BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE …

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California Edison Company (U 338-E) for Recovery of Aliso Canyon Utility Owned Energy Storage Costs. Application 17-03-020 (Filed March 30, 2017) NOTICE OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E) OF EX PARTE COMMUNICATION WITH THE OFFICE OF COMMISSION PRESIDENT MICHAEL PICKER JANET S. COMBS REBECCA MEIERS-DE PASTINO Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-6016 Facsimile: (626) 302-3990 E-mail: Dated: April 13, 2018 1 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California Edison Company (U 338-E) for Recovery of Aliso Canyon Utility Owned Energy Storage Costs. Application 17-03-020 (Filed March 30, 2017) NOTICE OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E) OF EX PARTE COMMUNICATION WITH THE OFFICE OF COMMISSION PRESIDENT MICHAEL PICKER Pursuant to Rule of the Rules of Practice and Procedure of the California PUBLIC UTILITIES COMMISSION ( COMMISSION ), Southern California Edison Company ( SCE ) gives notice of the following ex parte communication in the above captioned matter.

2 On April 5, 2018, SCE timely provided the parties with a three-day advance notice the COMMISSION had granted SCE s request for a meeting to discuss the projects that are the subject of the above-captioned matter. On April 10, 2018, Dawn Anaiscourt, Director, SCE CPUC Regulatory Affairs, Ranbir Sekhon, Director, SCE Portfolio Planning and Analysis, and Vibhu Kaushik, Director, SCE Grid Technology and Modernization met with David Peck, President Picker s advisor. The meeting took place at the COMMISSION s San Francisco office from 2:30 to 3:00 During the meeting, SCE discussed the valuable operations of its current utility-owned Enhanced Gas Turbine (EGT) projects, as well as the potential for additional EGTs. SCE presented the document attached hereto as Attachment A at the meeting. SCE also produced its three-day advanced notice at the meeting. It is not attached because it was already served on all parties. 2 Respectfully submitted, JANET S.

3 COMBS REBECCA MEIERS-DE PASTINO /s/ Rebecca Meiers-De Pastino By: Rebecca Meiers-De Pastino Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-6016 Facsimile: (626) 302-3990 E-mail: April 13, 2018 Appendix A Enhanced Gas Turbine Hybrid Enhanced Gas TurbinesSouthern California Edison$ Agenda1. Background2. Hybrid EGT Benefits3. Performance Results4. Next Steps$ Southern California Edison California s GHG and Renewable Energy Targets Greenhouse gas (GHG) emissions to 40% below 1990 levels by 2030 50% renewable energy in California, also by 2030 There is increasing need for flexible generation like the Hybrid EGT3 Background on the California Energy Market & Policy$ Southern California EdisonMarket Benefits of Increased Generation Flexibility Increased existing Ancillary Services market participation Enable new higher-value market products Frequency Regulation Spinning Reserve More optimal Day-Ahead energy dispatch Ability to respond to shorter negative and positive price spikes in Real-Time4024681012141618201234567891011 12131415161718192021222324$/MWhHourNon Spinning ReserveSpinning ReserveExample.

4 CAISO spin and non spin prices on October 4, 2017$ Southern California EdisonHybrid EGT Benefits Instant Response/Always Ready Technology 50 MWs of Operating Reserve Primary Frequency Response -8 to +5 MVAR Voltage Support 134 MW-Secs Inertia Black Start TechnologyGreenhouse Gas Free AttributesWith Fuel Consumption 50 MWs Peaking Energy for Local Contingency 25 MWs of High Speed Frequency Regulation Demand Charge Management Self Managed BESS SOCP rovidesReduced System Costs & Increases Customer Value Optimized System Dispatch Lower System Fuel Use Lower Maintenance Costs Lower System GHG Emissions Renewable Energy Integration Increased Market ParticipationEnables10MW200s(5-10mins)05 0MW5$ Southern California EdisonEGT Value Projections Market Utilization and Emissions ReductionsPre-construction, the Hybrid EGT was expected to significantly reduce overall plant emissions by providing grid services such as Spinning Reserve without burning fuel Fewer Gas Turbine Starts and Run Hours Higher capacity utilization Higher value grid services such as Spinning Reserve6$ Southern California EdisonHybrid EGT Actual Performance Results7 Compared with SCE s non-hybrid peakers over the same period.

5 Higher capacity utilization Lower fuel gas usage Lower emissions Higher market revenues05101520253035404550 Hybrid EGT PeakersNon EGT PeakersAverage Day Ahead Capacity CommitmentSCE Peakers Capacity UtilizationEnergyNon SpinReg DownReg UpSpin0%100%50%CAISO Market Results from July 2017 to Dec 2017$ Southern California EdisonNext Steps SCE is monitoring the operations and market performance of the current EGTs The performance of the initial two Hybrid EGTs have exceeded expectations thus far Spinning reserve utilization higher than expected Primary frequency response performance much higher than expected The Hybrid EGT has at times responded to over 500 frequency droops in a day, helping to maintain a stable electric system frequency SCE is also actively analyzing the customer value of additional Hybrid EGT upgrades at its three remaining GE LM600 peakers Mira Loma Peaker (Ontario, CA) Barre Peaker (Stanton, CA) McGrath Peaker (Oxnard, CA)8$ Backup$ Southern California EdisonAliso Canyon and Energy Storage On January 6, 2016, Governor Brown issued an Executive Order regarding the Aliso Canyon Natural Gas Leak declaring the situation an emergency.

