Customer Service Volume 3 - Customer Service and Information Delivery

Transcription

1 Application No.: Exhibit No.: SCE-0, Vol. Witnesses: L. Cagnolatti K. Devore J. Lim C. Prescott T. Walker (U -E) Customer Service Volume - Customer Service and Information Delivery Before the Public Utilities Commission of the State of California Rosemead, California November 01

2 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents Section Page Witness I. OVERVIEW OF BUSINESS CUSTOMER SERVICES...1 L. Cagnolatti A. Overview of Business Customer Services Business Customer Division...1. Customer Programs and Services.... Operating Unit Management and Support... B. Impact of a Fully Deployed Edison SmartConnect System... C. Customer Engagement for Non-Residential Customers Account Management Provides Essential Customer Engagement for SCE s Non-Residential Customers.... Customer Engagement Requires Energy Information and Tools.... Engaging Customers Is Crucial to the Implementation of Dynamic Pricing... D. Productivity and Operational Excellence... II. SUMMARY OF REQUEST FOR BUSINESS CUSTOMER SERVICES... III. BUSINESS CUSTOMER DIVISION... K. Devore A. Description of Business Customer Division Activities Account Management Services... a) Descriptions of Account Management Services Activities... (1) Rate Analysis Information and Education...1 () Billing and Metering Inquiries...1 () Credit Issue Information...1 -i-

3 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness () Power Quality Information...1 () Energy Advisor / Marketplace Communication...1 () Demand Response Information...1 () Outage Communications...1 () Plug-In Electric Vehicle Support...1 () Customer Relationship Management System...1 b) Account Management Services Base Year Operating Results...1 c) Analysis of Historical Data...1 d) Test Year Expectations...0 (1) Optimizing Account Management Support Activities Will Result in Reduced Account Management Cost...1 () Customer Growth...1. Technical Services... a) Descriptions of the Technical Services Activities... (1) Rate and Data Analysis Services... () Field Engineering Services... () Special Contract and Tariff Administration Services... () Education and Communications... () Customer Requests for Assistance with Distributed Generation Projects... -ii-

4 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness b) Technical Services Base Year Operating Results... (1) Rate Analysis Services... () Customer Requests for Assistance with Distributed Generation Projects... () Other Technical Services Activities... c) Analysis of Historical Data... d) Test Year Operating Expectations.... Energy Education Centers... a) Descriptions of the Energy Education Centers... (1) SCE Energy Education Center Irwindale... () SCE Energy Education Center Tulare... b) Energy Education Centers Base Year Operating Results...1 c) Analysis of Historical Data... d) Energy Education Center Test Year Operating Expectations.... Customer Choice Services... a) Description of the Customer Choice Services... (1) Contract Management... () Account Management... () Service and Support... -iii-

5 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness b) Customer Choice Services Base Year Operating Results... (1) Electric Service Provider and Direct Access Activities... () Customer Choice Aggregation Activities... c) Analysis of Historical Data... d) Customer Choice Services Test Year Expectations.... Economic Development Services... a) Descriptions of the Economic Development Services Function... (1) Project Management... () Business Development... b) Economic Development Services Base Year Operating Results... (1) Project Management... () Business Development...0 () Ratepayer Impact Measurement (RIM) Test... () Economic Benefit in California... c) Analysis of Historical Data... d) Economic Development Services Test Year Operating Expectations... B. Business Customer Division Recorded Cost Summary... C. Test Year Expectations (FERC Account 0.00)... -iv-

6 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness 1. Determination of Test Year Estimating Methodology.... Test Year Adjustments... a) Account Management Services (Summary)... b) Economic Development Services (Summary).... Test Year Forecast... D. Business Customer Division Capital Introduction.... Structures and Improvements Energy Education Centers (CCS-00-SI-BC-CT and CCS-00-SI- BC-AT-00001)... a) Energy Education Center Irwindale...0 b) Energy Education Center Tulare...0. Specialized Equipment (CCS-00-SE-BC-PT and CCS-00-SE-BC-TS-00001)...0 a) Engineering Tools and Equipment...1 E. Business Customer Division Other Operating Revenues (OOR) Introduction...1. Estimating Method for OOR.... FERC Account. Energy Related Services.... FERC Account. SCE EnergyManager... IV. CUSTOMER PROGRAMS AND SERVICES... J. Lim -v-

