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Green Rates Flat Rates Smart Rates 1 Choosing from Multiple Rate Options 2 Understanding Mandatory Rate Changes 630 708 customers who are aware customers who are not aware Gap in satisfaction between customers who are aware of their utility's program offerings and those that are not aware. of surveyed utilities chose this as their only priority. 60% 78 pt. Improving satisfaction is so important, that 5.9% Equal pay plan Green energy GenY GenX 5% 2% Central AC cycling control 3% Time of Day pricing 4.1% Electric vehicle pricing >1% Demand charges >1% Customer Choices 4 Making Consumer Energy Product Choices PERSONAL INTERACTIVE OBJECTIVE UNDERSTANDABLE According a JD Power’s Consumer Engagement Study, online and social tools for comparing energy usage offer the highest boost in overall customer satisfaction, but only 5% of customers are even aware of these tools and less than 1% of customers have actually used them – to be useful, information must be digitally accessible and promoted. The average human attention span in 2000 2013 The average human attention span in The average attention span of a After just 8 seconds people now generally lose concentration, rapidly dropping from 12 seconds of coherent thought in 2000 and highlighting the affects of an increasingly digitalized lifestyle on the brain – to be consumed, information must be presented in a way that consumers can quickly grasp. Being objective is key to ensuring successful consumer relationships – surface your access to enormous amounts of data and fact-based information to openly and objectively guide the interactions and financial decisions. 12 Seconds 8 Seconds 9 Seconds 4.6% in market value growth 1% improvement in customer satisfaction in utilities is worth Likelihood of participating in a utility program offering = 16% CUSTOMER CHOICE LEADS TO CUSTOMER SATISFACTION Andrew Heath Senior director of energy at J.D. Power. The thing that really differentiates the top utilities, they provide the customer some form of choice In 2015, there were 21 pending or decided utility proposals to add or increase solar charges in 13 states Proposed or enacted changes to net metering policies in 2015 Exactly how is this going to affect my bill ? Which rate plan is right for me ? EDUCATE CUSTOMERS ON PROGRAMS THAT LOWER GRID OPERATING COSTS 3 Discovering Utility Programs I’d like to do more to help the environment, do I have options ? 47 Nearly 850 utilities, including investor-owned, municipal utilities, and cooperatives, offer a green pricing option The average level of participation in these “opt-in” Green Pricing Programs is 2.1% with two-thirds of all utilities recording participation rates of 1% or less. HIT RENEWABLE PROGRAM GOALS Scenarios that Demand Personalized Customer Advice ELECTRIC RATE PLANS 4 EFFICIENTLY UNLOCKING THE POTENTIAL OF RATE CHANGE Our customers are becoming increasingly interested in rooftop solar, and Avista wants to be ready to support their needs and prepare for the future. The WattPlan solar estimator is an affordable way for us to get ahead of the curve and start providing personalized solar information to our customers through an engaging self-service web tool. Kelly Magalsky Sr Manager Products and Services CLARIFY THE IMPACT OF SOLAR RATE CHANGES 77% of U.S. residential households are likely ineligible for rooftop solar. NOW 2020 There is potential for roughly 15 GW of utility opportunity in community solar between UNLOCK THE POTENTIAL OF DYNAMIC PRICING AND OTHER PILOT PROGRAMS 77 utilities now explore the potential of community solar with more than 110 projects across 26 states EVOLUTION OF RATE DESIGN PROVIDES VALUE CREATION OPPORTUNITY FOR UTILITIES PROGRAMS CAN LOWER GRID OPERATING COSTS, BUT PARTICIPATION HAS BEEN LOW WHEN MORE IS BETTER Utility Program Midnight Noon Interest in Community Solar 5% >1% Trust Matters Behaviors for Distrusted Companies Behaviors for Trusted Companies Refused to buy products/services 48 42 26 35 20 12 68 59 41 38 37 18 Criticized companies Shared negative opinions Disagreed with others Paid more than wanted Sold shares Chose to buy products/services Recommended them to a friend/colleague Shared positive opinions online Defended company Paid more Bought Shares 113.3 million customers 3.4 million customers The number of customers on dynamic pricing rates globally is expected to rise from approximately Real-time pricing, critical peak pricing, peak time rebates, and variable peak pricing pilots States offer green pricing power programs MANAGE CUSTOMER RELATIONSHIPS THROUGH NEM TRANSITIONS Other changes to net metering rules Changes to compensation for net excess generation System size limits Aggregate net metering cap Established net metering or net billing for first time Successor tarrif/policy to net metering Q2 2016, 36 utilities in 24 states considered or enacted changes to net energy metering policies 25% 20% 15% 10% 5% 0% 1:00 AM 5:00 AM 9:00 AM 1:00 PM 5:00 PM 9:00 PM PG&E SCE SDG&E “[EV] owners… in areas where utilities offer cheaper rates at night showed a willingness to delay charging at home until these off-peak periods” Based on existing consumption levels, the addition of an EV would increase each household’s electricity demand between 25% & 40% 60% no PV and no plans to install 40% have PV or plan to install PV Energy storage market to grow to $250B by 2040 , …. but for most customers storage doesn’t yet make economical sense. 50% Battery prices down Adding storage with our solar purchase will save us money, right ? Confused Unclear Bewildered Energy Storage Electric Vehicle Solar GROW SMART LOAD INFORM COMPLEX, MULTI-CONSUMER PRODUCT DECISIONS Additional EV Demand Avg Residential Monthly Consumption (kWh) 1,500 25% 37% 28% 40% 33% 30% 1,010 673 886 617 760 856 1,000 500 0 AZ CO NV NM UT US If electricity could capture the entire fueling market for light duty vehicles, power sales would rise by about 25%, adding roughly $100 billion* per year to electric utility revenues and saving car drivers about $300 billion a year in 2 years SUPPORT CUSTOMERS WHEN RATES ARE ELIMINATED 1 2 4 5 3 TOU rates are offered in nearly all states, however just 5 million out of 128 million residential utility customers in the country were enrolled 4.1% 6 8 9 16 21 22 17 19 18 10 20 11 12 13 14 15 http://www.cleanpower.com/products/powerbill/wattplan/ http://www.cleanpower.com/products/powerbill/wattplan/ http://www.cleanpower.com/products/powerbill/wattplan/ http://www.cleanpower.com/products/powerbill/wattplan/ http://www.cleanpower.com/products/powerbill/wattplan/ http://www.cleanpower.com/products/powerbill/wattplan/ California residential rate reform moves customers to time-of-use rates and from a four tier system to two tiers by 2019. Now 2019 1 Claes Fornell of the University of Michigan, 2 Energy Central’s Call Center Experience Research Study, 3 JD Power Consumer Engagement Survey, 4 JD Power Utility and Product Services Study, 5 JD Power Consumer Engagement Survey, 6 RMI: A Review of Alternative Rate Designs, 7-10 NC Clean Energy 2015 Policy Review, 11 U.S. Department of Energy, 12 Institute for Energy Research, 13-15 Bloomberg New Energy Model, 16-17 18-19 White House Fact Sheet: Accelerate Electric Adoption, 20 California Clean Vehicle Rebate Program Survey, 21 Microsoft Consumer Attention Survey, 22 Edelman Trust Barometer Southwest Energy Efficiency Project, Off Peak Hours Off Peak Hours On Peak Hours L O W E R S G R I D O P E R A T I N G C O S T S 84% of states took policy action on distributed solar in Q2 2016 7