6 To address the STATE of emergency the CPUC issued Resolution E-4791 requiring: Southern California Edison Company to hold an expedited competitive energy storage procurement solicitation to help alleviate an outage risk during the upcoming summer and winter of 2016-2017. SCE shall solicit in-front-of-the-meter (IFOM) energy storage that can be operational by December 31, 2016. Resolution E-4791 also found it reasonable to allow the UTILITIES to pursue proposals for turnkey project development of utility owned energy storage projects located at utility-owned $ Southern California EdisonSCE s Hybrid EGTsFUEL SAVINGSMAINTENANCEEMISSIONS10 MWLI MVAINVERTERSWATER CONSUMPTIONU pgradedCombustionControlsEnhanced EmissionsControls Built in partnership with GE and Wellhead Energy Solutions Combines a Gas Turbine (GT) and Battery Energy Storage System (BESS) Two sites chosen: Center Peaker (Norwalk, CA) Grapeland Peaker (Rancho Cucamonga, CA) BESS online end of 2016 GT and BESS integrated Q1 201711$ Southern California Edison12 EGT Integration Diagram$ Southern California Edison13 Local CommunicationsLocal SensingHybrid EGT Control System(Integration Controller)

7 Gas Turbine ControlsBESS ControlsSite GSU1 Voltage and frequencyCAISO or Local Dispatch Grid Load Variable GenerationCommunicationsPower Flow ActiveImmediate response to AGC2or load followingEGT Control Diagram1 Generator Step up transformer2 Automatic Grid Control$ Southern California EdisonCAISO s Duck Curve The abrupt fall-off of solar in the evening coincides with sharp rise in consumer demand, leading to the need for additional flexible $ Southern California EdisonHybrid EGT Recognition and Accolades The SCE-GE project is a perfect example that distributed energy resources can be used in innovative ways and still fully participate in the wholesale energy market managed by the ISO. Steve BerberichPresident and CEOC alifornia Independent System Operator Southern California Edison s Hybrid EGT energy storage project will allow us to increase our reliance on renewable energy, reducing smog forming pollution and combating climate change.

8 Wayne NastriExecutive OfficerSouth Coast Air Quality Management District To date the Hybrid EGT has won four awards: Edison Electric Institute (EEI) Edison Award Energy Storage North America (ESNA) Innovation Award South Coast Air Quality Management District (SCAQMD) Innovative Clean Air Technology Award Power Magazine s Top Plant Award15$ SCE s Aliso Canyon Energy Storage Utility Owned Resources $ Southern California Edison17 Purpose:Emergency Proclamation CPUCR esolution E-4791 & Operational Flexibility Location: Norwalk, CABESS Size: 10 MWhGas Turbine Size: 50 MWCommercial Operation:Received CAISO confirmation on 12/30/16 Systems are bid into CAISO wholesale energy marketCENTER EGT$ Southern California Edison18 Power Inverter AC to DC (8) MWMedium Voltage Switchgear InterconnectionStep-Up or Down Transformers : 480 VBattery Enclosure 10MW Controller GE Mark-VCENTER BESS$ Southern California EdisonPurpose:Governor Brown s Emergency Proclamation CPUCR esolution E-4791 Location: Ontario, CAAdjacent to SCE s Mira Loma Peaker & SubstationSize: 20 MW/80 MWh Energy for 15,000 homes for 4 hoursCommercial Operation:Received CAISO confirmation on 12/30/16 Systems are bid into CAISO wholesale generation market for day ahead and real time dispatchSCE Mira Loma Tesla Battery Energy Storage System19$ Southern California EdisonConstruction:Facility was constructed in 90 days through rain and HolidaysFootprint: ~62,000 square feet (under one and a half acres)Components: 398 Tesla Powerpacks 48 InvertersConnection: Each system connected to 12kV circuit that feeds customersConsiderations.

9 Facility built between 66kV and 220kV transmission lines SCE Mira Loma Tesla Battery Energy Storage System20$ BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California Edison Company (U 338-E) for Recovery of Aliso Canyon Utility Owned Energy Storage Costs. Application 17-03-020 (Filed March 30, 2017) CERTIFICATE OF SERVICE I hereby certify that, pursuant to the COMMISSION s Rules of Practice and Procedure, I have this day served a true copy of NOTICE OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E) OF EX PARTE COMMUNICATION WITH THE OFFICE OF COMMISSION PRESIDENT MICHAEL PICKER on all parties identified on the attached service list(s) for Service was effected by one or more means indicated below: Transmitting the copies via e-mail to all parties who have provided an e-mail address. A true copy was also sent via e-mail to the following individuals at the following email address: President, Michael Picker David Peck, Advisor to President Picker Placing the copies in sealed envelopes and causing such envelopes to be delivered by US Mail to the offices of the Commissioners(s) or other addresses(s).

10 ALJ Melissa K. Semcer CPUC 505 Van Ness Avenue San Francisco, CA 94102 Executed April 13, 2018, at Rosemead, California. /s/ Mildred King Mildred King Legal Administrative Assistant SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 CPUC HomeCALIFORNIA PUBLIC UTILITIES COMMISSIONS ervice ListsPROCEEDING: A1703020 - EDISON - FOR RECOVER FILER: SOUTHERN CALIFORNIA EDISON COMPANY LIST NAME: LIST LAST CHANGED: APRIL 9, 2018 Download the Comma-delimited File About Comma-delimited Files Back to Service Lists Index Parties SABRINA CLORFEINE DANIEL W. DOUGLASS SOUTHERN CALIFORNIA GAS COMPANY ATTORNEY 555 W. 5TH STREET DOUGLASS & LIDDELL LOS ANGELES, CA 90013 4766 PARK GRANADA, SUITE 209 FOR: SOUTHERN CALIFORNIA GAS COMPANY CALABASAS, CA 91302 FOR: ALLIANCE FOR RETAIL ENERGY MARKETS AND DIRECT ACCESS CUSTOMER COALITION REBECCA A.