Customer Engagement Plan
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- Merilyn Hill
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1 Customer Engagement Plan Stakeholder Collaboration Meeting July 15,
2 Agenda Recap Collaboration No. 3 Goal and Objectives Topic Update and Collaboration Summary of Costs Next Steps 2
3 Recap Collaboration Timeline Jun 02 Jun 14 Jul 6 Jul 15 Jul 29 Collaboration 1 Provide level set between utilities and ext. collaboration stakeholders on upcoming filing Collaboration 2 Collaborate on key focus areas of the Customer Engagement Plan Progress Update Address new stakeholder comments received outside of group collaboration Collaboration 3 Review applicable sections of the Customer Engagement Plan File Plan File Customer Engagement Plan with NY PSC 3
4 Recap Customer Engagement Plan Goal and Objectives Goal Empower customers with knowledge and access to AMI benefits and provide for continuing engagement of customers and third parties Objectives: Acceptance, improved utilization, and ease of AMI implementation Clear and apparent benefits: control, choice and convenience Integrate active participation of third-party partners 4
5 Recap Customer Engagement Plan Topic Areas Customer Engagement Plan Customer Education Customer awareness, information and engagement Green Button Connect Green Button Connect My Data implementation plan and data collaboration Innovative Rate Design Innovative pricing proposals and pilot project Cost Savings and Revenue Opportunities Framework for 3rd parties to identify alternative opportunities Data Privacy Privacy assessment and data access and control principles Sub-metering Proposal to maximize AMI benefits for submetered customers AMI Opt-Out Proposed amendments to current AMR/AMI Opt-Out Tariff Local Law 84 Evaluate options to reduce or eliminate charge through automation NOTE: AMI Opt-Out, Sub-metering and Local Law 84, Topic Areas not applicable to O&R filing Focus of Collaborative Effort 5
6 Collaboration No. 3 Goal and Objectives Focus for Meeting Goal Provide external stakeholders with a summary of collaboration to date and current progress on the Customer Engagement Plan Objectives: Discuss how collaboration to date has informed current Plan Provide summary of current progress for each topic 6
7 Customer Education Overview Goal Empower customers with AMI-enabled benefits control, choice and convenience through customer education Key Aspects Education strategy: aware, informed and engaged Education plan Communication campaigns Audience segmentation Messaging and channels 7
8 Customer Education Collaboration Themes and Responses Engaging community leaders Accommodating diverse customer segments Customer notification During Aware phase, Companies will contact various consumer, government, and advocacy organizations to provide an AMI overview and to identify appropriate venues to share AMI information prior to deployment. This presence and open dialogue will continue throughout the Inform and Engage phases Education Plan will use a wide range of channels, digital and non-digital, as well as multi-lingual interpreters, to engage various customer segments (e.g., LMI and seniors) Customers will be notified in writing 90 days and 45 days prior to receiving a smart meter 8
9 Customer Education Collaboration Themes and Responses Local AMI outreach Integrated outreach and education Further details around plan In addition to Companies call center support, an outreach presence will be available following regional meter installations to address individual customer / community questions and concerns Customer education campaigns will advance integrated education on Digital Customer Experience, Green Button, innovative rate pilots and various other initiatives surrounding AMI deployment Education plan will specify key messaging, audiences, communication channels and example material 9
10 Customer Education Proposed Strategy (Per Deployment Area) AMI Deployment Milestones Communication Network Rollout Begin Smart Meter Rollout End Smart Meter Rollout Global Messaging Our Energy Future Communicate the benefits of smart grid and smart meters to promote engagement Aware Deployment Messaging Notify customers of smart meter deployment and benefits Informed Prepare customers for smart meter deployment, provide information on available opportunities Engaged Equip customers with knowledge to participate in smart meter opportunities 10