7 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness A. Consumer Affairs, Customer Satisfaction, Marketing, Communications and Digital Delivery of Customer Services... B. Customer Programs... T. Walker 1. Description of Customer Programs... a) Energy Information and Management Programs... b) Dynamic Pricing Programs... c) Other Customer Service Related Programs...0. Base Year (01) Operating Results...1 a) Energy Management and Information Programs...1 (1) Web Presentment of Interval Data...1 () Web Presentment of Cost Information...1 () Budget Assistant... () SCE EnergyManager... b) Dynamic Pricing... (1) Time-of-Use (TOU) Rates... () Critical Peak Pricing (CPP)... () Real Time Pricing (RTP)... c) Customer Service Related Programs... (1) Renewable Tariffs and Interconnection Programs... d) Other Programs and Services...1 -vi-

8 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness. Analysis of Historical Data (FERC Account 0.0)...1. Customer Programs Test Year Expectations (FERC Account 0.0)... a) Determination of Test Year Estimating Method... b) Customer Programs Test Year Expectations... (1) Implementation of Dynamic Pricing... () Renewable Tariffs and Interconnection Programs... c) Summary of FERC Account 0.0 Forecast... V. OPERATING UNIT MANAGEMENT AND SUPPORT... C. Prescott A. Description of Operating Unit Management and Support Finance and Administration... a) Description of Finance and Administration Functions... (1) Planning and Performance Reporting... () Regulatory Finance and Long-Term Planning... () Internal Controls... () Timekeeping... () Payment Processing...0. Business Planning...0 a) Description of the Business Planning Function...0 -vii-

9 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery Table Of Contents (Continued) Section Page Witness. Customer Service Regulatory and Tariff Program Support...1 a) Description of the Regulatory and Tariff Support Function...1 B. Operating Unit Management and Support Base Year Operating Results Summary of Recorded Costs (FERC Account 0.00)...1. Analysis of Historical Data (FERC Account 0.00)...1 C. Operating Unit Management and Support Test Year Expectations (FERC Account 0.00) Determination of Test Year Estimating Methodology.... Test Year Adjustments... Appendix A Witness Qualifications... -viii-

10 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery List Of Figures Figure Page Figure I-1 SCE s New Customer Service Model... Figure III- Business Customer Division Recorded And Adjusted 00-01/Forecast FERC Account 0.00 (Constant 01 $000)... Figure III- Business Account Services Comparison of 01 Base Year to 01 Test Year FERC Account 0.00 (Constant 01 $000s)... Figure III- FERC Account. Energy Related Services (Nominal $000)... Figure III- FERC Account. Forecasted SCE EnergyManager OOR (Nominal $000)... Figure IV- Customer Programs and Rates FERC Account 0.0 (Constant 01 $000s)... Figure IV- Customer Programs and Rates Comparison of 01 Base Year to 01 Test Year FERC Account 0.0 (Constant 01 $000s)... Figure V- Operating Unit Management and Support FERC Account 0.00 (Constant 01 $000s)... Figure V- Operating Unit Management and Support Comparison of 01 Base Year to 01 Test Year FERC Account 0.00 (Constant 01 $000s)... -ix-

11 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery List Of Tables Table Page Table I-1 Productivity Initiatives Impact to 01 Test Year (Constant 01 $ millions)... Table II- Summary of Business Customer Services by FERC Account FERC Accounts 0-0 (Constant 01 $000)... Table III- Account Management Resource Assignments...1 Table III- Account Management Recorded/Adjusted Expenses (00-01) (Constant 01 $000)...1 Table III- Rate Analyses Performed for Non-Residential Customers by Year... Table III- Technical Services Recorded/Adjusted Expenses (00-01) (Constant 01 $000)... Table III- Description of SCE s Energy Education Center Irwindale Facilities...0 Table III- Description of SCE s Energy Education Center Tulare Facilities...1 Table III- Energy Education Centers Recorded/Adjusted Expenses (00-01) (Constant 01 $000)... Table III- Customer Choice Services Recorded/Adjusted Expenses (00-01) (Constant 01 $000)... Table III- Economic Development Services Recorded/Adjusted Expenses (00-01) (Constant 01 $000)... Table III-1 Business Customer Division Recorded/Adjusted Expenses (00-01) FERC Account 0.00 (Constant 01 $000)... Table III-1 Summary of Test Year Forecast Adjustments FERC Account 0.00 (Constant 01 $000)... Table III-1 Energy Education Centers Structures and Improvements (Nominal $000)...0 Table III-1 Business Customer Division Specialized Equipment (Nominal $000)...1 Table III-1 Business Customer Division Other Operating Revenues FERC Accounts. and. (Nominal $000)... Table III-1 Current and Proposed SCE EnergyManager Fees, Monthly Service Fee Per Account... Table IV-1 Budget Assistant Program Statistics... -x-

