EDISON An EDISON INTERNATIONAL Company

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1 SOUTHERN CALIFORNIA EDISON An EDISON INTERNATIONAL Company (U 338-E) 2015 General Rate Case APPLICATION Workpapers Transmission & Distribution Customer Driven Programs and Distribution Construction SCE-03 Volume 05 N ovem ber 2013

2 I. CUSTOMER-DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION A. Introduction Distribution work includes all activities associated with installing, inspecting, maintaining, replacing, and removing distribution electrical equipment, structures, and other facilities. This chapter focuses on the costs associated with a subset of these activities, primarily programs related to connecting new customers to the system, customer requests, and costs incurred to support distribution construction. Personnel in Transmission & Distribution s (T&D) Distribution Business Line (DBL) organization are primarily responsible for performing this work. The testimony below provides a brief overview of distribution work and the work processes involved. Other exhibits within Exhibit SCE-03 describe some of these activities and their corresponding cost forecasts. SCE categorizes distribution work into the following broad categories: 1. Planned Activities Planned distribution activities are i dentified through customer requests, inspections, and engineering analyses. In these instances, planners develop detailed work orders based on design standards, facility inventory maps, and site visits. Work is scheduled based both on the optimum allocation of the T&D resources available, along with external drivers, such as requirements for permits and other compliance obligations. Both SCE and contract field crews perform planned work. Postconstruction, SCE performs inspections to validate that the work meets SCE standards for construction and quality. Finally, field accountants record all the relevant units of property and cost information before recording the costs to either O&M expense s or capital expenditures. The sections below discuss the capital expenditures and O&M expenses associated with some of these activities. SCE categorizes planned work as follows: a) Customer Requests Customer requests include activities initiated by customers such as: New electrical services and service modifications for residential, commercial, or agricultural customers Conversion of facilities from overhead to underground service (Tariff Rule 20) by cities and municipalities (Tariff Rule 20A) and residential customers or commercial builders (Tariff Rules 20B and 20C). In some instances, customers make overhead to underground conversion requests for SCE s 1

3 transmission facilities. This may require related substation circuit breaker upgrades as well. Relocation of distribution facilities at the request of developers and municipalities b) Inspection-Driven When inspections of existing distribution facilities locate deterioration or other equipment problems, SCE makes appropriate repairs or replacements to maintain the integrity of the system. The volume of this work is driven by regulatory standards (such as G.O. 95 and G.O. 165), and by internal inspection and maintenance standards. Further details on SCE s distribution inspection and maintenance program are included in Mr. Stark s testimony in Exhibit SCE-03, Volume 6. c) Infrastructure Upgrade, Growth, and Replacement As load requirements on the grid change based on increased usage by existing customers, new customers, or changes in energy markets (e.g., distributed generation), SCE analyzes system capacity to identify specific upgrades and additions required to maintain safe and reliable service. SCE also performs engineering analyses to identify the impact of equipment aging and resulting degradation on service reliability and infrastructure replacement needs. SCE s discussion of this work is in various sections of Exhibit SCE-03, including Mr. Payne s testimony in Volume 02 (Engineering), Mr. Woods testimony in Volume 03 (System Planning Capital Projects), and Mr. Lee s testimony in Volume 04 (Infrastructure Replacement Programs). 2. Unplanned Activities Unplanned distribution activities include emergent work to restore service caused by inservice equipment failures or other service interruptions. SCE categorizes this work into three major groups: a) Storm Response and Service Restoration Storm response and service restoration includes damage assessment, repair, and replacements associated with damage to SCE s equipment and structures caused by weather, fire, earthquake, or other natural disasters. Exhibit SCE-03, Volume 07 (Mr. Grigaux s testimony), discusses storm activities and their associated costs. b) Claims Claims include the costs of repairing or replacing SCE facilities damaged by other parties. Examples of claims damage include a car hitting a distribution pole leading to downed wires 2

4 and other damaged equipment or another party digging into an underground cable while installing duct for new phone or cable service. SCE s discussion of these activities and costs is contained in the Distribution Claims section below. c) Breakdown Maintenance Breakdown maintenance includes the repair and replacement of SCE equipment and structures that fail in service. Breakdown maintenance remedies damage caused by equipment failures, degradation, rodents, birds, or other means. Mr. Stark s testimony in Exhibit SCE-03, Volume 06 discusses breakdown maintenance. 3. Forecast O&M Expenses and Capital Expenditures Table I-1 and Table I-2, provide the O&M expenses and capital expenditure forecasts that SCE describes and supports in this chapter. Table I-1 Customer-Driven Programs and Distribution Construction Summary of 2015 O&M Forecast (Total Company Constant 2012 $000) Account Activity Setting, Removing, and Relocating Meters $11, Distribution Construction Support $7, Distribution Field Program Benefits ($2,766) Total O&M Expenses $16,007 3

5 4 Workpaper - Southern California Edison / 2015 GRC - APPLICATION See workpapers Table I-2 pp Customer-Driven Programs and Distribution Construction Summary o f Capital Expenditure Forecast (100% CPUC-Jurisdictional Nom inal $000) Activity Total Distribution Field Benefits $0 ($15,644) ($26,627) ($27,222) ($27,958) ($97,452) PEV Transformer Replacement $2,346 $4,793 $10,981 $17,370 $18,909 $54,398 Overhead to Underground Conversions $74,332 $90,035 $108,306 $117,388 $120,017 $510,077 Relocation of Distribution Lines $37,660 $38,597 $39,417 $40,298 $41,387 $197,359 Distrbution Added Facilities $4,086 $4,188 $4,277 $4,372 $4,491 $21,414 Distribution Claims $22,795 $23,363 $23,859 $24,392 $25,051 $119,461 Prefabrication $24,270 $28,515 $28,455 $30,077 $31,087 $142,404 Customer Meter Connections $207,322 $291,200 $366,925 $412,725 $431,305 $1,709,479 Transformers $80,413 $88,072 $97,898 $102,178 $104,982 $473,543 Tools and Lab Equipment $3,117 $3,195 $3,263 $3,336 $3,426 $16,336 SSID Tools and Equipment $2,141 $2,189 $2,239 $2,287 $2,333 $11,190 $458,483 $558,504 $658,991 $727,201 $755,030 $3,158,209 4

6 5 4. Comparison of 2012 GRC Authorized and Recorded O&M Expenses and Capital Expenditures Figure I O&M Expenses (Total Company Constant 2012 $million) Authorized Setting and Relocating Dist. Construction 2012 Recorded Meters Support Setting and Relocating Meters Dist. Construction Support Diff from Auth 3 Figure I-1 summarizes SCE s authorized and recorded operating and maintenance 4 expenses in 2012 for the work activities included in this exhibit. Distribution construction support 5 activities accounted for $15.3 million in recorded expenses over authorized, primarily driven by work 6 performed to implement operational efficiency in planning and execution of distribution work.l Meter 7 settings and relocation expenses were $1 million over the authorized amount as the average cost to set or 8 replace a meter has increased due to changes in work methods related to smart meters. 1 We explain the benefits resulting from these initiatives later in this exhibit. 5

7 6 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Figure I Capital Expenditures (100% CPUC-Jurisdictional Constant 2012 $million) 350 $39 $ Res New Serv Comm New Agr New Serv Streetlight Rule 20 Relocations Dist Const Misc 2012 Recorded Authorized Conn Serv Conn Conn New Serv Conn Res New Serv Conn M Comm New Serv Conn III Agr New Serv Conn Streetlight New Serv Conn K Rule 20 Relocations & Dist Const Misc D iff from Auth 1 Figure I-2 summarizes SCE s 2012 authorized and recorded capital expenditures for the 2 work categories included in this exhibit. SCE spent approximately $36 million more than authorized in Capital expenditures associated with new residential, commercial, agricultural, and streetlight 4 service connections were $20 million more than authorized.2 Rule 20-related capital expenditures were 5 $23 million less than authorized. The $39 million increase in Distribution Construction expenditures 6 was due primarily to the replenishment of distribution transformer inventory. 2 In D (pp ), the CPUC authorized TURN s base case meter set forecast. SCE installed more nonresidential meter sets than authorized in 2010 and 2011, which partly led to the increase in capital expenditures. We based the comparison on Ms. Sheng s historical data of actual number of meter sets installed. See Exhibit SCE-10, Vol. 1. 6

8 7 1 2 B. O&M Expenses 1. Meter Installations and Replacements, FERC Account Table I-3 Meter Installations and Replacements FERC Account Recorded and Adjusted /Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Recorded Forecast Labor Non-Labor $2,899 $4,994 $3,084 $3,852 $3,386 $2,998 $3,650 $4,062 $4,497 $3,724 $4,933 $4,085 $5,453 $4,516 $6,286 $5,206 Total $7,893 $6,936 $6,384 $7,712 $8,221 $9,018 $9,969 $11,492 Total Number of Meter: Cost Per Meter 145,590 $54 140,012 $50 102,822 $62 97,139 $79 106,500 $77 116,822 $77 129,151 $77 143,814 $77 Ratio of Labor to Total 37% 44% 53% 47% 55% 55% 55% 55% Basis of Forecast: Cost Per Meter is based on 2012 Recorded. Meter Sets Forecast based on Ms. Shengs' Meter Forecast Basis of Labor/Non-Labor Split: 2012 Recorded This category includes the expense s for the installation, replacement, and relocation of customer meters. Meter installations include setting meters for new customers. Meter replacements include meter relocations at a customer s request and replacements of broken meters. Both SCE and contractor crews perform the work; depending on the volume of meter related work each service center has on a given day. Labor costs associated with this work category include SCE crew and field personnel labor for installing and relocating meters. Non-labor costs include contractor costs, transportation, and other allocated charges. a) Cost Forecast The primary cost drivers in this category are the number of meter set installations and replacements. Table I-4 provides the historical meter sets and replacements. The recorded expense for this activity does not include SmartConnect replacement program meters. Historical unit costs, as shown in Table I-3, are calculated by dividing the total recorded annual expenses by the total meter sets and replacements. Annual expenses have varied due to the number of meters installed, removed, or replaced each year. Additionally, the cost of performing this activity has also increased. The cost to 7

9 install or replace a meter depends on the type of customer (residential, commercial, or agricultural), the geographical location, and the meter type (electro-mechanical or smart meter). Unit costs remained relatively stable in 2008 and 2009, then increased from Due to a reduction in the number of Field Service Representatives (FSR) because of the SmartConnect program, field construction personnel, with higher labor rates, perform more of these activities. Since both the recent meter installations have been and the future meter installations will be almost exclusively smart meter installations, the 2012 costs per meter best represent SCE s costs going forward. Therefore, the 2012-recorded cost per meter of $77 is used as the basis for unit forecasts SCE s forecast for meter installations includes both meter sets and meter replacements. Ms. Sheng s testimony in Exhibit SCE-10, Volume 01 discusses the forecast for the number of meter sets in Recorded meter replacements have varied from year-to- year based on both customer requests for relocations and meter replacements for malfunctions. Therefore, SCE forecasts 83,634 meter replacements each year from , which is the best representative of 2012-recorded meter replacement count and is lower than the average. The total unit count for this forecast is the sum of the meter sets and meter replacements, as shown in Table I-4. Table I-4 Meter Installations and Replacements Forecasts FERC Account Recorded /Forecast Meter Installations 46,048 32,145 25,557 19,765 22,866 33,188 45,517 60,180 67,358 68,178 Meter Replacements 99, ,867 77,265 77,374 83,634 83,634 83,634 83,634 83,634 83,634 Total Meters 145, , ,822 97, , , , , , , SCE developed the cost forecast for this activity by multiplying the meter count forecast by the unit cost for installing or replacing a meter. SCE then allocated the forecast between labor and non-labor based on the 2012 ratio, as shown in Table I-3. For the 2015 meter replacement forecast, SCE used the three-year average of forecasts to levelize the spending over the rate 21 case period.3 See workpapers pp See workpaper entitled Meter Installations and Replacements Forecast which represents FERC Account

10 9 Figure I-3 Summary of O&M Expenses for FERC Account Recorded /Forecast (100% CPUC-Jurisdictional Constant 2012 $000) See workpapers pp $15,000 Labor Non-Labor $10,000 $5,000 I I i n i l Total Labor Non-Labor Total Expenses Recorded Forecast $2,899 $3,084 $3,386 $3,650 $4,497 $4,933 $5,453 $6,286 $4,994 $3,852 $2,998 $4,062 $3,724 $4,085 $4,516 $5,206 $7,893 $6,936 $6,384 $7,712 $8,221 $9,018 $9,969 $11, Distribution Construction Support, FERC Account a) Miscellaneous Construction Inspection Expenses, Portion of FERC Account Table I-5 Miscellaneous Construction Inspection Expenses Portion of FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Recorded Forecast Labor $2,159 $575 $432 $233 $265 $574 $755 $883 Non-Labor $1,145 $100 $146 $146 $73 $175 $237 $271 Total $3,304 $675 $578 $379 $338 $749 $992 $1,154 Ratio of Labor to Total 65% 85% 75% 61% 78% 77% 76% 77% Basis of Forecast: Percentage of Underground Capital Work (Tract, Backbone, Rule 20A, Rule20B, Rule 20C) Basis of Labor/Non-Labor Split:2012 Recorded 9

11 Miscellaneous construction inspection activities include jobsite pre-fielding, warranty, and miscellaneous civil construction inspections performed by DC&M personnel to facilitate construction by electrical and civil crews. Construction coordinators that work in the service centers perform jobsite prefielding inspections, which involve visiting the planned construction site and to see if the site is ready for construction crews. An example of such inspection activity is confirming that the customer s electrician has installed the panel where SCE connects the service wire. Construction coordinators also inspect all work performed under the applicant-installed provision before SCE crews start their work, and perform a warranty inspection one year after construction is complete to confirm that all applicantinstalled equipment is performing as expected. Contractor crews perform all civil work on SCE s distribution system. SCE s civil inspectors visit jobsites to verify that crews are following all applicable construction standards, work method standards, and municipal regulations. Civil inspectors also confirm that civil construction crews will complete the job in the timeframe needed for electrical work to begin. Most construction inspections are capital-related and charged directly to capital work orders. The O&M expenses discussed here represent miscellaneous activities performed by construction coordinators and civil inspectors, inc luding processing timesheets and arranging for outages. As underground capital work increases, SCE expects additional inspectors and construction coordinators charging to this account, resulting in an increase in O&M expense for this activity. (1) Cost Forecast Expenses in this activity have decreased from 2008 to 2012, as shown in Table I-5, because of two primary factors. Due to a change in accounting practices starting in 2009, SCE no longer charges costs associated with pre-fielding to O&M, but to capital. Moreover, new underground civil construction work, mostly driven by tract and backbone installation associated with customer growth and overhead to underground co nversion, has also decreased in the last five years due to the economic downturn. The civil and warranty inspection expenses forecast reflects these circumstances. SCE forecasts miscellaneous civil inspection expenses as a ratio of the capital expenditures in tract and backbone installation for new service connections and Rule 20 10

12 distribution work.4 To develop the forecast, SCE calculated the O&M expense as a percentage of historical capital expenditures for tact, backbone and Rule 20 distribution work. The historical trend shows variability in the ratio. The expense ratio stabilized at 0.4 percent in both 2011 and 2012, as shown in Table I-6. The five-year average ratio is also 0.4 percent. Therefore, SCE used the recorded 2012 ratio multiplied by the forecast capital expenditures for underground work for to forecast the miscellaneous civil inspection expenses, as shown in Table I-7. Due to SCE s forecast of increased volumes in underground capital work in , driven primarily by growth in customer meter connections, the O&M expenses related to miscellaneous civil inspections will increase proportionally due to increased workload that will charge to this activity. For the 2015 forecast, SCE used the three-year average of forecasts to levelize the spending over the rate case period. Table I-6 Miscellaneous Civil Expense Percentage to Underground Work Recorded and Adjusted (Constant 2012 $000) Total Capital Expenditure for Tract, Backbone and Rule 20A, 20B and 20C 133, ,791 71,266 78,575 72,529 Total - Miscellaneous CivilInspection Expense Expense % to the Total Capital Underground Expenditure 0.5% 0.3% 0.6% 0.4% 0.4% Table I-7 Miscellaneous Civil Expense Forecast5 Forecast (Constant 2012 $000) Capital Expenditure Forecast for Tract, Backbone and Rule 20A, 20B and 20C 155, , ,371 Total -Miscellaneous Civil Inspection Expense Percent 0.4% 0.4% 0.4% Miscallaneous Civil Inspection Expense Forecast , Applying the same methodology as described above for miscellaneous civil inspection expenses, SCE used the recorded 2012 ratio multiplied by the forecast capital expenditures for residential tract and backbone underground work for to forecast the 4 See workpaper entitled Miscellaneous Construction In spection Expenses which is a portion of FERC Account See workpapers 5 The expense forecast shown for 2015 in Table I-7 uses a levelized 3-year average. pp

13 12 Workpaper - Southern California Edison / 2015 GRC - APPLICATION 1 warranty inspection expenses as shown in Table I-8 and Table I-9. Recorded 2008 and 2009 expenses 2 include costs associated with job pre-fielding and hence shows a relatively higher value when compared 3 to the other years. Due to forecast increased work volumes in underground capital work in , 4 driven primarily by growth in customer meter connections, the O&M expenses related to warranty 5 inspections would increase proportionally. Table I-8 Warranty Expense Percentage to Underground Work Recorded and Adjusted (Constant 2012 $000) Total Capital Expenditure for Residential Tract and Backbone 24,192 20,051 17,682 23,702 26,161 Total Warranty Inspection Expense 2, Expense % to the Total Capital Underground Expenditure 10.67% 1.75% 0.76% 0.05% 0.12% Table I-9 Warranty Inspection Expense Forecast Forecast (Constant 2012 $000) Total Capital Expenditure for Residential Tract and Backbone 77, , ,089 Warranty Inspection Expense Percent 0.12% 0.12% 0.12% Warranty Inspection Expense Forecast The combined total o f civil and warranty inspection makes up the total forecast as shown in 7 Table I-5. Given the changes in work practices, SCE utilized the recorded 2012 labor to non-labor ratio 8 to forecast labor and non-labor expenses in

14 13 1 b) Facility Inventory Mapping, Portion of FERC Account Table I-10 Facility Inventory Mapping Expenses Portion of FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Recorded Forecast Labor $3,694 $3,536 $964 $702 $646 $646 $646 $646 Non-Labor $922 $387 $224 $297 $136 $136 $136 $136 Total $4,616 $3,923 $1,188 $999 $782 $782 $782 $782 Ratio of Labor to Total 80% 90% 81% 70% 83% 83% 83% 83% Basis o f Forecast: 2012 Recorded Basis o f Labor/Non-Labor Split: 2012 Recorded The Facility Inventory Mapping (FIM) group is responsible for developing and maintaining maps that graphically depict the location and description of SCE s overhead and underground distribution facilities throughout SCE s service territory. Planning, inspection, maintenance, operations, and construction personnel use the maps as field references. After construction, FIM drafting technicians may update the maps with the crews changes made in the field. These maps are critical for efficiency and safety. The maps also depict land base features such as property lines, rights of ways, and political boundaries and are the source of calculation for SCE s franchise payments, statistical, and ad valorem taxes. SCE allocates the costs associated with maintaining the facility inventory maps to both capital expenditures and O&M expenses, as the maps support both capital and O&M activities. This section discusses the O&M expense forecast for facility inventory mapping activities. (1) Cost Forecast As shown in Table I-10, facility inventory mapping O&M expenses have shown a downward trend from The non-labor expense reduction between 2008 and 2009 is due to the completion of an effort to digitize underground maps. Through 2009, SCE recorded all FIM-related costs as O&M expense. After the 2010 change in accounting practices, SCE allocated only 18 percent of FIM-related costs to O&M, thus reducing the costs recorded to this activity. Further reductions in recorded costs for

15 and 2012 were the result o f reduced headcount and lower overtime rates, which resulted from process improvements and efficiency gains. In D , the CPUC stated that if costs have shown a trend in a certain direction over three or more years, the last year recorded is an appropriate base estimate. Hence, SCE utilized 2012-recorded costs as the basis for 2015 forecast. c) Field Accounting Expenses, Portion of FERC Account Table I-11 Field Accounting Expenses Portion of FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Recorded Forecast Labor $1,587 $1,789 $1,922 $1,698 $1,696 $1,696 $1,696 $1,696 Non-Labor $61 $119 $11 $64 $103 $103 $103 $103 Total $1,648 $1,908 $1,933 $1,762 $1,799 $1,799 $1,799 $1,799 Ratio of Labor to Total 96% 94% 99% 96% 94% 94% 94% 94% Basis o f Forecast: 2012 Recorded Basis o f Labor/Non-Labor Split: 2012 Recorded The Field Accounting Organization (FAO) provides accounting support and governance to distribution field operations. FAO activities include closing capital work orders, material ordering and inventory control, authorizing payments for construction material and equipment, and processing time and expenses for field employees. As such, FAO personnel primarily support capital work order processing, but also spend a portion of their time in support of O&M activities, such as timesheet entries on behalf of field crews and other miscellaneous administrative activities. This account includes only the portion of FAO costs charged to O&M expenses, which is approximately 5 percent of total FAO costs. (1) Cost Forecast Labor expenses increased from 2008 to 2010 due to an increase in field accounting personnel hired, to address increasing capital work. In 2011, SCE implemented emobile, which facilitated field crews to perform some of the timekeeping, thus reducing work performed by 14

16 FAO personnel.6 Since the costs have remained relatively constant in 2011 and 2012, SCE utilized 2012-recorded expenses as the basis for the 2015 O&M forecast. SCE based the labor and non-labor allocation on 2012-recorded expenses. d) Stand-by Time, Portion of FERC Account Table I-12 Stand-by Time Expenses Portion o f FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Recorded Forecast Labor $361 $555 $722 $426 $526 $526 $526 $526 Non-Labor $101 $355 $268 $381 $181 $181 $181 $181 Total $462 $910 $990 $807 $707 $707 $707 $707 Ratio of Labor to Total 78% 61% 73% 53% 74% 74% 74% 74% Basis of Forecast: 2012 Recorded Basis of Labor/Non-Labor Split: 2012 Recorded Stand-by time refers to time recorded by distribution field crews held at the end of the workday in anticipation of potential after-hours emergency activity. This occurs when SCE anticipates increased resource requirements due to an approaching storm or when Grid Operations notifies the service center that troublemen are responding to emergencies that may require distribution field crews in order to make repairs or restore service. In these circumstances, crews stand-by in the service center until work is assigned or it is determined that their response will not be required. (1) Cost Forecasts SCE field crews charge labor expenses in this account. Non-labor expenses include stand-by time charged by contract crews and other allocated overheads. As shown in 6 emobile is an SCE developed application for Distribution and Transmission (T&D) field personnel. emobile contains all maintenance, inspection, and capital work. It is designed to allow multiple field users the ability to: (1) create, (2) execute, (3) retrieve and review notifications and work orders. emobile also allows access to all T&D manuals, forms, multiple field maps, and asset information, while in a disconnected mode. Implemented in 2010, emobile improves our ability to manage work from initiation to completion. It also allow the field users to update their timesheets when they are in the field instead of the old process of having the CMC/CMA's entering their timesheets for them, thus reducing timesheet support provided by FAO. 15

17 Table I-12, expenses showed a decreasing trend as management implemented processes that optimized the number and duration of crews being held on stand-by. In D , the CPUC stated that if costs have shown a trend in a certain direction over three or more years, the last year recorded costs are an appropriate base estimate. Hence, SCE utilized 2012-recorded expenses as the basis for the forecast. SCE allocated the forecast expenses to labor and non-labor based on the recorded ratios for e) Distribution Line Rents, Portion of FERC Account Table I-13 Distribution Line Rents Portion of FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Recorded Forecast Labor $1 $4 $1 1 $6 $10 $0 $0 $0 Non-Labor $0 $0 $ 0 $0 $0 $0 $0 $0 Other $792 $604 $1,041 $1,550 $1,792 $1,836 $1,871 $1,943 Total $793 $608 $1,05 2 $1,556 $1,802 $1,836 $1,871 $1,943 Ratio oflabor to Total 0% 1% 1% 0% 1% 0% 0% 0% Basis of Forecast: 2012 Recorded Basis of Labor/Non-Labor Split: 2012 Recorded Distribution line rents include payments to the U.S. government and other agencies for using and occupying public and tribal lands for distribution line rights-of-way, rental costs for railroad crossings and substation land leases. (1) Cost Forecast Distribution line rent expenses include, in large part, the fees paid by SCE for government land use and thus are dependent on fee structures imposed by various agencies. Distribution line rents have been increasing since 2010, mostly driven by updated fee structures by governmental agencies, such as the Bureau of Land Management and the U.S. Forest Service. Given the increasing trend, as shown in Table I-13, SCE utilized 2012-recorded expenses of $1.802 million for 16

18 distribution line rents.7 Because standard escalation rates do not apply, SCE escalated 2012-recorded costs by 1.9 percent, which is the standard published escalation rate as per the Bureau of Land Management.8 For the 2015 test year forecast, SCE used the three-year average of forecast expenses to levelize the spending over the rate case period.9 f) Shop Services and Instrumentation Division (SSID) Operating Expenses, Portion of FERC Account Table I-14 SSID Operating Expenses Portion of FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Recorded Forecast Labor $51 $51 $51 Non-Labor 1, $600 $600 $600 Total $2,031 $743 $585 $864 $413 $651 $651 $651 Ratio of Labor to Total 28% 4% 2% 2% 23% 8% 8% 8% Basis o f Forecast: Four Year Average ( ) Basis o f Labor/Non-Labor Split: Four Year Average ( ) SSID provides a variety of maintenance, test, and repair services to SCE s distribution, transmission and generation operations. These services include repair, refurbishment, inspection, testing, calibration, failure analysis, and root-cause evaluation of electrical and mechanical equipment. SSID personnel perform acceptance testing, chemical analysis, calibration, and inspection of new transformers, meters, switches, relays and circuit breakers. SSID also operates an oil tank farm to supply and process the mineral oil used for transformers and other electrical apparatus. 7 In D , the CPUC stated that if costs have shown a trend in a certain direction over three or more years, the last year recorded is an appropriate base estimate. 8 US Department of Interior - Bureau of Land Management : REALTY AND_RESOURCE_PROTECTION_/cost_ recovery.par file.dat/row_final_rule_fr_notice.pdf. 9 See workpaper entitled Distribution Line Rents which is a portion of FERC Account V, See workpapers pp

19 This forecast includes the distribution-related labor and non-labor expenses incurred for the operation and maintenance of the SSID shops, labs and offices. Specifically, the costs include maintenance of facilities, machinery, lab, and test equipment; calibration of SSID measurement and test equipment; site environmental and safety activities; air quality permits; and costs for services received from support organizations including Information Technology, Environmental Health and Safety, Supply Management, and Human Resources. (1) Cost Forecast In 2008, SCE incurred increased expenses primarily driven by the following factors: (a) processing used oil at the tank farm, (b) fabrication of control valves to manage storm drain water in the flood control channel, and (c) usage of additional resources for increased maintenance of aging equipment and machinery. Expenses declined from 2008 to 2009 primarily due to the completion of the oil tank farm activities. From 2009 to 2012, the expenses in this category have shown some fluctuation. Therefore, in accordance with D , SCE utilized an average of recorded expenses as the basis for the 2015 forecast. SCE did not include 2008-recorded expenses, as the work performed in 2008 does not reflect the work SSID will be performing going forward. SCE allocated forecast expenses between labor and non-labor based on the four-year average recorded ratios between 2009 and

