2018 General Rate Case. Transmission & Distribution (T&D) Volume 3 R System Planning

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1 Application No.: Exhibit No.: Witnesses: A.1-0- A SCE-0, Vol. 0 R A E. Takayesu (U -E) 01 General Rate Case rd Errata ERRATA Transmission & Distribution (T&D) Volume R System Planning Before the Public Utilities Commission of the State of California Rosemead, California September, 01

Figure IV- Combined Distribution Circuit Upgrades and New Distribution Circuits 0 WBS Elements CET-ET-LG-PF, CET-ET-LG-NI Recorded 0-01/Forecast 01-00 C (CPUC-Jurisdictional Constant 01 and Nominal

2 Figure IV- Combined Distribution Circuit Upgrades and New Distribution Circuits 0 WBS Elements CET-ET-LG-PF, CET-ET-LG-NI Recorded 0-01/Forecast C (CPUC-Jurisdictional Constant 01 and Nominal $000) Nominal 01=,0 01=, 00=, 1 Constant 1. Distribution Plant Betterment, WBS Element CET-PD-LG-PB 01=, The Distribution Plant Betterment forecast expenditures include work required 01=, to meet 00=, anticipated load growth causing voltage violations, requiring neutral conductors to serve new customers, and to meet contingency scenarios. Work in this category improves voltage profiles to better serve customers by installing voltage regulators or increasing the size of conductor or cable. Neutral conductors, or fourth wires, are required on existing three-wire distribution circuits to serve new residential load. SCE also identifies areas where new cable, conductor, and switches are needed to improve reliability during contingency scenarios allowing the distribution system to keep as many customers energized as possible. Due to the diverse project scope, SCE does not forecast costs based on unit cost. A detailed discussion of how SCE plans for this category is explained in the Distribution & Subtransmission Planning Programs and Projects Section III.B. Figure IV-1 below shows 0 01 recorded and forecast expenditures 1 for the Distribution Plant Betterment budget. Recorded expenditures in 0 and 01 are higher compared to expenditures in surrounding years due to the inclusion of upgrades completed to meet 0 Refer to WP SCE-0 T&D-Vol., Book A, pp. (Tables IV- and IV- Expenditure Summary). 1 Id. --

Figure IV-1 Distribution Circuit Upgrades WBS Element CET-ET-LG-PF Recorded 0-01/Forecast 01-00 (CPUC-Jurisdictional Constant 01 and Nominal $000) Nominal 01=0, 01=, 00=, 1 Constant Forecast

3 Figure IV-1 Distribution Circuit Upgrades WBS Element CET-ET-LG-PF Recorded 0-01/Forecast (CPUC-Jurisdictional Constant 01 and Nominal $000) Nominal 01=0, 01=, 00=, 1 Constant Forecast expenditures for displayed in Figure IV-1 are calculated 01=,0 year-by- 01=, year and driven by forecast load growth and generation. Expenditures for both drivers are 00=, developed separately and combined to develop the forecast in Figure IV-1. In the 01 GRC, we described how SCE has modified its planning process to expand its ability to leverage capacity from neighboring circuits and substations to maximize the use of existing infrastructure. We also described that SCE must increase the upgrades in distribution circuit upgrades to build in more flexibility, as we build less new circuits. The increases in 01 through 00 are a continued reflection of increasing upgrades in this category, and declining expenditures for new distribution circuits. The load growth portion of the expenditure forecast is calculated using three main variables: capital expenditure forecast for previous years, DSP load growth, and planned DSP circuit additions, all of which indicate the need to construct Distribution Circuit Upgrades on the SCE distribution system. Expenditures for this category consider historical and existing expenditure and scope because project scope for this category is not typically created more than one to two years prior to the distribution need. The majority of projects in this category solves distribution needs identified in the Id. -1-