12 SCE-0: Customer Service Volume 0 - Customer Service and Information Delivery List Of Tables (Continued) Table Page Table IV-1 Summary of 01 Budget Assistant User Survey... Table IV-0 Features and Benefits Available to Customers through the SCE EnergyManager... Table IV-1 SCE EnergyManager Usage Statistics... Table IV- Net Energy Metering (NEM) Applications Received by SCE (00-01)...0 Table IV- Customer Programs and Rates Recorded/Adjusted Expenses (00-01) FERC Account 0.0 (Constant 01 $000)... Table V- Operating Unit Management and Support Recorded / Adjusted Expenses (00-01) FERC Account 0.00 (Constant 01 $000)... -xi-

13 I. OVERVIEW OF BUSINESS CUSTOMER SERVICES A. Overview of Business Customer Services This Volume addresses the activities performed by the Business Customer Division (BCD) and portions of the Customer Programs and Services (CP&S) Division of SCE s Customer Service organization. Also included in this Volume are the capital expenditures and other operating revenues (OOR) managed by BCD. This Volume also includes Customer Service s Operating Unit Management and Support (OUMS) activities. 1. Business Customer Division The activities performed by BCD as described in this Volume are core to engaging and serving SCE s non-residential customers with programs and services that meet their needs and enable them to be more knowledgeable and involved in managing their energy usage. These activities include Account Management Services, Technical Services, Energy Education Centers, Customer Choice Services, and Economic Development Services as summarized below. The O&M expenses associated with these activities are recorded in FERC Account Account Management Services. This function provides service and information to,000 customers associated with,000 non-residential service accounts. The level of service provided by Account Management Services ranges from that provided by highly experienced senior account managers assigned to our largest customers to our Business Solutions group that serves our smallest non-residential customers. Technical Services. This function supports the Account Management Services organization with technical expertise in the areas of rate analysis, field engineering, distributed generation project analysis, and special contract and tariff administration. The Technical Services organization also assists in developing informational and educational materials, and provides usage data by customer group (residential, small business, large commercial and industrial, and agricultural) to cities. Energy Education Centers. This function manages SCE s two Energy Education Centers one in Irwindale and one in Tulare dedicated to providing residential, commercial, industrial, and agricultural customers with information regarding energy efficiency, demand response, renewable generation, environmental solutions, the safe use of energy, utility programs, electro- 1

14 magnetic fields, and power quality. The Energy Education Centers host approximately,00 customers each year. Customer Choice Services. This function facilitates Energy Service Provider (ESP) and Community Choice Aggregator (CCA) participation in the Direct Access (DA) and potential Community Choice Aggregation markets within our service territory and provides appropriate oversight of ESPs and CCAs day-to-day interactions with SCE. Economic Development Services. This function supports the regional economy and benefits SCE s ratepayers by helping to retain, grow, and attract commercial and industrial customers. In addition to the O&M activities described above, BCD requires capital funding for ongoing upgrades and improvements to the Energy Education Centers and specialized equipment to support field engineering and activities such as pump testing. BCD is also responsible for the Other Operating Revenues produced by the Energy Related Services and SCE EnergyManager programs.. Customer Programs and Services The Customer Programs and Services function is comprised of Consumer Affairs and Customer Satisfaction (FERC Account 0.00), Marketing, Communication and Digital Customer Services (FERC Account 0.00) and Customer Programs (FERC Account 0.0). Consumer Affairs and Customer Satisfaction and Marketing, Communications and Digital Customer Services are described in Volume of this Exhibit, and their applicability to non-residential customers is summarized in this Volume. Customer Programs, presented in this Volume, develops, implements, and manages many of SCE s programs and services including energy management and information programs (including Edison SmartConnect -enabled programs and SCE EnergyManager), dynamic pricing programs, and renewable tariff and interconnection programs.. Operating Unit Management and Support The OUMS function includes finance and administration (including planning and performance reporting, internal controls, timekeeping, and payment processing), business planning, and regulatory support activities. B. Impact of a Fully Deployed Edison SmartConnect System In 01, SCE was deploying Edison SmartConnect (ESC) meters and enabling customer participation in ESC-enabled programs and services. As such, SCE s 01 GRC integrated the ESC program into a technology-enabled customer service model. In December 01, the deployment of the ESC system was completed. As a result, in 01 and 01, SCE will deliver the programs and services

