Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No.

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1 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 1 Y. Demand Response Program Balancing Account (DRPBA) 1. Purpose: The purpose of the DRPBA is to record the difference between the actual Demand Response Program (DRP) costs, including costs for Prohibited Resources, incurred by SCE and the authorized Demand Response funding level approved by the Commission. In addition, the incentives sub-account will record the difference between actual incentives paid to customers and the authorized customer incentive levels approved by the Commission pursuant to D Definitions. a. Authorized Annual DRP Funding Levels (Such amount shall exclude Franchise Fees and Uncollectible (FF&U) Accounts expense.) (1) Authorized Funding Authorized in D , E-4020, and E-4028 Authorized Funding Levels ($000) Year Distribution Generation¹/ Total , , , , , ,282 Subtotal 120, ,846 (2) 2009 Authorized Bridge Funding (D ) Annual Amount ($) Distribution Generation Total 33,408, ,736 33,558,332 Generation-related authorized revenues are associated with the Critical Peak Pricing Program. Advice 3542-E-B Caroline Choi Date Submitted Jul 23, 2018 Decision Senior Vice President Effective 1C9 E-4838; E-4906

2 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 2 Y. Demand Response Program Balancing Account (DRPBA) 1. Definitions. a. Authorized Annual DRP Funding Levels (3) Authorized Funding Authorized in D and D Authorized Funding Levels ($000) Year Distribution Generation¹/ Total , , , , , ,935 Subtotal 186,165 2, ,806 Plus: Integrated Programs 2/ 2,960-2,960 Less: Capacity Payments 3/ 38,773-38,773 Total Authorized DRP Funding (DRPBA-Related) 150,352 (I) 2,641 (I) 152,993 (I) Annualized DRP Funding (DRPBA-Related) 4 / 50,117 (I) 880 (I) 50,998 (I) Total Generation-related authorized revenue requirement are associated with the Critical Peak Pricing Program. 2/ The Commission in D authorized $2.96 million for DR activities for SCE s integrated Demand-Side Management programs. 3/ The $ million associated with capacity purchase agreements includes $ million of capacity costs that record in the BRRBA (Preliminary Statement, Part YY) and $1.249 million of administration costs that record in the PAACBA (Preliminary Statement, Part L), beginning in 2009 through / These annualized amounts when included in rate levels each year through 2011 will include associated FF&U. (L) (L) Advice 3695-E-A Caroline Choi Date Filed Dec 22, C19

3 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 3 Y. Demand Response Program Balancing Account (DRPBA) 2. Definitions. a. Authorized Annual DRP Funding Levels (4) Authorized Funding Authorized in D Summer Discount Plan (2012 Only) Authorized Funding Levels ($000) Year Distribution Generation Total , ,599 This annualized amount, when included in rate levels in 2012, will include associated FF&U. Authorized in D Authorized Funding Levels ($000) Year Distribution Generation 2/ Total ,268 4/ 7,991 4/ 3/ 4/ 35, ,795 8,651 65,446 3/ ,795 8,651 65,446 3/ Subtotal 140,858 25, ,151 2/ Total Generation-related authorized revenue requirement are associated with the Critical Peak Pricing, Real Time Pricing, and the Peak Time Rebate Programs. 3/ These annualized amounts when included in rate levels each year through 2014 will include associated FF&U. 4/ These annualized amounts reflect the application of unspent DR funds from previous program cycles. As of December 31, 2011, unspent DR funds totaled $ million (reducing the Distribution and Generation subaccounts by $ and $0.660 million, respectively). (L) Advice 3695-E-A Caroline Choi Date Filed Dec 22, C18