11 Customer Education Communication Campaigns by Phase AWARE INFORMED ENGAGED Government / Community Leadership Awareness and education Regional Messaging Education and smart meter benefits and opportunities Non-adopter Mitigation Prepare response (e.g., health and privacy) Schedule and Deploy Deployment details by region Opt-out Coordination Provide customers with a clear process Inconvenience Mitigation Prepare response (e.g., appointments) Customer Segment Participation Channels to reach the following: Low income Non-English Non-digital Housing Types Commercial Types Digital Experience DCX Energy Reports Third Party Collaboration Enable third parties to engage with customers 11
12 Customer Education Example Detail: Aware Phase: Regional Messaging Campaign MESSAGE: Notify customers of smart meter deployment and educate on smart meter benefits and opportunities to raise awareness, increase acceptance and ease meter deployment. Channels Audience Example Material Direct mail Intro Notification Bill Messages and Inserts (Customer News) Media Local and Community Leaders Community Meetings / Events Companies Website Advertising Deployment area population Intro Notification Fact sheet Infographic FAQ Deployment Overview / Map Generic customer messages (alerts) Website demonstrations 12
13 Customer Education Example Detail: Informed Phase: Schedule and Deploy Campaign MESSAGE: Timing of meter replacement, customer benefits and expectations, available opportunities, how to access Portal, opt-out information and data security and privacy Channels Audience Example Material Direct mail (45-day notification) Con Edison AMI website (deployment map, FAQs, customer data access) Local AMI outreach presence Company and meter installer call center Residential Commercial Tin-Case (Con Edison Only) Life Support Equipment Utility Installed Meters Phase 1 Utility Installed Meters Phase 2 45-day notification Door Hanger install complete Door Hanger Sorry we missed you Talking points for meter deployment vendor Meter installer call center scripting Company call center scripting 13
14 Customer Education Example Detail: Engaged Phase: Customer Segment Participation MESSAGE: Effective messages tailored to specific customer segments about current benefits and opportunities and how to participate, third party-benefits, available customer communication channels and new services as they roll out Channels Audience Example Material Direct Mail Community Events Social Media Bill Messages Tools: Web and Messaging (1) Hourly Data Presentment (2) Bill Compare and Forecast (3) Personalized Tips (4) Account Settings (5) Alerts (6) Rates Calculator (7) Load Disaggregation Targeted Customers: (1) LMI (2) Non-English (3) Seniors (4) Non-digital (5) Housing type (6) Commercial type (7) Usage type (8) Plug in electric vehicle (9) Solar Customized customer education report Customized usage information and tools (website and alerts) Informative material on smart meter offerings Phone talking points Benefits fact sheet (specific to offerings) Spokesperson talking points Website demo 14
15 Customer Education Preliminary Cost Estimate (Con Edison ) 2018 Scope Cost AMI METER DEPLOYMENT Electric: Gas: CUSTOMER EDUCATION ACTIVITIES Market Research: Customer Outreach and Support: Community Outreach: Media and Advertising: 530 K 160 K Surveys, focus groups, research and analysis Letters, bill inserts, hangers (design, print, postage, etc.) Communication material, presentations, events, etc. Print, video, digital, social media and press, etc. $0.8 M $2.1 M $0.3 M $1.3 M TOTAL COST $4.6 M 15
16 Customer Education Cost Benchmarking Based on several IOU planned AMI customer education and outreach costs 16
17 Green Button / Customer Data Sharing Overview Goal Implementation plan for Green Button Connect My Data and conduct stakeholder collaboration with third parties Key Aspects Implementation plan Budget Timeline Additional data sets 17
18 Green Button / Customer Data Sharing Collaboration Themes and Responses Data for Phase 1 Implementation Additional data sets Ease of customer authorization Phase 1 will include interval usage data per Green Button standard The Companies have considered data sets requested during collaboration (bill data, tariff data, etc.); implement additional data sets will be addressed in the Plan Companies acknowledge that convenient and easy use is important to marketplace animation and will look to such processes as CA s click-through electronic signature process for guidance when developing their own 18
