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13
PART I
ITEM1.BUSINESS
Electric Utility Operations
The Utility generates electricity and provides electricity
transmission and distribution services throughout its
service territory in northern and central California to
residential, commercial, industrial, and agricultural
customers. The Utility provides “bundled” services (i.e.,
electricity, transmission and distribution services) to
most customers in its service territory. Customers also
can obtain electricity from alternative providers such as
municipalities or CCAs, as well as from self-generation
resources, such as rooftop solar installations.
As required by California law, on July 1, 2015, the Utility
filed its proposed electric distribution resources plan
for approval by the CPUC. The Utility’s plan identifies
optimal locations on its electric distribution system for
deployment of distributed energy resources. The Utility’s
proposal is designed to allow energy technologies to be
interconnected with each other and integrated into the
larger grid while continuing to provide customers with
safe, reliable and aordable electric service. The Utility
envisions a future electric grid, titled the Grid of Things™,
that would allow customers to choose new advanced
energy supply technologies and services to meet their
needs consistent with safe, reliable and aordable electric
service. The CPUC also is considering the Utility’s request
for approval of the phased deployment of an electric vehicle
charging infrastructure in response to the CPUC’s December
2014 decision adopting a policy to expand the California
utilities’ role in developing an EV charging infrastructure to
support California’s climate goals. (For more information,
see “Legislative and Regulatory Initiatives” in MD&A.)
Electricity Resources
The Utility is required to maintain generating capacity
adequate to meet its customers’ demand for electricity
(“load”), including peak demand and planning and operating
reserves, deliverable to the locations and at times as may
be necessary to provide reliable electric service. The Utility
is required to dispatch, or schedule all of the electricity
resources within its portfolio in the most cost-eective way.
The following table shows the percentage of the Utility’s total
deliveries of electricity to customers in 2015 represented by
each major electricity resource, and further discussed below.
Total 2015 Actual Electricity Generated and Procured – 72,113 GWh(1):
PercentofBundledRetailSales
OwnedGenerationFacilities
Nuclear 
Small Hydroelectric 
Large Hydroelectric 
Fossil fuel-fired 
Solar 
Total  
QualifyingFacilities 
Renewable 
Non-Renewable 
Total 
IrrigationDistrictsandWaterAgencies
Small Hydroelectric 
Large Hydroelectric 
Total 
OtherThird-PartyPurchaseAgreements
Renewable 
Large Hydroelectric 
Non-Renewable 
Total 
OthersNet() 
TOTAL()  
() ThisamountexcludeselectricityprovidedtodirectaccesscustomersandCCAswhoprocuretheirownsuppliesofelectricity
() MainlycomprisedofnetCAISOopenmarketpurchases
() Non-renewablesourcesincludingnuclearlargehydroelectricandfossilfuel-firedareoffsetbytransmissionanddistribution
relatedsystemlosses