4 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 4 Y. Demand Response Program Balancing Account (DRPBA) 2. Definitions. a. Authorized Annual DRP Funding Levels (5) Authorized Funding Authorized in D Authorized Funding Levels ($000) Year Distribution Generation Total ,237 57,237 4,958 4,958 62,195 62,195 Total Generation-related authorized revenue requirement is associated with the Peak Time Rebate Program (also known as the Save Power Day Program). (6) 2017 Authorized Funding D Authorized Funding Levels ($000) Year Distribution Generation 2/ Total ,934 2,021 26,955 2/ These annualized amounts when included in rate levels will include associated FF&U. Total Generation-related authorized revenue requirement is associated with the Peak Time Rebate Program (also known as the Save Power Day Program). (7) Authorized Funding D Authorized Program Funding Levels ($000) Year 2018 Distribution 29,676 Generation 2/ Total 3,041 32, ,676 3,041 32, ,676 29,676 3,041 3,041 32,717 32, ,676 3,041 32,717 These annualized amounts when included in rate levels will include associated FF&U. 2/ Total Generation-related authorized revenue requirement is associated with the Peak Time Rebate Program (also known as the Save Power Day Program), Critical Peak Pricing Program, Real Time Pricing, and Scheduled Load Reduction Program. Advice 3695-E-A Caroline Choi Date Filed Dec 22, C21

5 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 5 Y. Demand Response Program Balancing Account (DRPBA) 2. Definitions. a. Authorized Annual DRP Funding Levels (7) 2018 Authorized Funding D (continued) Authorized Incentive Programs Funding Levels ($000) Incentive Program Total Base Interruptible Program (BIP) 71,973 70,487 69,111 67,735 66, ,777 Summer Discount Plan (SDP) 51,630 42,667 35,625 29,177 23, ,378 Ag & Pumping Interruptible (API) 6,615 6,501 6,398 6,295 6,193 32,002 Save Power Day Program (SPD) 1,688 2,085 2,482 2,880 3,277 12,412 Capacity Bidding Program (CBP) 2,789 2,789 2,789 2,789 2,789 13,945 CBP Residential Pilot All amounts are distribution-related with the exception of the SPD Program which is allocated to generation. (8) 2018 Click Through Process Authorized Funding ($000) Authorized in E-4868 $1,500 Authorized in E-4935 $3,200 (P) (P) (9) DR Integrated Demand Side Management Program Funding Authorized in Energy Efficiency Proceedings ($000) Authorized in D Year Distribution Generation Total Authorized in D Year Distribution Generation Total1 / , ,137* , ,137* Authorized in D Year Distribution Generation Total1 / , ,780 1 The authorized annual amount will include FF&U when implemented in rate levels each year. * 2017 and 2018 funding authorized pursuant to Advice 3465-E-B. Advice 3855-E Caroline Choi Date Filed Aug 31, 2018 Decision Senior Vice President Effective Aug 31, C8

6 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 6 Y. Demand Response Program Balancing Account (DRPBA) 1. Definitions. a. Authorized Annual DRP Funding Levels (10) Authorized Funding Authorized in SCE s GRC Proceeding SCE s GRC Revenue Requirement adopted by the Commission includes the following DRP-related distribution revenue requirements associated with the Air Conditioning Cycling Program (ACCP), Agriculture & Pumping -Interruptible Program (AP-I), and Demand Bidding Programs (DBP): Authorized Distribution Funding Levels ($000) Year 06 12/ ACCP 3,274 5,308 5,842 6,032 AP-I DBP Total 3,274 5,961 6,534 6,747 b. Effective Date The Effective Date of the DRPBA is January 1, c. Interest Rate The Interest Rate shall be the most recent annual Federal Reserve three-month Commercial Paper Rate Non-Financial, from Federal Reserve Statistical Release H.15. If an annual non-financial rate is not published, SCE shall use the annual Federal Reserve three-month Commercial Paper Rate Financial. d. Monthly Distribution Percentages The Monthly Distribution Percentages (MDPS) applicable to the DRP authorized funding levels shall be the applicable distribution MDPS or generation MDPS included in the Preliminary Statement YY Base Revenue Requirement Balancing Account. Advice 3774-E Caroline Choi Date Filed Mar 27, 2018 Decision Senior Vice President Effective Mar 27, C7 E-4868