19 Green Button / Customer Data Sharing Collaboration Themes and Responses Registration/ onboarding third parties Companies acknowledge that simple third-party registration rules will enable broader participation and will look to best practices, similar to those exercised by CA IOUs, in developing a streamlined process that minimizes administrative burden Also, the Plan includes adequate staffing to assist third parties with technical interoperability during onboarding during implementation and beyond 19
20 Green Button / Customer Data Sharing Phase 1 Implementation PSC decision timeframe Critical milestone Dependency 20
21 Green Button / Customer Data Sharing Phase 1 Implementation Updated Cost Lower data store costs Lower capital software costs (shifted to O&M due to software as a service) Additional O&M for onboarding and support for third parties 21
22 Green Button / Customer Data Sharing Additional Data Sets Overview Collaboration Results Key Considerations Implementation Plan Next Steps Requested Data: Bill cost data Tariff data Account info Bill component data Customer info NYS standard Governance Data privacy Liability Technical Cost Companies are committed to implementing additional data sets in Phase 2 starting in 2018 Include bill cost data as a starting point Work w/ NYS Joint Utilities to develop a standard approach Monitor Green Button Alliance capabilities File implementation plan in Q
23 Green Button / Customer Data Sharing Cost of Additional Data Sets Discussions with other utilities indicate the estimated cost for implementing additional data sets beyond usage data is approximately $1M - Under the condition these data sets are already available in the Companies data warehouse Cost will be updated Q when an implementation plan for additional data sets is developed 23
24 Innovative Rate Design Overview Goal Pilot that identifies how innovative rate structures can enhance customer benefits of the AMI system in a cost effective manner Key Aspects Purpose and metrics Pilot design Participation Time and location Variables 24
25 Innovative Rate Design Collaboration Themes and Responses Piloting urban areas Including small commercial Pilot communications with LMI A pilot is planned for Brooklyn to represent urban population in the CECONY service territories Pricing pilot now includes small commercial customers for both Companies Companies are aware of perception that LMI customers maybe disproportionately impacted by innovative rate structures, and will consider such perceptions when designing the customer engagement, recruitment and design elements of the rate pilot 25
26 Innovative Rate Design Definition of the Rate Pilots Purpose: Determine whether price signals, information and technology can affect customer behavior to drive more efficient use of the electric grid Evaluate how new rates provide customers with added control, choice and convenience in managing usage and costs Use the lessons learned to inform future rate design Metrics: Customer peak shifting and usage changes Customer responses to pilot surveys Components: RATES PARTICIPATION EVALUATION TIME & LOCATION COST EDUCATION TECHNOLOGY 26
27 Innovative Rate Design Overview of Pilot Components Components Decisions Rationale Rates Participation Evaluation Time-varying demand-based delivery (different time/subscription bases) SC-1 opt-in and opt-out SC-2 opt-out Summer baseline period (opt-in) Longer baseline period (opt-out) Time & Locations CECONY: Staten Island & Westchester ( ); Brooklyn ( ) O&R: Rockland ( ) 6 mo. Lag between opt-in and opt-out Education Not a variable Treatment groups to receive specific education and messaging Evaluated via surveys Demand drives delivery system costs Not addressed in previous pilots SC-2 added for small commercial SC-1 opt-in since demand rate is new; opt-out to gather results applicable to larger population Need interval data history for demand rates Helps correct for bias in control (EPRI) Must wait for enough meters to start pilot Time determined by meter rollout Locations selected for broad representation Lag between opt-in and opt-out to apply lessons learned Education critical in earlier pilots Design effective messaging for each group via surveys and focus groups Evaluate via survey to improve for future Technology Not a variable Evaluated via surveys Options available, details follow Technology for demand rates still evolving Customers will receive information on options and select their own Technology and success assessed in survey 27
