TIME OF USE RATES

EDUCATION & OUTREACH FOR AGRICULTURAL & PUMPING CUSTOMERS SCAP ENERGY MANAGEMENT COMMITTEE MEETING AUGUST 12, 2013

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BASICS: Time-of-Use Statewide Initiative

WHO?

WHAT?

WHY?

Non-residential customers Time-of-Use rates are determined by when you use energy (time of day, day of week, season) and how much you use.

Time-of-Use is part of a statewide initiative designed to keep the grid reliable so everyone will have power when they need it. WHEN?

GS-1 and GS-2 customers* will transition to TOU Jan. 2014 PA-1 and PA-2 customers* will transition to TOU Feb. 2014

*with 12 months of interval data as of July 31, 2013

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OUTREACH: TOU Customer Communication

TOU Awareness Rate Analysis Outbound Call Rate Analysis Outbound Call

@

SCE.com/TOU, My Account, Rate Analyzer, and solutions that will help customers with the TOU transition 120+ Events, including energy walks, chamber meetings, business forums and presentations Targeted banner ads, paid search, social media and other vehicles Digital Campaign 3

OUTREACH: SCE.com/TOU

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SEASONAL: Traditional Time Periods

Traditional Summer Time Periods Traditional Winter Time Periods Highest Energy Charge Medium Energy Charge Lowest Energy Charge Three different TOU periods: On-Peak: Highest Energy Charge Mid-Peak: Medium Energy Charge Off-Peak: Lowest Energy Charge Medium Energy Charge Lowest Energy Charge Holidays: Holidays are considered Off-Peak or Super Off Peak. When any holiday falls on a Sunday, the following Monday is recognized as the holiday

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TIME PROFILE: Standard TOU Rate

Summer % Time / Number of Hours Average per Month Winter

404 hours 55% 130 hours 18% 196 hours 27% 447 hours 61% 282 hours 39% On-Peak Mid-Peak Off-Peak Mid Peak Off Peak 6

RATE COMPONETS: Demand (kW) / Energy (kWh)

Power (kW or Demand)

is a measure of how quickly work is being done.

1kW = 1.341 Horsepower

Energy (kWh)

is a measure of how much work was done

1 kWh = Ten 100 watt light bulbs running for 1 hour Watts is a unit of power kW = 1000 Watts (kilo is 1000 times) Car Example

The speedometer measures the rate at which work is being done - your Speed is like Kw The odometer measures how much work was done - Miles driven is like kWh 7

DEMAND EXAMPLE

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Measured Demand is an average demand over a 15 minute interval

15 minute Demand Interval additional 21kW comes on 9kW shuts off 9kW

0 – 5 minutes: 9 kW x 1/3 of time = 3 kW avg .

5 – 10 minutes: 30 kW x 1/3 of time = 10 kW avg .

10 – 15 minutes: 21 kW x 1/3 of time = 7 kW avg.

Total = 20 kW avg. 8

Typical Rate Schedules (Comm/Ind.)

• • • • TOU-8-B (Options A and B) – – – Maximum Demand Greater than 500kW Facilities-Related & Time-Related Demand Charge Energy Charge (based on Peak Period) TOU-GS-3 (Options A and B) – Maximum Demand Between 300kW and 499kW TOU-GS-2 (Options A and B) – Maximum Demand Between 20kW and 299kW) TOU-GS-1 (Options A and B) – Maximum Demand Between 0kW and 19kW) 9

Typical Rate Schedules (Ag/Pumping)

• • • • • TOU-PA-3 (Options A and B) – Maximum Demands Between 300kW and 499kW) TOU-PA-2 (Options A and B) – Maximum Demands Beetween 20kW and 299kW) TOU-PA-1 (Options A and B) – Maximum Demands Between 0kW and 19kW) TOU-PA-2-RTP & TOU-PA-3 (Real Time Pricing) – – Temperature-based rate, hourly pricing Based on temperature recorded at LA Civic Center TOU-PA-SOP (Super-Off Peak) – Beneficial to Customers Who Confine Majority of Usage to SOP Period 10

Agricultural and Pumping Time of Use Periods 11

Agricultural and Pumping Time of Use Periods 12

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How Time-Of-Use Rates Work

With Time-of-Use rates, the cost of electricity changes depending on the time of day you use it. Instead of a single flat rate for electricity use, the cost of electricity on a Time-of-Use rate varies based on the time of day, day of week, and season in which it is used. With Time-of-Use rates, when you use electricity is just as important as how much you use.

Standby and Departing Load (SB&DL)

Response to Questions for Roundtable Discussion on Electricity Rates SCAP Energy Management Committee Meeting August 12, 2014

Project Management Technical Services B. Emerson, Sr. Project Manager DRAFT Business Customer Division

SOUTHERN CALIFORNIA EDISON®

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Departing load charges and when are they applicable or not.

• Departing Load (DL) tariffs apply to self-generation customer load that departed from SCE on or after 12/20/1995, with several exceptions. 1. DL tariffs pay for costs of Public Energy Policies.

2. Schedule DL-NBC (Departing Load NonBypassable) applies to load that departed on or after 12/20/1995.

• Rate components: Nuclear Decommissioning Charge (NDC), Public Purpose Programs Charge (PPPC), and Competition Transition Charge (CTC).

3. Schedule CGDL-CRS (Customer Generation Departing Load – Cost Responsibility Surcharge) applies to load that departed after 02/01/2001, in addition to DL-NBC.

• Rate components: Department of Water Resources (DWR) Bond Charge, Competition Transition Charge (CTC), and Power Charge Indifference Adjustment (PCIA).