15 now afforded by the availability of interval usage data so that customers can better understand and manage their energy usage. In this 01 GRC, SCE s Test Year forecast reflects its ongoing, steady-state, post-esc deployment operations. The impact of the deployment of ESC on Business Customer Services operations is significant. For example, ESC provides the interval data to support the implementation of dynamic pricing, as ordered by the Commission in D , which will impact an estimated 00,000 non-residential service accounts. 1 In addition, residential and non-residential commercial customers with demands less than 00 kw are able to take advantage of a suite of new tools and services. These new tools leverage the interval data available from the ESC meter and provide this information to customers, so they can better understand the correlation between energy usage and cost. C. Customer Engagement for Non-Residential Customers As described in Volume 1 of this Exhibit, in this GRC period, SCE s Customer Service Model includes three key components for engaging customers (Energy Solutions, Intelligent Delivery and Energy Advisory Services, and Effective and Enabling Customer Interactions) supported by two foundational elements (Technology and Empowered Employees). The three key components of the model are interrelated. Energy solutions influence the intelligent delivery processes and energy advisory services, which then drive the types and effectiveness of customer interactions, which provides feedback and lessons learned that help SCE refine and optimize its portfolio of energy solutions. Figure I-1 below illustrates these key elements of our Customer Service Model. 1 See D for details of the implementation of dynamic pricing for the small commercial and industrial rate group (pp. 1-), medium and large power commercial and industrial rate group (pp. 1-), and agricultural and pumping rate group (pp. -1).

16 Figure I-1 SCE s New Customer Service Model The functions described in this Volume are key to delivering the Customer Service Model and helping ensure that the processes are in place to deliver customer programs and services. As described below, the functions described in this Volume support the key elements of SCE s Customer Engagement Strategy. 1. Account Management Provides Essential Customer Engagement for SCE s Non- Residential Customers SCE s energy advisory services will rely on empowered employees (i.e., account managers) in BCD. The BCD account managers are knowledgeable of their customers needs and the programs, rates, and services available to address those needs. Because of their day-to-day interactions with many of our non-residential customers, including those customers who are the most active in managing their energy consumption, BCD account managers play a key role in engaging our customers. BCD achieves this goal using an account management model that reflects the diversity of our nonresidential customer population by assigning account managers to those customers who have more complex energy issues and more complex billing, rate, and other customer care issues and who are very active in implementing integrated demand side management (IDSM) measures, while tailoring its account management services to meet the needs of medium and small non-residential customers whose

17 customer service needs are not as intensive. To support its account managers, BCD has established teams of IDSM specialists, rate analysts, field engineers, and other technical specialists.. Customer Engagement Requires Energy Information and Tools The other critical component of SCE s customer engagement model is providing customers with information about their energy usage and cost so that they can make good energy usage decisions and take appropriate actions. The Customer Programs and Rates function accomplishes this by providing tools such as Budget Assistant, which offers proactive outbound cost information to help customers more actively manage their energy budget.. Engaging Customers Is Crucial to the Implementation of Dynamic Pricing As noted above, the implementation of dynamic pricing, including the defaulting of nonresidential service accounts with demands less than 00 kw to Critical Peak Pricing (CPP) rates beginning in 01, as ordered by the Commission in D , will impact an estimated 00,000 non-residential service accounts. Addressing the needs of these customers will require a combination of tailored education and outreach, and account management services. In addition, SCE plans to engage these customers through multiple communication channels, including automated voic , text messaging, and to inform them of CPP events on a day-ahead basis in order to provide them with sufficient opportunity to plan for CPP events. D. Productivity and Operational Excellence In Exhibit SCE-, productivity is defined as simply doing more while using proportionately less. Productivity initiatives must meet at least one of the following two objectives: (1) they must improve the level of service without adding cost, or () they must reduce cost with no adverse effect on service levels. Projects meeting both objectives receive the highest priority for implementation. The Test Year forecast for Business Customer Services functions reflect operational improvements that are either underway now or will be implemented by the 01 Test Year. Productivity initiatives underway for the functions presented in this Volume fall under the companywide Operational Excellence program. The details of the cost savings to result from implementation of the Operational Excellence program are addressed in each of the Business Customer Services functional areas in which the savings are realized and are summarized in Table I-1. See Exhibit SCE-, Volume, Part, Chapter IV, Section A. See Exhibit SCE-, Volume, Part for more information about SCE s Operational Excellence program.

