COM/MP1/lil Date of Issuance 4/24/2012

Decision 12-04-025 April 19, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission's own Motion to Actively Guide Policy in California's Development of a Smart Grid System.

Rulemaking 08-12-009

(Filed December 18, 2008)

DECISION ADOPTING METRICS TO MEASURE THE SMART GRID DEPLOYMENTS OF PACIFIC GAS AND ELECTRIC COMPANY,
SOUTHERN CALIFORNIA EDISON COMPANY AND
SAN DIEGO GAS & ELECTRIC COMPANY

DECISION ADOPTING METRICS TO MEASURE THE SMART
GRID DEPLOYMENTS OF PACIFIC GAS AND ELECTRIC COMPANY, SOUTHERN CALIFORNIA EDISON COMPANY AND SAN DIEGO
GAS & ELECTRIC COMPANY 1 1

1. Summary 2 2

2. Procedural Background 3 3

3. Consensus Metrics 6 6

3.1. Positions of Parties on Proposed Consensus Metrics 8 8

3.2. Discussion 16 16

3.2.1. Revisions to Customer/AMI Metrics 17 17

3.2.2. No Revisions to Plug-in Electric Vehicle Metrics 20 20

3.2.3. Revisions to Storage Metrics 21 21

3.2.4. Revisions to Grid Operations Metrics 21 21

3.2.5. Other Metrics 22 22

4. Reporting of Metrics 23 23

4.1. Positions of Parties 23 23

4.2. Discussion 24 24

5. Metrics Review Process 26 26

5.1. Positions of Parties 26 26

5.2. Commission Revisions of Metrics 28 28

6. Cyber-Security and the Environmental Metrics 30 30

6.1. Positions of Parties 30 30

6.2. Discussion of Cyber-security and Environmental Metrics 33 33

7. Goals to Complement Metrics 37 37

8. Summary and Conclusion 39 39

9. Comments on Proposed Decision 39 39

10. Assignment of Proceeding 45 45

Findings of Fact 45 45

Conclusions of Law 50 50

ORDER 51 51

ATTACHMENT A -Metrics

ATTACHMENT B - Initial Set of Cyber-Security Questions

DECISION ADOPTING METRICS TO MEASURE THE SMART GRID DEPLOYMENTS OF PACIFIC GAS AND ELECTRIC COMPANY,
SOUTHERN CALIFORNIA EDISON COMPANY AND
SAN DIEGO GAS & ELECTRIC COMPANY

1. Summary

This decision adopts consensus metrics to help measure the extent and effectiveness of Smart Grid investments made by Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company. These metrics are contained in Attachment A.

This decision declines to adopt metrics that apply to Southern California Gas Company at this time. Southern California Gas Company was not a respondent in this proceeding at the time that these metrics were developed and Senate Bill 17 (Padilla),¹ which has triggered this proceeding, applies principally to smart electric grids.

This decision also sets a schedule for the future review and revision of Smart Grid metrics. Specifically, this decision directs parties and Commission Staff to create four Technical Working Groups to address four topics: 1) updates or revisions to the metrics adopted herein, if needed; 2) the creation of metrics related to cyber-security; 3) the creation of metrics related to environmental benefits; and, 4) the creation of broad goals to focus all stakeholders toward a common vision.

As discussed below in greater detail, the purpose of establishing goals and metrics is to guide all stakeholders in a common policy direction as well as measure the performance of already deployed Smart Grid technologies.

The Technical Working Group on goals is tasked with proposing goals related to customers, the environment, the market, and utility operations. These goals will be considered later in this proceeding.

¹ Chapter 327, Statutes of 2009.