• Exemptions from Departing Load 2. Co-Generators 1 1 : 1. “Net Energy Metering Eligible” generators – e.g. Solar and Wind or Fuel Cells ≤ 1 MW are exempt from the CTC rate component, (PUC 372 and/or 374) 3. CSI and SGIP Eligible 1 generators are exempt from CGDL-CRS for the first 1 MW only 4. Generators 1 that meet BACT standards set by AQMD and/or CARB are exempt from PCIA rate component • DL is determined based on either the generator or a calculated estimate . actual kWh output of the 1. Calculated DL = Mo. Avg. kWh ( over 12 months prior to Gen Ops ) – less Current Month’s kWh

Business Customer Division

Note 1:

Project Management Technical Services

After State-wide Cap has been reached, CRS charges apply.

SOUTHERN CALIFORNIA EDISON®

Slide: 15

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Standby charges and when are they applicable or not

• Standby (SB), Schedule S, is required for all customers who self generate all or part of their site load, with a few exceptions. • Permanent Exemptions for both SB & DL: 1. “Net Energy Metering Eligible” generators – e.g. Solar and Wind or Fuel Cells ≤ 1 MW 2. Backup/Emergency generators – operates only when there is a utility outage • Standby contract has two (2) demand level selections: 1. Supplemental Contract Capacity (SCC) kW = the Site Load that SCE will serve when the generator is normally operating or normally not scheduled to operate, e.g. night time.

• SCC kW is used in splitting the Summer On-Peak kW and Mid-Peak KW between Supplemental and Back-up Time Relate Demand for customers that do not have a SCE generator output meter 2. Standby Demand (SB) kW = the load that the generator regularly serves and SCE is expected to instantaneously provide when the generator goes down, excluding any SCC .

• • SB can not be more than the Generator Size nor Site Load; it excludes any SCC SB kW is used in offsetting the maximum demand in determining excess FRD

Business Customer Division Project Management Technical Services

SOUTHERN CALIFORNIA EDISON®

Slide: 16

Do these charges vary and have limitations?

– Do these charges vary based on the type of rate structure the facility is currently on?

• Yes, similar to TOU, it is based on the site’s – Maximum Demand level (≤20, 21-199, 200-500, >500 kW), and – Service Voltage (<2, 2-50, 51-219, >220 KV). – The higher these values, the rates tend to be lower.

• SB’s Capacity Reservation Charge is a monthly fixed amount based on the SB kW and charged regardless of monthly maximum demand – Are facilities with on-site generation in any way limited in their rate structure options?

• Yes, they are limited to only Option B, (and TOU-S-RTP); i.e. no Option A, R or CPP • And they are also limited to TOU-BIP in the Demand Response programs.

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Business Customer Division Project Management Technical Services

SOUTHERN CALIFORNIA EDISON®

Slide: 17

SOLUTIONS: No-cost, Low-cost

 NO-COST TEMPORARY REDUCTION TIP CHECKLIST Where possible, shift operations to maximize lower cost time periods Stagger equipment use to minimize demand When you do not need all your pumps operating, use lower cost pumps first Plan your irrigation sets to maximize weekends and lower cost time periods.

For seasonal operations, know the start of your billing period Make sure time clocks are set properly  PERMANENT REDUCTION TIPS Use Variable Speed Drives (VSDs) instead of a valve to control flow Low Pressure Sprinkler Nozzles VSDs on Dairy Vacuum and Milk Pumps Controls for fans Install time clocks, sensors, to avoid higher cost periods Visit sce.com/EnergyTips for more customized tips and information by business type.

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SOLUTIONS: Tools & Programs

Tools

• My Account • Budget Assistant • Business Energy Advisor • Rate Analyzer coming soon

Express Incentives

• Pumps Retrofits (25HP and less) • Sprinkler to Drip • Low Pressure Sprinkler nozzles • Various lighting solutions

Customized Incentives

• Pump Retrofits • Variable Speed Drives: • Well Pumps • Vacuum Pumps • Milk Pumps • Fan Controls • Aeration/Controls

Demand Response

• Agricultural and Pumping Interruptible (API) • Automated Demand Response • Aggregator Managed Portfolio (AMP) For more information about programs, incentives, and savings visit www.sce.com/solutions 19 Actual eligibility and incentives will be determined on a case-by-case basis, per individual program guidelines

SOLUTIONS: SCE Pump Test

• • • •

SCE’s oldest Energy Efficiency Program

– Since 1911

Tests are NO COST Reasons to Test

– Track Pump Performance – Budgeting – Operational Planning – Identify Inefficient pumps

To make arrangements for pump testing

– Call (800) 634-9175 20

Contact Us

Energy Efficiency & Demand Response Programs Optional Rates Detailed Rate Analysis Economic Development Services Other Products and Services

• • • Contact your account manager or: www.sce.com/TOU [email protected]

1-866-743-1645 21

Questions???

• • • • James I Pasmore, Jr [email protected]

Office: (714) 973-5759 Mobile: (714) 227-3283 22

APPENDIX

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SOLUTIONS: Pump Test

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PUMP TEST RESULTS LETTER INCLUDES:

– – – – – – Overall Plant Efficiency If applicable • Estimate Savings if pump is retrofitted • Estimated Incentive Discharge Pressure Standing water level Pumping water level Discharge Head – – – – – – – – – Total Head Drawdown GPM GPM per Foot Drawdown Acre Feet Pumped in 24 hours kW Input to Motor HP Input to Motor % Motor Load RPM 24

TOU: HOLIDAYS

• • Holidays are considered Off-Peak or Super Off-Peak – New Year’s Day – Presidents Day – Memorial Day – – Independence Day Labor Day – Veterans Day – Thanksgiving Day – Christmas When any holiday falls on a Sunday, the following Monday is recognized as the holiday – Note: no change will be made for holidays falling on a Saturday 25