18 Table I-1 Productivity Initiatives Impact to 01 Test Year (Constant 01 $ millions) Line No. Program Years Estimated Cost Savings Text Reference FERC Acct 1 Future Operational Excellence Business Account Services 01 $ Operating Unit Management and Support (Centralized) 01 $ Total Operational Excellence $. Future Total $.

19 1 1 1 II. SUMMARY OF REQUEST FOR BUSINESS CUSTOMER SERVICES This Volume covers the operating requirements of the Business Customer Division, Customer Programs and Services, and Operating Unit Management and Support functions. The O&M expenses for these functions are recorded in FERC Accounts 0.00 (Business Customer Division), 0.0 (Customer Programs and Services), and 0.00 (Operating Unit Management and Support). In 01, SCE incurred $.1 million in O&M expenses for these functions and forecasts O&M expenses totaling $1.0 million in 01. The Test Year forecast includes productivity initiatives, an increase of $,000 to reflect the impact of customer growth on the Account Management Activities included in FERC Account 0.00, an increase of $,000 to support marketing education and outreach for dynamic pricing programs, and an increase of $,000 for NEM application processing to support the growing customer interest in this tariff. These O&M adjustments are described in detail in the appropriate Test Year Expectations in Chapter III below. Table II- summarizes the Test Year forecast by FERC Account for this Volume. Table II- Summary of Business Customer Services by FERC Account FERC Accounts 0-0 (Constant 01 $000) Line FERC Recorded Forecast No. Description Account Business Customer Division ,1 1,0 1, 1, Customer Programs 0.0,,,1, Operating Unit Management and Support 0.00,0,,1,1 Total Operating Expense,1 1, 1, 1,0

20 III. BUSINESS CUSTOMER DIVISION SCE s Business Customer Division (BCD) has an important role in SCE s efforts to engage and serve our business customers. For most of SCE s. million customers corresponding to.0 million service accounts, helpful interaction and communication is provided through a variety of channels, including monthly bills, SCE.com, mobile applications, the toll-free, -hour-a-day Customer Contact Center, and in-person services. Using these channels, SCE can address most service-related issues, billing inquiries, and other routine customer service inquiries as described in Volume of this Exhibit. BCD serves the needs of the non-residential customers, many of whom have more complex energy issues, more complex billing, rate, and other customer care issues, and are very active in implementing integrated demand side management (IDSM) measures. In order to meet these needs, BCD is staffed with experienced professionals who are knowledgeable of the needs of non-residential customers; familiar with the wide array of rates, products, and services designed for these customers; and maintain and leverage strategic relationships with many of our larger customers. Engaging these customers is essential to meeting state and federal energy policy goals as described above and in Volume 1 of this Exhibit because non-residential customers while comprising only about,000 customers representing,000 service accounts account for approximately percent of the electricity delivered over SCE s distribution system. In this Chapter, we describe the functions performed by BCD, describe the Base Year activities, analyze the historical O&M expenses, and forecast the Test Year O&M expenses. As described in Chapter I, beginning in the Base Year, we have reviewed and, where possible, optimized the way in which we deliver our services to non-residential customers. In this Chapter, we describe the impact of these actions on our Test Year forecast. We also present forecast capital expenditures for our Energy Education Centers and specialized equipment used by BCD engineers and test personnel. Finally, the forecast of Other Operating Revenues managed by BCD is described in this Chapter. A. Description of Business Customer Division Activities Business Customer Division Activities comprise an array of activities performed by SCE s Business Customer Division, including Account Management Services, Technical Services, Energy Education Centers, Economic Development Services, Consumer Choice Services, and related support