4 1 DER solutions will meet the current need associated with one or more of the projects, SCE will refund the balance to customers. However, should the projects be determined to be needed at or sooner than expected due to increased load growth not met by DERs, then SCE will have recovered the revenue requirements associated with these expenditures as part of this request. IV. $, $,1 CAPITAL EXPENDITURE FORECASTS SCE is forecast to spend $, million in total capital expenditures from 01 00, of which $,1 million is CPUC-jurisdictional. Table IV- shows the total company (FERC and CPUCjurisdictional) capital expenditure summary and Table IV- shows the CPUC-jurisdictional capital expenditures only. SCE s System Planning work is managed through four primary categories: 1. Transmission & Interconnection Planning Projects, described in Section A;. Distribution & Subtransmission Planning Programs and Projects, described in Section B;. System Improvement Programs, described in Section C; and 1. Customer-Requested Projects, described in Section D. The System Improvement change is already filed in June 01=, 01=,0 Table IV- 01=, System Planning Capital Expenditure Summary 01=,0 01 (Total Company Nominal $000) 00=, Total=1,1 01=, 01=0, 00=, Total=,, 01=,01 01=, 01=1,0, 01=0,1 00=,0 Total=,1,0 Note that the cost recovery for the DERs will not be collected through the GRC. 0 Refer to WP SCE-0 T&D-Vol., Book A, pp. (Tables IV- and IV-). 1 The following capital expenditures for projects with operating dates prior to 01 are not included in the table above: $1. M in 01, $.M in 01, and $.M in 01. Refer to WP SCE-0 T&D-Vol., Book A, pp. (In-Service Projects with CapEx in this GRC). -0-

5 SCE in 0, the analysis performed in reviewing how DERs impact the distribution system found that clustered DERs will drive more upgrades. 0 1 The study assumed. percent 1 of the allocated DERs were generating during minimum loading for each distribution circuit, versus 0 percent as often considered for impact studies. By comparing the forecast power flow to the rated capacity of the circuit conductors, the study identified approximately 1 circuit-miles of cable and conductor requiring replacement from on SCE s kv, 1 kv, and kv distribution circuits. Of the circuit-miles, 1 circuit-miles will be overhead conductor and 1 circuit-miles will be underground cable. The total estimated cost to replace miles of overhead conductor and underground cable due to DER exceeding loading limits is approximately $. million (nominal dollars) from The forecast expenditures driven by load growth represent our baseline forecast for distribution circuit upgrades for The expenditure was reduced by $. million to account for energy storage pilots planned to meet distribution needs. Last, forecast expenditure for DER driven upgrades are added to the cost for These three aspects were combined to develop the final expenditure for this category. We forecast capital expenditures to increase by approximately $.0 million per year (in constant 01 dollars) from compared to historical 0 01 expenditures; as referenced before, 0 expenditure was omitted from the comparison due to changes in accounting. From SCE expects to slowly increase spending in this category to better utilize existing distribution asset capacity and address needs on the kv system.. New Distribution Circuits, WBS Element CET-ET-LG-CI As part of our DSP Program, SCE identifies new distribution circuits as part of three types of projects: new substation projects, substation capacity increase projects, and projects with unique drivers. Figure IV-1 shows the historical 0 costs for these three categories of new distribution circuits while future expenditure only includes standalone circuit projects. This is due to recent accounting changes to avoid overlap in capital expenditure requests. New distribution circuits are required to provide new capacity outside the substation fence in areas where multiple distribution circuits in the same geographical region are expected to exceed capacity; to serve new residential or 0 The Impact of Localized Energy Resources on SCE s Distribution and Transmission System, SCE, May 0. 1 Refer to WP SCE-0 T&D-Vol., Book A, pp. 1 (DER Driven Circuit Upgrades Methodology). Id. Refer to WP SCE-0 T&D-Vol., pp. (Cost of Overhead Conductor Rebuilds). See SCE-0 T&D-Vol. Distributed Energy Storage Integration (DESI) Pilot Program. --

01=, 01=,0 01=, 01=,0 00=, Total=1,1 The System Improvement change is already filed in June Table IV- System Planning Capital Expenditure Summary (CPUC-Jurisdictional Nominal $000) 01=, 01=0,1 00=,