20 19 1 g) Wireless Technology Services, Portion of FERC Account Table I-15 Wireless Technology Services Portion of FERC Account Recorded and Adjusted /Forecast (Total Company Constant 2012 $000) Labor Non-Labor Total Recorded Forecast Recorded/Adjusted $0 $0 $2 2 $46 $86 $86 $86 $86 $0 $145 $190 $373 $160 $160 $160 $160 $0 $145 $21 2 $419 $246 $246 $246 $246 Ratio of Labor to Total 0% 0% 10% 11% 35% Basis of Forecast: 2012 Recorded Basis of Labor/Non-Labor Split:2012 Recorded When a city or a county denies requests from wireless carriers (like AT&T and Verizon) to install a pedestal for wireless/broadband services on an existing right of way, SCE is required to allow these wireless providers to install their panels on distribution poles. Based on a wireless provider s request to install a panel, SCE works with the wireless provider to determine the location and wattage requirements.10 The wireless carrier is responsible for installing the panel on the pole. SCE s scope of work includes performing site inspections, installing the cable for the panel and meter, and providing project management support. To confirm that the wireless service providers remains in compliance with the terms of the agreement, SCE performs routine inspections of the equipment to confirm that wattage requirements have not been violated and that the safety of SCE s assets have not been compromised through modification of the existing panel. (1) Cost Forecast SCE utilizes primarily contractors to perform these inspections. Contractor costs record to non-labor expense. The labor expense includes the SCE cost of coordinating the contractors and inspections performed by SCE personnel. Table I-15 shows the recorded and forecast expenses for this activity. Expense increased from 2010 to 2011 due to the increased number of 10 SCE has restrictions on the maximum wattage requirements for panels. SCE s current standards allow a maximum of 10-ampere fuse for the panels. 19

21 20 Workpaper - Southern California Edison / 2015 GRC - APPLICATION 1 inspections performed in 2011 to validate unclosed work orders. Based on the historical trend, SCE 2 utilized 2012-recorded costs as the basis for the 2015 forecast. 3 h) Summary of O&M Expenses for FERC Account See workpapers pp Figure I-4 Summary of O&M Expenses for FERC Account Forecast (Total Company Constant 2012 $000) $30,000 Labor Non-Labor O ther $25,000 $20,000 $15,000 $10,003 $5,000 $- Miscellaneous Construction Inspection Expenses Labor Won-Labor Sub-Total Facility Inventory Mapping Field Accounting Stand-by Time Recorded Forecast I 2011 I ( , : ( S , LIS S ,537 1,789 1;922 1,698 1, ,696 1, ( ( L L

22 21 Figure I-4 (Continued) Summary of O&M Expenses for FERC Account Forecast (Total Company Constant 2012 $000) Distribution Line Rents Labor Xon-Labor Other Sub-Total SSID O perating Expenses Labor Xon-Labor Sub-Total W ireless Technology Services W ires Investm ent Strategy Efficiency Review Total Labor Xon-Labor Other Total Expenses 1 4 II ,041 1,550 1, ,871 1, S 1,052 1, ,371 1, , S _ , , ,513 16, , ,504 4,156 3,215 3,332 3,579 3,760 3,SSS ,522 13,743 9,355 1,417 1, ,041 1,550 1, ,371 1, , ,771 7,043 7, C. Capital 1. Customer Meter Connections To connect new residential, commercial/industrial, and agricultural customers to the SCE system, and to provide street lighting systems to new developments, SCE performs the following ten types o f customer growth-related services: a. Residential service connections b. Residential line extensions c. Residential tract development d. Residential backbone development e. Commercial/Industrial service connections f. Commercial/Industrial line extensions g. Commercial/Industrial tract development h. Agricultural service connections i. Agricultural line extensions 21

23 j. Street light installations SCE describes each of these work categories is in detail in this section. Customer growth-related activities ultimately leads to a meter installation - it can be a new meter in a new house or business, a meter upgrade due to increased load usage, extending the electrical facilities to new communities where meters will be ultimately set, or street lighting to serve the new communities where new meters will be set. Therefore, SCE relies on meter set forecast to develop forecasts for customer growth in the different work categories. The meter set forecasts presented in Ms. Sheng s testimony in Exhibit SCE-10, Volume 1, as shown in Table I-1 6, provides the actual meter sets for 2008 to 2012 and meter set forecasts for 2013 to 2017 by customer class. Table I-16 Gross Meter Set Forecast Historical Data /Forecast Customer Groups Residential 62,051 66,401 71,184 73,558 51,548 32,594 23,643 19,137 14,061 17,692 27,758 38,643 51,238 56,320 55,939 Commercial 10,948 10,766 12,476 13,814 15,085 12,808 8,078 6,109 5,411 4,865 5,114 6,542 8,607 10,698 11,897 Agricultural Total 73,203 77,437 83,979 87,708 67,002 46,048 32,145 25,557 19,765 22,866 33,188 45,517 60,180 67,358 68,178 To forecast the capital expenditures required for these categories of work, SCE used similar approaches applied in 2012 GRC. This translates the gross meter forecast to the corresponding volume of work that T&D personnel perform in any given period, which reflects the natural time lags that occur between construction of some of the facilities needed to support the meter set and the time of the meter is installed. It also captures the total inventory of electrical facilities available in the system to incorporate the effects of past over- or under-installation of backbone facilities. SCE is obligated to respond to customer requests for backbone and track system improvements per CPUC approved tariff rules. Sometimes, forecasting errors from developers can lead to either excess inventory or depleted infrastructure capacity. SCE accounts for these errors in the development of the forecasts for capital expenditures. For each work category, SCE has ( 1) selected a unit of work that correlates to fieldwork needed and expenditures incurred; (2) translated the meter count forecast to the work volume based on historical relationships; and, (3) forecast unit costs based on recorded expenditures and volume of work completed. 22

24 23 1 The unit costs vary from year for each of the work categories in this section based on 2 several factors, such as the location the work performed and the SCE crew to contract crew ratio. 3 Therefore, SCE has used historical average unit costs to forecast the costs in these categories. 4 Figure I-5 shows the total customer meter connections expenditures and projected 5 forecast in nominal and constant dollars from 2003 to SCE s forecast expenditures for 2015 to are significantly higher than that recorded during 2008 to 2012 period, driven primarily by forecast 7 increase in meter sets. The meter sets and capital expenditures in this category are 8 comparable to what SCE experienced in in 2007 as shown in Figure I-5. Figure I-5 Customer Meter Connections Capital Expenditure Summary Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ $164,341 $187,910 $225,376 $265,384 $305,644 $186,948 $136,471 $103,701 $120,491 $133,186 $207,322 $291,201 $366,925 $412,725 $431, Constant $ $264,686 $290,405 $329,696 $356,323 $375,974 $214,242 $152,923 $111,490 $124,394 $133,186 $202,903 $278,072 $343,098 $377,484 $384,097 Nominal $ Constant $ Table I-17 Customer Meter Connections Capital Expenditure Summary by Category Recorded /Forecast (100% CPUC-Jurisdictional Nom inal $000) C ategory 2( Residential $89,137 S S S S $70,542 $50,775 S S S S ,005 $219,606 $233,166 $232,837 Canmierical Industrial $47,178 $53,043 $62,670 $72,694 S $91,951 $67,868 S $55,880 S $56,271 $73,540 $99,019 $125,581 S Agricultural $719 $1,300 S I.624 $1,715 $2,231 $3,717 14,477 $3,42S $2,847 S4.26S $3,798 $4,055 $4,156 $4,370 S4.504 StreetKghting $27,307 $27,308 $27,309 $27,310 $27,311 $20,737 $13,352 $10,697 $15,720 $14,506 $22,849 $32,600 S44,144 S49,608 $50,603 Total S164,341 S S225,376 S265J384 S305,644 S S S I03,7 01 S120,491 S S S 2? lr201 S S412,725 S

25 Table I-18 Customer Meter Connections Capital Expenditure Summary by Category Recorded /Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Category Residential $154:406 S S S S S S S $47,535 S $121,752 S $ S $ Conimerical'Industrial $81,723 SS6.S93 $95,676 SI S S S $52,449 $57,690 S $55,072 $70,225 S SI $127,670 Agricultural S1.245 $2:130 S2.479 $2370 $2,795 S4.260 S5.017 S3.685 S2:939 S4.268 S3:717 S3.872 $3:886 S3.997 S4.011 Streetlighting $27:312 $27:313 $27:314 $27:315 $27316 $23,765 S14:961 $11,500 S16:230 S14:506 $22362 $31,131 $41,278 $45,372 S45:064 Total 5264,686 S290,405 S329,696 S356, ,974 S214^42 S152^23 $111,490 S124, ,186 S S278,072 S343, ,484 S384, The section below describes the forecasting methodology and results by each work type that make up Residential, Commercial/Industrial, Agricultural, and Streetlighting Service Connections. a) Residential Service Connections This work category include s installation of individual residential service connections, under SCE s Tariff Rule The types of work that occur most frequently are as follows: New residential dwellings - SCE s standard installation is an underground service cable placed in a conduit (i.e., a customer-owned conduit meeting SCE s material standards, or in-compliance with adopted local codes and ordinances, whichever is the stricter standard) served from a transformer or distribution point. A typical new service consists of cable in a conduit from the customer s service panel underground to a pole and then up the pole through a riser (a conduit running vertically up the pole) to a transformer or distribution point, or a span of overhead wire running from the customer s weatherhead to the pole. The service cable run and connection on new tract homes would also be included in this work category. Home remodels - The customer may install a larger electric panel due to additional home appliances (new centralized air conditioning, new pool, etc.), which require increased service sizes (e.g., replace an older 125-amp rated panel with a 200-amp rated panel). Though SCE s standard installation is an underground service cable, in some cases local ordinances may allow customers to upgrade their overhead-served panels with a new overheadserved panel, resulting in the installation of overhead service wires. 11 SCE s tariffs are available on-line at 24

26 Additional load single-family, multi-family dwellings, or master-metered mobile home parks may require new or replacement service connections due to added load. Figure I-6 Residential Service Connection Capital Expenditure Summary (Overhead and Underground) WBS Element CET-PD-NS-RS Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) (1) Unit of Work Definition SCE has chosen the number of service conductors installed as the unit of work for residential service connections.12 Historical data from 2003 to 2012 show a very strong correlation between the numbers of residential meters set in a given year and the numbers of residential service conductors13 installed in the same year, as illustrated in Figure I-7 for overhead and underground services. Each data point corresponds to a particular year s data. SCE used this correlated regression coefficients to translate Ms. Sheng s annual new meter forecast into annual forecast of the number of service conductors required to be installed. SCE developed the forecasts for the overhead and underground service conductor installations together since both types o f work activity are very similar. 12 See workpaper entitled, Customer Growth, Residential Service Connections, WBS Element CET-PD-NS-RS. A service connection is defined as all sizes and types of service conductors clustered to provide secondary voltage service from the point of connection with an overhead or underground line to a point of connection with the customer s facilities. 13 Note that a service connection can include more than one service conductor span and we record it accordingly in the accounting system. See workpapers I pp.61-63

27 1 2 SCE discusses the unit cost analysis, work volume and cost forecasts for the service conductor installations below. Figure I-7 Residential Service Connections Overhead & Underground Service Conductor Installations versus Residential Meters Sets (2) Unit Cost Analysis, Work Volume and Cost Forecast The costs associated with this work category includes the material and labor costs for installing overhead and underground conductor, the associated conductor material, trench costs and any other miscellaneous material costs, such as incidental wiring and splices. Additionally, the costs include the transportation, planning and other allocated charges. Table I-19 shows th e historical units and cost-per-unit for overhead and underground residential service conductors. The unit costs have varied between $316 and $278 per conductor from Therefore, SCE considered a five-year average cost of $295 per conductor as the basis to forecast costs for residential service connections. 26

28 27 Table I-19 Unit Cost Analysis - Residential Service Connections (Overhead and Underground) Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $34,684 $16,772 $14,018 $13,744 $12,311 Number of Service Conductors 109,644 59,146 49,575 49,457 38,968 Cost Per Conductor $0.316 $0.284 $0.283 $0.278 $0.316 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $0.295 Table I-20 Residential Service Connections Expenditure Forecast (Overhead and Underground) Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $0.295 $0.295 $0.295 $0.295 $0.295 Number of Service Conductors 73,029 96, , , ,036 Total Cost ( 2012 Constant $) $21,544 $28,380 $36,290 $39,483 $39,246 1 The capital expenditures forecast in this category were forecast by 2 multiplying the forecast unit cost per conductor for residential service connection times the number of 3 service conductors SCE expects to install from Table I-20 displays the capital 4 expenditure forecast for residential service connections. 27

29 1 b) Residential Line Extensions Figure I-8 Residential Line Extension Capital Expenditure Summary WBS Element CET-PD-NS-RS Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) This work category reflects distribution work for a single applicant, or a small group of applicants, pursuant to SCE s Line Extension Tariff Rule 15 and Service Extension Tariff Rule Capital expenditures within this work category generally include the cost of installing primary and secondary systems to serve the following most commonly occurring situations: When small-scale development of four or fewer homes are constructed beyond the current end of SCE s distribution system, and the distance from the homes to the existing SCE system requires the construction of a new segment of distribution system to reach the construction site. When a multi-unit complex replaces a single family home or small apartment building and the electrical load necessitates upgrade of the current distribution system. 14 SCE s tariffs are available on-line at 28

30 (1) Unit of Work Definition The historical data reveals a strong correlation between counts of new meters set in a given year and miles of line extension conductor installed in that same year as shown in Figure I-9.15 Each data point in this figure corresponds to a particular year s data. During periods of lower customer growth, the majority of new meter sets are from replacement of single residential units by multiple units or from adding a few homes to existing developed area, all of which require line extensions charged to this work category. On the other hand, during periods of higher customer growth, a significantly smaller proportion of the total meters are driven by conversion of single meter homes to multi-meter homes and small-scale development. Most of the new meters set growth is driven by new residential developments that require tract and backbone facilities to serve them, rather than the limited construction necessary for line extension. Figure I-9 Residential Line Extensions Correlation of Miles of Conductor Installation to New Meter Sets c s -2 H Historical Forecast 0 10,000 20,000 30,000 40,000 New Meter Sets 50,000 60, SCE used the correlations between annual number of new meters set and miles of line conductor for residential line extensions to translate Ms. Sheng s meter forecast to the number of miles of conductor needed to support residential line extensions. 15 See workpaper entitled, Customer Growth, Residential Line Extensions, WBS Element CET-PD-NS-RS. 29 See workpapers pp.65-68

31 (2) Unit Cost Analysis, Work Volume and Cost Forecast The unit cost for thi s work is the average cost to provide a mile of line extension. The types of costs associated with this work category include all the material and labor costs for installing overhead or underground extensions, the associated conductor material, trenching or pole installation costs and any related material costs such as incidental wiring and splicing. It also includes inspection of applicant-installed work to confirm that they meet the appropriate standards and specifications (SCE or local jurisdictional, whichever is more stringent), costs of transporting materials, and transportation, planning, and other allocated charges. Ta ble I-21 Unit Cost Analysis- Residential Line Extensions Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $21,9 65 $20,073 $12,156 $10,088 $11,093 Miles of Conductor Cost Per Mile $175.6 $162.3 $174.2 $184.6 $181.8 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $ Table I-21 summarizes the historical expenditures and units (in conductor miles), along with the unit cost associated with this work category. The unit costs have varied between $162,300 and $184,600 per mile of conductor from Given the variable nature of the work, the size of a particular work order in terms of miles of line extension can influence the cost-per-mile. Therefore, SCE used a five-year average cost of $ 175,700 per conductor mile as the basis to forecast costs for residential line extensions. Table I-22 Residential Line Extensions Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $175.7 $175.7 $175.7 $175.7 $175.7 Miles of Conductor Total Cost ( 2012 Constant $) $22,490 $34,262 $47,966 $53,413 $53, The capital expenditures forecast in this category were forecast by multiplying the forecast unit cost per mile for line extensions times the miles o f conductor SCE expects 30

32 31 1 to install from based upon the correlation between new meter sets and miles of line extension 2 installed. Table I-22 displays the capital expenditure forecast for residential line extensions. 3 c) Residential Tract Development Figure I-10 Residential Tract Development Capital Expenditure Summary WBS Element CET-PD-NS-RS Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) 31

33 Figure I-11 Tract vs. Backbone Connections The Residential Tract Development work category includes the installation of primary and secondary distribution systems within residential developments as covered under SCE s Line Extension Tariff Rule 15 (developments in excess of four units).16 Figure I-11 is an example of a circuit map showing a radial configuration for a distribution system. A tract connection generally refers to the section of distribution line that starts from the backbone system and connects one or more transformers (e.g. pad-mounted transformer identified as P ) to a switch position on a backbone (e.g., PMH7053). The backbone system generally refers to sections of distribution line on major thoroughfares that connect multiple tracts and commercial/industrial projects together. The distribution system connects to the backbone system through conduits and vaults with cable connections at the switch positions. In this example, the backbone system includes the pad mounted switch identified as PMH 7890 in the southeast corner of the map, to switch identified as PMH7053 in the center, and extends to gas switch identified as GS 9950 in the northwest corner. SCE s tariffs are available on-line at 32

34 Capital expenditures for residential tract development generally include the cost of a cable installed by SCE in customer-installed conduits and structures, SCE installed transformers, and the secondary system needed to serve the residential development. Residential tract developments extend service to housing developments where no electrical infrastructure currently exists. This work comes after backbone installation for new developments and precedes service and meter installations. Developers request tract installations in anticipation of home sales, thus, capital expenditures in this category are influenced by the accuracy of the developers forecasting. Pursuant to tariff rules, SCE has an obligation to meet their requests regardless of the ultimate accuracy of their forecasting. (1) Unit of Work Definition The unit of measure determined for this category was the length of underground cable installed as measured in miles. 17 In developing the forecast, SCE considered the cumulative length of tract installed since 2003, partly to smooth out year-to-year variability, but mostly to estimate the excess capacity built into the system. SCE then compared the cumulative measure of tract installed to the cumulative number of meters set since 2003 to account for the lead-time in tract installations. The analysis of data showed the following: On an average, the lead-time between tract development and meter installations is one year. There is a strong correlation between the miles of tract cable installed in a given year and the number of meter sets in the next year during a stable growth period. This mathematical correlation was used to translate historical meter set data and Ms. Sheng s forecast meter set data to miles of residential tract cable installed. Figure I-12 compares the recorded miles of residential tract cable and that estimated from the mathematical correlation. See workpaper entitled, Customer Growth, Residential Tract Development, WBS Element CET-PD-NS-RS. 33 See workpapers pp.69-72

35 Figure I-12 Residential Tract Development - Cumulative Miles of Tract Installations Comparison o f Estimates, Recorded and Forecast As is evident in Figure I-12, SCE s estimates of the quantity of tract necessary to support new meters set in the subsequent year matched the recorded quantity very closely until Starting in 2006, SCE installed significantly more tract cable miles than what the forecasts estimated. This variance reflected developer requests based on anticipated customer growth and by expectations of home sales that did not materialize. Since this customer growth did not materialize in 2007, 2008 and 2009, there was an excess inventory of tract built up in the system and tract installation slowed down significantly in 2008 and In 2010 and 2011, SCE saw the housing market stabilize and starting in 2012 the housing market resumed its upward trend in growth. The excess inventory that was in the SCE network for backbone and tract installations has been slowly but steadily depleted by this increased growth. Based on the meter set forecast from Ms. Sheng, SCE forecast that the need for tract and backbone installation will continue to grow from (2) Unit Cost Analysis, Work Volume and Cost Forecast The cost-per-unit includes the labor and material to install not only the conductor, but also any other associated assets like transformers, switches, conduits and underground structures. Additionally, the costs include the transportation, planning and other allocated charges. 34

36 35 1 Table I-23 shows annual recorded cost and miles of underground cable 2 installed for the historical period As can be seen from the table, the unit cost has varied 3 from $74,700 to $96,000 per mile. Therefore, SCE used a five-year average cost of $84,900 per mile of 4 cable as the basis to forecast costs for residential tract development. Table I-23 Unit Cost Analysis - Residential Tract Development Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $19,237 $16,039 $13,342 $18,391 $17,454 Miles of Underground Cable Cost Per Mile $86.7 $96.0 $82.0 $74.7 $84.9 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $84.9 Table I-24 Residential Tract Development Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $84.9 $84.9 $84.9 $84.9 $84.9 Miles of Underground Cable 720 1,038 1,141 1,134 1,084 Total Cost ( 2012 Constant $) $61,128 $88,126 $96,871 $96,277 $92,032 5 SCE s capital expenditure forecast in this category was developed by 6 multiplying the forecast unit cost per mile for tract development times the miles of underground cable 7 SCE expects to install from Table I-24 displays the capital expenditure forecast 8 for residential tract development. 35

37 1 d) Residential Backbone Development Figure I-13 Residential Backbone Development Capital Expenditure Summary WBS Element CET-PD-NS-RS Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) This work category includes main-line feeder-system installations (commonly referred to as backbone ) to serve residential tract developments (discussed in the previous section) or the conduits required to feed smaller, non-residential customers located in a residential area, such as gas stations, restaurants, retail stores, etc. The conduits installed in these backbone systems also support the collateral streetlight subsystems along the major arterial thoroughfares, as well as the public safety services for controlled intersections, and the power required for landscape irrigation systems and public sanitation lift-stations. For new residential developments, SCE must install the main line (backbone) electrical infrastructure before housing construction can begin. Backbone installations, like tracts, precede service and meter installations by one year on average. Similar to tract development, lead-time requirements make backbone development vulnerable to forecasting errors on the part of the developers, but SCE is required to meet the requests pursuant to tariff rules. 36

38 tract development:^8 (1) Unit of Work Definition Analysis o f the historical data showed trends similar to that of residential The average lead-time between backbone and meter installations is one year. There is a strong correlation between the miles of backbone installed in a given year and the number of meter sets in the next year during a stable growth period. The unit of measure for this category is the length of underground cable installed. To develop the forecast, SCE correlated the cumulative length of backbone system installed since 2003 with the cumulative number of meters set since 2004 to account for the oneyear lag between meter sets and backbone installations. The mathematical relationship between the cumulative miles of backbone installed (as measured by the miles of underground cable) and the cumulative number of meters set was used to translate the historical meter sets and Ms. Shengs meter forecast into miles of backbone system needed. Figure I-14 shows the comparison of the recorded and estimated cumulative lengths of backbones installations along with the forecast for 2010 to See workpaper entitled, Customer Growth, Residential Backbone Development, WBS Element CET-PD-NS-RS. 37 See workpapers pp.73-75

39 Figure I-14 Residential Backbone Development - Cumulative Miles o f Tract Installations Comparison o f Estimates, Recorded and Forecast As seen before, SCE s model estimate (back-cast) of the miles of backbone necessary to support new meters set in the subsequent year, matched the recorded number of meters with good statistical accuracy until Starting in 2006, there were more miles of backbone installed than estimated by the model. This deviation of the model s estimate and recorded, just like in the case of tract installations, reflects developers requests based on anticipated demand for new housing. Since this demand for new housing did not materialize in 2007 through 2009, there was excess inventory of backbone built up in the system. Backbone installation slowed down significantly between 2008 and Since 2012, improved economic conditions in the housing market (i.e., increased growth of new meter sets) has slowly but steadily reduced the excess capacity in the backbone system. Based on Ms. Sheng s meter set forecasts for , SCE anticipates a significant need to invest in backbone installations. Both backbone and tract installations are critical infrastructure needed as a prerequisite to satisfy the meter connections for all types of customers including residential, commercial and agricultural customers. (2) Unit Cost Analysis, Work Volume and Cost Forecast The unit cost used includes the labor and material to install not only the conductor, but also any other associated assets, such as transformers, switches, conduits and underground structures. Additionally, as in other accounts, the costs include transportation, planning, and overhead charges. As can be seen from Table I-25, the unit cost has varied from $101,000 to 38

40 39 1 $154,000 per mile. Therefore, SCE used a five-year average cost of $133,800 per mile of cable as the 2 basis to forecast costs for residential backbone development. Table I-25 Unit Cost Analysis - Residential Backbone Development Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $4,956 $4,011 $4,340 $5,311 $8,707 Miles of Underground Cable Cost Per Mile $146.1 $101.0 $154.1 $133.6 $134.3 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $133.8 Table I-26 Residential Backbone Development Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $133.8 $133.8 $133.8 $133.8 $133.8 Miles of Underground Cable Total Cost ( 2012 Constant $) $16,591 $22,077 $24,218 $24,084 $23,014 3 SCE s capital expenditure forecast in this category was developed by 4 multiplying the forecast unit cost per mile for backbone development times the miles of underground 5 cable SCE expects to install from Table I-26 displays the capital expenditure 6 forecast for residential backbone development. 39

41 1 e) Commercial/Industrial Service Connections Figure I-15 Commercial/Industrial Service Connections Capital Expenditure Summary WBS Element CET-PD-NS-CL Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) 16,000 14, O o > >u CO 8,000 Nominal $ 2012 Constant $ Gross M eter Sets This work category include s the costs to provide a new service connection to individual commercial and industrial customers per SCE s Tariff Rule 16. Commercial and industrial service connections capital expenditures occur when the permanent service cables or conductors from the SCE distribution transformer (or other distribution structures) to the new customer s electric service panel(s) is installed. (1) Unit of Work Definition The unit of measure for this category was determined to be the number of overhead or underground service conductors installed, just as in the case of residential service connections.19 In order to develop the forecast for this category of work, SCE calculated the average number of services per meter set installation as shown in Table I-27. The average ratio shows a variable trend in the number of services with a high of approximately 3.0 services per meter in 2003 and a low of approximately 1.1 services per meter in SCE attributes this to the type of business served and its 19 See workpaper entitled, Customer Growth, Commercial/Industrial Service Connections, WBS Element CET-PD-NS- CL. N See workpapers pp

42 geographic location as discussed above. For instance, the service requirements for a small convenience store in a strip mall is very different from the requirements of a major department store, but they are both included in this work category. SCE estimates 2012-recorded average ratio to be representative unit for future installation work. Hence, SCE has used the 2012 average ratio of 1.75 service conductors per meter to forecast the number of service conductors based on the new meter set forecast from Ms. Sheng. Table I-27 Commercial/Industrial Service Connections Ratio o f Number o f Service Conductors Per Meter ( ) Ye ar Count of Meter Sets 10,948 10,766 12,476 13,814 15,085 12,808 8,078 6,109 5,411 4,865 Number of Service Conductors 32,643 29,105 29,515 30,510 33,245 13,531 10,470 10,090 9,990 8,522 Number of Services Per Meter (2) Unit Cost Analysis, Work Volume and Cost Forecast The cost-per-unit includes the labor and material to install not only the conductor, but also any associated assets like transformers, underground structures and poles. Additionally, the costs include inspection of applicant-installed systems to confirm that they meet SCE standards and specifications, costs of transporting materials, transportation, planning and other allocated charges. Table I-28 Unit Cost Analysis - Commercial/Industrial Service Connections Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $19,934 $16,890 $14,956 $17,833 $17,756 Number of Service Conductors 13,531 10,470 10,090 9,990 8,522 Cost Per Conductor $1.5 $1.6 $1.5 $1.8 $2.1 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $ As can be seen in the Table I-28, the unit cost per conductor installed has varied historically. Therefore, SCE has used a five-year average cost of $1,700 per conductor as the basis to forecast costs for commercial/industrial service connections. 41

43 42 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Table I-29 Commercial/Industrial Service Connections Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $1.7 $1.7 $1.7 $1.7 $1.7 Number of Service Conductors 8,958 11,461 15,077 18,741 20,841 Total Cost ( 2012 Constant $) $15,229 $19,484 $25,631 $31,860 $35,430 1 The capital expenditures forecast in this category was developed by 2 multiplying the forecast unit cost per conductor for commercial/industrial services times the number of 3 service conductors SCE expects to install from Table I-29 displays the capital 4 expenditure forecast for commercial/industrial services development. 5 f) Commercial/Industrial Line Extensions Figure I-16 Commercial/Industrial Line Extensions Capital Expenditure Summary WBS Element CET-PD-NS-CL Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) 6 This work category constitutes the construction o f extensions to the SCE 7 distribution system (beyond simple service conductor installations) to serve new Commercial or 8 Industrial customers. For smaller commercial/industrial projects, this typically involves installations or 9 upgrades of the conductors and/or transformers to serve the new load. However, it may also involve the 42