21 activities. These activities are described in additional detail below. Costs associated with these activities are recorded in FERC Account Account Management Services Account Management Services provides service and information to the,000 nonresidential customers associated with,000 non-residential service accounts. The information provided involves utility and energy-related matters that have financial and/or operational impacts on our customers businesses. Approximately,00 customers representing 1,000 service accounts are assigned a senior account manager or account manager because they are highly engaged in demand-side management activities and encounter a higher degree of rate, metering, and billing complexities. These assigned account managers are segmented according to industry, and where feasible, are located in SCE facilities near the majority of their customers. These assigned customers account for approximately percent of the electricity delivered over the SCE distribution system. The services and information provided by the Account Management Services function are described in more detail below. a) Descriptions of Account Management Services Activities Account Management Services Activities consist of providing information and account services to about,000 non-residential customers representing,000 service accounts, including day-to-day responses to customer service needs on billing, tariffs, outages, distribution service requirements, and other issues. Account managers also provide marketplace education, promotion and delivery of demand response programs, and assistance in understanding and assessing the feasibility of distributed generation. The Account Management Services function also assists customers with identifying and implementing energy efficiency measures. The costs of these activities are charged to energy efficiency programs and collected through the Public Goods Charge and are not included in this General Rate Case request. Account Management Services assigns resources as shown in Table III- below. For medium and large customers, account managers are assigned to a designated group of customers and In prior rate cases, activities described in the Business Customer Care section were presented separately in FERC Accounts 0.00 (Customer Choice Services), 0.00 (Account Management), 0. (Energy Centers), 0.0 (Technical Services), and 0.0 (Economic Development Services). In this rate case, SCE has combined these activities into a single FERC account, consistent with how these activities are managed, in order to reduce the volume of O&M workpapers. Detailed descriptions are presented in this Volume consistent with our practice in prior General Rate Cases. See workpaper entitled SCE Customers, Accounts, Usage, and Revenue Summary By Account Description.

22 serve as the first point of contact for customer communications and information. This communication is made through educational mailings, faxes, , and in-person meetings and presentations. These assigned customers are medium or large commercial and industrial businesses or government and institutional entities. These customers include large retailers, property owners and managers of office buildings, regional cold storage facilities, pharmaceutical firms, cement companies, aerospace manufacturers, hospitals, schools, colleges and universities, and local, state and federal governments, among others. These,00 assigned customers representing 1,000 service accounts represent approximately percent of the electricity delivered by SCE annually. Customers are assigned to account managers based on several factors, including IDSM activity and potential, complexity of rates, service arrangements involving customer substations or advanced metering or interconnection requirements, geographical location, and type of industry. Within market segments, the assignment of specific customers to account managers is based on business and electric service complexity, with the most complex customers being assigned to more experienced account managers. SCE s practice is for newly hired account managers to undergo four to six months of training before being assigned to specific customers. This training period includes both classroom instruction and opportunities to work side-by-side with experienced account managers and field engineers. This allows the knowledge transfer with existing personnel on customerspecific information and has resulted in providing customers with more knowledgeable and proficient account managers who are then able to provide better service and more accurate and timely information. To effectively match service delivery to customer needs, SCE established a midmarket account management team to provide service to medium and large customers who do not extensively participate in IDSM activities but continue to have complex customer service needs. For example, medium and large customers with service accounts with demand of 00 kw or greater are required to default to Critical Peak Pricing (CPP) or select another rate and may have additional needs for information and assistance as a result of the transition to mandatory Time-of-Use (TOU) rates. These customers want to better understand how the CPP rate works and want to determine if it meets their needs or if there are other rate options that might better meet their needs. Many demand response programs and rates are targeted to these customers, such as the Base Interruptible Program (BIP), Capacity Bidding Program (CBP), and Demand Bidding Program (DBP). The mid-market account management team combines certain aspects of the existing account management structure for larger customers with optimized delivery methods to cost-

23 effectively meet the needs of their customers. The mid-market account managers provide customer care to mid-market customers through SCE.com and targeted marketing materials and then engage these customers by phone, , and mail whenever possible, using targeted face-to-face interactions based on customer needs. SCE also established the Business Solutions organization to provide service to small to medium customers. These customers typically require limited customer care engagement and have less complex rates and lower complexity in terms of business operations and energy needs. Business Solutions account managers contact these customers by phone, , mail, and fax to communicate rate changes, discuss the availability of optional rates and demand response programs, and assist these customers with other questions or concerns. Business Solutions leverages customer specific mailings and to introduce customers to their new account manager and to help them better understand the programs and services available for their participation. To support the activities of the account managers in the mid-market team within Business Solutions, SCE established the Integrated Demand Side Management (IDSM) specialist team, a group of technical experts assigned to provide customer care for specific IDSM opportunities. These specialists do not have assigned customers in the traditional sense, but, when customers need assistance with energy audits or specific energy efficiency projects, these specialists provide technical assistance, while the mid-market and Business Solutions account managers continue to handle other customer care needs. BCD also has a group of account managers that use mass-market customer outreach through ethnic, faith-based and community forums, special business events, energy walks, strategic business organizations, and organized signature events in order to effectively reach our customers.