7 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 7 Y. Demand Response Program Balancing Account (DRPBA) 3. Program and Funding Flexibility a. Budget Categories D authorizes seven budget categories. The seven budget categories include: (1) Budget Category 1- Supply-Side Demand Response Program; (2) Budget Category 2- Load Modifying Demand Program; (3) Budget Category 3- Demand Response Auction Mechanism; (4) Budget Category 4- Emerging and Enabling Technology; (5) Budet Category 5- Pilots; (6) Budget Category 6- Marketing, Education, and Outreach; (7) Budget Category 7- Portfolio Support (includes EM&V and Systems and Notifications). In addition, D authorized integrated Demand-Side Management (IDSM) funding which will be tracked in a separate budget category within the DRPBA. b. Fund Shifting Guidelines SCE shall have flexibility to reallocate up to 50% of a program s funds to another program within the same budget category, provided a program is not terminated through multiple fund shifting events or for any reason without prior authorization from the Commission. SCE may also shift funds for pilots in the enabling or emerging technology category. SCE shall file Tier 2 advice letters to shift program spending above adopted fund shifting guidelines, shift funds within the Pilots or Special Projects categories and/or shift funds to the Demand Response Auction Mechanism, but within the authorized budgets, adopted in D ,, D , D , and D c. Carry-Over Amounts Any unspent DRP funds in each budget category (as defined in Section 3.a.) as of December 31 of each year shall be carried over in the account, within each respective budget category, into the subsequent calendar year through d. Carry-Forward Amounts Any DRP funds in each budget category (as defined in Section 3.a.) SPENT AS OF December 31 of each year, which are in excess of authorized amounts for that year, shall be carried forward in the account, within each respective budget category, to the subsequent calendar year through SCE shall not seek rate recovery of any over expenditure of the Authorized funding level remaining in the DRPBA at the end of Advice 3695-E-A Caroline Choi Date Filed Dec 22, C18

8 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 8 Y. Demand Response Program Balancing Account (DRPBA) 3. Program and Funding Flexibility e. Incremental Funding SCE may file proposals by petition for modification to request additional funding beyond the total amount approved in D , D , D , and D f. Program Modifications or Elimination SCE may file a petition for modification of this decision to request to modify existing demand response programs or program options. SCE shall request new demand response programs only through a new application. SCE shall file a Tier 2 advice letter to eliminate any existing program(s) approved in D , D , D , and D g. Prohibited Resource Proportional cost burdens for the Prohibited Resources Verification Administrator and Verification Plan implementation will be separated into non-direct and direct costs. Non-direct costs will be recovered from all retail customers through distribution rates. Direct costs of verification may be shared by associated customers, including small commercial customers, when and if applicable. 4. Operation of the DRPBA Monthly entries to the DRPBA shall be determined as follows: a. Distribution sub-account (1) A debit entry to reflect the actual distribution-related program costs associated with the DRP; (2) A credit entry to record the result of multiplying the annual Distributionrelated DRP Authorized funding level by the applicable Distribution MDP. Advice 3542-E-B Caroline Choi Date Submitted Jul 23, 2018 Decision Senior Vice President Effective 8C10 E-4838; E-4906

9 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 9 Y. Demand Response Program Balancing Account (DRPBA) 4. Operation of the DRPBA a. Distribution sub-account If the above calculation results in a positive amount (over-expenditure), such amount shall be debited to the DRPBA. If the above calculation results in a negative amount (under-expenditure), such amount shall be credited to the DRPBA. Any under-collection or over-collection recorded in a month may be carried over from month-to month over the duration of the DRP. Interest Expense shall be calculated annually by applying the Interest Rate to the average balance of the beginning-of-year and the end-of-year balances in the DRPBA. Since the DRPBA is a one-way balancing account, Interest Expense shall only be calculated when the average balance in the DRPBA is a negative (under-expended) amount. Annual Interest amounts shall be immediately returned to customers by transferring such amounts to the Distribution sub-account of the BRRBA. b. Generation Sub-account (1) A debit entry to reflect the actual Generation-related program costs associated with the DRP; (2) A debit entry equal to recorded For 10 Program Costs including: (i) 10 For 10 Program rebate amounts included on customers bills increased for FF&U; (ii) Incremental O&M costs incurred to implement the For 10 Program. (3) A credit entry to record the result of multiplying the annual Generationrelated DRP Authorized Funding Level by the applicable Generation MDP. If the above calculation results in a positive amount (over-expenditure), such amount shall be debited to the DRPBA. If the above calculation results in a negative amount (under-expenditure), such amount shall be credited to the DRPBA Any under-collection or over-collection recorded in a month may be carried over from month-to month over the duration of the DRP. Interest Expense shall be calculated annually by applying the Interest Rate to the average balance of the beginning-of-year and the end-of-year balances in the DRPBA. Since the DRPBA is a one-way balancing account, Interest Expense shall only be calculated when the average balance in the DRPBA is a negative (under-expended) amount. Annual Interest amounts shall be immediately returned to customers by transferring such amounts to the Generation sub-account of the BRRBA. Advice 3695-E-A Caroline Choi Date Filed Dec 22, C18