44 43 1 installation of one or more large transformers (e.g., 2,500 kva transformer) to serve a large industrial customer. (1) Unit of Work Definition The unit of measure for this category was determined to be the length of overhead or underground conductor installed. 20 There is inherent variability in the kind of projects recorded in this category. Projects range from small retail store installations to large commercial buildings. Although both would be included in this work category, they would most likely have very different electrical requirements. Based on historical data, SCE calculated cable length per installed meter by year. This metric has fluctuated from year to year as shown in Table I-30. Since no specific trend could be identified and since the inherent variability depends on the customer facility and location which is outside the utility s control, SCE has used a 10-year average ratio of 142 feet per meter set to translate Ms. Sheng s commercial meter forecast to the commercial line extension forecast in miles of line 14 extension. Table I-30 Commercial/Industrial Line Extensions Ratio of Feet of Cable Per Meter Ye ar Count of Meter Sets 10,948 10,766 12,476 13,814 15,085 12,808 8,078 6,109 5,411 4,865 Feet of Cabfe Installed 1,780,765 1,565,878 1,642,691 1,726,537 2,311,238 1,343,980 1,218, , , ,988 Feet of Cable Per Meter Set (2) Unit Cost Analysis, Work Volume and Cost Forecast The cost-per-unit in this category includes the labor and material to install the conductor and any other associated assets like transformers, underground structures and poles. Additionally, the costs include inspection of applicant-installed systems to confirm that they meet SCE standards and specifications, costs of transporting materials, and transportation, planning and other allocated charges. Table I-31 depicts commercial/industrial line extensions, and summarizes the historical units (in conductor miles) and the cost per mile with this work category. See workpaper entitled, Customer Growth, Commercial/Industrial Line Extensions, WBS Element CET-PD-NS-CL. 43 See workpapers pp.81-83

45 44 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Table I-31 Unit Cost Analysis - Commercial/Industrial Line Extensions Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $66,125 $45,785 $28,496 $31,733 $35,343 Miles of Line Extension Cost Per Mile $259.8 $198.4 $201.9 $217.9 $208.5 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $ As can be seen in Table I-31, the cost per mile of line extension has been 2 fluctuated historically. This is largely due to the highly variable business customer needs varying from 3 small retail store installations to large commercial buildings. Given the variable nature of the work, the 4 size of a particular work order in terms o f miles of line extension can influence the cost-per-mile. 5 Therefore, SCE used a five-year average cost of $217,300 per mile o f cable as the basis to forecast costs for commercial/industrial line extensions. Table I-32 Commercial/Industrial Service Connections Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost Miles of Line Extension Total Cost ( 2012 Constant $) $29,987 $38,245 $50,414 $62,582 $69,536 SCE s capital expenditure forecast in this category was developed by multiplying the forecast unit cost per mile for commercial line extensions times the miles of cable SCE expects to install from Table I-32 displays the capital expenditure forecast for commercial/industrial line extensions. 44

46 45 1 g) Commercial/Industrial Tract Development Figure I-17 Commercial/Industrial Tract Development Capital Expenditure Summary WBS Element CET-PD-NS-CL Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) 16, ^ 10,000 "5 in 8,000 & "8 2 6,000 «o The commercial and industrial tract development forecast includes costs to construct system additions to serve new commercial and industrial customers under SCE s Line Extension Tariff Rule 15. These additions are usually done in conjunction with street improvements and can include installation of streetlights, conduits, and structures to serve future developments located beyond the geographical limits of the current project. These projects include the installation of conduit and structures, cable, transformers, switches, and other apparatus deemed necessary to provide service to the current development, and to provide distribution system capacity for future developments. (1) Unit of Work Definition The unit of measure selected for this category was the length of underground conductor installed, as measured in miles.21 Just as in residential tract installations, commercial/industrial tracts are typically installed prior to actual service installations, but the lead-time is significantly shorter than in the case o f Residential Tract development. 21 See workpaper entitled, Customer Growth, Commercial/Industrial Tract Development, WBS Element CET-PD-NS- CL. \ See workpapers pp

47 Based on historical data, SCE calculated cable length per installed meter by year. This metric can vary from year to year as shown in Table I-33 due to variability in geographical conditions and the type of commercial developments. As with Commercial Line Extensions, since no specific trend could be identified and since the inherent variability depends on the customer facility and location which is outside the utility s control, SCE used a 10-year average ratio of 57.4 cable feet per meter set to translate Ms. Sheng s commercial meter forecast to the commercial tract 7 forecast in miles o f cable. Table I-33 Commercial/Industrial Tract Development Ratio of Feet of Cable Per Meter Set Year Count of Meter Sets 10,948 10,766 12,476 13,814 15,085 12,808 8,078 6,109 5,411 4,865 Feet of Cable Installed 641, , , , , , , , , ,188 Feet of Cable Per Meter Set (2) Unit Cost Analysis, Work Volume and Cost Forecast The unit cost is the cost-per-mile of installed conductor for a commercial tract. It includes the labor and material to install the conductor and any other associated assets, i.e. transformers, conduits, underground structures, and poles. Additionally, the unit cost includes inspection of applicant-installed systems to confirm that they meet SCE standards and specifications, costs of transporting materials, transportation, planning, and other allocated charges. Table I-34 displays annual recorded total costs, miles of cable installed, and average annual cost per mile of installed cable for this work category. Table I-34 Unit Cost Analysis - Commercial/Industrial Tract Development Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $19,317 $13,375 $8,997 $8,124 $11,749 Miles of Cable Cost Per Mile Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $ As can be seen in Table I-34, the unit cost per mile of underground cable installed for commercial and industrial tracts has varied from a low of $159,000 to a high of $195,000 from 2008 to This variability is due to the variable types of businesses in any geographic location and the customized tract development work associated with it (strip mall tract development needs are 46

48 47 1 different from large commercial mall tract development). Therefore, SCE used a five-year average cost 2 o f $176,000 per mile of cable as the basis to forecast costs for commercial/industrial tract 3 development. Table I-35 Commercial/Industrial Tract Development Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $176 $176 $176 $176 $176 Miles of Cable Total Cost ( 2012 Constant $) $9,856 $12,496 $16,544 $20,416 $22,704 The capital expenditures forecast in this category was developed by multiplying the forecast unit cost per mile for commercial tract development times the miles of cable SCE expects to install from Table I-35 displays the capital expenditure forecast for commercial/industrial tract development. h) Agricultural Service Connections Figure I-18 Agricultural Service Connections Capital Expenditure Summary WBS Element CET-PD-NS-AG Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ $76 $209 $354 $151 $380 $527 $608 $645 $721 $1,295 $1,232 $1,324 $1,367 $1,413 $1, Constant $ $132 $342 $540 $209 $476 $604 $681 $694 $744 $1,295 $1,205 $1,264 $1,278 $1,292 $1,306 Nominal $ 2012 Constant $ 47

49 This work category captures the costs associated with providing service connections to new agricultural customers. In general, requests for new agricultural services increase when existing agricultural customers add wells or pumping equipment for irrigation purposes. These services usually include an overhead or underground service connection from the nearest distribution system to the customer s meter panel. (1) Unit of Work Definition22 Just as in residential and commercial/industrial service installations, SCE s unit of measure for this category is the number of service conductors installed. Table I-36 shows the number of service conductors installed per agricultural meter set. Data in the table shows variations in this metric during the historical period. SCE estimates the recorded 2012 ratio of number of conductors per meter set to be most representative metric applicable for future work. Therefore, SCE used 2012-recorded average of 2.7 service conductors per meter as the basis for the forecast. SCE used the conductor-to-meter ratio to translate Ms. Shengs agricultural meter forecast to a forecast of the number of service conductors installed for agricultural customers as shown in Table I-36. Table I-36 Agricultural S ervice Connections Forecast of Number of Conductors based on Gross Meter Sets Gross Meter Sets Conductors Per Meter Set Number of Conductors 1, (2) Unit Cost Analysis, Work Volume and Cost Forecast The unit cost used is the cost per installed service conductor. This unit cost includes labor and material to install service conductors along with associated material, such as conduit, connectors, risers, etc., together with transportation, planning, and other overhead costs embedded in the historical unit cost. Table I-37 shows recorded cost, the number of service connectors, and average cost per installed service conductor annually for the historical periods. See workpaper entitled, Customer Growth, Agricultural Service Connections, WBS Element CET-PD-NS-AG. 48 ^ [See workpapers pp.89-91

50 49 Table I-37 Unit Cost Analysis - Agricultural Service Connections Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $604 $681 $694 $744 $1,295 Number o f Service Conductors 1, Cost Per Conductor $0.3 $1.1 $1.3 $1.5 $1.5 Forecast Methodology for Unit Cost (2013 to 2017): 4 Year Average o f = $ The cost per service conductor installed for agricultural service connection has varied historically from $1,100 to $1,500 per conductor from , excluding the anomalous 2008 unit cost. Therefore, SCE has used a four-year average cost of $1,400 per conductor as the basis to forecast costs for agricultural service connections. Table I-38 Agricultural Service Connections Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $1.4 $1.4 $1.4 $1.4 $1.4 Number o f Service Conductors Total Cost (2012 Constant $) $1,205 $1,264 $1,278 $1,292 $1,306 5 SCE s capital expenditure forecast in this category was developed by multiplying 6 the forecast unit cost per conductor for agricultural services by the number of service conductors SCE 7 expects to install from Table I-38 displays the capital expenditure forecast for 8 agricultural services connections. 49

51 1 i) Agricultural Line Extensions Figure I-19 Agricultural Line Extensions Capital Expenditure Summary WBS Element CET-PD-NS-AG Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) $5, r $ Nominal $ $642 $1,092 $1,270 $1,564 $1,851 $3,191 $3,869 $2,782 $2,126 $2,973 $2,566 $2,731 $2,789 $2,957 $3, Constant $ $1,113 $1,788 $1,939 $2,161 $2,319 $3,656 $4,336 $2,991 $2,195 $2,973 $2,512 $2,608 $2,608 $2,705 $2,705 Gross Meter Sets Nominal $ Constant $ Gross M eter Sets Agricultural line extensions include the cost to construct infrastructure to serve new agricultural loads pursuant to SCE s Service Extension Tariff Rule 16 and/or Line Extension Tariff Rule 15. The work recorded in this category includes installation or replacement of transformers to serve new or increased agricultural loads and the extension of primary or secondary distribution systems on poles or in underground conduits to serve one or more new agricultural customers. (1) Unit of Work Definition The unit of measure for agricultural line extension was determined to be the length of line extension conductors installed, j ust as in the case of residential and commercial/industrial line extension work categories As seen in Table I-39, the length of line extension cable per installed meter varied over the historical period. This is because each project can vary significantly due to the 23 SCE s tariffs are available on-line at 24 See workpaper entitled, Customer Growth, Agricultural Line Extensions, WBS Element CET-PD-NS-AG. 50 See workpapers pp.93-95

52 51 1 variable types of agricultural customers and the geographic location of work. Therefore, SCE used the 2 10-year average ( ) of feet o f line extension conductor per installed meter to forecast 3 feet of agricultural line extension from Ms. Shengs agricultural meter forecast as shown in Table I-39. Table I-39 Agricultural Service Connections Forecast o f Feet o f Cable based on Gross Meter Sets Gross Meter Sets Cable Feet Per Meter Total F eet o f Cable 145, , , , , , , , , ,202 Total M iles o f Cable (2) Unit Cost Analysis, Work Volume and Cost Forecast Table I-40 Unit Cost Analysis - Agricultural Line Extensions Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $3,656 $4,336 $2,991 $2,195 $2,973 Miles of Line Extension Cost Per Mile $132.4 $76.8 $93.8 $78.0 $102.0 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $96.6 As shown in Table I-40, the cost per mile of conductor installed for agricultural line extensions connection varied from a low of $76,800 to a high of $132,400 from This variability in unit costs is due to the variable types of agricultural customers served and the geographic location. Given the variable nature of the work, the size of a particular work order in terms of miles of line extension can influence the cost-per-mile. Therefore, SCE used a five-year average cost of $96,600 per mile of cable as the basis to forecast costs for agricultural line extensions. 51

53 52 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Table I-41 Agricultural Line Extensions Unit Forecasts (Miles of Line Extensions) Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $96.6 $96.6 $96.6 $96.6 $96.6 Miles of Line Extension Total Cost ( 2012 Constant $) $2,512 $2,608 $2,608 $2,705 $2,705 SCE s capital expenditure forecast in this category was developed by multiplying the forecast unit cost per mile for agricultural line extensions times the miles of cable SCE expects to install from Table I-41 displays the capital expenditure forecast for agricultural line extensions. j) Street Light Installations Fig ure I-20 Street Light Installations Capital Expenditure Summary WBS Element CET-PD-NS-SL Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ 2012 Constant $ Gross Meter Sets ( Residential) 6 This work category include s costs associated with installing service to new 7 streetlights. Local government agencies determine the quantity and location o f new streetlights. The 52

54 increase in annual residential meter growth stimulates growth in street light installations in new developments, as well as the arterial streets constructed to provide the ingress to the new homes and surrounding commercial centers. The costs include conductors, transformers, conduits, structures, electroliers, and allocated expenditures (transportation, planning and other overhead). (1) Unit of Work Definition The unit of measure used for this work category is the numbers of electroliers installed.25 An electrolier is the wood, composite, concrete, or steel pole used to support the street light head and mast-arm. Streetlight systems are usually installed in conjunction with the installation of residential meter sets. SCE s forecasting methodology used the ratio of number of electroliers to the total numbers of residential meters sets installed. Table I-42 shows the average number of electroliers per residential meter sets from 2003 to Historically, the ratio has fluctuated from a low of 0.11 in 2010 to a high of 0.26 in Therefore, SCE used a five-year ( ) average of 0.14 electroliers per residential meter set together with Ms. Sheng s forecast of residential meter sets to forecast the total number of electroliers as shown in Table I-42. The five-year average is the same as the recorded 2012 ratio. Table I-42 Forecast o f Total Number o f Electroliers based on Residential Gross Meter Sets Gross Meter Sets (Residential) 32,594 23,643 19,137 14,061 17,692 27,758 38,643 51,238 56,320 55,939 Electroliers Per Meter N um berof Electroliers 3,991 2,728 2,061 3,340 2,411 3,993 5,559 7,371 8,102 8, (2) Unit Cost Analysis, Work Volume and Cost Forecast Table I-43 Unit Cost Analysis - Street Lighting Installation Recorded (100% CPUC-Jurisdictional Constant 2012 $000) Year Recorded Cost (2012 Constant $) $23,765 $14,961 $11,500 $16,230 $14,506 Number of Electrolier Installation 3,991 2,728 2,061 3,340 2,411 Cost Per Electrolier $6.0 $5.5 $5.6 $4.9 $6.0 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $ See workpaper entitled, Customer Growth, Streetlight Service Installations, WBS Element CET-PD-NS-SL. 53 V j See workpapers I pp.97-99

55 Table I-43 summarizes the historical number of installed electroliers and the cost per electrolier. The unit cost has varied between $4,900 and $ 6,000 per electrolier in during Therefore, SCE used a five-year average cost of $5,600 per electrolier as the basis to forecast costs for street light installations. This cost per electrolier includes expenses for labor, material, transformers, shipping, planning, and other allocated costs. Table I-44 Streetlight Installations Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Unit Cost $5.6 $5.6 $5.6 $5.6 $5.6 Number of Electrolier Installation 3,993 5,559 7,371 8,102 8,047 Total Cost ( 2012 Constant $) $22,362 $31,131 $41,278 $45,372 $45,064 SCE s capital expenditure forecast in this category was developed by multiplying the forecast unit cost per electrolier for streetlight installation times the number of electroliers SCE expects to install from Table I-44 displays the capital expenditure forecast for streetlight installation. 2. PEV Transformer Replacement See workpapers Figure I-21 pp PEV Transformer Replacement Capital Expenditure Summary WBS Element CET-PD-NS-RS-EVXFMR Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) $ 2 0,0 0 0 $ 1 8,0 0 0 $ 1 6,0 0 0 ^ $ 1 4,0 0 0 $ 1 2,0 0 0 $ 1 0,0 0 0 $ 8,0 0 0 $ 6,0 0 0 $ 4,0 0 0 $ 2,0 0 0 $- N o m in a l $ C o n s ta n t $ tfl $ $ $ 2,3 4 6 $ 4,7 9 3 $ 1 0,9 8 1 $ 1 7,3 7 0 $ 1 8,9 0 9 $ 201 $ $ 2,2 9 6 $ 4,5 7 6 $ 1 0,2 6 8 $ 1 5,8 8 7 $ 1 6,8 3 9 N o m in a l $ C o n s ta n t $ 54

56 In addition to the traditional infrastructure maintenance and upgrades to the distribution system due to growth and deterioration, demand for plug-in electric vehicles (PEVs)26 will incrementally increase the need for additional infrastructure maintenance and upgrades, as charging PEVs can have substantial impact on SCE s distribution system. The forecast growth in PEVs influences the secondary distribution system including secondary lines, transformers and service drops which can lead to transformer overheating and accelerated equipment degradation. As noted by the Commission: [I]f several households that adopt PEVs are served by a single transformer substation, the utility will have to upgrade distribution infrastructure to avoid transformer overheating. Utilities may need to test transformer capacity on a case-by-case basis, depending on the transformer life, original transformer capacity, and potential for PEV clustering.27 In 2009, SCE hired an external consultant to analyze SCE's circuits based on varying levels of PEV penetration to determine a percentage of overloaded transformers for each level of PEV penetration.28 The need for this type of infrastructure replacement or upgrade started in 2011 when the consumer demand for plug-in electric vehicles started to grow. (1) Cost Forecast underground lines is based on forecast market penetration of PEVs and the impact of these on overloading existing distribution transformers. The unit costs vary depending on whether they are overhead units installed on top of a pole or underground units installed inside a concrete vault. In order to determine the unit costs for both overhead and underground types, SCE analyzed PEV related work orders from to develop an average unit cost to install both overhead and underground units. As shown in Table I-45, in 2011 and 2012 SCE spent an average of $6,500 per transformer for overhead transformers and $4,600 per transformer for underground transformers. SCE has used these unit costs for since the unit costs are expected to remain the same in the future. Table I-46 shows the historical and forecast counts by each type of transformer. SCE estimated the count o f overloaded transformers for both overhead and 26 See Mr. Kjaer s testimony in SCE-09, Section V, Figure V-7 for the PEV impact on SCE's distribution system. 27 Crosby, Arnold. Light-Duty Vehicle Electrification in California: Potential Barriers and Opportunities. CPUC white paper, See workpaper entitled Translating the PEV Forecast to Transformer Replacement. WBS Element CET-PD-NS-RS- EVXFMR. See workpapers pp

57 56 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Table I-45 Unit Cost Analysis - PEV Transformer Replacement Summary o f Recorded (100% CPUC-Jurisdictional Constant 2012 $) Transformer Type Count Total Cost Unit Costs Underground 19 $88,158 4,640 Overhead 81 $527,496 6,512 Table I-46 Unit Forecasts (Number of Overloaded Transformers) Summary o f Recorded /Forecast Overhead Transformer ,162 1,887 2,203 Underground Transformers Total Transformers ,752 2,674 2,751 Table I-47 PEV Transformer Replacement Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Overhead Transformers $1,850 $3,447 $7,555 $12,268 $14,322 Underground Transformers $446 $1,130 $2,713 $3,619 $2,517 Total Cost for Transform $2,296 $4,576 $10,268 $15,887 $16,839 1 SCE s capital expenditure forecast in this category was developed by multiplying 2 the forecast unit cost per transformer times the number of transformers SCE expects to install from Table I-47 shows the capital expenditure forecast for PEV transformer 4 replacements Overhead to Underground Conversions (Distribution and Transmission) 6 SCE converts existing overhead lines to underground pursuant to CPUC Tariff Rules 7 20A, 20B, and 20C.29 SCE selects conversion projects based on the criteria established in the tariff, and 8 in turn, each governmental agency selects locations that meet these criteria within their jurisdiction. The SCE s tariffs are available on-line at 56

58 overhead conversions budget category includes the costs incurred to convert lines to underground associated with three separate tariff items - Rule 20A, Rule 20B, and Rule 20C, which are discussed in detail below. Under Rule 20A, each governmental agency in SCE s service territory is allocated a portion of SCE s Rule 20A capital budget to be used for overhead conversions based on a system-wide formula. The governmental agency then selects the locations within their jurisdiction where overhead facilities are to be converted. Rule 20A conversion projects are generally among the most complex projects within the Power Delivery Business Line since it requires coordination with multiple utilities, customers and acquiring permits based on the magnitude of the projects. Rule 20B capital expenditures include the cost to convert overhead lines under CPUC Tariff Rule 20B at the request of a governmental agency, developer, an individual or group of customers. These projects generally arise when a private party or governmental agency wishes to remove the visual impact of existing overhead lines from a proposed project or must remove the lines as a city permitting condition. Rule 20B conversions are site-specific conversions primarily performed at the request of private parties, such as a developer. Often a developer is required to convert to underground a section of overhead line near an intersection or along an arte rial street as a condition to building their new project. In this case, SCE would convert all overhead facilities on both sides of the street to underground for at least 600 feet or one city-block, in accordance with the tariff. In addition, cities use Rule 20B in conjunction with Rule 20A to further their redevelopment objectives to convert more overhead systems and improve the aesthetic value of their communities. Rule 20B conversions involve the underground installation of vaults and conduits, and overhead terminations (or risers) at each end of the conversion. SCE installs energized cables within the substructure before taking the overhead facilities out of service. Rule 20C conversions include the expenditures of converting overhead lines at the request of an individual or group of customers. These projects generally arise when an individual property owner or small developer of a new project wishes to remove existing overhead lines less than 600 feet, or on one side of the street, or overhead lines on private property. Rule 20C projects are similar to Rule 20B projects in that they are site-specific and are not directly dependent on customer growth activity. Many of SCE s older circuit breakers do not meet new operational requirements and a number of the older 66kV and 115kV class circuit breakers are incapable of de-energizing underground 57

59 cable beyond a certain length and may need replacements. When Rule 20 projects include underground cable installations that exceed this length, SCE must replace the circuit breaker. The expenditures associated with this circuit breaker replacement program is recorded separate from the infrastructure replacement program (Mr. Lee s testimony in Exhibit SCE-03, Volume 4) as part of the costs are collected from customers. This work is in direct response to customer requests and fluctuates significantly from year-to-year. (1) Distribution Rule 20A See workpapers pp Figure I-22 Distribution Rule 20A Conversions Capital Expenditure Summary WBS Element CET-PD-2A-2A Summary o f Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5, Nominal $ $24,399 $30,236 $21,942 $24,855 $15,768 $32,579 $33,393 $34,107 $34,874 $35, Constant $ $27,961 $33,881 $23,590 $25,660 $15,768 $31,885 $31,887 $31,892 $31,896 $31,898 ^ ^ Nominal $ 2012 Constant $ 8 (a) Cost Forecast Figure I-22 shows recorded Rule 20A conversions distribution expenditures for and forecasts. Annual historical spending in constant dollars has fluctuated between $15.7 million and $33.8 million between 2008 and 2012 for this type of conversion due to several factors, including co-ordination delays with telecommunication and cable 58

60 service providers30 causing an adverse impact on SCE s ability to execute these projects in the year planned and consequently delaying Rule 20A expenditures. In order for SCE to maintain, a consistent level of Rule 20A spending, new Rule 20A projects must be identified and approved by the sponsoring governmental agency. Given the 2012 GRC decision authorizing an annual spending of $ million on a constant dollar basis,31 SCE has resumed efforts to work closely with governmental agencies to identify new Rule 20A projects. Since January 2010, SCE has collaborated with governmental agencies to scope and provide estimates for new potential Rule 20A projects totaling over $119 million. During this same period, governmental agencies have moved forward with over $62 million in new Rule 20A projects with city council approved resolutions forming new Underground Utility Districts. The cities and municipalities are the main drivers of spending on Rule 20A. In many instances these Rule 20A projects are part of a larger rehabilitation or beautification project the city or municipality is doing. Based on SCE s plan to execute approved Rule 20A projects, SCE is making new commitments with governmental agencies to move forward with new projects. Additionally, the improving economic prospects as seen per Ms. Shengs new meter set forecast, we propose to set the annual spending at $31.8 million32 in constant dollars during the forecast period as shown in Figure I In 2009, Verizon changed its longstanding practice of paying for the trenching and underground conduit associated with the installation of its service laterals on private property, resulting in a shift in costs to the sponsoring city or the affected property owners. This change has caused significant delays in many ongoing projects, as cities and counties have attempted to negotiate with Verizon or secure the necessary funding. In January of 2010, the City of Santa Barbara filed a formal complaint against Verizon with the Commission. Subsequently, the city of Santa Monica, SCE, San Diego Gas & Electric, and Pacific Gas & Electric have all been granted party status to this proceeding by the presiding Administrative Law Judge (ALJ). However, as of May 2013, a Commission decision by the ALJ is still pending. 31 See D , p Includes cost for telecommunications work for Rule 20 A conversions, WBS element CIT-00-0P-NS

61 60 Workpaper - Southern California Edison / 2015 GRC - APPLICATION 1 (2) Distribution Rule 20B and Rule 20C See workpapers pp Figure I-23 Distribution Rule 20B Conversions Capital Expenditure Summary WBS Element CET-PD-CR-2B Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10, Nominal $ $24,253 $25,312 $15,078 $1 5,142 $12,657 $29,249 $40,638 $54,022 $60,240 $61, Constant $ $27,794 $28,364 $16,211 $1 5,632 $12,657 $28,625 $38,806 $50,514 $55,096 $54,972 Nominal $ Constant $ See workpapers pp Figure I-24 Distribution Rule 20C Conversions Capital Expenditure Summary WBS Element CET-PD-CR-2C Recorded /Forecast (100% CPUC-Jurisdictional Constant 2012 $000),679 $12,093 $16,161 $18,193 $18, $11,548 $15,112 $16,640 $16,288 Nominal $ 2012 Constant $ 2 60

62 (a) Cost Forecast As described above, these two categories are very similar, with similar cost drivers. SCE therefore combined these two categories under this section for analytical purposes. The unit of measure selected used for this category is the length of cable installed. Historical data from 2003 to 2012 show a very strong correlation between the miles of cable installed for residential line extensions and the miles of cable installed for Rule 20B and 20C conversions. This is illustrated in Figure I-25 where each data point corresponds to the length of cable installed for Residential Line Extensions and length of cable installed for Rule 20 B&C in a particular years.33 Given this strong correlation, SCE forecasts the volume of cable to be installed under Rule 20B/C based on the volume of cable installation forecast for Residential Line Extensions in Section I.C.1.b) Figure I-25 Distribution Overhead to Underground Conversions (Rule 20B and 20C) Correlation Between Miles o f Conversion and Residential Line Extensions Table I-48 shows the historical data for the miles of cable installed in Rule 20B/C and the corresponding unit costs. The cost per installed mile has been fluctuated from 2008 through Therefore, SCE used a five-year average cost of $254,500 per mile of cable for the forecast period. 33 See workpaper entitled Distribution Rule 20 B and Rule 20C, WBS Element CET-PD-CR-2B, CET-PD-CR-2C. 61 ^ See workpapers pp

63 62 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Table I-48 Distribution Rule 20B and Rule 20C Unit Volumes, Cost-per-Unit and Total Costs Recorded /Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Year Miles of Cable (Rule 20B and 20C) Nominal $ 37,998 31,642 19,628 26,195 17, Constant $ 43,546 35,457 21,103 27,043 17,984 Cost Per Mile $261.5 $234.5 $237.0 $285.2 $254.3 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $ As can be seen from the Table I-49, between 2008 and 2012, the 2 expenditures in Rule 20B compared to those in Rule 20C have remained relatively stable. SCE used the 3 five-year average cost split recorded in of 77 percent for Rule 20B and 23 percent for Rule 4 20C during the forecast period. Table I-49 Percentage Splits - Distribution Rule 20B and Rule 20C Capital Expenditures (100% CPUC-Jurisdictional Nom inal $000) Rule 20B $28,811 $23,081 $14,865 $21,392 $13,750 $29,249 $40,638 $54,022 $60,240 $61,728 Rule 20C $9,187 $8,561 $4,763 $4,802 $4,234 $8,679 $12,093 $16,161 $18,193 $18,290 Total $37,998 $31,642 $19,628 $26,195 $17,984 $37,927 $52,732 $70,184 $78,433 $80,018 % of Rule 20B 76% 73% 76% 82% 76% 77% 77% 77% 77% 77% 5 Table I-50 shows the forecast miles of cable for Rule 20B and Rule 20C 6 based on the regression against miles of residential line extensions along with the expenditure summary 7 in 2012 constant dollars for both Rule 20B and Rule 20C. 62