24 Line Resource Basis of Assignment No. 1 Senior Account Manager Large and medium (~ 1,000 customers / ~,000 service accounts) Table III- Account Management Resource Assignments businesses highly engaged in IDSM activities, complex business operations, significant customer care, and complex billing and metering requirements Typical Account Manager Assignment -0 customers, 0-,000 service accounts Examples Federal, state, counties, and, cities, national retail chains, large manufacturers (including steel and cement), large hospitals and colleges Typical Issues Self-generation, Rule 1 sub-metering issues, requests for subtransmission service, interruptible rates, service reliability, economic development, outage communications, power quality, environmental compliance, and demand response programs Account Manager (~,000 customers / ~ 0,000 service accounts) Mid-Market Account Manager (~,00 customers / ~ 1,00 service accounts) Business Solutions Account Manager (~,00 customers / ~,00 service accounts) Business Solutions Account Managers (~,000 customers / ~,000 service accounts) Large and medium businesses highly engaged in IDSM activities, complex business operations, but with less complex customer care issues, and less complex billing and metering requirements Medium and large businesses with less complex operations and fewer service accounts that require moderate customer care engagement through virtual or telephone-based interactions Small to medium businesses that require limited customer care engagement through virtual channels Unassigned small customers whose customer service needs can be met primarily through the Customer Contact Center 0-0 customers, 0-,000 service accounts 00- customers, 00-1,000 service accounts Fabricated metals, school districts, agricultural water agencies, large office buildings, medium retail chains, medium manufacturers, and regional cold storage facilities Commercial customers and small to medium industrial customers 00-1,000 Small and medium customers,,00 commercial and -,000 service industrial accounts customers Unassigned Bills, rates, power quality, economic development, outage communications, and demand response programs Bills, rates, power quality, economic development, outage communications, and demand response programs Bills, rates, economic development, outage communications, and demand response programs Small and many Bills and rates, with medium businesses much of the focus on reducing bills 1

25 (1) Rate Analysis Information and Education Approximately 1, or nearly 0 percent, of SCE s electric rates apply to the non-residential customers served by BCD, so these customers have a wide range of rate and billing options from which to choose to best meet their business needs. Most demand response programs and rates currently apply only to non-residential customers, with particular emphasis on agricultural accounts and other non-residential service accounts with over 00 kw in energy demand. It is important to assist these customers in understanding the impact that various rate options may have on their operations and to help them make informed decisions about their energy usage, costs, and rate choices. Although many commercial and industrial customers receive electric service on general service or basic agricultural rates, customers who have accounts with demand of 00 kw and above are required to be served on TOU rates. These customers also have a greater number of rate options and variations. With the installation of ESC meters and the availability of 1-minute interval data, all non-residential customers with at least 1 months of billing history after their ESC meter was installed will be required to be served on TOU rates beginning in 01. These customers will also be able to participate in a wider range of demand response programs. SCE expects these non-residential customers with demands under 00 kw will have questions and many of the same needs as those customers with demands between 00- kw in 00, when interval meters were deployed and TOU rates first became mandatory for those customers. The numerous rate options, rate complexities, and changing rate structures require SCE s account managers to provide timely, ongoing communications, and rate analysis information to meet the needs of our non-residential customers. TOU rate options are designed to provide more accurate price signals to enable customers to reduce or shift energy usage to lower-demand times of day. As a result of implementing these time-differentiated rates and because of related billing factors such as facilityrelated and time-related demand charges, customers increasingly request assistance from their account managers to better understand time-related energy usage concepts and how applicable rate schedules may work within their operations. For example, customers with over 00 kw of demand may choose to participate in demand response programs or rate options such as Real Time Pricing (RTP), Summer Advantage Incentive (also known as Critical Peak Pricing or CPP), the Base Interruptible Program, the Demand Bidding Program, or the Capacity Bidding Program, as well as various TOU seasonal options. See workpapers for a list of SCE tariff schedules organized by customer sector. 1

