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October 15, 2010 Gretchen Stanford: Loveland Utilities John Phelan: Fort Collins Utilities

OPOWER Simple, Substantial & Reliable Energy Efficiency through Customer Engagement. October 15, 2010 Gretchen Stanford: Loveland Utilities John Phelan: Fort Collins Utilities Chris Patton: OPOWER. AGENDA. Intro What We Do Results.

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October 15, 2010 Gretchen Stanford: Loveland Utilities John Phelan: Fort Collins Utilities

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  1. OPOWER Simple, Substantial & Reliable Energy Efficiency through Customer Engagement October 15, 2010 Gretchen Stanford: Loveland Utilities John Phelan: Fort Collins Utilities Chris Patton: OPOWER

  2. AGENDA Intro What We Do Results

  3. Customer Engagement Isn’t EasyCase In Point: Boulder Smart City Activity “What we've found is that for the vast majority of people, it's exceedingly difficult to get them to do much of anything”1 Kevin Doran University of Colorado 1 Simon, Stephanie. “Even Boulder Finds It Isn’t Easy Going Green.” The Wall Street Journal. US News 13 February 2010

  4. What are the options for utilities to offer customers? ? Back End MDMS (Optional) CIS Billing OSS ERP Distribution Automation Advanced Metering Infrastructure (AMI)

  5. Energy Information is Boring • Information must be pushed, not pulled. • People want answers, not data.

  6. Behavioral Science Makes Energy More Exciting Conservation messages printed on door hangers and left on homes Neighbors Turn off AC & Turn on Fan $$$ Turn off AC & Turn on Fan Environment Turn off AC & Turn on Fan Citizenship Turn off AC & Turn on Fan Zero Impact on Consumption 6% Drop in Consumption Schultz & Cialdini (OPOWER Scientists) Hewlett Foundation San Marcos Study

  7. AGENDA Intro What We Do results

  8. The OPOWER Network Not Shown • CA • Anaheim • Glendale • Pasadena • Palo Alto • Burbank • CO • Loveland • CT • CL&P • MN • MERC • Lake Country Power • Owatonna • Austin • Rochester Sharing Best Practices from 40 Utilities, 20 States

  9. Behavioral Energy Efficiency is not a “high tech” issue, but a “high touch” issue Devices – 5 to 10% • Cost-effective for 5-15% of highest users • Meaningful market penetration will take up to 20 years Web Portal – 10 to 15% • Valuable rate, community features • Provides deeper, not broader customer engagement Mailed Reports – 60 to 85% • The “face” of your EE portfolio and/or smart grid for majority of customers • The key driver behind energy savings

  10. OPOWER’s Advanced Customer Engagement (ACE) Platform CSR Tools CUSTOMER FACING UTILITY FACING Mail Web Devices Insight Engine™ DATA STREAMS Normative Analytics Usage Analytics Dynamic Rates Customer Profiles • UTILITY SOURCED • MONTHLY & AMI METER DATA • PROGRAM PARTICIPATION • REBATE REDEMPTIONS • BILLING & ACCOUNT DATA • THIRD PARTY SOURCED • HOUSING • DEMOGRAPHICS • WEATHER • GIS DATA

  11. Home Energy Report Mechanism – DO NOT DISTRIBUTE – OPOWER Confidential

  12. Home Energy Report – Key Engagement Mechanism

  13. OPOWER Product Suite: Web Platform

  14. The Five Tactics of Advanced Customer Engagement • Proactive outreach • Pushing energy information to users is key to engagement • Total-channel engagement • Traditional channels like mail and phone must be included in outreach • Personalized messaging • Customizing messages captures user attention and keeps their interest • Individualized insights • Data must be analyzed to show customers what is relevant to them • Peer-proofing • Research shows that normative messages are an effective motivator

  15. AGENDA Intro What We Do Results

  16. Clearly Defined Measurement & Verification Approach Random Allocation No Reports Control Group + Targeted households in utility footprint Energy Usage Statistically equivalent groups Test Group + Receive Reports Large-Scale Data Analysis

  17. Impact Across All Segments Energy Savings by Income Energy Savings by Age Energy Savings by # of Residents Energy Savings by Household Efficiency Impact Variance Very Low Across Demographic Groups and Energy Profiles

  18. Broad Customer Engagement Key to Success % of Participating Households ~85%+ of Report Recipients Take Significant Action Energy Reduction Independent Verification by Summit Blue Demonstrates High Customer Engagement

  19. Results Predictable, Consistent and SustainedAcross All Geographies and Fuels % Energy Saved Avg. Steady State Savings = ~1.5-3.5%

  20. Unprecedented Energy Efficiency at $.03- $.05 / kWh 75 3-Year Program Energy Savings per 100,000 Targeted Households*(GWh) 33 3 1 0.6 * CFL & Weatherization from, “National Energy Efficiency Best Practices Study,” 2004. Energy Star appliance data from Department of Energy website. Energy Reporting results based on average program impact of 250 kWh per home, validated by Summit Blue and ACEEE

  21. Loveland Program • 2 Year Program • 15,000 HH Test Group • 10,000 HH Control Group • First Reports Early 2011 • Average of 6 Reports HH/Yr • Web Portal • eDelivery • CSR Tool Kit • Full Program M&V

  22. Loveland Program Launch • Why this program? • Educational focus • Reaching majority of customers • Feedback from customers will drive new programs • Pre-rollout PR • Kickoff October 21 – DO NOT DISTRIBUTE – OPOWER Confidential 22 Data through 3/31/2010

  23. OPOWER Program Deployment Today 4 Weeks 8 Weeks 12 Weeks 16 Weeks Planning Scope program, identify teams, kick-off partnership. Data Acquisition Establish and automate all data inputs. Branding & Content Acquisition Gather all branding elements and content. Production Readiness Integrate, configure, test program. Training Prepare client. Go Live! Post-Launch: Program Optimization, Measurement & Verification

  24. Fort Collins Program • 2 year Program • 25,000 HH Test Group • 12,000 HH Control Group • First Reports Sent 12/09 • 130,000 Reports Sent • <1.0% Opt Outs • Average of 6 Reports HH/ Yr • eDelivery • Web Portal • CSR Tool Kit • Full Program M&V

  25. Fort Collins Welcome Insert – DO NOT DISTRIBUTE – OPOWER Confidential 25

  26. Fort Collins maintains consistent results Includes all meter reads through 7/31/2010 Error bars are not cluster adjusted – DO NOT DISTRIBUTE – OPOWER Confidential

  27. Fort Collins customer contact trends – DO NOT DISTRIBUTE – OPOWER Confidential

  28. Fort Collins customer contact trends – DO NOT DISTRIBUTE – OPOWER Confidential 28

  29. Fort Collins EE PortfolioAnnual Residential Energy Program Savings 43%

  30. Fort Collins Highlights, Lessons Learned, Next Steps • Highlights • It’s working so far • Customizing tips to seasonal programs (i.e. AC tune-up) • Lessons Learned • Reports make a small number of people quite angry (and they talk directly to Council members) • Losing “participants” in pilot due to account turnover • Mistakes happen (envelopes…) • Next steps • O-Power 1st year report • Independent check • Planning for tips and schedule for 2011 campaigns – DO NOT DISTRIBUTE – OPOWER Confidential 30 Data through 3/31/2010

  31. Questions?

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