64 63 Table I-50 Distribution Rule 20B and Rule 20C Capital Expenditure Forecast (100% CPUC-Jurisdictional Constant $00)34 Year Miles of Cable ( Rule 20B) Miles of Cable ( Rule 20C) Cost Per Mile $254.5 $254.5 $254.5 $254.5 $254.5 Total Expenditure (Rule 20B) $28,504 $38,806 $50,514 $55,096 $54,972 Total Expenditure (Rule 20C) $8,494 $11,548 $15,112 $16,640 $16,288 Total Expenditure (Rule 20B and Rule 20C) $36,998 $50,354 $65,626 $71,736 $71,260 1 (3) Transmission Rule 20B and Rule 20C and Circuit Breaker 20 B&C) Figure I-26 Transmission Overhead to Underground Conversions Capital Expenditure Summary (Rule 20B, Rule 20C and Rule 20 B/C Circuit Breakers) Various WBS Elements35 Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) See workpapers pp Nominal $ 2012 Constant $ $4,063 $1,336 $2,470 $1,093 $3,632 $3,825 $3,911 $4,015 $4,081 $4,180 $4,614 $1,489 $2,655 $ 1,128 $3,632 $3,764 $3,764 $3,764 $3,764 $3,764 Nominal $ 2012 Constant $ Includes cost for telecommunications work for Rule 20 B and Rule 20C conversions: WBS Elements CIT-00-0P-NS , CIT-00-0P-NS WBS Elements CET-PD-CR-TB-TREAST, CET-PD-CR-TC-TREAST. 63

65 This section includes all underground conversions associated with Transmission Lines including Rule 20B, Rule 20C and 20 B/C Circuit Breakers. (a) Cost Forecast SCE forecas ts annual expenditures at $3.757 million (in constant 2012 dollars) based on 2012-recorded costs for Transmission Rule 20B, Rule 20C and 20 B/C Circuit Breakers. The CPUC requires SCE to comply with the conditions set forth in Rule 20 tariffs, and is required to execute conversions that meet the requirements of the tariff. Customer requests that SCE is obligated to respond to drive the level of activity in this category. The following is the breakdown of the forecasts by each type of conversion. Transmission Rule 20B: As seen from Table I-51, annual spending in constant dollar terms has fluctuated between $1.1 million and $3.8 million during The variability is due to site-specific conversions and dependent on the volume of customer requests. Hence, SCE forecasts the annual expenditures at $3.437 million (in constant 2012 dollars) based on recorded 2012 costs for forecast with an expectation of increased construction activities being performed in SCE s service territory due to higher demand for residential development coupled with increased requests from cities for underground conversions. Rule 20B represents the majority of the activity within this category and accounts for approximately 91 percent of the costs. Table I-51 Transmission Rule 20B and Rule 20C and Circuit Breaker 20B&C Capital Expenditures Summary (100% CPUC-Jurisdictional Constant 2012 $000) Transmission Rule 20B $3,862 $1,050 $2,374 $1,104 $3,437 $3,437 $3,437 $3,437 $3,437 $3,437 Transmission Rule 20C $285 $247 $278 $24 $195 $195 $195 $195 $195 $195 C ircuit B reaker 20 B /C $467 $192 $2 $0 $0 $132 $132 $132 $132 $132 T otal $4,614 $1,489 $2,655 $1,128 $3,632 $3,764 $3,764 $3,764 $3,764 $3,764 % o f Rule 20B 84% 71% 89% 98% 95% 91% 91% 91% 91% 91% Table I-52 Transmission Rule 20B and Rule 20C and Circuit Breaker 20B&C Capital Expenditure Summary (100% CPUC-Jurisdictional Nom inal $000) Transmission Rule 20B $3,370 $937 $2,208 $1,069 $3,437 $3,493 $3,571 $3,666 $3,726 $3,817 Transmission Rule 20C $249 $220 $259 $24 $195 $198 $202 $208 $211 $216 C ircuit B reaker 20 B /C $444 $178 $2 $0 $0 $134 $137 $141 $143 $147 Total $4,063 $1,336 $2,470 $1,093 $3,632 $3,825 $3,911 $4,015 $4,081 $4,180 64

66 Transmission Rule 20C: As seen from Table I-51, the annual spending varied with a high of $285,000 in 2008 and a low of $24,000 in Similar to Rule 20B, Rule 20C is dependent on the volume of customer requests in a particular year and hence explains the variability in historical expenditure variability. SCE forecasts the annual expenditures at $195,000 (in constant 2012 dollars) based on recorded 2012 costs with an expectation of increased construction activities being performed in SCE s service territory due to higher demand for residential development coupled with increased requests from private developers for underground conversions 20 B/C Circuit Breakers: As can be seen from Table I-51, the annual spending has varied in This work is in direct response to customer requests and hence fluctuates significantly from year-to-year. SCE s annual expenditure request for is based on the five-year average from 2008 to See workpapers 4. Relocations of Distribution Lines p. 122 Figure I-27 Relocation of Distribution Lines Capital Expenditure Summary WBS Element CET-PD-CR-RL Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ 2012 Constant $ $39,969 $30,077 $45,804 $33,703 $31,460 $3 3,853 $33,823 $34,949 $36,857 $37,660 $36,857 $36,857 $38,597 $39,417 $36,857 $36,857 $40,298 $41,387 $36,857 $36,857 Nominal $ Constant $ Each year, local governmental agencies request SCE to relocate portions of SCE s distribution facilities located along public rights-of-way. Additionally, local agencies often require developers to improve frontage streets to their ultimate width for future property development. SCE also receives relocation requests from individual customers associated with remodeling or expansion. 65

67 The requests for relocation of electric facilities are dependent on SCE s service territory s business climate and building cycles a) Cost Forecast Figure I-27 shows the recorded expenditures for , and the forecast expenditures for distribution relocations. As can be seen from Figure I-27, annual spending in constant dollar terms has steadily increased from $33.7 million in 2009 to $36.8 million in 2012 in 2012 constant dollars. Given this trend, SCE considers 2012 to be the best representation of the level of activity in the future. Therefore, SCE s forecast of annual expenditure is $36.8 million (in constant 2012 dollars) based on recorded 2012 costs. 5. Distribution Added Facilities See workpapers pp. 123 Figure I-28 Distribution Added Facilities Capital Expenditure Summary WBS Element CET-PD-AF-DA Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ $5,832 $6,086 $5,297 $4,818 $3,999 $4,086 $4,188 $4,277 $4,372 $4, Constant $ $6,683 $6,820 $5,695 $4,974 $3,999 $3,999 $3,999 $3,999 $3,999 $3,999 Forecast Nominal $ Constant $ SCE s standard service is at one point, through one meter, at one voltage class under its tariff schedules. When customers request services that would require facility installation in addition to, 66

68 or in substitution for, standard facilities, these are termed Added Facilities, and we record these costs in this work category.36 Typical added facilities projects for the distribution system include: Subtransmission metered service Primary metered service - Distribution Automatic Preferred Emergency (PE) services SCE charges a monthly fee for added facilities based on the total installed cost of the equipment multiplied by the applicable monthly rate. Either the customer or SCE may finance added facilities. When the added facilities project is customer financed, SCE is deeded the equipment, and the customer pays the applicable federal and state taxes for the contributions in aid of construction. We treat revenues from these projects as Other Operating Revenue as discussed in Ms. Reeves s testimony in Exhibit SCE-03, Volume 10. a) Cost Forecast As shown in Figure I-28, the annual spending on distribution added facilities fluctuated between $6.82 million in 2009 and $3.99 million in 2012, in constant dollar terms. The variation is due to the number of applicant requests for this type of work in a particular year and other exogenous factors that affect the project schedules like environmental assessments, obtaining necessary approvals, meetings and negotiations with custom ers etc. SCE expects the spending during the forecast period will be similar to 2012-recorded expenditure. Hence, SCE used the 2012-recorded level of $3.99 million, in constant dollars as the annual forecast for 2013 to This includes the total costs of the projects. Customer contributions to fund Added Facilities are deducted from these amounts in the Results of Operations model. 67

69 1 See workpapers 6. Distribution Claims p. 124 Figure I-29 Distribution Claims Capital Expenditure Summary WBS Element CET-PD-CL-DC Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ $18,610 $21,966 $17,028 $22,435 $24,137 $22,795 $23,363 $23,859 $24,392 $25, Constant $ $21,327 $24,614 $18,307 $23,162 $24,137 $22,310 $22,310 $22,310 $22,310 $22,310 Nominal $ Constant $ Distribution claims occur when damage to SCE s system is attributed to actions of others. This damage is most often downed wires, poles and associated equipment, and damaged ground level transformers and equipment. The most common claims are for automobiles colliding with distribution poles. Claim damages need immediate response. The damage is often the result of vehicular accidents, and the damaged equipment may pose a public safety hazard. In addition, damaged equipment might lead to customer outages. In many cases, calls from police or fire departments that are already at the scene of the accident initiate this work. Timely response is critical to facilitate work of the first responders, to restore service if affected, and to identify the party who caused the damage to improve chances o f recovering the costs. a) Cost Forecast Claim damage varies from year to year based on activities outside the utility s control. Therefore, SCE used the recent 5-year average as the basis for the forecast. SCE forecasts 68

70 $22.3 million in 2012 constant dollars for gross claims costs based on a five-year average of Figure I-29 summarizes SCE s request in this activity.37 See workpapers 7. Prefabrication V p.125 Figure I-30 Prefabrication Capital Expenditure Summary WBS Element CET-PD-OT-PF Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ $18,323 $18,149 $16,411 $16,583 $18,618 $24,270 $28,515 $28,455 $30,077 $31, Constant $ $20,998 $20,337 $17,643 $17,120 $18,618 $23,753 $27,229 $26,607 $27,509 $27,684 Nominal $ Constant $ Each of SCE s 35 districts has a prefabrication operation that is responsible for staging material for the construction crews, assembling prepackaged kits, and properly disposing of materials removed from jobsites. Staging material involves receiving shipments from SCE or manufacturer warehouses, performing material accounting, and placing the delivered items in storage bays until the material is loaded onto the construction crew s trucks on the day of the job. Tracking shipments and ordering materials for unplanned jobs is also part of this responsibility. Assembling kits is the process of gathering miscellaneous materials maintained as inventory in the district for particular jobs. This process also includes assembling items into a product installed as a single unit. For example, rather than taking three individual transformers to a jobsite and installing them one at a time, the prefabrication group will mount them on a bracket and perform the 37 Please note that these costs represent gross capital expenditures without crediting third party contributions. The adjustment for contributions or claim recovery is performed in the Results of Operations model discussed by Mr. Snow s in SCE-10, Vol

71 necessary wiring at the service center. The crew then can install the complete bank of three transformers as one unit at one time. Properly disposing of removed materials is critical to the electrical construction process. We install many items removed from service decades ago and have various requirements related to hazardous waste disposal.38 The prefabrication employees are the service center experts in the environmental compliance processes required to safely dispose of and salvage electrical waste. With no prefabrication work, crews would spend a significant amount of time at the warehouse every day trying to gather the necessary equipment and parts needed to execute the work. This would create significant resource imbalances, loss of labor productivity, increased labor hours and other associated costs. The long-term effect would be less work completed for the same hours paid to the craft employees. In addition, complying with environmental regulations requires continuous training. If these duties were the responsibility of the crew, there would be considerable risk that mistakes and gaps in training would lead to fines, citations, or even the complete shutdown of a service center for environmental violations. Disruptions like these would require crew members to correct violations rather than construct and maintain SCE s distribution system and would ultimately result in less work for the same costs. a) Cost Forecast Figure I-30 shows the required funding level forecast for 2013 to The prefabrication work is directly dependent on the total distribution related work that need prefabrication work support. The ratio of the total distribution cost that need prefabrication work to the prefabrication work expenditures from is shown in Table I-53. This ratio can vary from year to year based on the mix of work. 38 See Mr. McDonald s testimony in SCE-03, Vol. 9 for a detailed description of the hazardous waste removal processes performed at the local service centers. 39 See Mr. Trainor s testimony in SCE-03, Vol. 6, Part 2, for the prefabrication costs associated with the Pole Loading Program. 70

72 71 Table I-53 Prefabrication Work Percentage Spend Analysis (100% CPUC-Jurisdictional Nom inal $000) Total Distribution Expenditure $725,056 $751,177 $798,231 $832,593 $793,492 Prefabrication Work Expenditures $18,323 $18,149 $16,411 $16,583 $18,618 Percentage Spend for Prefabrication 2.53% 2.42% 2.06% 1.99% 2.35% As seen in Table I-54, prefabrication work expenditure has fluctuated between 2.53 percent and 1.99 percent from Therefore, SCE used a five-year average of 2.27 percent to forecast the prefabrication work expenditures for Table I-54 Prefabrication Expenditure Forecast Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Total Distribution Expenditures $1,047,568 $1,200,903 $1,173,459 $1,213,224 $1,220,970 Percentage Spend for Prefabrication 2.27% 2.27% 2.27% 2.27% 2.27% Prefabrication Work Expenditures $ 23,753 $ 27,229 $ 26,607 $ 27,509 $ 27,684 4 The increase in forecast is primarily due to the increase in work volumes such as 5 distribution infrastructure replacement discussed by Mr. Lee in Exhibit SCE-03, Volume 4, and 6 customer growth discussed earlier in this exhibit. 71

73 1 8. Distribution Transformers See workpapers Figure I-31 Distribution Transformers Capital Expenditure Summary WBS Element CET-PD-OT-TR-TRANSF Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) $120,000 $100,000 N. ^ ^ Nominal $ $75,055 $100,425 $101,993 $6 5,648 $75,231 $80,412 $88,073 $97,897 $102,177 $104, Constant $ $86,013 $112,531 $109,653 $67,774 $75,231 $78,698 $84,102 $91,540 $93,452 $93,491 Nominal $ 2012 Constant $ T&D needs to maintain an inventory of distribution transformers of less than 500kVA rating as we need relatively large volumes for installation and replacement on a regular basis. Almost every distribution work category needs some transformer installation or replacement. Not being able to replace distribution transformers in a timely manner would mean outages for customers directly connected to the transformers, as there are limited means o f re-routing service. Transformers are replaced when they fail in service, or based on deterioration (like leaks) observed during inspection or other fieldwork. When SCE replaces a pole or cable, often it is cost effective to replace the older transformer attached, depending on the age of the transformer. Similarly, during new construction to serve new customers, relocate poles, or convert overhead lines to underground, distribution transformer installations accompany installation of poles and conductors. 72

74 SCE capitalizes the material, procurement, and associated costs for distribution transformers at the time of purchase.40 a) Cost Forecast Figure I-31 shows forecast funding requirements over the period for the installation or replacement of transformers.41 Transformer installations and replacements are dependent on the type of distribution work. Based on the historical data of unitized work orders for , SCE identified the distribution activities that involve either an installation or replacement of a transformer. The count of transformers by each activity type, the transformer unit acquisition costs, the average costs associated with transformer removals and the typical lag time between the time the transformer is acquired and the time it is installed and energized was identified based on the same historical data of work orders.42 To develop the transformer forecast for each type of activity, SCE translated the primary unit work volume forecast for each type of work activity to the total count of transformers. SCE then applied the average acquisition lag time to develop the transformer unit counts for The transformer acquisition costs times the total count of transformers per year for provide the total transformer expenditure forecasts. An example for 4kV cutovers is shown in Table I-55. Historical data analysis of unitized work orders indicates that SCE needs one transformer for every three poles for the 4kV cutover work. The acquisition cost for the transformers for this activity is $1,485 per unit. Based on historical data, an average removal cost of 7 percent43 is included to the transformer unit cost to account for the removal of existing transformer. Hence, the total unit cost per transformer including removal costs is $1, This is in accordance with 18 C.F.R. Part 101, Account 3680 (2010) which states: This account shall include the cost installed of overhead and underground distribution transformers, whether actually in service or held in reserve. See Mr. Trainor s testimony in SCE-03, Vol. 06, Part 2, for the transformer costs associated with the Pole Loading Program. 42 See Workpaper for Distribution Transformers WBS Element CET-PD-OT-TR-TRANSF. This workpaper shows the transformers associated with the Pole Loading Program as well. 43 The removal costs are based on historical analysis of hi storical work orderssis shown in the Workpaper for Distribution Transformers. See workpapers pp

75 Table I-55 Transformer Forecast for 4kv Cutovers Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Transformer Unit Adjusted Forecast ( with Lag) Transformer Total Expenditure Transformer Transformer Per Work Transformer Acquisition Avg. Lag Unit Ratio Purchase Cost Incl. in Years Description ('08-'12 data) Price Removal Cost (new) kv Cutovers 0.3 $1,485 $1, $971 $1,070 $1,070 $1,070 $1, The forecast count of transformers per year is generated by multiplying the primary unit work volume forecast for 4kV cutovers for by the transformer per work unit ratio involved in the cutover. Since the acquisition lag time for the 4kV cutover is 1.1 years, we schedule a purchase in 2013 tied to transformer demand for an activity in We used this scheduling methodology is repeated to forecast transformer unit counts for The transformer total expenditure for the 4kv cutovers is the count of transformer forecasts times the total unit cost of the transformer as shown above. The total cost of transformer replacement for all activities is the based on the count of transformer forecasts and the cost per transformer by each activity. As shown in Figure I-31, SCE expects the expenditures to increase from $78.69 million in 2013 to $93.49 million in 2017 in 2012 constant dollar terms. The increase in forecast is primarily due to the increase in work volumes such as distribution infrastructure replacement discussed by Mr. Lee in Exhibit SCE-03, Volume 4, and customer growth discussed earlier in this exhibit. 74

76 Tools and Lab Equipment See workpapers pp Figure I-32 Tools and Lab Equipment Capital Expenditure Summary WBS Elements CET-PD-OT-DL, CET-PD-OT-DT Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ $1,652 $3,075 $4,312 $1,933 $3,051 $3,117 $3,195 $3,263 $3,336 $3, Constant $ $1,893 $3,445 $4,636 $1,996 $3,051 $3,051 $3,051 $3,051 $3,051 $3,051 Nominal $ Constant $ This activity includes the costs of portable tools and lab equipment capital expenditures. These expenditures are associated with specialized vocational equipment costing more than $1,000 each, that field personnel needs to perform distribution work. Examples of portable tools and lab equipment include electric, pneumatic and hydraulic power tools, electric generators, cable pulling equipment, analyzers, calibrators, baths, furnaces, current shunts, gauge calibrators, impulse test sets, power system analyzers, vibration analysis data pack and volt m eters. a) Cost Forecast Figure I-32 shows the recorded expenditures for tools and lab equipment. Tools and lab equipment costs can vary based on the volume of gear purchased for new or additional work and work methods. It can also vary based on the replacement rate of these tools and equipment due to wear and tear. The annual spending on tools and lab related equipment has ranged from a high of $4.636 million in 2010 to a low of $1.893 million in 2008, in 2012 constant dollars. Expenditures in 2010 were high primarily due to increased spending on thermal imaging cameras, mobile radios, and gas monitoring equipment. Since the number o f SCE crews and work methods in 2012 best represents the 75

77 1 2 3 volume of tools SCE needs to purchase or replace in the future, it has used 2012-recorded level of $3.051 million as the forecast. This is approximately equal to the five-year average expenditures too. 10. Shop Services and Instrumentation Division (SSID) Tools and Equipment Figure I-33 SSID Tools and Equipment Capital Expenditure Summary WBS Elements CET-OT-OT-SD See workpapers Recorded /Forecast p. 130 (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Nominal $ 2012 Constant $ $1,469 $2,822 $2,862 $1,443 $1,563 $2,141 $2,189 $2,239 $2,287 $2,333 $1,550 $2,930 $2,990 $1,478 $1,563 $2,102 $2,102 $2,102 $2,102 $2,102 Nominal $ 2012 Constant $ Forecast SSID capital expenditures consist primarily of lab, test and shop equipment as well as machinery used to perform electrical and mechanical support services. SSID purchases a variety of equipment to support the wide range of activities such as inspection, troubleshooting, repairing, refurbishing, overhauling and rebuilding mechanical equipment such as turbines, rotors, stators, auxiliary equipment, crane components, pumps, wicket gates, valves, motors and generators. This also includes any expenditure related to calibration, inspection and testing of equipment such as battery voltmeters, relays and circuit fault indicators. 76

78 a) Cost Forecast SSID tools expenditures are primarily driven by the amount of work SSID performs to refurbish or maintain distribution tran sformers and some substation equipment.44 Since the volume of this work varies from year to year. Therefore, SCE has forecast SSID tools related capital expenditures using a five-year average of $2.102 million in 2012 constant dollars for as shown in Figure I-34. D. Distribution Field Program Benefits The Distribution Field Program (DFP) be gan in 2010 to increase the throughput of SCE s distribution field workforces. The expected SCE crew productivity improvements will enable T&D to reduce future contracted workforce requirements. The DFP initiative consisted of a detailed assessment of work performed in DC&M districts to identify improvement opportunities followed by pilots in those districts to validate improvement opportunities. These process improvement opportunities provided the basis for DFP to develop an integrated solution in the areas of performance management, yard layout and flows, training, and work/resource scheduling, contractor crew management. Based on the preliminary results of those pilots, SCE developed an integrated set of solutions for implementation across all of T&D s 35 districts. This section shows the benefits associated with operation and maintenance. We explain the benefits associated with capital expenditures in the capital section of the testimony. 1. Cost Forecast We have already implemented some o f the changes associated with DFP and the recorded costs in 2012 reflect the results. We implemented additional changes in 2012 and 2013, the effect of which we expect to ramp up in 2014 and fully materialize in As mentioned previously, SCE expects to perform more work with the existing SCE crews, and therefore reduce the number of contract crews needed in the future. Based on the types of work performed by distribution crews, we allocate 90 percent of the DFP benefits as a reduction to capital expenditures and 10 percent as a reduction to O&M each year.45 The forecasts are based on expected productivity improvements, number of distribution crews SCE currently has, and the estimated cost per contractor crew. The benefits forecast is $ See Part 1 to Mr. Stark s testimony in SCE-03, Vol. 6 and Mr. Kedis testimony in SCE-03, Vol See workpaper entitled OpX Distribution Field Program Benefit Analysis WBS element CET-0T-0T-BN See workpapers pp

79 78 Workpaper - Southern California Edison / 2015 GRC - APPLICATION million in 2015 represented in 2012 constant dollars as shown in Table I-56 and $ million for in nominal dollars as shown in Figure I-34. See workpapers a) O&M Benefits, FERC Account pp Table I-56 Distribution Field Program - Operating Expense Benefits (FERCAccount ) Recorded /Forecast (100% CPUC-Jurisdictional Constant 2012 $000) Labor Non-Labor Total Recorded Forecast $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($1,660) ($2,766) $0 $0 $0 $0 $0 $0 ($1,660) ($2,766) Ratio of Labor to Total 0% 0% 0% Basis of Forecast: Based on Contractor Crew Reduction Benefits Basis of Labor/Non-Labor Split: Forecast Based 4 b) Capital Benefits See workpapers Figure I-34 -V p. 148 Distribution Field Program - Capital Expenditure Benefits WBS Element CET-0T-0T-BN Recorded /Forecast (100% CPUC-Jurisdictional Nom inal and Constant 2012 $000) Forecast N o m in a l $ 2012 C onstant $ $ - $ (1 5,6 4 4 ) $ (2 6,6 2 7 ) $ (2 7,2 2 2 ) $ (2 7,9 5 8 ) $ - $ (1 4,9 3 9 ) $ (2 4,8 9 8 ) $ (2 4,8 9 8 ) $ (2 4,8 9 8 ) Nominal $ Constant $ 78

80 2015 General Rate Case- APPLICATION In d e x o f W o r k p a p e r s EXHIBIT SCE-03, Volume 5 DOCUMENT PAGE(S) FERC Account Set, Remove and Relocate Meters 1-20 Meter Installation and Replacement Forecast FERC Account Construction Support Activities Miscellaneous Construction Inspection Expenses Distribution Line Rents Residential Service Connections Capital Workpaper 60 Customer Growth, Residential Service Connections Customer Growth, Residential Line Extensions Customer Growth, Residential Tract Development Customer Growth, Residential Backbone Development Commercial Service Connections Capital Workpaper 76 Customer Growth, Commercial/Industrial Service Connections Customer Growth, Commercial/Industrial Line Extensions Customer Growth, Commercial/Industrial Tract Development Agricultural Service Connections Capital Workpaper 88 Agricultural Service Connections Agricultural Line Extensions Streetlight Service Installations Capital Workpaper 96 Streetlight Service Installations PEV Transformers Capital Workpaper 100 Translating the PEV Forecast to Transformer Replacement Distribution Rule 20A Conversions Capital Workpaper Distribution Rule 20B and Rule 20C Conversions Capital Workpaper Distribution Rule 20 B and Rule 20C Transmission Rule 20B Conversions Capital Workpaper 119 Transmission Rule 20C Conversions Capital Workpaper 120 Circuit Breaker 20B&C Capital Workpaper 121 Relocation of Distribution Lines Capital Workpaper 122 Distribution Added Facilities Capital Workpaper 123 Distribution Claims Capital Workpaper 124 Prefabrication Capital Workpaper 125 Distribution Transformers Capital Workpaper 126 Distribution Transformers Distribution Tools and Lab Equipment Capital Workpaper SSID Capital Workpaper 131 FERC Account Distribution Field Benefits Distribution Field Benefits Capital Workpaper 148 Opx Distribution Field Program Benefit Analysis

81 2015 General Rate Case- APPLICATION In d e x o f W o r k p a p e r s EXHIBIT SCE-03, Volume 5 DOCUMENT PAGE(S) FERC Account FERC Account Total Capital Expenditure Summary

82 1 Beginning of Workpapers for: FERC A ccount: A c tiv ity : W itness: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TE R S Gregory M Ferree Forecast Method Chosen 2012$ (000) Recorded Forecast Labor Itemized Forecast 4,497 6,286 Non-Labor Itemized Forecast 3,724 5,206 Other N/A 0 0 Total 8,221 11,492 Description of Activity: Design Construction & Maintenance - Set, Remove, and Relocate Meters - Includes the cost of labor, materials used and expenses incurred to set new meters, remove meters, and change the location of meters at a customer's premise. Labor includes the costs for disconnecting and reconnecting; removing and reinstalling; sealing and unsealing meters; and other metering equipment in connection with initiating or terminating services. Includes related costs such as: transportation expenses; meals, traveling, lodging, and incidental expenses; division overhead; supply and tool expense; and meter seals. See Appendix C for Final Cost Centers included in this activity.

