CONTACT: Dianne Dienstein October 30, 1997 CPUC - 113
415-703-2423 (R.94-04-031/I.94-04-032]

LOAD PROFILING FACILITATES CONSUMER CHOICE

IN COMING COMPETITIVE ELECTRICITY MARKET

The California Public Utilities Commission (CPUC) today expanded availability of load profiling for customers with peak electricity demand of up to 50 kW. Now, more Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric customers who want choice of electricity providers - direct access - when California's electric industry is opened to competition on January 1, 1998 can have that choice without having to have an hourly meter. Previously, the Commission had limited the load profiling option to consumers with peak demand of up to 20 kW.

In addition, the Commission ordered Kirkwood Gas and Electric, PacifiCorp, Sierra Pacific Power and Southern California Water to explain within the next 30 days whether and how they will offer load profiling to their customers with maximum demand of less than 20 kW.

Load profiling approximates how much electricity a customer class or group of customers uses hourly over a given period of time. Load profiling is needed because electricity will be scheduled for transmission throughout the state by the Independent System Operator on an hourly basis. Most customers won't initially have hourly meters, but rather will continue to have their meters read monthly.

Only their utility distribution company can provide meters and meter services to load profile customers, although those customers may purchase electricity from any electric service provider. By January 1, 1999, any retail energy service company may provide metering systems for any customer.

Regardless of who customers purchase electricity from, their current utility will continue to deliver it to their homes and businesses, and the Commission will continue to regulate these utilities to ensure they do so safely and reliably.

- more -

LOAD PROFILING FACLITATES CONSUMER CHOICE IN COMPETITIVE MARKET - 2

It would take years to provide hourly interval meters for all 10 million electric customers in the state. Of the 40,000 industrial and large commercial utility customers, about half can record usage hourly. Of the 1.5 million commercial and agricultural meters, only 10 percent can do so, and current residential utility meters do not record hourly electricity use. Load profiling, therefore, facilitates aggregation of small customers for direct access until those who wish to have hourly meters are able to have them installed.

From January 1 - June 30, 1998 static load profiles - based on previous year's usage and without regard to current fluctuations in weather - will be used. If a customer has a maximum demand under 50kW in nine out of twelve months of a year, that customer can use the 20kW - 50kW load profile. The Commission expects the utilities to develop and use the more accurate dynamic load profiles, which do take into account current weather, for customers by July 1998. If any of the utilities implement dynamic load profiling before that date, they are to give energy service providers 45 days advance notice before using the profiles.

Until the Commission resolves the issue of how direct access affects master-metered and sub-metered customers, these two groups of customers should not be offered a static load profile. All street lights, regardless of ownership will be eligible for direct access based on deemed load profiles.

A workshop will be scheduled before mid-February to examine whether there should be dynamic load profiling for agricultural customers.

Consumers who use up to 50 kW can choose a different electricity supplier if they either have an hourly meter or participate in load profiling. Today's Commission order makes it possible for more utility customers to choose to participate in the competitive electricity market set to begin in California on January 1, 1998, makes it easier for them to do so, and enables them to do so using load profiling at least until September 30, 1998. Market forces will begin to shape how much hourly meters cost,

and allow the supply of such meters to catch up to the demand for them. This

interim period until September 1998 also will allow customers to use load profiles to participate in the competitive market while they look at the costs and benefits of obtaining an hourly interval meter for continued participation after September 1998.

- more -

LOAD PROFILING FACLITATES CONSUMER CHOICE IN COMPETITIVE MARKET - 3

The Commission still must address the following load profiling issues: who can create and design load profiles in the future; to what extent should segmentation be allowed (segmentation divides customers by customer category, usage, climate zone, appliance mix, all-electric versus gas and electric, and dwelling type to determine a

load profile); should inconsistencies in determining who is eligible for load profiles be resolved; should additional metering at certain transmission and distribution points be required; and what type of monitoring data should be retained so as to assess the impact of the metering requirement on load profile customers.

The Commission will use workshops and, if needed, evidentiary hearings to resolve these issues during 1998.

Load Profiling Definitions

• Load is the amount of electricity consumed by a customer at a specific time. It can also refer to the amount of power carried by a transmission or distribution system.

• Load profiling is the process of taking the cumulative kWh use of a customer over a billing cycle and assigning it to individual hours in the cycle based on the aggregate characteristics of the customer segment in which the customer resides.

• Static load profiles are created by averaging historical data from load research samples by class and creating load shapes that approximate customer segment use for a given day.

• Dynamic load profiles are created by reading load research meters daily and producing daily load shapes which reflect the actual use for that customer segment for the day.

• Deemed load profiles are created by using engineering estimates to create daily load shapes, and are used for rate schedules with predictable loads such as street lights and traffic control devices.