10 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 10 Y. Demand Response Program Balancing Account (DRPBA) 5. Disposition of the DRPBA Balances SCE shall include the operation of the DRPBA for the period of January 1, 2012 through December in its April 2015 ERRA Reasonableness application for Commission approval of the recorded amounts, subject to audit, to confirm that recorded expenses were spent on approved programs. In that application, SCE will propose disposition of any over-collection remaining in the account at the end of SCE shall include the operation of the DRPBA for the period of January 1, 2015 through December 31, 2016 in its April 2017 ERRA Reasonableness application for Commission approval of the recorded amounts, subject to audit, to confirm that recorded expenses were spent on approved programs. In that application, SCE will propose disposition of any over-collection remaining in the account at the end of SCE shall include the operation of the DRPBA for the period of January 1, 2017 through December 31, 2017 in its April 2018 ERRA Review application for Commission approval of the recorded amounts, subject to audit, to confirm that recorded expenses were spent on approved programs. In that application, SCE will propose disposition of any over-collection remaining in the account at the end of SCE shall not seek rate recovery of any over expenditure of the authorized funding level remaining in the DRPBA at the end of SCE shall include the operation of the DRPBA for the period of January 1, 2018 through December 31, 2022 in its April 2023 ERRA Review application for Commission approval of the recorded amounts, subject to audit, to confirm that recorded expenses were spent on approved programs. In that application, SCE will propose disposition of any over-collection remaining in the account at the end of SCE shall not seek rate recovery of any over expenditure of the authorized funding level remaining in the DRPBA at the end of Incentives Sub-Account Monthly entries to the two-way Incentives Sub-Account shall be determined as follows: a. Distribution Incentives Sub-Account (1) A debit entry for each distribution-related incentive program to reflect the actual incentives paid to customers; (2) A credit entry to record the result of multiplying the annual Authorized Funding Level for each distribution-related incentive program by the applicable Distribution MDP. Advice 3695-E-C Caroline Choi Date Filed Feb 5, C12

11 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 11 Y. Demand Response Program Balancing Account (DRPBA) 6. Incentives Sub-Account If the above calculations result in a positive amount (over-expenditure), such amount shall be debited to the Incentives Sub-Account. If the above calculation results in a negative amount (under-expenditure), such amount shall be credited to the Incentives Sub-Account. Interest Expense shall be calculated annually by applying the Interest Rate to the average balance of the beginning-of-year and the end-of-year balances in the Incentive Distribution Sub-Account. The year-end balance in this subaccount shall be transferred annually to the distribution sub-account of the BRRBA. b. Generation Incentives Sub-Account (1) A debit entry for each generation-related incentive program to reflect the actual incentives paid to customers; (2) A credit entry to record the result of multiplying the annual Authorized Funding Level for each generation-related incentive program by the applicable Generation MDP. If the above calculations result in a positive amount (over-expenditure), such amount shall be debited to the Incentives Sub-Account. If the above calculation results in a negative amount (under-expenditure), such amount shall be credited to the Incentives Sub-Account. Interest Expense shall be calculated annually by applying the Interest Rate to the average balance of the beginning-of-year and the end-of-year balances in the Incentive Generation Sub-Account. The year-end balance in this subaccount shall be transferred annually to the generation sub-account of the BRRBA. Advice 3695-E-C Caroline Choi Date Filed Feb 5, C12

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