83 2 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R ELO C A TE M E T E R S Gregory M Ferree DETERMINATION OF RECORDED/ADJUSTED! Recorded Period $ (000) FERC Form 1 Recorded (Nominal $) Labor 2,537 2,787 3,166 3,536 4,496 Non-Labor (321) (5,256) (503) 3,553 3,724 Other Total 2,216 (2,469) 2,663 7,089 8,220 Adjustments- (Nominal $) - see Appendix B for additional detail Labor 3 (D (2) (2) 1 Non-Labor 4,873 8,745 3, Other Total 4,876 8,744 3, Recorded/Adjusted (Nominal $) Labor 2,540 2,786 3,164 3,534 4,497 Non-Labor 4,552 3,489 2,782 3,966 3,724 Other Total 7,092 6,275 5,946 7,500 8,221 Escalation: Labor Non-Labor Other Recorded/Adjusted (Constant 2012$) Labor 2,899 3,084 3,386 3,650 4,497 Non-Labor 4,994 3,852 2,998 4,062 3,724 Other ^ Total 7,893 6,936 6,384 7,712 8,221 10,000 Recorded Adjusted (2012$) 8,000 6, IB Labor (std escl) Non-Labor (std escl) Other (not escl)

84 3 FERC A ccount: A ctivity: W itness: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - SET, R E M O V E, A N D R E LO C A TE M E TE R S Gregory M Ferree Forecasting M ethods - S um m ary of Results of all M ethods Studied $ (000) 2 R ecorded Years ( ): Results of Averaging (A2) sd** Chosen _abor 4,073 4,073 4, no ''Jon-Labor 3,893 3,893 3, no Other no Total 7,966 7,966 7,966 n/a n/a 3 Recorded Years ( ): Results of Linear Trending (T3) Results of Averaging (A3) r2* I Chosen sd** Chosen _abor 4,955 5,511 6, no 3,844 3,844 3, no '"Jon-Labor 4,321 4,684 5, no 3,595 3,595 3, no Other no no Total 9,276 10,195 11,114 n/a n/a 7,439 7,439 7,439 n/a n/a 4 R ecord e d Years ( ): Labor Non-Labor Other Total Results of Linear Trending (T4) r2 * Chosen 4,780 3, ,230 5, no 3,897 3, no no 8,609 9,127 9,646 n/a n/a 2013 Results of Averaging (A4) ,654 3,654 3,654 3,659 3,659 3, sd** Chosen 526 no ,313 7,313 7,313 n/a n/a 5 Recorded Years ( ): Results of Linear Trending (T5) Results of Averaging (A5) o CM CO r2* I Chosen sd** Chosen Labor Non-Labor Other Total 4,632 5,008 5, no 3,503 3,503 3, no 3,227 2,994 2, no 3,926 3,926 3, no no no 7,859 8,002 8,145 n/a n/a 7,429 7,429 7,429 n/a n/a O th e r M eth o d s: Labor Non-Labor Other Total Last Recorded Year (LRY) ChoseTT 4,497 4,497 4,497 no 3,724 3,724 3,724 no ,221 8,221 8,221 n/a no Itemized Forecast (IF) i r Chosen 4,933 5,453 6,286 yes 4,085 4,516 5,206 yes ,018 9,969 11,492 n/a no Forecast Adjustm ents : Base Forecast Method Adjustments* Method Labor Non-Labor Other Total IF 4,933 5,453 6, IF 4,085 4,516 5, N/A ,018 9,969 11, r2 = R Squared (Based on recorded years data) sd = standard deviation (Based on recorded years data) See Appendix B For Additional Detail

85 4 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TER S Gregory M Ferree R esults: Fo re c a stin g R esults Labor Non-Labor Other Total Method Selected Itemized Forecast 4,933 5,453 6,286 Itemized Forecast 4,085 4,516 5,206 N/A ,018 9,969 11,492 A nalysis of Forecasting Methods Analysis of Linear Trending Method: In D , the CPUC stated that if costs have shown a trend in a certain direction overthree or more years, the last year recorded is an appropriate base estimate. Labor costs show a five-year trend while non-labor costs do not show any trend. The use of an itemized forecast is more indicative of the number of meter sets and replacements that will be needed, as described in testimony. Analysis of Averaging Method: In D , the CPUC stated that for those sub-accounts which have significant fluctuations in recorded year expenses from year to year, an average of recorded expenses is appropriate. The expenses in this sub-account did not show significant fluctuations over the historical period. Use of an itemized forecast is more indicative of the number of meter sets and replacements that will be needed. Analysis of Last Recorded Year (2012): In D , the CPUC stated that if costs have shown a trend in a certain direction over three or more years, the last year recorded is an appropriate base estimate. Labor costs show a five-year trend while non-labor costs do not show any trend. The use of an itemized forecast is more indicative of the number of meter sets and replacements that will be needed, as described in testimony. Analysis of Itemized Forecast Method: As described in testimony, the forecast for this sub-account is based on the number of meter sets and meter replacements forecast for the test year. Historical costs do not include the same volumes or costs as the test year making an itemized forecast more accurate for the activities included in this sub-account.

86 5 FERC A ccount: A c tiv ity : W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - SET, R E M O V E, A N D R ELO C A TE M E TE R S Gregory M Ferree Recorded / Forecast $ (000) 12,000 10,000 8,000 6, I I Labor (std escl) Non-Labor (std escl) Cither (not escl) I R ec o rd e d Period Forecast Expenses (constant 2012$) Labor (standard escalation) 2,899 3,084 3,386 3,650 4,497 4,933 5,453 6,286 Non-Labor (standard escalation) 4,994 3,852 2,998 4,062 3,724 4,085 4,516 5,206 Other (not escalatable) Total 7,893 6,936 6,384 7,712 8,221 9,018 9,969 11,492 $ (0 0 0 ) Labor Prior year Total 4,497 4,933 5,453 Change Total 4,497 4,933 5,453 6,286 Non-Labor Prior year Total 3,724 4,085 4,516 Change Total 3,724 4,085 4,516 5,206 Other Prior year Total Change Total Total Change Labor Non-Labor Other Total N/A ,523

87 6 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TE R S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g r e a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d office s u p p lie s re q u ire d d u e to a n in c re a s e in activ ity (n o n -la b o r) L a b o r: S e e Testim ony and S upporting W o rkp ap ers. N on-labor: 361 S e e Testim ony and S upporting W o rkp ap ers. O th e r: 0 N o t a p p lic a b le.

88 7 FERC A ccount: A ctivity: W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R ELO C A TE M E TE R S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d office s u p p lie s re q u ire d due to an in crease in activity (non-labor) Labor: S e e Testim ony and Supporting W o rkp ap ers. N on-labor: 431 S e e Testim ony and Supporting W o rkp ap ers. O th e r: 0 N o t a p p lic a b le.

89 8 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A ctivity: W itness: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - SET, R E M O V E, A N D R ELO C A TE M E TE R S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d office s u p p lie s re q u ire d due to an in crease in activity (non-labor) Labor: S e e Testim ony and Supporting W o rkp ap ers. N o n -L a b o r: S e e Testim ony and Supporting W o rkp ap ers. O th e r: 0 N o t a p p lic a b le.

90 9 FER C A cco u n t: A ctivity: W itn ess: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R ELO C A TE M E T E R S G regory M Ferree APPENDIX A Detail Description of Final Cost Centers Included in This Activity

91 10 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: 586 Meter Expenses Activity: D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - SET, R E M O V E, A N D R E LO C A TE M E TER S W itn e ss : G regory M Ferree Description of Final Cost Centers included in this activity: * See Appendix C fo r Sum m ary Final Cost Centers S U M M A R Y M E T E R S IN /O U T Includes payroll, autom otive, and other expenses incurred in: installing, reconnecting, and sealing m eters and other m eter equipm ent in connection with initiating service; rem oving, disconnecting, and unsealing m eters and other m etering equipm ent in connection with term inating services; and rearranging and changing location of existing m eters, instrument transform ers, accessory equipm ent, and m eter appurtenances. Also includes the costs of obtaining m eter readings incidental to the installation, removal, or rearrangement of meters. s u m m a r y S E T T IN G / R E M O V IN G / R E L O C A T IN G M E T E R S Includes payroll, autom otive, and other expenses incurred in: installing, reconnecting, and sealing m eters and other m eter equipm ent in connection with initiating service; rem oving, disconnecting, and unsealing m eters and other m etering equipm ent in connection with term inating services; and rearranging and changing location of existing m eters, instrument transform ers, accessory equipm ent, and m eter appurtenances. Also includes the costs of obtaining m eter readings incidental to the installation, removal, or rearrangement of meters. F TURN-O N / TU R N -O FF SER VIC E (CATALINA) Includes payroll, autom otive, and other expenses incurred in routine turning on and turning off electric services. Also includes meter readings incidental to this operation.

92 11 FERC A ccount: A c tiv ity : W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TE R S Gregory M Ferree * See Appendix C fo r Sum m ary Final Cost Centers Recorded/Adjusted (Constant 2012$ By Final Cost Center $ (0 00) S U M M A R Y METERS IN /O U T SU M M A R Y SETTING / REMOVING / RELOCATING METERS 7,832 6,793 6,186 7,492 8,050 F TURN-ON / TURN-OFF SERVICE (CATALINA) Total 7, ,931 6, , ,221 ** Due to rounding, totals m ay n o t tie to o ther w orkpaper pages.

93 12 Workpaper - Southern California Edison / 2015 GRC - APPLICATION THIS PAGE INTENTIONALLY LEFT BLANK

94 13 FER C A ccou n t: A ctivity: W itn ess: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TER S G regory M Ferree APPENDIX B Detail of Total Company Adjustments to Recorded

95 14 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TER S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses Adjs - (Nom inal $) $ (000) Labor 3 (1) (2) (2) N on-labor 4, , , O ther Total 4, , , Organizational Unit Adjustment 1 C S B U -K M M. I D P -O U X -F _ T D C ustom er Service transfer accounting adjustm ent to appropriately m ap expenses - This adjustment transfers 2012 expenses from Test/Inspect/Repair Meters to activity Labor N on-labor O th er Total O rganizational Unit Adjustm ent 2 T D B U -ID P -O U -R E M A P P._ T O _ This consolidation adjustment re-maps the expenses from activity to Labor N on-labor O th er Total O rganizational Unit Adjustm ent 3 T D B U -ID P -O U -R E M O V E _ M T R. _CR _ TO _ This adjustment moves m eter credits out of activity and into to be consistent with historical costs. Labor N on-labor 5, , , O th er Total 5, , , O rganizational Unit Adjustm ent 4 T D B U -ID P.K M M -O U X -T R A N S F E R _ R U R A L S _ T O _ C S This adjustment transfers rural recorded expenses from activity , and to 587 Customer Service. Labor 0 (1) (2) (2) (1) N on-labor 0 (1) (1) (1) O th er Total 0 (2) (3) (3) (1) 0 0 0

96 15 FERC A ccount: A c tiv ity : W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TER S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses Adjs - (Nom inal $) $ (000) Organizational Unit Adjustm ent 5 T D B U -ID P -O U -O N E _ T IM E _ R E M _ W R IT E _ O F F This adjustment removes one-time write-off. Labor Non-Labor (821) O ther Total (821)

97 16 Workpaper - Southern California Edison / 2015 GRC - APPLICATION THIS PAGE INTENTIONALLY LEFT BLANK

98 17 FER C A ccount: A ctivity: W itn ess: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R ELO C A TE M E TE R S G regory M Ferree APPENDIX C Final Cost Centers Included in This Activity

99 18 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tivity: W itness: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R ELO C A TE M E TE R S Gregory M Ferree Final Cost Centers included in this activity: Summary Final Cost Centers: M E T E R S IN /O U T F F F F F F F F F F F F F F F F F F F F F F F F F SETTIN G / R EM O VING / RELOCATING M ETERS F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F

100 19 FERC A ccount: A c tiv ity : W itness: 586 Meter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - SET, R E M O V E, A N D R E LO C A TE M E TER S Gregory M Ferree In d iv id u a l F in a l C o s t C e n te r s : F502491

101 20 Workpaper - Southern California Edison / 2015 GRC - APPLICATION End of Workpapers for: FERC A cco u n t: A ctivity: W itn e ss: 586 M eter Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - S E T, R E M O V E, A N D R E LO C A TE M E TER S G regory M Ferree

102 21 Workpaper Title: Meter Installation and Replacement Forecast (FERC Account )

103 22 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Workpaper: Activity: Meter Installation and Replacement Forecast Step 1: We identified the historical gross meter set counts based on Ms. Sheng's gross meter set recorded data The gross meter count is a total count including Residential, Commerical and Agriculural services Recorded Count of Meter Sets 46,048 32,145 25,557 19,765 22,866 Step 2: We indentified the historical count of meter change-outs based on the data provided by SCE's Customer Service Organ Recorded Count of Meter Replacements 99, ,867 77,265 77,374 83,634 Step 3: Add the meter counts from Step 1 and Step 2 and divide by the total recorded expense to obtain the cost per meter Recorded, 2012 CONSTANT $ (000) Total count of meters 145, , ,822 97, ,500 Total recorded expem $7,893 $6,936 $6,384 $7,712 $8,221 Cost Per Meter $0,054 $0,050 $0,062 $0,079 $0,077 Step 4: To develop the forecast for , we obtained the meter set forecast from Ms. Sheng's gross meter set forecast. For meter replacements, we have used the 2012 recorded count The total expense forecast is the total meter set count times the cost per meter as calculated above in Step 3 We have used the 2012 unit cost of $77 per meter to develop the forecast 2012 CONSTANT $ (000s) Forecast Count of Meter Sets 33,188 45,517 60,180 67,358 68,178 Count of Meter Change-Outs 83,634 83,634 83,634 83,634 83,634 Total Meter Count 116, , , , ,812 Cost Per Meter Total Expense $9,018 $9,969 $11,101 $11,655 $11,719 For the test year, we calculate the 3 year average, $ 11,492 Step 5: To allocate the total forecast for labor and non-labor, we calculated the percentage of labor expense to the total based on recorded expenses 2012 CONSTANT $ Recorded Labor $2,899 $3,084 $3,386 $3,650 $4,497 Non-Labor $4,994 $3,852 $2,998 $4,062 $3,724 Total $7,893 $6,936 $6,384 $7,712 $8,221 Ratio of Labor to Tots 37% 44% 53% 47% 55%

104 23 Step 6. We used the 2012 recorded ratio of labor expense to the total for forecasting O&M expenses by labor and non-labor 2012 CONSTANT $ (000s) Forecast Labor 4,933 5,453 6,073 6,376 6,410 Non-Labor 4,085 4,516 5,029 5,280 5,308 Total 9,018 9,969 11,101 11,655 11,719 I I 2015 The levelized 3 year average for 2015 Labor 6,286 is allocated based on 2012 labor/non-labor ratio Non-Labor 5,206 Total 11,492 Step 7: The expense forecast for this activity including the levelized 2015 dollars is shown below 2012 CONSTANT $ Forecast Labor 4,933 5,453 6,286 6,373 6,407 Non-Labor 4,085 4,516 5,206 5,283 5,312 Total 9,018 9,969 11,492 11,656 11,719

105 24 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Beginning of Workpapers for: FERC A ccount: 588 Miscellaneous Distribution Expenses A c tiv ity : D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S W itness: Gregory M Ferree Forecast Method Chosen 2012$ (000) Recorded Forecast Labor Itemized Forecast 3,382 3,888 Non-Labor Itemized Forecast 13,748 1,451 Other Itemized Forecast 1,792 1,943 Total 18,922 7,282 Description of Activity: Design Construction & Maintenance - Construction Support Activities - Includes the cost of labor, materials used and expenses incurred by Transmission and Distribution Design Construction and Maintenance organization for stand-by time; distribution line rents; Facility Inventory Mapping; Field Accounting; Joint Pole organization; civil inspections; warranty inspections; switching; and supervision of field service representative in Rural districts. See Appendix C for Final Cost Centers included in this activity.

106 25 FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree DETERMINATION OF RECORDED/ADJUSTED Recorded Period $ (000) FERC Form 1 Recorded (Nominal $) Labor 7,016 7,570 5,668 5,746 5,459 Non-Labor 7,074 7,693 19,618 17,460 13,720 Other Total 14,090 15,263 25,286 23,206 19,179 Adjustments- (Nominal $) - see Appendix B for additional detail Labor 316 (1,695) (1,784) (2,633) (2,077) Non-Labor (3,708) 154 (2,122) Other ,041 1,550 1,792 Total (2,600) (937) (2,865) (460) (257) Recorded/Adjusted (Nominal $) Labor 7,332 5,875 3,884 3,113 3,382 Non-Labor 3,366 7,847 17,496 18,083 13,748 Other ,041 1,550 1,792 Total 11,490 14,326 22,421 22,746 18,922 Escalation: Labor Non-Labor Other Recorded/Adjusted (Constant 2012$) Labor 8,369 6,504 4,156 3,215 3,382 Non-Labor 3,693 8,663 18,854 18,522 13,748 Other ,041 1,550 1,792 Total 12,854 15,771 24,051 23,287 18,922 Recorded Adjusted (2012$) 28, ,000 12,000 8,000 4,000 0 s I Labor (std escl) Non-Labor (std escl) Other (not escl)

107 26 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A ctivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree F o re c a stin g M eth o d s - S u m m a ry o f R esu lts o f all M eth o d s S tu d ie d $ (000) 2 R ecord e d Years ( ): Results of Averaging (A2) sd** Chosen _abor 3,298 3,298 3, no ''Jon-Labor 16,135 16,135 16,135 2,387 no Other 1,671 1,671 1, no Total 21,104 21,104 21,104 n/a n/a 3 Recorded Years ( ): Results of Linear Trending (T3) Results of Averaging (A3) r2* I Chosen sd** Chosen _abor 2,810 2,423 2, no 3,584 3,584 3, no '"Jon-Labor 11,935 9,382 6, no 17,041 17,041 17,041 2,333 no Other 2,212 2,587 2, no 1,461 1,461 1, no Total 16,957 14,392 11,828 n/a n/a 22,086 22,086 22,086 n/a n/a 4 R ecord e d Years ( ): Results of Linear Trending (T4) Results of Averaging (A4) r2* I Chosen sd** Chosen _abor 1, (324) 0.77 no 4,314 4,314 4,314 1,313 no Sion-Labor 18,677 20,170 21, no 14,947 14,947 14,947 4,152 no Other 2,265 2,672 3, no 1,247 1,247 1, no Total 22,680 23,549 24,418 n/a n/a 20,508 20,508 20,508 n/a n/a 5 Recorded Years ( ): Results of Linear Trending (T5) Results of Averaging (A5) o CM CO r2* I Chosen sd** Chosen 1,146 (180) ( 1,506) 0.88 no 5,125 5,125 5,125 2,002 no 21,687 24,683 27, no 12,696 12,696 12,696 5,836 no 2,040 2,334 2, no 1,156 1,156 1, no 24,873 26,837 28,803 n/a n/a 18,977 18,977 18,977 n/a n/a O th e r M eth o d s: Last Recorded Year (LRY) Itemized Forecast (IF) Chosen Chosen _abor 3,382 3,382 3,382 no 3,579 3,760 3,888 yes Sion-Labor 13,748 13,748 13,748 no 9,355 1,417 1,451 yes Other 1,792 1,792 1,792 no 1,836 1,871 1,943 yes Total 18,922 18,922 18,922 n/a 14,770 7,048 7,282 n/a Forecast Adjustm ents : Base Forecast Method Adjustments*** Method IF 3,579 3,760 3, IF 9,355 1,417 1, IF 1,836 1,871 1, ,770 7,048 7, * r2 = R Squared (Based on recorded years data) ** sd = standard deviation (Based on recorded years data) *** See Appendix B For Additional Detail

108 27 FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree R esults: F o re c a stin g R esults Labor Non-Labor Other Total Method Selected Itemized Forecast 3,579 3,760 3,888 Itemized Forecast 9,355 1,417 1,451 Itemized Forecast 1,836 1,871 1,943 14,770 7,048 7,282 A nalysis of Forecasting Methods Analysis of Linear Trending Method: In D , the CPUC stated that if costs have shown a trend in a certain direction overthree or more years, the last year recorded is an appropriate base estimate. Costs in this sub-account have followed a trend but do not accurately forecast the work volume in the test year. As described in testimony, there are several work activities included in this sub-account which are more appropriately forecast using an itemized methodology. Analysis of Averaging Method: In D , the CPUC stated that for those sub-accounts which have significant fluctuations in recorded year expenses from year to year, an average of recorded expenses is appropriate. Costs in this sub-account have not shown significant fluctuations over the historical period and are more appropriately forecast using the itemized forecast methodology as described in testimony. Analysis of Last Recorded Year (2012): In D , the CPUC stated that if costs have shown a trend in a certain direction over three or more years, the last year recorded is an appropriate base estimate. As described in testimony, the volume of work in this sub-account is forecast to increase over the last year recorded making the last year recorded inappropriate for forecasting this sub-account. Analysis of Itemized Forecast Method: As described in testimony, this sub-account includes several different activities with different cost drivers. The use of an itemized forecast is appropriate to forecast the many work activities included in this sub-account.

109 28 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Recorded / Forecast $ (000) 28, ,000 12,000 8,000 4,000 0 H i f t Labor (std escl) Non-Labor (std escl) Cither (not escl) I R ec o rd e d Period Forecast Expenses (constant 2012$) Labor (standard escalation) 8,369 6,504 4,156 3,215 3,382 3,579 3,760 3,888 Non-Labor (standard escalation) 3,693 8,663 18,854 18,522 13,748 9,355 1,417 1,451 Other (not escalatable) ,041 1,550 1,792 1,836 1,871 1,943 Total 12,854 15,771 24,051 23,287 18,922 14,770 7,048 7,282 $ (0 0 0 ) Labor Prior year Total 3,382 3,579 3,760 Change Total 3,382 3,579 3,760 3,888 Non-Labor Prior year Total 13,748 9,355 1,417 Chanqe (4.393) (7.938) 34 Total 13,748 9,355 1,417 1,451 Other Prior year Total 1,792 1,836 1,871 Chanqe Total 1,792 1,836 1,871 1,943 Total Change Labor Non-Labor (4,393) (7,938) 34 Other Total N/A (4,152) (7,722) 234

110 29 FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g r e a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d office s u p p lie s re q u ire d d u e to a n in c re a s e in activ ity (n o n -la b o r) Labor: S e e Testim ony and Supporting W o rkpapers. N o n -L a b o r: (4,3 9 3 ) S e e Testim ony and Supporting W o rkpapers. O th er: 4 4 S e e Testim ony and Supporting W o rkpapers.

111 30 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A ctivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d office s u p p lie s re q u ire d due to an in crease in activity (non-labor) Labor: 181 S e e Testim ony and Supporting W o rkp ap ers. N o n -L a b o r: (7,9 3 8 ) S e e Testim ony and Supporting W o rkp ap ers. O th er: 3 5 S e e Testim ony and Supporting W o rkp ap ers.

112 31 FERC A ccount: A ctivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d office s u p p lie s re q u ire d due to an in crease in activity (non-labor) Labor: S e e Testim ony and Supporting W o rkp ap ers. N o n -L a b o r: 3 4 S e e Testim ony and Supporting W o rkp ap ers. O th er: 7 2 S e e Testim ony and Supporting W o rkp ap ers.

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114 33 FER C A ccou n t: A ctivity: W itn ess: M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree APPENDIX A Detail Description of Final Cost Centers Included in This Activity

115 34 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: Activity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Description of Final Cost Centers included in this activity: * See Appendix C fo r Sum m ary Final Cost Centers S U M M A R Y A N N U A L IN S P E C T IO N S W IR E L E S S T E C H N O L O G Y R ATES Includes payroll, automotive, and other expenses incurred by T & D employees when performing inspections of wireless/communication carrier installations on distribution equipment. S U M M A R Y C H A R G E B A C K R E Q U E S T S P O W E R D E L IV E R Y (P W R D ) Includes Information Technology (IT ) and C orporate Real Estate costs charged back to the business unit, but can also include: overseeing m aintenance of com puter applications; installing and maintaining PC Local A rea N etw ork/w ide A rea Network; supporting legacy system and facility maintenance. S U M M A R Y C H A R G E B A C K S - IN F O R M A T IO N T E C H N O L O G Y / C O R P O R A T E R E A L ESTATE Includes Information Technology (IT ) and C orporate Real Estate costs charged back to the business unit, but can also include: overseeing m aintenance of com puter applications; installing and maintaining PC Local A rea N etw ork/w ide A rea Network; supporting legacy system and facility maintenance. S U M M A R Y C H A R G E B A C K S - S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) Includes Information Technology (IT ) and C orporate Real Estate costs charged back to the business unit, but can also include: overseeing m aintenance of com puter applications; installing and maintaining PC Local A rea N etw ork/w ide A rea Network; supporting legacy system and facility maintenance. S U M M A R Y C IV IL IN S P E C T IO N S Includes payroll, autom otive, and other expenses incurred by em ployees in the inspection and coordination of overhead and C IC underground facilities and inspection of underground contract installations. (Inspection activities for Claim s, O A R, and Rule 2 0 A projects are charged directly to the applicable distribution w ork order.) Also includes payroll, autom otive, and other expenses incurred in the inspection during w arranty period of applicant-installed Line Extension W ork O rders. T h es e are additional adm inistrative activities to be utilized for w arranty period inspection costs only. S U M M A R Y D IS T R IB U T IO N LIN E R E N T S Includes all rental costs of property used, occupied, or operated in connection with the distribution system including paym ents to the United S tates G overnm ent and others for the use and occupancy of public lands and reservations for distribution line rights-of-way. Also includes rentals for overhead railroad crossings. Excludes payroll and automotive expense. S U M M A R Y FA C IL IT Y IN V E N T O R Y M A P P IN G Includes payroll, autom otive, and other expenses incurred by personnel in the updating of facility inventory maps, including the costs for packaged software. S U M M A R Y FIE LD A C C O U N T IN G O R G A N IZ A T IO N (FA O ) O P E R A TIO N & M A IN T E N A N C E (O & M ) S U P P O R T Includes payroll, autom otive, and other expenses incurred in the preparation and/or processing of docum ents and the m aintenance of related files in the service center accounting area of responsibility regarding: service crew accounting; street light accounting; maintaining m eter order records; transform er accounting including reconciling ledgers and preparing transfer/correction docum ents pertaining to Transform er Load M anagem en t (TLM ); and units of property and m aterial accounting for installation and retirement through SAP.

116 35 FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Description of Final Cost Centers included in this activity: * See Appendix C fo r Sum m ary Final Cost Centers S U M M A R Y J O IN T P O L E O R G A N IZ A T IO N Includes payroll, autom otive, and other expenses incurred in performing Joint Pole activities including: inspecting unauthorized pole attachm ents; reviewing and approving bills of sale for all Joint Pole activities; reviewing and approving invoices for pole and wire rentals; m aintaining M aster C ard File of all poles in which the C om pany has an interest; and maintaining file of leased wire and other agreements. S U M M A R Y J O IN T P O L E O R G A N IZ A T IO N C R E D IT Includes credits for penalty assessm ents against various utility com panies for unauthorized attachm ents m ade by them to Edison-owned poles and credits for paym ents from various utility companies for inspection and m aintenance work performed by SCE. S U M M A R Y M IN O R FU R N IT U R E & E Q U IP M E N T (F & E ) O F F IC E E Q U IP M E N T Includes payroll, automotive, and other expenses incurred for minor office furniture that is not eligible for capitalization. Includes such item s as: chairs, m odular office sections, keyboard trays, whiteboards, file cabinets or drawers, etc. S U M M A R Y M IS C E L L A N E O U S E X P E N S E S Includes payroll, autom otive, and other general costs and expenses not assignable to other accounts such as: telephone expense, postage expense, publications and printing services, inspection and repair of office m achines, w ater services, lost tim e resulting from vehicle breakdowns and all other types of motorized equipm ent including private vehicles used in C om pany service, m iscellaneous stationery and office supplies, rental of uniforms, interviews or qualification examinations, etc., and provessing of grievances under the Labor Union Contracts. S U M M A R Y S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) A D M IN IS T R A T IO N / O P E R A TIO N S Includes labor, m aterial, contract, chargebacks, and other non-labor costs o f supervisors, m anagers, and analysts in support of Shop Services & Instrum entation Division (S S ID ) operation and m aintenance. S U M M A R Y S IT E R E A D IN E S S C H E C K S / W A R R A N T Y IN S P E C T IO N S Includes payroll, autom otive, and other expenses incurred by em ployees in the inspection and coordination of overhead and cable in conduit underground facilities and the inspection of underground contract installations. Also includes payroll, autom otive, and other expenses incurred in the inspection during w arranty period of applicant-installed line extension work orders. Th ese are additional adm inistrative activities to be utilized for w arranty period inspection costs only. S U M M A R Y S T A N D B Y TIM E Includes labor incurred when employees are held at the end of their regularly schedule shift in anticipation of em ergency or unplanned work. Also includes labor incurred when employees are unable to work due to inclement weather. F PACKAGED SOFTW ARE Costs incurred for the purchase of off-the-shelf software applications.