6 01=, 01=,0 01=, 01=,0 00=, Total=1,1 The System Improvement change is already filed in June Table IV- System Planning Capital Expenditure Summary (CPUC-Jurisdictional Nominal $000) 01=, 01=0,1 00=, Total=,0, 01=, 01=, 01=0,1 A. Transmission & Interconnection Planning Projects 01=, As described in the Transmission & Interconnection Planning Process Section III.A, SCE s 00=1,1 Total=,1, Transmission & Interconnection Planning Projects fall into three categories: 1 1 (1) Grid Reliability Projects needed to support grid reliability; () Transmission System Generation Interconnection Projects needed to interconnect individual generation customers; and () Policy-driven Projects must support state and federal policy to deliver energy to SCE s transmission system. While the majority of work for these transmission projects fall under FERC-jurisdiction, some of these projects include components under CPUC jurisdiction such as upgrades to the underlying subtransmission system or equipment supporting telecommunications, automation, and controls. Both the total project and CPUC-jurisdictional forecast expenditures for these three project categories are shown in Table IV- and Table IV- respectively. The total company cost for all three categories of transmission work is $1,0. million. The CPUC-jurisdictional cost for these projects is $01. million. The tables also include the Generation Interconnection RAS, which has no forecast CPUC-jurisdictional capital expenditures and will not be discussed further in this testimony. Id. See SCE-0, Vol. 1 for SCE s methodology for separating capital expenditures between FERC and CPUC jurisdiction. -1-

7 Table IV- Distribution & Subtransmission Planning Capital Expenditure Summary (Total Company Nominal $000) 01=0, 01=, 00=, Total=, 01=, 01=0, 00=, Total=,, Line No. Program/Project Category Total 1 Distribution Plant Betterment 1,,0 1, 1, 1,0 1,01 Distribution Circuit Upgrades 0,11,, 1,0,1, New Distribution Circuits, 1,,0,01 0,00 1,0 Substation Expansion Projects, 1,,,,, kv Systems, 1,1 1,1 0,0 1,, Subtransmission Lines Plan,10, 1,1,1 1,00, Transmission Substation A-Bank Plan,,,,,, Subtransmission VAR Plan 1,0 1,0 1,0 1,, Various Rights of Way, Total Distribution & Subtransmission,,01,0 1,,,,0 Table IV- Distribution & Subtransmission Planning Capital Expenditure Summary (CPUC-Jurisdictional Nominal $000) Line No. Program/Project Category Total 1 Distribution Plant Betterment 1,,0 1, 1, 1,0 1,01 Distribution Circuit Upgrades 0,11,, 1,0,1, New Distribution Circuits, 1,,0,01 0,00 1,0 Substation Expansion Projects, 1,,,,, kv Systems, 1,1 1,1 0,0 1,, Subtransmission Lines Plan,, 1,1,1 1,00,0 Transmission Substation A-Bank Plan,,0,,,, Subtransmission VAR Plan 1,0 1,0 1,0 1,, Various Rights of Way, Total Distribution & Subtransmission 0,0 0,01, 1,1,,, 01=0, 01=, 00=, Total=, 01=, 01=0,1 1 Consistent with the objective of increasing the utilization of SCE s existing distribution assets, 00=, Total=,0, we have increasingly focused on upgrading distribution circuits instead of building new ones. The overall spend on circuit capacity has declined over the past few years, and we forecast an average of approximately $0 million in 01 constant dollars in as seen in Figure IV- below. Refer to WP SCE-0 T&D-Vol., Book A, pp. (Tables IV- and IV-). Id. --

2018 General Rate Case

2018 General Rate Case Application No.: A.16-09- Exhibit No.: SCE-0, Vol. 08 Witnesses: J. R. Goizueta M. Flores A (U 338-E) 018 General Rate Case Transmission & Distribution (T&D) Volume 8 - Infrastructure Replacement Before