28 Innovative Rate Design Timeline AMI Rollout Baseline Opt-In Pilot Opt-Out Pilot A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Summer Summer Summer Summer A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Summer Summer Summer Summer A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Summer Summer Summer Summer 28
29 Innovative Rate Design Preliminary Cost Estimate - Brooklyn Pilot Brooklyn Pilot ( ) Scope Cost RATE PILOT ACTIVITIES Marketing: Research and Rate Design: Enrollment and Customer Support: Implementation-Enabling Technologies: Customer Opinion and Satisfaction Research: Evaluation and Reporting: Reporting-Data Management: Systems and Project Management: TOTAL COST Education, recruitment and retention Statistical usage analysis, study design, IT sys development Enrollment, billing and customer service support Enabling technologies and support Market research, customer opinion and satisfaction Evaluating study results and reports Setup database, data analytics and regular reporting System infrastructure upgrades and project mgmt. $2.4 M $0.6 M $1 M TBD $0.5 M $1.7 M $0.2 M $1.3 M $7.6 M 29
30 Innovative Rate Design Pilot Costs Preliminary Cost Estimates Based on several utilities' AMI rate pilot costs 30
31 Innovative Rate Design Customer Education and Engagement 1. Pre-enrollment 2. Enrollment 3. In-pilot 4. Post-pilot Groups: SC-1 (opt-in/opt-out) SC-2 (opt-out) Market research: Segmentation Message testing Pre-pilot surveys Opt-in or out and assignment to control or treatment groups Pre-bill education (messaging and channels to depend on segmentation and group assignment) Messaging in-pilot will depend on treatment group assignment Drop-outs: Messaging and strategies Survey design Design post-pilot survey to assess: Success of messaging Interest in adopting rates Overall satisfaction Behavior changes Use of technologies (if applicable) 31
32 Enabling Technologies Company Approach Con Edison and O&R has offered Connected Device programs to customers since 2009 Follow market in enabling technology Evaluate on key criteria: Cost EE/DR Benefits Reliability Security Choice, Control, Convenience 32 32
33 Enabling Technologies Current Approaches View and control remotely via Internet Customer 33
34 Enabling Technologies Con Edison Smart AC Program smartac Kit View and control remotely via Internet Makes window ACs controllable View energy used by ACs Control ACs by time or temperature Customer
35 Enabling Technologies Con Edison Direct Load Control and BYOT
36 Enabling Technologies Future Direction Additional Devices and Applications PTACs Mini-/ Multi-Splits Master metered buildings Small Commercial Additional Devices Residential Demand Response Management System launching 2017 Launching Standing Connected Devices RFI next week AMI Rollout 36 36
37 Cost Savings and Revenue Opportunities Overview Goal Facilitate new cost saving and revenue opportunities directly related to AMI for customers, third party vendors, and the utility Key Aspects For potential opportunities, define: Eligibility criteria Proposal process (submission, selection, review, etc.) 37
38 Cost Savings and Revenue Opportunities Collaboration Themes and Responses Request for more frequent solicitation Third party notification Structured schedule and process The framework prescribes an annual solicitation window consistent other programs (e.g., REV Demo project) -- require sufficient time and attention commensurate with utility resources Companies propose using their website as done in previous solicitations, which has proven successful. Similar channels to REV demos are also being considered Framework will follow approval process for Platform Service Revenues under Track II Order Timeframe for process will remain consistent to increase third-party participation and success 38
39 Cost Savings and Revenue Opportunities Framework Overview 1. Outreach 2. Application 3. Review Goal: Encourage qualified third parties to submit proposals consistent with AMI network communication opportunities Goal: Ensure necessary data are requested for effective evaluation of pilot projects Includes: 1) Project narrative 2) Business case 3) Proposed metrics 4) Vendor Security Assessment Goal: Identify projects consistent with eligibility criteria Includes: 1) Review applications 2) Score projects 3) Select projects for interview 4. Interview 5. Selection 6. Measurement Goal: Refine project selection for gaps and/or intangibles Includes: 1) Meet proposal team 2) Consider proposal updates 3) Re-score projects 4) Identify finalists Goal: Negotiate with finalists for project selection and execution Includes: 1) Approve project plan (metrics, budget, timeline, etc.) 2) Finalize network integration requirements 3) Approve investment terms, if applicable Goal: Verify benefits meet expectations Includes: 1) Project team reports on metrics 2) Hold QA and check-in meetings 39