117 36 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FER C A ccou n t: Activity: W itn e ss : M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree Description of Final Cost Centers included in this activity: * See Appendix C fo r Sum m ary Final Cost Centers F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) M IS C E L L A N E O U S O P E R A T IO N S Includes labor, m aterial, contract, chargebacks, and other non-labor costs incurred by the Shop S ervices and Instrum entation Division (S S ID ) for performing m iscellaneous operations activities. Includes such items as: engineering/estim ating, planning/scheduling, and clerical and account support. F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) M IS C E L L A N E O U S M A IN T E N A N C E Includes labor, m aterial, contract, chargebacks, and other non-labor costs incurred by the Shop S ervices and Instrum entation Division (S S ID ) for performing m iscellaneous m aintenance activities. Includes such items as: electrical equipm ent repair and refurbishm ent, oil testing, and routine repair/calibration of field equipment. F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) T E M P O R A R Y A V A ILA B L E C A P A C IT Y Includes labor cost associated with situations w here excess manning exists in the shops. W hen excess manning exists, the shop m anager or his designee will determ ine w h at activities should be performed by the affected em p loyees. No non-labor costs such as m aterial costs are to be charged to this account. F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) P R O C U R E M E N T / F R E IG H T C H A R G E S Includes costs incurred by Shop Services Instrum entation Division (S S ID ) for costs related to the procurement of materials and services and costs of transporting equipment and material. F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) A IR Q U A L IT Y P E R M IT S & IS S U E S Includes labor, m aterial, contract, chargebacks, and other non-labor costs incurred by the Shop S ervices and Instrum entation Division (S S ID ) for engineer labor, m iscellaneous m inor m aterial, and contracts associated with the requirements of air quality permit and issues. F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) E N V IR O N M E N T A L H A Z A R D O U S M A TE R IA L S U P P O R T Includes labor, m aterial, contract, chargebacks, and other non-labor costs incurred in ensuring safety environment, em ergency preparedness, and disposal of hazardous wastes. F F A C IL IT Y IN V E N T O R Y M A P P IN G (FIM ) M A N A G E M E N T / S U P E R V IS IO N Includes payroll, autom otive, and other expenses incurred in the m an ag em ent and supervision of the Facility Inventory Mapping (FIM ) department. F PO W ER SUPPLY INSTALLATION EXPENSE Includes the payroll, autom otive, and other expenses incurred by T & D in the installation of power supply equipment to outside parties and utilities. F M IS C E L L A N E O U S E X P E N S E S S H A R E H O L D E R F U N D E D Costs incurred by Transmission & Distribution's Power Delivery for shareholder funded activities.

118 37 FER C A ccou n t: Activity: W itn e ss : M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree Description of Final Cost Centers included in this activity: * See Appendix C fo r Sum m ary Final Cost Centers F O V E R H E A D D E TA IL IN S P E C T IO N S Includes payroll, autom otive, and other expenses incurred while performing O verhead Detail Inspections (O D I) on distribution equipm ent as part of the Distribution Inspection and M aintenance Program (D IM P ). Also includes costs for m anagem ent, supervision, and analysis necessary to the program. F C H A R G E B A C K S - IN F O R M A T IO N T E C H N O L O G Y / C O R P O R A T E R E A L ESTA TE / C ORPORATE SERVICES Includes Information Technology (IT) and C orporate Real Estate costs charged back to the business unit, but can also include: overseeing m aintenance of com puter applications; installing and maintaining P C Local A rea N etw ork/w ide A rea Network; supporting legacy system and facility m aintenance. F C O L L E C T IO N / C R E D IT A C T IV IT IE S Includes payroll, autom otive, and other expenses of collection activities to effect collections on all current, closed, and delinquent accounts including the follow-up and collection of deferred or delinquent deposits. F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) C H A R G E B A C K S O V E R /U N D E R Includes service provider chargebacks from Information Technologies, Environm ental Affairs, H um an Resources, Procurem ent and M aterial M anagem ent, R eal Properties, C orporate Security, and Accounts Payable. F W IR E S IN V E S T M E N T S T R A T E G Y E F F IC IE N C Y R E V IE W (W IS E R ) Includes costs for m anaging and im plem enting the W ires Investm ent Strategy Efficiency Review (W IS E R ). F S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) C O N S T R U C T IO N FIELD F O R C E S (C F F ) C IR C U IT B O A R D Includes labor, m aterial, contract, chargebacks, and other non-labor costs incurred in performing power circuit-breaker repair services. F SHOP SERVICES AND INSTRUM ENTATION D IVISION (SSID ) SM A R T BAR Costs incurred by Shop S ervices & Instrum entation Division (S S ID ) to install a Sm art Bar in the Mechanical Services Shop. F FACILITY INVENTO RY M APPING (FIM ) O O R C HA R G ES / PAYING Includes paym ents received for w ork perform ed by Facility Inventory M apping (F IM ) personnel for outside parties. F S T R U C T U R E S W IT H O U T A M A IN T E N A N C E PLA N Includes payroll, autom otive, and other expenses incurred in identifying, inventorying, and inspecting underground structures (S W a M P ) to be added to the Underground Detail Inspection (U DI) program.

119 38 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Recorded/Adjusted (Constant 2012$ By Final Cost Center $ (0 00) * See Appendix C fo r Summary Final Cost Centers SUMMARY SUMMARY SUMMARY SUMMARY ANNUAL INSPECTIONS WIRELESS TECHNOLOGY RATES CHARGEBACK REQUESTS POW ER DELIVERY (PWRD) CHARGEBACKS - INFORMATION TECHNOLOGY / CORPORATE REAL ESTATE CHARGEBACKS - SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) , SUMMARY CIVIL INSPECTIONS SUMMARY DISTRIBUTION LINE RENTS ,051 1,556 1,802 SUMMARY FACILITY INVENTORY MAPPING 3,906 3, SUMMARY FIELD ACCOUNTING ORGANIZATION (FAO) OPERATION & MAINTENANCE (O&M) SUPPORT 1,552 1,902 1,933 1,719 1,725 SUMMARY JOINT POLE ORGANIZATION SUMMARY JOINT POLE ORGANIZATION CREDIT SUMMARY M INOR FURNITURE & EQUIPMENT (F&E) OFFICE EQUIPMENT SUMMARY MISCELLANEOUS EXPENSES SUMMARY SUMMARY SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) ADMINISTRATION / OPERATIONS SITE READINESS CHECKS / WARRANTY INSPECTIONS (1 45) (162) (103) (2 06) (74) 2, SUMMARY STANDBY TIME F PACKAGED SOFTWARE F F F SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) MISCELLANEOUS OPERATIONS SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) MISCELLANEOUS MAINTENANCE SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) TEMPORARY AVAILABLE CAPACITY

120 39 FERC A ccount: A c tivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Recorded/Adjusted (Constant 2012$ By Final Cost Center $ (0 00) * See Appendix C for Summary Final Cost Centers F F F F SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) P R O C U R E M E N T/F R E IG H T CHARGES SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) AIR QUALITY PERMITS & ISSUES SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) ENVIRONMENTAL HAZARDOUS MATERIAL SUPPORT FACILITY INVENTORY MAPPING (FIM) MANAGEMENT / SUPERVISION F POWER SUPPLY INSTALLATION EXPENSE 0 (7) F MISCELLANEOUS EXPENSES SHAREHOLDER FUNDED F OVERHEAD DETAIL INSPECTIONS F CHARGEBACKS - INFORMATION TECHNOLOGY / CORPORATE REAL ESTATE / CORPORATE SERVICES F COLLECTION / CREDIT ACTIVITIES F F F F F F SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) CHARGEBACKS OVER/UNDER WIRES INVESTMENT STRATEGY EFFICIENCY REVIEW (WISER) SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) CONSTRUCTION FIELD FORCES (CFF) CIRCUIT BOARD SHOP SERVICES AND INSTRUMENTATION DIVISION (SSID) SMART BAR FACILITY INVENTORY MAPPING (FIM) OOR CHARGES / PAYING STRUCTURES W ITHOUT A MAINTENANCE PLAN , ,511 16, , (4) Total 12, , , , ,922 ** Due to rounding, totals m ay n o t tie to o ther w orkpaper pages.

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122 41 FER C A ccou n t: A ctivity: W itn ess: M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree APPENDIX B Detail of Total Company Adjustments to Recorded

123 42 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses Adjs - (N om inal $) $ (000) Labor 316 (1,6 9 5 ) (1,7 8 4 ) (2,6 3 3) (2,0 7 7) N on-labor (3,7 0 8) 154 (2,1 2 2 ) O ther ,041 1,550 1, Total (2,6 0 0) (9 37) (2,8 6 5 ) (460) (257) C om pany W ide Adjustm ent 1 G R C -K B S -C W -S H R H L D E X P This adjustment reverses recorded am ounts that are shareholder funded Labor (30) (73) 0 (136) (127) N on-labor (50) (2 63) (5 25) (412) (336) O ther Total (80) (3 36) (5 25) (548) (463) Organizational Unit Adjustment 1 This consolidation adjustment re-maps the expenses from activity , , , and to T D B U -ID P -O U -R E M A P P _ T O _ and , , Labor 2, N on-labor 1, O ther ,041 1,550 1, Total 4, , , , , O rganizational Unit Adjustm ent 2 G R C -M J P.ID P -O U X -T R A N S F E R A O R This adjustm ent includes m iscellaneous expenses of a general nature related Shop Services & Instrum entation Division that are recorded as T & D Adm inistrative & G eneral (A &G ) expenses. For rate case purposes, these expenses are in Miscellaneous Distribution Expenses and for Training and Safety. Labor N on-labor 1, O ther Total 2, , O rganizational Unit Adjustm ent 3 T D B U -ID P -O U -S A P C O N V E R S IO N This adjustment moves expenses to the correct final cost centers. Labor N on-labor O ther Total

124 43 FERC A ccount: A c tivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses A d js - (N o m in a l $) $ (000) O rganizational Unit Adjustm ent 4 T D B U -ID P -O U -R E M A P P. This consolidation adjustment re-maps the expenses from activity , , and to o ' I", O CD CN O 00 LO Labor N on-labor O ther Total O rganizational Unit Adjustm ent 5 T D B U -ID P -O U -R E M A P P _ T O _ F This adjustment remaps FER C 560 F (in 2010) and FER C 587 F into FERC 588 F Labor 0 0 (1) (7) N on-labor O th er Total 0 0 (1) (5) O rganizational Unit Adjustm ent 6 T D B U -ID P.K M M -O U X -T R A N S F E R._ R U R A L S _ T O _ C S This adjustment transfers rural recorded expenses from activity , and to 587 Customer Service. Labor (31) (2) (1) Non-Labor (1) O ther Total (32) (2) (1) O rganizational Unit Adjustm ent 7 T D B U -ID P -O U -O T A _ LU a: CO h- CO O O I LU > O This adjustment removes expenses from a shareholder funded account. Labor 0 (11) (37) Non-Labor 0 (6 2) (74) O ther Total 0 (7 3) (111) Organizational Unit Adjustment 8 TD B U -IDP-O U -SSID _A & G DIST_TO _TRANS This adjustment moves a portion of the Shop Services and Instrumentation Division (SSID ) from FER C 580 and 588 to F E R C Labor (229) (1 6 9 ) (84) (154) (36) Non-Labor (601) (9 4) (82) (125) (99) O ther Total (8 30) (2 6 3 ) (1 6 6 ) (2 79) (1 35) 0 0 0

125 44 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses Adjs - (N om inal $) $ (000) Organizational Unit Adjustm ent 9 T D B U -ID P -O U -M O V E _ S E T T L E M E N T S U S P _ LL S 00 LO O OO) O.F This adjustment moves a settlement suspension amount from activity to Labor Non-Labor 0 0 (1,8 2 0) O ther Total 0 0 (1,8 2 0) Organizational Unit Adjustm ent 10 T D B U -ID P -O U -N O N T A R IF F This adjustment removes incremental expenses related to non-tariffed services provided to communication companies in the S C E service territory. The scope of work reflects the incremental costs associated with customer requested services that are in conjunction with, and incidental to, S C E 's standard tariffed electric service. These services are removed in accordance with C P U C Decision Labor N on-labor (6,5 8 5 ) O th er Total (6,5 8 5 ) Organizational Unit Adjustment 11 TD B U -IDP-O U -R EM A PP_ TO _ CO 00 LO o CN This consolidation adjustment re-maps the expenses from activity , , , and to Labor (2,4 0 5 ) (2,6 3 4 ) (2,6 4 2) (3,0 7 4) (2,9 2 8 ) N on-labor (2 21) (2 9 8 ) (376) 60 (4 5) O th er Total (2,6 2 6 ) (2,9 3 2 ) (3,0 1 8 ) (3,0 1 4 ) (2,9 7 3 ) 0 0 0

126 45 F ER C A ccount: A ctivity: W itn e ss : 588 M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree APPENDIX C Final Cost Centers Included in This Activity

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128 47 FER C A ccou n t: A ctivity: W itn e ss : M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree Final Cost Centers included in this activity: Summary Final Cost Centers: A N N U A L IN S P E C T IO N S W IR E L E S S T E C H N O L O G Y R ATES F F C H A R G E B A C K R E Q U E S T S P O W E R D E L IV E R Y (P W R D ) F F C H A R G E B A C K S - IN FO R M A TIO N T E C H N O L O G Y / C O R P O R A T E R E A L ESTATE F F C H A R G E B A C K S - S H O P S E R V IC E S A N D IN S T R U M E N T A T IO N D IV IS IO N (S S ID ) F F F F F F F F F F CIVIL IN SPEC TIO NS F F DISTR IB U TIO N LINE RENTS F F FA CILITY INVENTO RY M APPING F F F F F F F F FIE LD A C C O U N T IN G O R G A N IZ A T IO N (FA O ) O P E R A T IO N & M A IN T E N A N C E (O & M ) S U P P O R T F F F F F F JO IN T POLE ORGANIZATION F F F F J O IN T P O L E O R G A N IZ A T IO N C R E D IT F F M IN O R F U R N IT U R E & E Q U IP M E N T (F & E ) O F F IC E E Q U IP M E N T F F F F F F F F F F F F F F M IS C E L L A N E O U S E X P E N S E S F F F F F F F F F SHOP SER VIC ES AND INSTRUM ENTATION D IVISION (SSID ) ADM INISTR ATIO N / O PERATIO NS F F F S IT E R E A D IN E S S C H E C K S / W A R R A N T Y IN S P E C T IO N S F F F F F F F F F F S T A N D B Y TIM E F F F F F F F F F F F F F F F F F F F F F F F F F F F F F F

129 48 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A ctivity: W itness: 588 Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Final Cost Centers included in this activity: Summary Final Cost Centers: F F F F F

130 49 FER C A ccou n t: A c tiv ity : W itness: Miscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S Gregory M Ferree Individual Final Cost Centers: F F F F F F F F F F F F F F F F F F F

131 50 Workpaper - Southern California Edison / 2015 GRC - APPLICATION End of Workpapers for: FER C A ccou n t: A ctivity: W itn e ss: M iscellaneous Distribution Expenses D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - C O N S T R U C T IO N S U P P O R T A C T IV IT IE S G regory M Ferree

132 51 Workpaper Title: Miscellaneous Construction Inspection Expenses (Portion of FERC Account )

133 52 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Workpaper: Activity: Miscellaneous Construction Inspection Expenses Calculation Methodology for Miscellaneous Civil Inspections Step 1: The recorded costs for capital work requiring miscellaneous civil inspections is identified, normalized, and summed. TDBU Gross Capital Historical Expenditures 2012 CONSTANT DOLLARS Item Description Total Residential Tract Development 19,236,817 16,039,207 13,341,537 18,390,900 17,454,160 84,462,620 Residential Backbone Developme 4,955,632 4,011,409 4,340,257 5,311,238 8,706,724 27,325,262 Commercial Tract Development 42,721,273 29,579,587 8,996,577 8,123,771 11,748, ,170,176 Rule 20A 27,798,471 33,489,194 23,259,985 25,106,040 15,473, ,127,608 Rule 20B 27,134,612 28,040,889 15,770,096 15,403,044 12,454,585 98,803,225 Rule 20C 11,661,253 9,630,584 5,557,714 6,240,250 6,690,943 39,780,745 Total 133,508, ,790,872 71,266,166 78,575,244 72,529, ,669,637 Step 2: We identified historical expenses related to miscellaneous civil inspections as shown below 2012 CONSTANT DOLLARS Civil Inspection Total Labor $ 338, , , , ,797 1,395,642 Non- Labor $ 370,068 85,943 86,235 95,926 49, ,085 Total $ 708, , , , ,710 2,083,727 Step 3: The recorded expenses formiscellaneous civil inspections are divided by the historical underground distribution costs Weighted 5 year average Percentage of Misc. Civil Inspec to Capital 0.5% 0.3% 0.6% 0.4% 0.4% 0.4% Step 4: Calculate labor and non-labor percentages for miscellaneous civil inspections Labor % 48% 74% 79% 71% 84% Non-Labor % 52% 26% 21% 29% 16%

134 53 Step 5: We identified the forecast for all underground capital work used in Step 1 The capital forecasts exlcudes IT related expenditures associated with Rule 20A,B,C 2012 CONSTANT $ Item Description Residential Tract Development 61,128,000 88,126,200 96,870,900 96,276,600 92,031,600 Residential Backbone Developme 16,591,200 22,077,000 24,217,800 24,084,000 23,013,600 Commercial Tract Development 9,856,000 12,496,000 16,544,000 20,416,000 22,704,000 Rule 20A 31,332,000 31,332,000 31,332,000 31,332,000 31,332,000 Rule 20B 28,504,000 38,684,000 50,391,000 54,972,000 54,972,000 Rule 20C 8,398,500 11,452,500 15,015,500 16,542,500 16,288,000 Total 155,809, ,167, ,371, ,623, ,341,200 Step 6: Multiply the forecast capital by the 2012 percentage of civil inspections to capital calculated in Step 3 The weighted 5 year average is the same as the last year recorded percentage of civil inspections to capital as shown above Misc. Civil Inspection Expense Forecast $654,587 $857,748 $984,639 $1,023,508 $1,009,720 For the test year, we calculate the 3 year average, $1,005, Labor 547, , ,177 Non-Labor 107, , ,778 Total 654, ,748 1,005,956 Calculation Methodology for Warranty Inspections Step 1: The recorded costs for capital work requiring warranty inspections is identified, normalized, and summed. TDBU Gross Capital Historical Expenditures 2012 CONSTANT DOLLARS Item Description Residential Tract Development 19,236,817 16,039,207 13,341,537 18,390,900 17,454,160 Development 4,955,632 4,011,409 4,340,257 5,311,238 8,706,724 Total 24,192,449 20,050,617 17,681,794 23,702,138 26,160,884 Step 2: We identified historical expenses related to warranty inspections as shown below 2012 CONSTANT DOLLARS

135 54 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Labor 1,807, , ,026 (3,403) 8,990 Non-Labor 773,536 14,173 31,104 14,882 22,909 Total 2,580, , ,130 11,478 31,898 Warranty Inspections Percentage 10.67% 1.75% 0.76% 0.05% 0.12% Step 3: We identified the forecast for capital work used in Step CONSTANT $ Item Description Residential Tract Development 61,128,000 88,126,200 96,870,900 96,276,600 92,031,600 Development 16,591,200 22,077,000 24,217,800 24,084,000 23,013,600 Total 77,719, ,203, ,088, ,360, ,045,200 Step 4: Multiply the forecast capital by the 2012 percentage of warranty inspections to capital as calculated in Step Warranty Inspection Expense (Total) 94, , , , ,277 Step 5: Calculate the labor and non-labor percentages for warranty inspections Labor % 70% 96% 77% -30% 28% Non-Labor % 30% 4% 23% 130% 72% Step 6: We calculate the labor and non-labor split for based on the 2012 recorded ratio calculated in Step Labor 26,706 37,868 41,609 41,359 39,532 Non-Labor 68,058 96, , , ,744 Total 94, , , , ,277 For the test year, we calculate the 3 year average, ,893 Step 7 We summed the total labor and non-labor for both miscellaneous civil and warranty inspections

136 Labor 574, , ,786 41, ,710 Non-Labor 175, , , , ,523 Total 749, ,121 1,153, , ,277

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138 57 Workpaper Title: Distribution Line Rents (Portion o f FERC Account )

139 58 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Workpaper: Activity: Distribution Line Rents Step 1: The recorded expense ( ) is identified for this activity 2012 CONSTANT DOLLARS Recorded Labor 872 3,770 10,523 5,833 10,213 Non-Labor $0 $0 $0 $0 $0 Other 792, ,597 1,041,084 1,549,884 1,791,847 Total 792, ,366 1,051,607 1,555,717 1,802,060 Step 2: The forecast for is based on 2012 recorded data. Since the labor expense in 2012 was only a small fraction of the total, we have set the forecast for labor to be zero for Since the expenses for this activity is allocated as "Other",it is not escalated in the RO model. As the majority of expenses related to this activity is based on fixed price contracts from Bureau of Land Management and US Forecast Service, we have used the escalation rate published by the Bureau of Land Management ( Refer: The published escalation rate is 1.9% per year for Step 3: The expense forecast for this activity is calculated as shown below based on the escalation rate CONSTANT DOLLARS Forecast Labor Non-Labor $0 $0 $0 $0 $0 Other 1,836,299 1,871,189 1,906,741 1,942,969 1,979,886 Escalation Rate As an example: 2013 Forecast = 1,802,060 x ( ) = 1,836,299 3 year average ( ) $1,943,199]

140 59 Extract from the Bureau of Land Management ( Refer: shows the 1.9% escalation rate applicable for Per Acre Rent Schedules C ounty Zone Numb eiand Per Acre Zone Value 2009* Per Acre Rent (with 25% phase-in discount) 2010 Per Acre Rent (1.9 percent IPD-GDP increase - average annual increase from ) 2011** Per Acre Rent (1.9 percent IPD-GDP increase - average annual increase from ) 2012 Per Acre Rent (1.9 percent IPD-GDP increase - average annual increase from ) 2013 Per Acre Rent (1.9 percent EPD-GDP mcrease - aveiage annua] increase from ) 2014 Per Acre Rent (1.9 percent IPD-GDP increase - average annual increase from ) 2015 Per Acre Ren (1.9 percent IPD-GDP increase - average animal increase from ) Zone 1 S250 S5.78 $7.85 $8.00 $8.15 $8.30 $8.46 $8.62 Zone 2 $500 SI 1.55 SI 5.69 $15.99 $16.30 $16.61 S16.92 SI 7.24 Zone 3 SI.000 S23.10 $31.39 $31.99 $32.59 $33.21 $33.84 $34.49

141 60 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHE ET: RESIDENTIAL Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: New Service Connections Detail: Residential Database ID: 676 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree NEW SERV CONNECTIONS NSC - RESIDENTIAL 4051 CET-PD-NS-RS-CAT Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket Yes 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast , , , , , , , , ,000 50,000 Total 991, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

142 61 Workpaper Title: Customer Growth, Residential Service Connections

143 62 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, RESIDENTIAL SERVICE CONNECTIONS WBS Element CET-PD-NS-RS Unit: Number of service conductors installed CPR Account (Overhead), (Underground) Development of Unit Count The table below shows the count of meters and services installed (overhead and underground). Year Gross Meter Sets Count of Overhead & Underground Service Conductors , , , , , , , , , , , , ,643 59, ,137 49, ,061 49, ,692 38, ,758 73, ,643 96, , , , , , ,036 The count of service conductors installed was regressed against the number of meters set and the year of installation for 2003 to The year was used as an independent variable as the proportions of overhead services is decreasing for new construction. The overhead and underground services were forecasted together. The output of the regression analyses are shown in the next sections. The forecast numbers of conductors were estimated using the regression analysis output. For example: In 2013, the count of overhead and underground service conductors is 73,029 The estimated number of overhead and underground service conductor installations = (2013* ,758*2.13) = 73,029

144 63 Overhead and Underground Service Connections SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Squan Standard Error Observations 10 ANOVA 4 f ss M S F Significance F Regression E E-07 Residual Total E+11 CoefficientStandard Error t Stat P-value Lower 95% Upper 95% iwer 95. Copper 95. Otpper 95.0, Intercept 0 AN/A AN/A AN/A AN/A AN/A AN/A #N/A AN/A Year Gross Meter Sets E Development of Costs The tables below show the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars. Year Recorded Cost (2012 Constant $) $34,684 $16,772 $14,018 $13,744 $12,311 Number of Service Conductors 109,644 59,146 49,575 49,457 38,968 Cost Per Conductor S0.316 S0.284 S0.283 S0.278 S0.316 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $0,295 Year Unit Cost $0,295 $0,295 $0,295 $0,295 $0,295 Number of Service Conductors 73,029 96, , , ,036 Total Cost (2012 Constant S) $21,544 $28,380 $36,290 $39,483 $39,246 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $295. The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

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146 65 Workpaper Title: Customer Growth, Residential Line Extensions

147 66 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, RESIDENTIAL LINE EXTENSIONS WBS Element CET-PD-NS-RS Unit: Miles of conductor or cable installed CPR Account (Overhead conductor), (Underground Cable), (Underground Cable) Development of Unit Count The table below shows the count of meters and miles of line extension installed. Year Gross Meter Sets Total Conductor (feet) Total Conductor (miles) ,051 1,087, ,401 1,427, ,184 1,730, ,558 1,989, ,548 1,514, , , , , , , , , , , , , ,643 1,030, ,238 1,439, ,320 1,604, ,939 1,592, The feet of conductor installed were regressed against the numbers of meters set and an indicator variable (categorizing into high growth and low growth periods) for 2003 to Any year when there was more than 60,000 meter sets was considered a high growth year. The output of the regression analyses is shown below. The miles of line extension was forecast using the

148 67 results if this analysis. SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 10 ANOVA df SS MS F Significance F Regression E E E-06 Residual Total E+12 Intercept Gross Meter Sets Indicator (2 for >60,000) Indicator times Meters Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% E For example: In 2013, the meter forecast is 27,758 The indicator variable equals 0 as the number of meters set is less than 60,000. The estimated feet of residential line extensions = *32.4+0* *43.23= 677,043 The estimated miles of residential line extensions 677,043/5280 = 128 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars. Year Recorded Cost (2012 Constant $) $21,965 $20,073 $12,156 $10,088 $11,093 Miles of Conductor Cost Per Mile $175.6 $162.3 $174.2 $184.6 $181.8 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $175.7 Year Unit Cost $175.7 $175.7 $175.7 $175.7 $175.7 Miles of Conductor Total Cost ( 2012 Constant $) $22,490 $34,262 $47,966 $53,413 $53,061 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed.

149 68 Workpaper - Southern California Edison / 2015 GRC - APPLICATION The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $175,700 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

150 69 Workpaper Title: Customer Growth, Residential Tract Development

151 70 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, RESIDENTIAL TRACT DEVELOPMENT WBS Element CET-PD-NS-RS Unit: Miles of cable installed CPR Account and (Underground Cable) Development of Unit Count The table below shows the count of meters and miles of residential tract installed. Year Gross Meter Sets Cumulative Meter Sets Indicator (2 for >60,000) Length of Cable (Feet) Cumulative Cable Length Modeled Cable (Feet) Length (Feet) Cable Miles Actual & Forecast Cumulative Cable Feet/Cumula tive Meter Cumulative Modeled Cable ( Miles) ( Miles) ,051 66, ,246,079 6,246,079 7,160,650 1, ,183 1, , , ,617,365 12,863,444 14,837,096 1, ,436 2, , , ,058,693 20,922,137 22,769,553 1, ,963 4, , ,691-9,163,531 30,085,668 28,328,462 1, ,698 5, , ,285-7,490,307 37,575,975 31,843,383 1, ,117 6, , ,928-1,171,512 38,747,487 34,393, ,339 6, , , ,014 39,629,501 36,456, ,506 6, , , ,739 40,488,241 37,973, ,668 7, , ,818-1,300,296 41,788,537 39,880, ,914 7, , ,576-1,085,846 42,874,383 42,874, ,120 8, , ,219-3,801,023 46,675,406 46,675, ,840 8, , ,457-5,482,511 52,157,917 52,157,917 1, ,878 9, , ,778-6,026,293 58,184,210 58,184,210 1, ,020 11, , ,716-5,985,424 64,169,634 64,169,634 1, ,153 12, , ,214-5,724,286 69,893,920 69,893,920 1, ,237 13,237 There is one year s lead time on an average for when tract is installed compared to when the meters are set. The feet of tract installed per meter can fluctuate, with an increasing trend in 2005 and 2006 and falling rapidly in 2008 through This corresponds with the macroeconomic climate and the boom and bust of the housing market we experienced during the same time period. We used the 2012 ratio of cumulative feet per cumulative meter, which translates to 107 (rounded down) feet per meter as representative of what this ratio should be during steady state work. We compared our estimates steady state tract length based on the model forecasts to what was actually installed and noticed a significant deviations starting in Starting in 2006, there were significantly more tract miles installed than what our estimates indicate. This reflects developers requests based on anticipated customer growth and was driven by expectations of home sales that did not materialize. Since this customer growth did not materialize in 2007, 2008 and 2009, there was an excess inventory of tract built up in the system and tract installation slowed down significantly in 2008 and In 2011, we saw the housing market stabilize and starting in 2012 the housing market resumed its upward trend in growth. The excess inventory that was in the SCE network for tract installations has been slowly but steadily used up by this increased growth. In , we estimate being back to the steady state pattern of 107 ft. of tract per meter.

