubstationSCADADieselGeneratorExistingIndustrial CustomerC170MicroGridC171C172PDLMAESSCADA Automated SwitchesCommercialCustomerPDLMResidential CustomerSCADA Automated SwitchesHANSCADA Automated SwitchesResidential CustomerHANSCADA Controlleron CapacitorSCADA Automated SwitchesSCADA Controlleron CapacitorSCADA Controlleron CapacitorHAN ADA Automated SwitchesSCADA Automated SwitchesResidential CustomerResidential CustomerResidential CustomerResidential CustomerResidential CustomerHANHANHANHANPHEVWater HeaterSolarStoragePool Pump San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #13

Phase II – Integration of Technologies and 1Integration of Existing Distributed EnergyResources and VAr CompensationIn Process3.2Stage 1 Distributed Systems Integration (DSI)TestingPending3.3Integration of Feeder Automation SystemTechnology (FAST)In Process3.4Stage 2 DSI TestingPending3.5Integration of Advanced Energy Storage(AES)In Process3.6Stage 3 DSI TestingPending3.7Integration of OMS/DMS for MicrogridOperationsIn Process3.8Stage 4 DSI TestingPending3.9Integration of Price-Driven Load Management(PDLM)In Process3.10Stage 5 DSI TestingPending3.11Feeder Optimization Scenario TestingPending San Diego Gas & Electric Company. All copyright and trademark rights reserved.Q2Q32010Q4Q1Q2Q32011Q4Q1Q2Proprietary - Internal Work productQ32012Q4Q1Q2Slide #14Q32013Q4Q1

Distributed Energy Resource (DER)Utility-owned distributed generation will simulate customer-owned renewable generation Identified DER requirements–– Filed application with Air Pollution Control District of San Diego County (APCD) for aStationary Source Permit– Negotiating contract to retrofit generators with advanced emissions control to meet required Tier 4 standardsFiled application with County of San Diego for Variance from County Noise Ordinance– two 1.8 MW Tier 1 Caterpillar 3516DITA diesel generators owned by SDG&E200 hours per generator per yearTo likely require a wall to be built to help reduce noiseDeveloped requirements for remote control capabilities–Negotiating contract to retrofit generators with advanced controls San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #15

Advanced Energy Storage (AES)Advanced Energy Storage will supplement Distributed Energy Resources Identified AES System requirements in conjunction with EPRI & Sandia– 1.0 MW Power Output– 6.0 MW-Hr of Energy– Potential future applicationsDeveloped RFP and issued to nine (9) vendorsReceived six (6) proposalsConducted best & final review with two (2) vendorsNegotiating Terms and Conditions with preferred vendorConducting RFI to assess state of battery technology– 25-50kW, 1-3 hours of storage (120/240v single phase)– 100-300kW, 3 hours of storage (120/208v or 277/480v 3-phase) San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #16

Feeder Automation System Technologies (FAST)Automated switching technology will improve reliability by enabling circuit operations withouthuman intervention Identified objectives of FAST–– Programmed switch operation on Cir 170 (including tie switches) will automatically isolate faulted segments andrestore serviceAll operations will be done based on real-time loadsBorrego circuits modified for FAST Installation San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #17

Microgrid Controller & OMS/DMSMicrogrid Controller technology will integrate with the Distribution Management System whilebalancing the distributed energy resources and energy demand in the Microgrid control area Modeled use cases & business processes–– Presented Use Cases at Microgrid Symposium in Vancouver, BCShared Use Cases with Xanthus Consulting for work on IEC 61850Mapped detailed requirements to functional requirementsReceived approval from Information SecurityInvestigating vendor options for Design/BuildOMS/DMS system testingDiscussions with other RDSI projectsLiterature review San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #18

Microgrid ControllerDistribution Management SystemMicrogridManagemanyMaster Controllernew things?Distributed Energy ResourcesUtility-scale Energy StorageRooftop PV SolarMicro-turbinesBuilding Energy StorageCommunity Energy StorageDistributed GenerationHome Energy ManagerPEVsGround PV Solar ArraySCADA SystemInformationElectricity PricingDER statusDemand Response ProgramsNetwork statusCommunity ObjectivesLoad and Resource ProfilesGrid ResourcesCapacitor BanksVoltage RegulatorsAutomated SwitchesPower ElectronicsCommunicationsNational Energy Technology Laboratory San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work productSlide #19

Price-Driven Load ManagementLeveraging Advanced Metering Infrastructure (AMI) and Home Area Network (HAN) devices, wewill be able to influence/manage customer loads. Pricing signals will alter customer usage,Demand Response will be used during “Reliability Events” . Completed contracts with GridpointCollaborating with internal SDG&E departments to develop plan to presentto customers Developing customer participation plan Developing Timeline for Customer Communications AMI rollout complete San Diego Gas & Electric Company. All copyright and trademark rights reserved.Proprietary - Internal Work product“one-face”Slide #20