40 O&R CECONY Cost Savings and Revenue Opportunities Framework Timeline Program Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Program Cycles Year 1 Year 2 Year 3 Year 4 Year 5 AMI Rollout Staten Island Westchester Brooklyn Manhattan Bronx Queens Program Cycles AMI Rollout Rockland Year 1 Year 2 Year 3 Year 4 Year 5 Orange and Sullivan Annual Review Timeline (Detail) A S O N D J F M A M J J A S O N D Outreach Review Interview Selection Application Measurement 40
41 Data Privacy Overview Goal Complete formal data privacy assessment and propose data privacy and access principles relating to implementation of AMI Key Aspects Perform data privacy assessment, in accordance with: NISTIR 7628 Guidelines Propose data access principles, using: Well-established Fair Information Practice Principle (FIPP) frameworks 41
42 Data Privacy Assessment COMPLETED ACTIVITIES Reviewed 116 current policies and procedures across Con Ed and O&R Reviewed 29 AMI design documents Compared current policies and procedure with 44 NISTIR 7628 recommendations CURRENT FINDINGS Presently aligned w/ 21 NIST recommendations 7 recommendations will require further action by Companies prior to implementing AMI 12 third-party requirements 4 recommendations are not applicable 42
43 Data Privacy OECD Fair Information Practice Principles (FIPP) Collection Limitation Limits collection of personal data Safeguard that collection is lawful Obtain customer consent when possible Purpose Specification Timely notification to customers of use and purpose of data Notification of changes in purpose or use Data Quality Data collected should be accurate, complete, timely Relevant to the purpose for which it is used Use Limitation Personal data should not be disclosed or used for purposes other than those stated Security Safeguards Personal data should be protected with appropriate safeguards and technologies. Individual Participation Customers have control and rights over their personal data Customers will be provided means to access and review their data Openness The utility will make reasonable efforts for transparency and openness about changes to data access practices and policies Accountability The utility will be accountable for following and adhering to these principles OECD FIPP framework was used to guide the development of company-specific AMI data access principles 43
44 Data Privacy Access Principles (Examples) Collection Limitation Principle CECONY and O&R collect AMI smart meter data for the purposes of managing and servicing our customers accounts. The smart meter does not store or transmit PII or customer identifying information. Additionally, the AMI smart meter does not record how electricity is used or what appliances/devices customers may use. Security Safeguards Principle CECONY and O&R will endeavor to provide appropriate measures and security technologies to safeguard customer information and allow only authorized entities access to customer information collected via AMI smart meters. Additional details regarding the safeguards used for customer information can be found in our Privacy Statement. 44
45 Sub-metering Overview Goal Explore opportunities for sub-metered tenants to benefit from AMI Key Points AMI will provide direct benefits to Con Edison customers Sub-metered tenants will indirectly benefit through their building s billing allocation Sub-meter companies can enable sub-metered tenants to directly experience AMI benefits 45
46 Sub-metering Collaboration Themes and Responses AMI benefits for sub-meter tenants Expanding vendor offerings Plan summarizes research and collaboration performed w/ numerous sub-meter vendors regarding benefits available to sub-metered tenants Plan describes additional opportunities for vendors to enhance benefits for sub-metered tenants Additionally, Plan provides a process for identifying new partnership opportunities between vendors and utilities ` 46