152 71 For example, in 2008, the cumulative numbers of meters set since 2003 is estimated to be 318,928. Therefore, in 2008, we should have installed a cumulative of (318,928*107.8/5280) or 6514 miles of tract. We have already installed 7,339 miles of tract since The difference (7, miles) which equals 824 miles is the excess inventory built in the system anticipating higher demand in 2009 and beyond. Based on the above methodology, the excess inventory reduces to 600 miles (7,506-6,905 miles). We see a similar downward trend in 2010 and 2011 during which the excess inventory in the system is slowly and steadily depleted. Since the inventory is now depleted, the demand for track work for is dependent on the gross meter forecast and the cumulative cable feet per meter.

153 72 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Development of Costs The table below shows the units, unit costs and total annual costs for tract work. The costs shown are in Constant 2012 (thousand) dollars. Year Recorded Cost (2012 Constant $) $19,237 $16,039 $13,342 $18,391 $17,454 Miles of Underground Cable Cost Per Mile $86.7 $96.0 $82.0 $74.7 $84.9 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $84.9 Year Unit Cost $84.9 $84.9 $84.9 $84.9 $84.9 Miles of Underground Cable 720 1,038 1,141 1,134 1,084 Total Cost ( 2012 Constant $) $61,128 $88,126 $96,871 $96,277 $92,032 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $84,900 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

154 73 Workpaper Title: Customer Growth, Residential Backbone Development

155 74 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, RESIDENTIAL BACKBONE DEVELOPMENT WBS Element CET-PD-NS-RS Unit: Miles of cable installed CPR Account and (Underground Cable) Development of Unit Count The table below shows the count of meters and miles of residential backbone installed. Year Gross Meter Sets Cumulative Meter Sets (with 1 Year Cable Installed leadtime) (Feet) Cumulative Cable Length ( Feet) Cable miles actual and forecast Cumulative Cable F1/Cumulative Meter Modeled Cumulative Cable (miles) Cumulative Cable (miles) There is one year s lead time on an average for when backbone is installed compared to when the meters are set. The feet of backbone installed per meter fluctuate, with an increasing trend in 2005 and 2006 and falling rapidly in 2008 through This corresponds with the economic climate and the boom and bust of the housing market. We used the 2012 ratio of cumulative feet per cumulative meter, which translates to 17 feet per meter as representative of what this ratio should be during steady state work. Based on the chart shown below, there are deviations in the lengths of backbone installed versus the modeled estimates. Until 2006, the estimate was higher than actual length of backbone installed. In 2007, there was more backbone installed and the estimated length was lower. Since this customer growth did not materialize in 2007, 2008 and 2009, there was an excess inventory of backbone built up in the system. In 2012, we saw the housing market stabilize and starting in 2012 the housing market resumed its upward trend in growth. The excess inventory that was in the SCE network for backbone installations has been slowly but steadily used up by this increased growth. In , we estimate being back to the steady state pattern of 17 ft. of backbone cable length per meter.

156 75 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars. Year Recorded Cost (2012 Constant $) $4,956 $4,011 $4,340 $5,311 $8,707 Miles of Underground Cable Cost Per Mile $146.1 $101.0 $154.1 $133.6 $134.3 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $133.8 Year Unit Cost $133.8 $133.8 $133.8 $133.8 $133.8 Miles of Underground Cable Total Cost ( 2012 Constant $) $16,591 $22,077 $24,218 $24,084 $23,014 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $133,800 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

157 76 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHE ET: COMMERCIAL Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: New Service Connections Detail: Commercial Database ID: 675 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree N EW SERV CONNECTIONS NSC - COMMERCIAL 4051 CET-PD-NS-CL-CAT Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE Distribution Lines Specific Blanket 6. RIIM ELIGIBLE Yes 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast , , , , , , , ,000 50,000 Total 497, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

158 77 Workpaper Title: Customer Growth, Commercial/Industrial Service Connections

159 78 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, COMMERCIAL/INDUSTRIAL SERVICE CONNECTIONS WBS Element - CET-PD-NS-CL Unit: Number of service conductors installed CPR Account (Overhead), (Underground) Development of Unit Count The table below shows the count of meters and services installed. Year Meter sets Services Installed Ratio of Services to Meter ,948 32, ,766 29, ,476 29, ,814 30, ,085 33, ,808 13, ,078 10, ,109 10, ,411 9, ,865 8, ,114 8, ,542 11, ,607 15, ,698 18, ,897 20, We calculated the ratio of number of service conductors to the number of commercial meter sets. Based on the historical trend, we used the 2012 ratio of 1.75 to forecast the number of service conductor installs. For example: In 2013, the number of Installed Services = 1.75*5,114 = 8,958 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars.

160 79 Year Recorded Cost (2012 Constant $) $19,934 $16,890 $14,956 $17,833 $17,756 Number of Service Conductors 13,531 10,470 10,090 9,990 8,522 Cost Per Conductor $1.5 $1.6 $1.5 $1.8 $2.1 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $1.7 Year Unit Cost $1.7 $1.7 $1.7 $1.7 $1.7 Number of Service Conductors 8,958 11,461 15,077 18,741 20,841 Total Cost ( 2012 Constant $) $15,229 $19,484 $25,631 $31,860 $35,430 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $1,700 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

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162 81 Workpaper Title: Customer Growth, Commercial/Industrial Line Extensions

163 82 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, COMMERCIAL/INDUSTRIAL LINE EXTENSIONS WBS Element - CET-PD-NS-CL Unit: Miles of conductor or cable installed CPR Account (Overhead conductor), (Underground Cable), (Underground Cable) Development of Unit Count The table below shows the count of meters and miles of commercial line extension installed. Year Meter sets Feet of Cable Installed Ratio of Cable (feet) to Meter Length of Cable (Miles) ,948 1,780, ,766 1,565, ,476 1,642, ,814 1,726, ,085 2,311, ,808 1,343, ,078 1,218, , , , , , , , , , , ,607 1,223, ,698 1,521, ,897 1,691, We calculated the ratio of feet of cable installed to the number of commercial meter sets. Based on the historical trend, we used the 10 year average ratio of 142 feet per meter to forecast the length of cable in feet and miles for The 10 year average is lower than 2012 recorded unit of 184 feet per meter. For example: In 2013, Feet of Cable = 142*5,114 = 727,104 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars.

164 83 Year Recorded Cost (2012 Constant $) $66,125 $45,785 $28,496 $31,733 $35,343 Miles of Line Extension Cost Per Mile $259.8 $198.4 $201.9 $217.9 $208.5 Forecast Methodobgy for Unit Cost (2013 to 2017): 5 Year Average = $217.3 Year Unit Cost Miles of Line Extension Total Cost ( 2012 Constant $) $29,987 $38,245 $50,414 $62,582 $69,536 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $217,300. The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

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166 85 Workpaper Title: Customer Growth, Commercial/Industrial Tract Development

167 86 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, COMMERCIAL/INDUSTRIAL TRACT DEVELOPMENT WBS Element - CET-PD-NS-CL Unit: Miles of cable installed CPR Account , (Underground Cable) Development of Unit Count The table below shows the count of meters and commercial tract installed. Ratio of Year Meter sets Feet of Cable Installed Cable (feet) to Meter Length of Cable (Miles) , , , , , , , , , , , , , , , , , , , , We calculated the ratio of feet of cable installed to the number of commercial meter sets. Based on the historical trend, we used the 10 year average ratio of 57.4 feet per meter to forecast the length of cable in feet and miles for The 10 year average is lower than 2012 recorded unit of 76.9 feet per meter. For example: In 2013, Feet of Cable = 57.4*5,114 = 239,472 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars.

168 87 Year Recorded Cost (2012 Constant $) $19,317 $13,375 $8,997 $8,124 $11,749 Miles of Cable Cost Per Mile Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $176 Year Unit Cost $176 $176 $176 $176 $176 Miles of Cable Total Cost ( 2012 Constant $) $9,856 $12,496 $16,544 $20,416 $22,704 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $176,000 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

169 88 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: AGRICULTURAL Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: New Service Connections Detail: Agricultural Database ID: 674 / RO Model ID: W ITNESS Greg Ferree 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE N EW SERV CONNECTIONS NSC - AGRICULTURAL 4051 CET-PD-NS-AG-CAT Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket Yes 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast ,798 4, ,055 4,400 4, ,156 4, ,370 3, ,504 Total 20,884 3,600 3, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

170 89 Workpaper Title: Agricultural Service Connections

171 90 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, AGRICULTURAL SERVICE CONNECTIONS WBS Element - CET-PD-NS-AG Unit: Number of service conductors installed CPR Account (Overhead), (Underground) Development of Unit Count The table below shows the count of meters and services installed. Year Meter sets Number of Service Conductors Ratio of Service Conductors to Meters , , , , The agricultural service installations are very prone to variation and low sample sizes. Based on the historical ratios from , we used 2012 ratio of service conductors per meter of 2.7 to estimate the number of service conductors that we expect to install in the future. The 2012 unit is lower than 5 or 10 year average. For example, In 2013, Number of Service Conductors = 27*316 = 861 The chart below shows the trend in the number of service conductors per meter ( )

172 91 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars. Year Recorded Cost (2012 Constant $) $604 $681 $694 $744 $1,295 Number of Service Conductors 1, Cost Per Conductor $0.3 $1.1 $1.3 $1.5 $1.5 Forecast Methodology lor Unit Cost (2013 to 2017): 4 Year Average of = $1.4 Year Unit Cost $1.4 $1.4 $1.4 $1.4 $1.4 Number of Service Conductors Total Cost (2012 Constant $) $1,205 $1,264 $1,278 $1,292 $1,306 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 are estimated based on a 4 year average unit cost ( ) and is equal to $1,400 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

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174 93 W orkpaper Title: Agricultural Line Extensions

175 94 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, AGRICULTURAL LINE EXTENSIONS WBS Element - CET-PD-NS-AG Unit: Miles of conductor or cable installed CPR Account (Overhead conductor), (Underground Cable), (Underground Cable) Development of Unit Count The table below shows the count of meters and services installed. Year Meter sets Feet of Cable Installed Ratio of Cable (feet) to Meter Length of Cable (Miles) , , , , , , , , , , , , , , , We calculated the ratio of feet of cable installed to the number of agricultural meter sets. Based on the historical trend, we used the 10 year average ratio of 430 feet per meter to forecast the length of cable in feet and miles for The 10 year average is lower than 2012 recorded unit of 498 feet per meter. For example: In 2013, Feet of Cable = 430*316 = 135,897. The chart below shows the trend in feet of cable per meter (historical and forecast).

176 II Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars. Year Recorded Cost (2012 Constant $) $3,656 $4,336 $2,991 $2,195 $2,973 Miles of Line Extension Cost Per Mile $132.4 $76.8 $93.8 $78.0 $102.0 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $96.6 Year Unit Cost $96.6 $96.6 $96.6 $96.6 $96.6 Miles of Line Extension Total Cost ( 2012 Constant $) $2,512 $2,608 $2,608 $2,705 $2,705 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $96,600 The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

177 96 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: STREETLIGHTS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: New Service Connections Detail: Streetlights Database ID: 678 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree N EW SERV CONNECTIONS NSC - STREETLIGHTS 4051 CET-PD-NS-SL-CAT Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket Yes 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ , GRC - Capital Expenditures Forecast , , , ,603 Total 199, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

178 97 Workpaper Title: Streetlight Service Installations

179 98 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: CUSTOMER GROWTH, STREETLIGHT SERVICE INSTALLATIONS WBS Element - CET-PD-NS-SL Unit: Number of streetlight fixtures installed CPR Account (Streetlight Fixtures) Development of Unit Count The table below shows the count of meters and streetlight services installed. Residential Number of Electroliers Year Meters Electroliers per Meter ,051 10, ,401 10, ,184 11, ,558 12, ,548 13, ,594 3, ,643 2, ,137 2, ,061 3, ,692 2, ,758 3, ,643 5, ,238 7, ,320 8, ,939 8, Table above shows the average number of electroliers per Residential Meter Sets from 2003 to Over a 10-year period, the ratio has fluctuated from a low of 0.11 in 2010 to a high of 0.26 in We propose using the five-year ( ) average of 0.14 electroliers per residential meter set together with Ms. Shengs forecast total number of residential meter sets to forecast the total number of electroliers. The 10 year average ( ) is 0.16 For example: In 2013, the number of electroliers = 0.14*27,758 = 3,993 Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars.

180 99 Year Recorded Cost (2012 Constant $) 823,765 $14,961 $11,500 $16,230 $14,506 Number ofelectrolier Installation 3,991 2,728 2,061 3,340 2,411 Cost Per Electrolier $6.0 $5.5 $5.6 $4.9 $6.0 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $5.6 Year Unit Cost $5.6 $5.6 $5.6 $5.6 $5.6 Number ofelectrolier Installation 3,993 5,559 7,371 8,102 8,047 Total Cost ( 2012 Constant $) $22,362 $31,131 $41,278 $45,372 $45,064 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is equal to $5,600. The total costs for 2013 to 2017 is calculated based on forecasted unit volume times the average unit cost.

181 100 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: EV TRANSFORMERS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: New Service Connections Detail: EV Transformers Database ID: 677 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree N EW SERV CONNECTIONS NSC - RESIDENTIAL 4051 CET-PD-NS-RS-EVXFMR Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket Yes 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast ,346 20, , , , ,909 Total 54,399 10,000 5, (a). SYSTEM SHORT TEXT EV Related Transformers 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

182 101 Workpaper Title: Translating the PEV Forecast to Transformer Replacement

183 102 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Workpaper Title: Translating the PEV Forecast to Transformer Replacement Market Penetration Market penetration is one of the key metric that Transmission and Distribution (T&D) relies to forecast future transformer replacements. The Transportation Electrification Group which is a part of SCE assisted T&D to develop the forecast count of overloaded transformers based on the expected market penetration of PEVs in the SCE service territory by year (shown in Table l) 1: Table 1 (000s) Forecast Circuit Cluster Density In order to assess the impact of PEVs on the distribution system, The Transportation Electrification Group translated the market penetration into Circuit Cluster Density. Circuit Cluster Density is defined as how many PEVs will be on each of the circuits of the distribution system. The underlying assumption for determining where the PEVs will be is based on where hybrid cars are registered. SCE obtained hybrid vehicle registrations in all the zip codes that SCE services for the years 2000 to The total number of hybrid registrations from 2000 to 2011 was approximately 160,000. It was determined that the benefits of hybrid vehicles were aligned with the benefits of a PEV and that using the registration of hybrid vehicles as a proxy for where PEVs would be owned would be reasonable. The count of hybrid registrations was by zip code. Since a number of zip codes cross the boundaries of the SCE service territory with other distribution system providers (DWP, municipality owned distribution systems, etc.), the hybrid registrations needed to be adjusted to account for these shared zip codes. In order to identify the zip codes that SCE shares with other distribution system providers, The Transportation Electrification Group compared the number of residential service accounts by zip code to the number of households by zip code, according to the census based information by zip code. The census based information contained the number of households by zip code in 2000, average number of people per household for the zip code in 2000, population by zip code in 2000 and a current population estimate by zip code. The current population estimate was based on information obtained from the postal service. Using the current population estimate and the average number of people per household, The Transportation Electrification Group calculated a current estimate of the number of 1 See TE Exhibit D, PEV Forecast. Refer to Mr. Edward Kjaer's testimony titled Transportation Electrification, (Chapter 09, Volume 02)

184 103 households. Based on the comparison of the number of SCE residential service accounts by zip code and the current estimate of the number of households by zip code, The Transportation Electrification Group determined which zip codes are shared with other distribution system providers. The zip codes identified had at least twice as many households than SCE had residential service accounts. The number of registered hybrids was adjusted down based on the ratio of SCE residential service accounts to census households. This adjustment reduced the number of hybrid registrations from 2000 to 2011 to approximately 105,000. In addition to adjusting the number of hybrid vehicle for shared zip codes, The Transportation Electrification Group also calculated a proxy for the number of service accounts. This proxy was needed to adjust for the impact of the timeframe of the hybrid registrations. The proxy was determined based on the conditions listed in Table 2: Table 2 Condition There was a change in population between 2000 and 2011 New Zip - Use Updated Households Shared Zip The census data is incomplete (missing 2000 population or current estimate of population) The current estimate of population is missing or inconsistent Service Account Proxy Calculated an average population and then calculated a updated number of households for each zip code using the number of people per household from the 2000 census for that zip code Calculated an average population and then calculated a updated number of households for each zip code using an average number of people per household from the 2000 census for all SCE zip codes Used the number of SCE residential service accounts Used the number of SCE residential service accounts Use the number of households from 2000 census Based on this approach, there are approximately 4.1 million proxy service accounts for the 105,000 hybrid vehicle registrations in SCE service territory, in 631 zip codes. The proportional hybrid registrations by zip code data were used to calculate the forecasted PEV for each zip code for the each for the market penetration scenarios by year. Once the number of PEV by zip code, by year were calculated, The Transportation Electrification Group converted the PEV forecast by zip code by year to PEV forecast by circuit by year. The process to convert the PEV forecast by zip code by circuit is described in Table 3: Table 3 Step Data Used Description Obtained Service All Residential Service Accounts, There were over 4.1 million

185 104 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Step Data Used Description Accounts by Zip Code with zip code residential customers in the zip codes Obtained Service Accounts by Circuit Obtain Service Accounts by Zip Code, By Circuit Service Account % of Zip Code for each Zip Code/Circuit PEV for Zip Code and Circuit Residential Service Accounts with Structure ID Structure IDs by Circuit Residential Service Accounts, with zip code and Structure ID Structure IDs by Circuit Service Account by Zip Code, by Circuit Service Accounts by Zip Code Service Account % of Zip Code for each Zip Code/Circuit Number of PEV by Zip Code Utilize existing linkages of the Structure ID to service account to a circuit2. There were over 4.1 million residential customers in the approximately 3,900 circuits. There were over 12,000 zip code/circuit combinations Calculated the service accounts by zip code and circuit as a percent of the service accounts by zip code. Allocated the PEV by zip code to the zip code by circuit. PEV by Circuit PEV for Zip Code and Circuit Accumulated the number of PEV by circuit from the PEV for Zip Code and Circuit For each circuit, the following information was obtained from T&D: Substation System Region Circuit Voltage (KV) Number of OH Transformers Number of UG Transformers Circuit Service Accounts Circuit Penetration Rates Once the PEV Market Penetration forecast was converted to number of PEV by circuit, for each of the Market Penetration scenarios and for each year, The Transportation Electrification Group calculated the Circuit Penetration Rate for each circuit for each year. The Circuit Penetration Rate is the number of PEV forecasted for each circuit divided by the number of residential service accounts on the circuit. 2 This linkage is based on existing information identified in the customer database.

186 105 Transformer Impact Study In order to study the effects that PEVs would on the T&D distribution system, T&D commissioned a study by Quanta Technology. The study reported the potential impact that PEVs would have on the power distribution system owned and operated by SCE. This study specifically targeted transformers. The basis for the PEV impact study was based on a set of carefully selected representative circuits, which represented a sample of different circuit types in the SCE system. Selection of the representative set of feeders was done using a statistical clustering method along with consultation with SCE s planning engineers. The representative feeders were modeled and calibrated to closely match conditions at or near the system peak. There were 25 representative circuits identified (See Table 4) Table 4 Circuit Name Substation Name Voltage Weather Zone # of Circuits Aruba Bryan 12kV Blackhills Glen Avon 12kV California Chase 12kV Cawston Garfield 4kV Clemson Somis 16kV Cram Highland 12kV Deerfield Ravendale 16kV Drum Telegraph 12kV Fir Lynwood 4kV Hill Manhattan 4kV Holstein Tippecanoe 4kV Homer Lemon Cove 12kV Jade Crown 12kV Kliss Kliss P.T. 4kV Maiden Maiden P.T. 4kV Oakdale Newcomb 12kV Penmar La Habra 12kV Quebec Imperial 4kV Rhoda Crater 16kV Ruth La Veta 12kV Smoke Tree Twenty nine Palms 12kV Sump Haveda 4kV Taft Colorado 16kV Windt Laurel 12kV Woodland Liberty 12kV The next step was to incorporate various charging scenarios into the models that reflect the types of charging that can occur, the duration of a typical charge cycle, the time of day charging is performed and where it is done.

187 106 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Analysis was performed for each representative feeder. The 24 hour load shapes specific to each feeder, based on metered data provided by SCE, were modeled as the starting point and the PEV charging scenario loads were superimposed on these at the various penetration levels. The penetration levels included in the study was 0%, 2.5%, 5%, 10%, 25% 50% and 100%. The 0% penetration rate is considered the baseline for this analysis. SCE provided Quanta with 2 PEV charging scenarios. The first charging scenario was developed assuming a limited availability of charging infrastructure away from the home. This charging scenario was labeled 2014 Load Shape. The second charging scenario, labeled 2020 Load Shape, included widely available non-residential charging infrastructure. The non-residential charging infrastructure included workplace, retail shopping malls, public charging stations, etc. In addition to these charging scenarios, SCE also provide assumptions regarding Time Of Use (TOU) rate adaption. Currently, SCE has 2 EV related rates for customers. The first is a Whole House TOU for PEV owners. This rate requires a single meter be installed. The second is a TOU-EV, in which the charging of the PEV is metered separately from the rest of the household consumptions. For the purposes of this study, a base case TOU adaption rate of 50% was selected. Two other outlier TOU adaption rates (25% and 75%) were also used to test limits of the forecast. Overload Conditions The results of the study provided SCE the percentage of transformers that would be overloaded for each penetration level. This data along with the forecast penetration rates of the circuits was used to develop the count of overloaded transformer counts. Transformers The overload condition for transformers was expressed as a percentage of total transformers on the circuit. Once the number of overloaded transformers was calculated for the baseline and each of the years, the yearly incremental overloaded transformers were calculated. Table 5 illustrates the number of overloaded transformers for a single circuit as an example based on expected penetration for Table 5 Circuit Representative Circuit 2017 Forecasted Total # of OH Total # of UG 2017 OH Replacements 2017 UG Replacements Penetration Transformer Transformers Stella Drum 5.3%

188 107 Table 6 shows the final forecast for transformer upgrades for Years are actual number of upgrades. Table Overhead Transformer ,162 1,887 2,203 Underground Transformers Total Transformers ,752 2,674 2,751 Once the incremental number of overhead and underground transformers was calculated, unit costs were applied.

189 108 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: RULE 20A CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20A Conversions Detail: Rule 20A Conversions Database ID: 599 / RO Model ID: W ITNESS Greg Ferree 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE RULE 20A RULE 20A 4054 CET-PD-2A-2A-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast ,014 36, ,811 35,000 34, ,508 33, ,257 32, ,183 Total 167, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

190 109 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: RULE 20A CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20A Conversions Detail: Rule 20A Conversions Database ID: 1248 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OPERATIONS - IT NETW ORK SERVICES 3365 CIT-00-OP-NS Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Telecommunications Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ GRC - Capital Expenditures Forecast Total 2, (a). SYSTEM SHORT TEXT Rule 20A Requirements 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

191 110 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: DISTRIBU TION RULE 20 B CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20 B Conversions Detail: Distribution Rule 20 B Conversions Database ID: 610 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree CUSTOM ER REQ/RELO DISTR OH CONV 20B 4054 CET-PD-CR-2B-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ , , , , ,728 Total 245,358, 20,000 10, GRC - Capital Expenditures Forecast (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

192 111 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: TRANSMISSION RULE 20 B CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20 B Conversions Detail: Transmission Rule 20 B Conversions Database ID: 1235 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OPERATIONS - IT NETW ORK SERVICES 3365 CIT-00-OP-NS Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Telecommunications Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr (a). SYSTEM SHORT TEXT Rule 20B Req- (Collectible) - TDBU 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

193 112 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: DISTRIBUTION RULE 20 C CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20 C Conversions Detail: Distribution Rule 20 C Conversions Database ID: 611 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree CUSTOM ER REQ/RELO DISTR OH CONV 20C 4054 CET-PD-CR-2C-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast ,581 20, , , , ,290 Total 73,010 10,000 5, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

194 113 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: TRANSMISSION RULE 20 B CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20 B Conversions Detail: Transmission Rule 20 B Conversions Database ID: 1236 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OPERATIONS - IT NETW ORK SERVICES 3365 CIT-00-OP-NS Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Telecommunications Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ GRC - Capital Expenditures Forecast Total (a). SYSTEM SHORT TEXT Rule 20C Req- (Collectible) - TDBU 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

195 114 Workpaper - Southern California Edison / 2015 GRC - APPLICATION THIS PAGE INTENTIONALLY LEFT BLANK

196 115 Workpaper Title: Distribution Rule 20 B and Rule 20C

197 116 Workpaper - Southern California Edison / 2015 GRC - APPLICATION WORKPAPER TITLE: DISTRIBUTION RULE 20 B AND RULE 20C WBS Elements CET-PD-CR-2Band CET-PD-CR-2C Unit: Miles of Cable Installed CPR Account , (Underground Cable) Development of Unit Count The table below shows the miles of cable installed as part of Rule 20 B and Rule 20 C Overhead to Underground conversion along with the miles of residential line extensions from 2003 to Year Residential Line Extension (Feet of Cable) Rule 20 B and Rule 20C (Feet of Cable) Rule 20 B and Rule 20C (Miles of Cable) Rule 20 B (Miles of Cable) Rule 20 C (Miles of Cable) ,087,821 1,117, ,427,573 1,166, ,730,105 1,688, ,989,714 1,744, ,514,052 1,449, , , , , , , , , , , , , ,030,500 1,039, ,439,508 1,357, ,604,535 1,486, ,592,131 1,476, The length of cable to be installed as part of Rule 20 B and Rule 20 C was found to be correlated to residential line extensions. The output of the regression analysis is shown below. The independent variable is miles of Rule 20 B or C cable, and the dependent variable is the miles of residential line extension. For example: For 2013, the feet of cable for Rule 20B and Rule 20C combined = *677,043 = 764,213. Total miles for Rule 20B and Rule 20C = 764,213/5280 = 145 miles

198 117 To separate the costs into Rule 20B and Rule 20C, we considered 2008 to 2012 data. The costs for these two categories had a 77/23 split based on a 5 year average. We used this ratio to split the total forecast into Rule 20B and Rule 20C Rule 20B $28,811 $23,081 $14,865 $21,392 $13,750 $29,249 $40,638 $54,022 $60,240 $61,728 Rule 20C $9,187 $8,561 $4,763 $4,802 $4,234 $8,679 $12,093 $16,161 $18,193 $18,290 Total $37,998 $31,642 $19,628 $26,195 $17,984 $37,927 $52,732 $70,184 $78,433 $80,018 % o f Rule 20B 76% 73% 76% 82% 76% 77% 77% 77% 77% 77% For the above example: the splits are calculated as follows Rule 20B miles = 145 * 0.77 = 112 miles of cable Rule 20C miles = 145*0.23 = 33 miles of cable Regression Statistics Multiple ] R Square Adj listed Standard Observati 10 ANOVA d f SS MS F Significance F Regressic E E E-07 Residual Total E+12 Coefficients Standard Error t St at P-value Lower 95% Jpper 95 /ower 95.0 pper 95.0 Intercept R esl E ft E u a 2, 0 0 0, ,800,000 m 1,600,000 o ( N 1,400,000 s, 1,200,000 T J 'J C/3 o» > o * '? 1,000,000 Historical > 800,000 e % o o 600,000 * Forecast U 400,000 o 200,000 D U * 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Feet o f Residential Line Extension

199 118 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Development of Costs The table below shows the units, unit costs and total annual costs for overhead and underground service extensions. The costs shown are in Constant 2012 (thousand) dollars. Year Miles o f Cable (Rule 20B and 20C) Nominal $ 37,998 31,642 19,628 26,195 17, Constant $ 43,546 35,457 21,103 27,043 17,984 Cost Per Mile $261.5 $234.5 $237.0 $285.2 $254.3 Forecast Methodology for Unit Cost (2013 to 2017): 5 Year Average = $254.5 Year Miles o f Cable ( Rule 20B) Miles o f Cable ( Rule 20C) Cost Per Mile $254.5 $254.5 $254.5 $254.5 $254.5 Total Expenditure (Rule 20B) $28,504 $38,806 $50,514 $55,096 $54,972 Total Expenditure (Rule 20Q $8,494 $11,548 $15,112 $16,640 $16,288 Total Expenditure (Rule 20B and Rule 20C) $36,998 $50,354 $65,626 $71,736 $71,260 Unit costs were calculated for 2008 to 2012 by dividing the total costs recorded in a given year by the volume of units installed. The unit costs for 2013 to 2017 were based on a 5 year average ( ) and is $254,500. The total costs for 2013 to 2017 are calculated as the product of the forecasted unit volume and this unit cost.