47 Sub-metering Benefits from Con Edison s AMI Benefits made available to sub-metered tenants as a result of Con Edison s AMI implementation: Health Outage Response Cost Savings Reduced emissions from conservation voltage optimization (CVO), distributed energy resources (DER) and reduced truck rolls Improved outage response due to AMI and enhanced communication Due to multi-family building participation in AMIenabled alternative rate programs as well as CVO and DER 47
48 Sub-metering Vendor-Enabled Benefits Additional research and collaboration indicates vendors provide a spectrum of benefits. Select vendors can provide AMI-like benefits: Interval Energy Usage Demand Response Vendors can provide interval energy usage data to tenants through various channels (e.g., mailed reports, online customer portal and in-home devices) Vendors can provide tenants with demand response signals and bill based on participation Alternative Rates Vendors can provide tenants with demand-based and time-of-use pricing signals and bill based on response 48
49 Opt-Out Tariff Overview Goal Propose tariff amendments necessary to accommodate customers wishing to opt out of AMI meters for privacy and security concerns Key Aspects Proposed amendments to current tariffs, such as: Eligibility Cost Application Responsibility 49
50 Opt-Out Tariff Collaboration Themes and Responses Updating gas tariff Meter reading fee for customers w/ both services Plan will include proposed tariff changes to both electricity and gas services Proposed tariff changes will reflect that the monthly meter reading fee will only be charged once for customers with both electricity and gas services 50
51 AMI Opt-Out Key Elements of Proposed Program Current Tariffs (Electric and Gas) Proposed Changes (Electric and Gas) EILIGIBILITY Residential customers in oneto four-family homes All residential customers COST Electric: $9.50 monthly; $ one-time cost if AMR/AMI meter must be replaced Gas: $9.50 monthly; $93.81 one-time cost if remote communications must be removed No change in fees Adding language to clarify customers with both services will only pay one $9.50 fee per month for meter reading RESPONSIBILITY Completed opt-out form and ensure regular access for monthly meter reading No change 51
52 Local Law 84 Overview Goal Reduce or eliminate costs for aggregated building data required to comply with Local Law 84 Key Aspects Current and future state assessments of the financial impact of Local Law 84, including: Labor cost Vendor cost IT maintenance fees Capital investments 52
53 Local Law 84 Assessment of Current Cost Simplified process Increased efficiency Reduced headcount Outsourced billing Automated processes Improved data quality 53
54 Vendor Solution In-House Solution Local Law 84 Additional Functionality Automatic Upload Incremental labor and maint. costs for set up of APIs and transition Incremental vendor costs Y1 allocation of dev. costs Y1 maint. costs Inc. labor (new process, Q&A) New vendor mgmt. Small labor cut Low est. of Y1 costs (imp. and fees) Costs to collect data and assure compatibility Small change in vendor expenses 54
55 Summary of Preliminary Costs Annual Allocation (Con Edison) Cost Element Total Cost Customer Education $30.8 $1.0 $4.6 $8.3 $9.2 $7.3 $0.5 Green Button Connect My Data $9.5 $ Additional Data Sharing (Phase 2) $0.9 - $ Innovative Rate Design Pilots $17.4 $2.3 $4.3 $3.2 $2.9 $3.3 $1.4 Staten Island / Westchester $9.8 $2.3 $2.9 $1.1 $2.0 $1.4 - Brooklyn $7.6 - $1.4 $2.1 $0.9 $1.8 $1.4 Cost Saving and Revenue Opportunities $6.2 $0.5 0 $1.2 0 $1.2 0 $1.2 0 $1.2 0 $1.1 0 Total Cost: $64.8 $13.2 $10.9 $12.6 $13.2 $11.7 $3.1 Less Green Button Connect My Data : $9.5 $ Net Cost: $55.3 $3.7 $10.9 $12.6 $13.2 $11.7 $3.1 Figures in Millions 55
56 Summary of Preliminary Costs Annual Allocation (Orange and Rockland) Cost Element Total Cost Customer Education $1.0 $0.4 $0.4 $ Green Button Connect My Data $0.7 $ Additional Data Sharing (Phase 2) $0.1 - $ Innovative Rate Design Pilot $7.4 $1.8 - $1.8 - $0.7 - $1.6 - $ Total Cost: $9.2 $2.9 $2.2 $1.0 $1.6 $1.4 - Figures in Millions 56
57 Next Steps 57
58 Next Steps Collaboration Timeline Jun 02 Jun 14 Jul 6 Jul 15 Jul 29 Collaboration 1 Provide level set between utilities and ext. collaboration stakeholders on upcoming filing Collaboration 2 Collaborate on key focus areas of the Customer Engagement Plan Progress Update Provide and address new comments received outside of group collaboration Collaboration 3 Review applicable sections of the Customer Engagement Plan File Plan File Customer Engagement Plan with NY PSC 58
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