200 119 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: TRANSMISSION RULE 20 B CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20 B Conversions Detail: Transmission Rule 20 B Conversions Database ID: 618 / RO Model ID: W ITNESS Greg Ferree 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE CUSTOM ER REQ/RELO TRANS OH CONV 20B 3365 CET-PD-CR-TB-TREAST Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Transmission Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - Capital Expenditures Forecast ,493 3, ,571 3,800 3, ,666 3, ,726 3, ,817 Total 18,273 3,400 3, (a). SYSTEM SHORT TEXT Eastern 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

201 120 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: TRANSMIS SION RULE 20 C CONVERSIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Rule 20 C Conversions Detail: Transmission Rule 20 C Conversions Database ID: 619 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree CUSTOM ER REQ/RELO TRANS OH CONV 20C 3365 CET-PD-CR-TC-TREAST Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Transmission Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr (a). SYSTEM SHORT TEXT Eastern 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

202 121 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: CIRCUI T BREAKER REPLACEMENTS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Substation Infrastructure Replacem ent Detail: Circuit Breaker Replacem ents Database ID: 155 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree INFRASTRUCTURE REPL 20B/C CIRCUIT BRKRS 4523 CET-ET-IR-2X Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Substations Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr (a). SYSTEM SHORT TEXT VARIOUS SUBSTATIONS: REPLACE RULE 20B CI 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

203 122 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: DISTRIBUTION RELOCATIONS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Relocations Detail: Distribution Relocations Database ID: 615 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree CUSTOM ER REQ/RELO DISTRIBUTION RELO 4052 CET-PD-CR-RL-CAT Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ , , , , ,387 Total 197, GRC - C apital E xpenditures Forecast (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

204 123 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: DISTR IBUTION ADDED FACILITIES Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: ADDED FACILITIES Detail: Distribution Added Facilities Database ID: 600 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree ADDED FACILITIES CUSTOM ER REQUESTS 4053 CET-PD-AF-DA-CAT Select one Select one Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip X Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Specific Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ ,086 4, ,188 4,500 4, ,277 4,300 4, ,372 4,100 4, ,491 3,900 3,800 Total 21, GRC - C apital E xpenditures Forecast (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

205 124 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: CATALINA WATER Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Claim Detail: Catalina Water Database ID: 607 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree CLAIM DISTRIBUTION - CLAIM 4055 CET-PD-CL-DC-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE Distribution Lines Specific Blanket 6. RIIM ELIGIBLE Yes 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - C apital E xpenditures Forecast ,795 26, ,363 25, ,859 24, , ,051 Total 119,461 23,000 22,000 21, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

206 125 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: PREFABRICATION Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Prefabrication Detail: Prefabrication Database ID: 684 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OTHER - TDBU PREFAB (395) 4052 CET-PD-OT-PF-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ , GRC - C apital E xpenditures Forecast , , , ,087 20,000 15,000 10,000 5,000 Total 142, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

207 126 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: DISTRIBUTION TRANSFORMERS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Distribution Transformers Detail: Distribution Transformers Database ID: 693 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OTHER - TDBU TRANSFORMERS (580) 4052 CET-PD-OT-TR-TRANSF Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ , , , , ,982 Total 473, , ,000 80,000 60, GRC - C apital E xpenditures Forecast (a). SYSTEM SHORT TEXT Transformers (580) 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

208 127 Workpaper Title: Distribution Transformers

209 128 Workpaper - Southern California Edison / 2015 GRC - APPLICATION

210 129 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: PORTABLE TOOLS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Distribution General Plant Detail: Portable Tools Database ID: 682 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OTHER - TDBU DISTR PORTABLE TOOLS 4050 CET-PD-OT-DT-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE Stores/Lab/Miscellaneous 5. CLOSE DATE Blanket 6. RIIM ELIGIBLE No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - C apital E xpenditures Forecast ,949 3, ,022 3, ,087 3, , ,241 3,000 2,900 Total 15, (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

211 130 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEE T: LAB EQUIPMENT Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Distribution General Plant Detail: Lab Equipment Database ID: 681 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OTHER - TDBU DISTR LAB EQUIP 4050 CET-PD-OT-DL-CAT Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE Stores/Lab/Miscellaneous Blanket 6. RIIM ELIGIBLE No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ Total GRC - C apital E xpenditures Forecast (a). SYSTEM SHORT TEXT Catalina 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

212 131 Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: SSID Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: SSID Detail: SSID Database ID: 598 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OTHER - TDBU SSID 3827 CET-OT-OT-S D Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Stores/Lab/Miscellaneous Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ , GRC - C apital E xpenditures Forecast , , , ,333 2,200 2,100 2,050 Total 11, (a). SYSTEM SHORT TEXT SHOP SERVICES BLANKET - NON-EXEMPT (PORT 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

213 132 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Beginning of Workpapers for: FERC A ccount: A ctivity : W itness: 588 Miscellaneous Distribution Expenses PR O D UC TIVITY BENEFITS Gregory M Ferree Forecast Method Chosen 2012$ (000) Recorded Forecast Labor N/A 0 0 Non-Labor Itemized Forecast 0 (2,766) Other N/A 0 0 Total 0 (2,766) Description of Activity: Productivity Benefits - This activity forecasts benefits associated with Wires Investment Strategy Efficiency Review (WISER) and Consolidated Mobile Solutions (CMS). Final Cost Centers included in this activity (See Appendix A for additional detail): F

214 133 FERC A ccount: Activity: 588 Miscellaneous Distribution Expenses PR O D U C TIVITY B ENEFITS W itness: Gregory M Ferree DETERMINATION OF RECORDED/ADJUSTED i Recorded Period $ (000) FERC Form 1 Recorded (Nominal $) Labor Non-Labor Other Total Adjustments- (Nominal $) - see Appendix B for additional detail Labor Non-Labor Other Total Recorded/Adjusted (Nominal $) Labor Non-Labor Other Total Escalation: Labor Non-Labor Other Recorded/Adjusted (Constant 2012$) Labor Non-Labor Other Total Recorded Adjusted (2012$) Labor (std escl) Non-Labor (std escl) Cither (not escl)

215 134 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: Activity: W itness: 588 Miscellaneous Distribution Expenses PR O D UC TIVITY B ENEFITS Gregory M Ferree Forecasting M ethods - Sum m ary of Results of all M ethods Studied $ (000) 2 Recorded Years ( ): Results of Averaging (A2) 2013 I sd** Chosen Labor no Non-Labor no Other no Total n/a n/a 3 R ecord e d Years ( ): Results of Linear Trending (T3) Results of Averaging (A3) r2* I Chosen sd** Chosen Labor no no Non-Labor no no Other no no Total n/a n/a n/a n/a 4 Recorded Years ( ): Labor Non-Labor Other Total 5 R ecord e d Years ( ): Labor Non-Labor Other Total O th e r M ethods: o CM CO Results of Linear Trending (T4) Results of Averaging (A4) r2* I Chosen sd** Chosen no no no no no no n/a n/a n/a n/a Results of Linear Trending (T5) 2013 I r2* I Chosen o CM CO Results of Averaging (A5) sd** Chosen no no no no no no n/a n/a n/a n/a Labor Non-Labor Other Total Last Recorded Year (LRY) Chose*n~ n/a Itemized Forecast (IF) Chosen 0 (1,659) 0 0 (2,766) 0 no yes no (1,659) (2,766) n/a Forecast A djustm ents : Base Forecast Method Adjustments* Method Labor N/A Non-Labor IF 0 (1,659) (2,766) Other N/A Total 0 (1,659) (2,766) * r2 = R Squared (Based on recorded years data) ** sd = standard deviation (Based on recorded years data) *** See Appendix B For Additional Detail

216 135 FERC A ccount: A ctivity : W itness: 588 Miscellaneous Distribution Expenses PR O D UC TIVITY BENEFITS Gregory M Ferree R esults: F o re c a stin g R esults Method Selected Labor N/A Non-Labor Itemized Forecast 0 (1,659) (2,766) Other N/A Total 0 (1,659) (2,766) A nalysis of Forecasting Methods Analysis of Linear Trending Method: Not applicable. Analysis of Averaging Method: Not applicable. Analysis of Last Recorded Year (2012): Not applicable. Analysis of Itemized Forecast Method: As described in testimony, the forecast for this sub-account is based on productivity improvements that will reduce the distribution expenses.

217 136 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: Activity: W itness: 588 Miscellaneous Distribution Expenses PR O D UC TIVITY B ENEFITS Gregory M Ferree I R ecorded Period Forecast Expenses (constant 2012$) Labor (standard escalation) Non-Labor (standard escalation) (1,659) (2,766) Other (not escalatable) Total (1,659) (2,766) $ (000) Labor Prior year Total Change Total Non-Labor Prior year Total 0 0 (1,659) Change 0 (1.659) (1.107) Total 0 0 (1,659) (2,766) Other Prior year Total Change Total Total Change Labor Non-Labor (1,659) (1,107) Other Total N/A 0 (1,659) (1,107)

218 137 FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses P R O D U C T IV IT Y B E N E F IT S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in cluding re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d o ffice s u p p lie s re q u ire d du e to an in crease in activity (no n -labo r) L abo r: 0 N o t a p p lic a b le. N o n -L a b o r: 0 N o t a p p lic a b le. O th e r: 0 N o t a p p lic a b le.

219 138 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FER C A ccou n t: Activity: W itness: M iscellaneous Distribution Expenses PR O D U C TIVITY B ENEFITS Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in clu d in g re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d o ffice s u p p lie s re q u ire d du e to an in crease in activity (no n -labo r) L abo r: 0 N o t a p p lic a b le. N o n -L a b o r: ( 1,6 5 9 ) S e e T e s tim o n y a n d S u p p o rtin g W o rk p a p e rs. O th e r: 0 N o t a p p lic a b le.

220 139 FERC A ccount: A ctivity: W itness: 588 Miscellaneous Distribution Expenses P R O D U C T IV IT Y B E N E F IT S Gregory M Ferree T h is p a g e s h o w s th e c h a n g e s in L a b o r, N o n -L a b o r, a n d O th e r e x p e n d itu re s fo re c a s t d u rin g th ro u g h , in cluding re a s o n s fo r th e a d d itio n o f p e rs o n n e l (la b o r), in c re a s e d o ffice s u p p lie s re q u ire d du e to an in crease in activity (no n -labo r) L abo r: 0 N o t a p p lic a b le. N o n -L a b o r: ( 1,1 0 7 ) S e e T e s tim o n y a n d S u p p o rtin g W o rk p a p e rs. O th e r: 0 N o t a p p lic a b le.

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222 141 FERC A ccount A ctivity: W itn ess: M iscellaneous Distribution Expenses P R O D U C T IV IT Y B E N E F IT S G regory M Ferree APPENDIX A Detail Description of Final Cost Centers Included in This Activity

223 142 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 588 Miscellaneous Distribution Expenses P R O D U C T IV IT Y B E N E F IT S Gregory M Ferree Description of Final Cost Centers included in this activity: F D IR E C T C H A R G E S TO FERC A C C O U N T Expenses charged directly to the Federal Energy Regulatory Com m ission (F E R C ) account and not to a specific final cost center.

224 143 FERC A ccount: Activity: W itness: 588 Miscellaneous Distribution Expenses PR O D UC TIVITY B ENEFITS Gregory M Ferree Recorded/Adjusted (Constant 2012$) By Final Cost Center $ (0 00) F DIRECT CHARGES TO FERC ACCOUNT Total ** Due to rounding, totals may not tie to other workpaper pages.

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226 145 FER C A ccount: A ctivity: W itn e ss : M iscellaneous Distribution Expenses PR O D UC TIVITY BENEFITS G regory M Ferree APPENDIX B Detail of Total Company Adjustments to Recorded

227 146 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: Activity: W itness: 588 Miscellaneous Distribution Expenses PR O D UC TIVITY B ENEFITS Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses A djs - (N om inal $) $ (000) Labor Non-Labor O ther Total

228 147 End of Workpapers for: FERC A ccount: A ctivity: W itness : 588 Miscellaneous Distribution Expenses PR O D UC TIVITY BENEFITS Gregory M Ferree

229 148 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC PROJECT DETAIL WORKSHEET: DISTRIBUTION FIELD PROGRAM BENEFITS Organizational Unit Summary: T&D Testimony Summary: SCE-03, Volume 5 Major Program: CUSTOM ER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Category: Distribution Field Program Benefits Detail: Distribution Field Program Benefits Database ID: 593 / RO Model ID: W ITNESS 2. PROJECT DETAIL Program Group Program Pin # WBS Element 3. PROJECT TYPE Greg Ferree OTHER - TDBU BENEFITS 7013 CET-OT-OT-BN Select one Select one X Compliance: Safety, Environmental, Licenses Replacements in Kind Upgrades Blanket: FE, Tools, Spare Parts, Lab, Computer Equip Customer Growth Load Growth Reliability Capitalized Software Various (See Below) 4. ASSET TYPE 5. CLOSE DATE 6. RIIM ELIGIBLE Distribution Lines Blanket No 7. COST ESTIMATES (NOMINAL $000) Yr SCE $ 2015 GRC - C apital E xpenditures Forecast ,644-5,000-10, ,627-15, ,222-20, ,958 Total -97,452-25,000-30, (a). SYSTEM SHORT TEXT Smart Connect Benefits 7 (b). DETAILED DESCRIPTION 8. SCOPE 9. JUSTIFICATION

230 149 Workpaper Title: Opx Distribution Field Program Benefit Analysis

231 cn o Workpaper Title: OpX Distribution Field Program Benefit Analysis WBS element CET-OT-OT-BN Contractor Crew Assumptions1 Range of Savings2 Capital-O&M split3 Number o f E-crews (2012) 175 Low 5% Capital 90% Daily Contractor Crew Cost Relevant Weeks/Y ear $ 6, High 15% O&M 10% Annual Contractor Crew Cost $ 1,580,800 Rounded Ramp-up of Benefits % 60% 100% 100% 100% Total Avoided Contractor Crews Low Case High Case Capital Benefits ($000) Low Case $ $ 7,469 $ 12,449 $ 12,449 $ 12,449 High Case $ $ 22,408 $ 37,346 $ 37,346 $ 37,346 Expected V alue s S 14,939 S 24,898 S 24,898 S 24,898 O&M Benefits - Constant 2012S (000) Low Case $ - $ 830 $ 1,383 $ 1,383 $ 1,383 High Case $ - $ 2,490 $ 4,150 $ 4,150 $ 4,150 Expected Value s - S 1,660 S 2,766 S 2,766 S 2,766 Notes: (1) Based on 2012 data and estimated average crew cost per day (2) Based on project team targets ( For every 5% savings ~ 10 contractor crews reduced/avoided) (3) Based on estimated work activities for contractor crews (5) Avoided contractor crews calculated by multiplying number of contractor crews x target savings (6) Avoided contractor crews calculated by multiplying number of contractor crews x target savings x annual crew cost x capital % (7) Avoided contractor crews calculated by multiplying number of contractor crews x target savings x annual crew cost x O&M % Workpaper - Southern California Edison / 2015 GRC - APPLICATION

232 151 Workpaper Title: Transmission Underground Line Inspections FERC Account

233 152 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Beginning of Workpapers for: FERC A ccount: A c tiv ity : W itness: 564 Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S Gregory M Ferree Forecast Method Chosen 2012$ (000) Recorded Forecast Labor N/A 0 0 Non-Labor N/A 0 0 Other N/A 0 0 Total 0 0 Description of Activity: Transmission - Underground Line Inspections - Includes the cost of labor, materials used and expenses incurred in the operation of underground transmission lines and expenses. Includes labor for activities such as: inspecting terminations at transition points; pumping of ground water; routine inspection and cleaning of manholes, conduits, network and transformer vaults; marking the location of transmission underground lines and facilities; and inspecting underground get-aways entering substations. Includes related costs such as: transportation expenses; meals, traveling, lodging, and incidental expenses; division overhead; and supply and tool expense. This activity package has zero dollars; all costs have been transferred to See Appendix C for Final Cost Centers included in this activity.

234 153 FERC A ccount: A ctivity: W itness: 564 Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S Gregory M Ferree I DETERMINATION OF RECORDED/ADJUSTED Recorded Period $ (000) FERC Form 1 Recorded (Nominal $) Labor Non-Labor Other Total 1, ,104 1,295 Adjustments- (Nominal $) - see Appendix B for additional detail Labor (730) (676) (645) (795) (975) Non-Labor (332) (218) (321) (309) (320) Other Total (1,062) (894) (966) (1,104) (1,295) Recorded/Adjusted (Nominal $) Labor Non-Labor Other Total Escalation: Labor Non-Labor Other Recorded/Adjusted (Constant 2012$) Labor Non-Labor Other Total Recorded Adjusted (2012$) Labor (std escl) Non-Labor (std escl) Cither (not escl)

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236 155 FERC A ccount: A ctivity: W itn ess: Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S G regory M Ferree APPENDIX A Detail Description of Final Cost Centers Included in This Activity

237 156 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A ctivity: W itness: 564 Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S Gregory M Ferree Recorded/Adjusted (Constant 2012$ By Final Cost Center $ (0 00) * See Appendix C for Summary Final Cost Centers S U M M A R Y TRANSMISSION INSPECTIONS - UNDERGROUND Total ** Due to rounding, totals m ay n ot tie to o ther w orkpaper pages.

238 157 FERC A cco u n t: A ctivity: W itn e ss: Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S G regory M Ferree APPENDIX B Detail of Total Company Adjustments to Recorded

239 158 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tiv ity : W itness: 564 Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses Adjs - (Nom inal $) $ (000) Labor (7 30) (6 7 6 ) (645) (795) (9 75) N on-labor (3 32) (2 1 8 ) (321) (309) (3 20) O ther Total (1,0 6 2 ) (8 9 4 ) (966) (1,1 0 4) (1,2 9 5 ) Organizational Unit Adjustment 1 TD B U -ID P -O U -R EM A PP_ TO _ This consolidation adjustm ent re-m aps the expenses from activity , , , , , and to Labor (7 30) (6 7 6 ) (6 45) (795) (9 7 5 ) N on-labor (3 32) (2 1 8 ) (3 21) (309) (3 2 0 ) O th er Total (1,0 6 2 ) (8 9 4 ) (9 66) (1,1 0 4 ) (1,2 9 5 ) 0 0 0

240 159 End of Workpapers for: FERC A ccount: A ctivity: W itn ess: 564 Underground Line Expenses T R A N S M IS S IO N - U N D E R G R O U N D LIN E IN S P E C T IO N S G regory M Ferree

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242 161 Workpaper Title: Design Construction & Maintenance- Distribution Line Rents FERC Account

243 162 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Beginning of Workpapers for: FERC A ccount: A c tivity: W itness : 589 Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N L IN E R ENTS Gregory M Ferree Forecast Method Chosen 2012$ (000) Recorded Forecast Labor N/A 0 0 Non-Labor N/A 0 0 Other N/A 0 0 Total 0 0 Description of Activity: Design Construction & Maintenance - Distribution Line Rents - Includes rents of property of others used, occupied, or operated in connection with the distribution system. Includes payments to the United States and others for the use and occupancy of public lands and reservations for distribution line rights of way. This activity package has zero dollars; all costs have been transferred to See Appendix C for Final Cost Centers included in this activity.

244 163 FERC A ccount: A c tiv ity : W itness: 589 Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N LIN E R E N T S Gregory M Ferree I DETERMINATION OF RECORDED/ADJUSTED Recorded Period $ (000) FERC Form 1 Recorded (Nominal $) Labor Non-Labor ,041 1,550 1,792 Other Total ,050 1,556 1,802 Adjustments- (Nominal $) - see Appendix B for additional detail Labor (1) (3) (9) (6) (10) Non-Labor (683) (954) (1,041) (1,550) (1,792) Other Total (684) (957) (1,050) (1,556) (1,802) Recorded/Adjusted (Nominal $) Labor Non-Labor Other Total Escalation: Labor Non-Labor Other Recorded/Adjusted (Constant 2012$) Labor Non-Labor Other Total Recorded Adjusted (2012$) Labor (std escl) Non-Labor (std escl) Cither (not escl)

245 164 Workpaper - Southern California Edison / 2015 GRC - APPLICATION THIS PAGE INTENTIONALLY LEFT BLANK

246 165 FERC A ccount: A ctivity: W itn e ss : Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N LIN E R E N T S G regory M Ferree APPENDIX A Detail Description of Final Cost Centers Included in This Activity

247 166 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A ctivity: W itness: 589 Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N L IN E R E N T S Gregory M Ferree R e c o r d e d /A d ju s te d ( C o n s t a n t $ B y F in a l C o s t C e n te r $ (000) * See Appendix C fo r Sum m ary Final Cost Centers SU M M A R Y DISTRIBUTION LINE RENTS Total ** Due to rounding, totals may not tie to other workpaper pages.

248 167 FERC A ccount: A ctivity: W itn e ss : Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N L IN E R E N T S G regory M Ferree APPENDIX B Detail of Total Company Adjustments to Recorded

249 168 Workpaper - Southern California Edison / 2015 GRC - APPLICATION FERC A ccount: A c tivity: W itness: 589 Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N L IN E R E N T S Gregory M Ferree Detail of Total C om pany A djustm ents to Recorded Expenses Adjs - (N om inal $) $ (000) Labor (1) (3) (9) (6) (10) N on-labor (683) (9 5 4 ) (1,0 4 1 ) (1,5 5 0) (1,7 9 2) O th er Total (684) (9 5 7 ) (1,0 5 0 ) (1,5 5 6) (1,8 0 2) Organizational Unit Adjustment 1 TD B U -IDP-O U -PYM T _TO _.O TH E R This adjustm ent m oves the annual lease paym ent from non-labor to other. T h e paym ent is a fixed rate and should not be escalated. Labor N on-labor (792) (6 0 4 ) (1,0 4 1 ) (1,5 5 0) (1,7 9 2) O th er ,041 1,550 1, Total O rganizational Unit Adjustm ent 2 T D B U -ID P -O U -L IN E R E N T _ P Y M T This adjustm ent is required to record line rents in the period in which they w ere incurred. T h e m ethod of how these invoices are to be recorded w as changed in and all future line rent invoices will now be posted in the monthly periods in which the rent paym ent is valid and are im pacted by this change in accounting practices for line rents. Labor N on-labor 110 (3 5 0 ) O th er Total 110 (3 5 0 ) O rganizational Unit Adjustm ent 3 T D B U -ID P -O U -R E M A P P _ T O _ This consolidation adjustm ent re-m aps the expenses from activity , , , and , , , and to Labor (1) (3) (9) (6) (10) N on-labor O th er (792) (6 0 4 ) (1,0 4 1 ) (1,5 5 0) (1,7 9 2) Total (7 93) (6 0 7 ) (1,0 5 0 ) (1,5 5 6 ) (1,8 0 2 ) 0 0 0

250 169 End of Workpapers for: FERC A ccount: A ctivity: W itness : 589 Rents D E S IG N C O N S T R U C T IO N & M A IN T E N A N C E - D IS T R IB U T IO N L IN E R E N T S Gregory M Ferree

251 170 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Company CAPITAL WORKPAPERS GRC MAJOR PROGRAM SUMMARY: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION (Nominal $000) Operating Unit Summary: T&D Testimony: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Capital Expenditures (Forecast ) WBS Element Testimony (Category) Testimony Detailed Description Total CET-PD-AF-DA-CAT ADDED FACILITIES Distribution Added Facilities 4,086 4,188 4,277 4,372 4,491 21,414 Subtotal 4,086 4,188 4,277 4,372 4,491 21,414 CET-PD-CL-DC-CAT Claim Catalina Water 22,795 23,363 23,859 24,392 25, ,461 Subtotal 22,795 23,363 23,859 24,392 25, ,461 CET-OT-OT-BN Distribution Field Program Benefits Distribution Field Program Benefits 0-15,644-26,627-27,222-27,958-97,452 Subtotal 0-15,644-26,627-27,222-27,958-97,452 CET-PD-OT-DL-CAT Distribution General Plant Lab Equipment CET-PD-OT-DT-CAT Distribution General Plant Portable Tools 2,949 3,022 3,087 3,156 3,241 15,455 Subtotal 3,117 3,195 3,263 3,336 3,426 16,336 CET-PD-OT-TR-TRANSF Distribution Transformers Distribution Transformers 80,413 88,072 97, , , ,543 Subtotal 80,413 88,072 97, , , ,543 CET-PD-NS-AG-CAT New Service Connections Agricultural 3,798 4,055 4,156 4,370 4,504 20,884 CET-PD-NS-CL-CAT New Service Connections Commercial 56,271 73,540 99, , , ,772 CET-PD-NS-RS-EVXFMR New Service Connections EV Transformers 1,983 5,706 12,109 20,438 16,452 56,687 CET-PD-NS-RS-CAT New Service Connections Residential 124, , , , , ,019 CET-PD-NS-SL-CAT New Service Connections Streetlights 22,849 32,600 44,144 49,608 50, ,804 Subtotal 209, , , , ,757 1,766,166 CET-PD-OT-PF-CAT Prefabrication Prefabrication 24,270 28,515 28,455 30,077 31, ,404 Subtotal 24,270 28,515 28,455 30,077 31, ,404 CET-PD-CR-RL-CAT Relocations Distribution Relocations 37,660 38,597 39,417 40,298 41, ,359 Subtotal 37,660 38,597 39,417 40,298 41, ,359 CET-PD-CR-2B-CAT Rule 20 B Conversions Distribution Rule 20 B Conversions 29,125 40,510 53,891 60,104 61, ,358 CET-PD-CR-TB-TREAST Rule 20 B Conversions Transmission Rule 20 B Conversions 3,493 3,571 3,666 3,726 3,817 18,273 CIT-00-OP-NS Rule 20 B Conversions Transmission Rule 20 B Conversions CIT-00-OP-NS Rule 20 B Conversions Transmission Rule 20 B Conversions Subtotal 32,839 44,310 57,792 64,072 65, ,557 CET-PD-CR-2C-CAT Rule 20 C Conversions Distribution Rule 20 C Conversions 8,581 11,993 16,058 18,087 18,290 73,010 CET-PD-CR-TC-TREAST Rule 20 C Conversions Transmission Rule 20 C Conversions ,035 Subtotal 8,779 12,196 16,266 18,298 18,506 74,045 CET-PD-2A-2A-CAT Rule 20A Conversions Rule 20A Conversions 32,014 32,811 33,508 34,257 35, ,774 CIT-OO-OP-NS-OOOOI8 Rule 20A Conversions Rule 20A Conversions ,997 Subtotal 32,579 33,393 34,107 34,874 35, ,771 CET-OT-OT-SD SSID SSID 2,141 2,189 2,239 2,287 2,333 11,190 Subtotal 2,141 2,189 2,239 2,287 2,333 11,190 CET-ET-IR-2X Substation Infrastructure Replacement Circuit Breaker Replacements Subtotal Grand Total 458, , , , ,573 3,160,498

252 171 Southern California Edison Company CAPITAL WORKPAPERS GRC MAJOR PROGRAM SUMMARY: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION (Nominal $000) Operating Unit Summary: T&D Testimony: SCE-03, Volume 5 Major Program: CUSTOMER DRIVEN PROGRAMS AND DISTRIBUTION CONSTRUCTION Capital Expenditures (Forecast ) (2) MAJOR PROGRAM RECORDED AND AUTHORIZED CAPITAL AND FORECAST EXPENDITURES: 2015 GRC Description Recorded and Authorized Capital Expenditures Forecast Capital Expenditures Authorized Expenditures 413, ,792 Recorded & Forecast Expenditures 410, , , , , , , , , ,573 Total Expenditures 1,775,933 3,160,498 CPUC Jurisdiction* 410, , , , ,132 R ecorded, A u th o rized and Forecast Expenditures Graph 800, ,000 0 i I I Recorded [ Authorized Forecast *Based on 2012 Transmission/Distribution ISO Facilities Study