26 With the full deployment of ESC meters, customers with service accounts with demands below 00 kw now have access to the same demand response programs and rate options as larger customers. Customers continually and increasingly rely on their account managers to provide consultation and detailed rate analysis information, so they have the necessary information to select the rate and program options optimally suited to their operations, and so they can better understand the differences in rate and program benefits based on their energy usage. In most cases, account managers are able to help customers make decisions by conducting account energy usage reviews and by explaining tariff requirements and other factors, such as firm service levels and voltage levels. In other cases, more complex rate analyses are performed as part of the Technical Services function to give customers a more detailed, unbiased view of their rate options for business decisionmaking purposes. BCD s Technical Services function is described below in Section III.A.. () Billing and Metering Inquiries Billing and metering questions frequently arise for midsize and larger customers. These questions are due in part to the variety of available metering, billing, rate options, and programs for these customers. Most issues concerning metering options are generally identified in the billing process. When billing and metering issues arise for non-residential customers, the process of investigating and resolving issues is often time- and labor-intensive and cannot be effectively conducted by a Customer Contact Center or field service representative. SCE account managers assist customers with issues involving energy charges, usage calculations, billing factors, metering operations and accuracy, and meter reads by initiating investigations and coordinating issue resolution. Midsized and larger customers are generally more knowledable about energy issues and are readily able to identify the impact of rate changes and increases on their businesses. For example, one of SCE s larger customers has over 0,000 service accounts. Due in part to the proactive steps taken by BCD s account management team, this customer has aggressively pursued cost-effective rates, adopted energy efficiency measures, and participated in demand response opportunities. In addition, most of this customer s service accounts use electronic data interchange for easier bill management and payment. () Credit Issue Information When credit issues emerge for non-residential customers, SCE s credit administrators and financial analysts depend on account managers to facilitate communications with customer decision makers and provide specific knowledge of the customer to help make determinations 1

27 on credit issues and the appropriate actions to be employed. Account managers also serve as key contacts for educating customers on the rules surrounding credit policies and the need to keep accounts in good standing, negotiating deposits and financial security arrangements with financial decision makers, and helping customers understand payment terms in order to ensure their business operations are not adversely impacted. SCE s credit administrators may request assistance from account managers in resolving credit issues, such as communicating changes in customer account status, resulting in security deposit or collateral requirements, or assisting with negotiations to recover amounts in arrears. Because of their ongoing relationships with customers, account managers have proven effective in interacting with our customers senior financial officers to explain late payment charges, security deposits, and other issues related to financial risk, and with assisting in developing solutions in these situations. For example, in 01, an account manager worked closely with SCE s credit organization in negotiating payment terms with a local medical facility to resolve an arrears balance in excess of $00,000. Because of the strong working relationship between the account manager and the customer, the hospital offered payment arrangements to pay off the arrears within 10 days. Additionally, the hospital agreed to pay its electricity bills from SCE on a weekly basis going forward. () Power Quality Information In today s digital age, it is increasingly important for customers to receive dependable, reliable electricity service. Computerized controls are more sensitive than conventional electro-mechanically controlled equipment. Generally, power quality problems tend to occur on the customer side of the meter. Nevertheless, the customer often looks to SCE first to determine whether the problem resides in SCE s distribution system. The account manager can initiate and coordinate an analysis of the power quality delivered to the customer and can help solve any problems discovered from that analysis, whether the problem lies with SCE s equipment or the customer s equipment. For example, in 01, a circuit board manufacturer contacted its BCD account manager about slight variations in electric service impacting its operations due to its production equipment s extreme sensitivity to power and voltage disturbances. Whenever a disturbance occurred, the customer would incur significant quantities of damaged and unusable product. Frustrated by the issue, the customer engaged the account manager, who partnered with the appropriate engineers and transmission and distribution experts to help identify the problem. After performing a series of tests and monitoring the production equipment, the team determined the disturbances were occurring sporadically 1

28 for microsecond durations and could not be eliminated from SCE s distribution system. The engineers recommended solutions to mitigate the problem, and the account manager worked with the customer to help the customer understand the results of the tests and the potential options. () Energy Advisor / Marketplace Communication Account Management Activities focus on providing important and timely information on a wide range of energy-related issues to assist customers in making informed energyrelated business decisions. Larger customers with assigned account managers often employ in-house energy managers or skilled personnel specifically designated to address energy-related issues. These customers tend to be more knowledgeable about energy usage, require more frequent updates on the energy marketplace, and want detailed information about energy supply-and-demand issues, forecast reserve margins, and the impacts of regulatory proceedings and decisions. For these customers, as well as those without in-house energy managers, SCE develops and delivers information at regular intervals to address these concerns. These types of services will become increasingly important as all smaller non-residential customers transition to mandatory TOU rates and begin to experience different rate options. These publications and informational materials are produced within BCD s Technical Services organization and are discussed further in Section III.A.. () Demand Response Information As outlined in the state s Energy Action Plan II adopted by the California Public Utilities Commission and the California Energy Commission, energy efficiency and demand response have the highest priority in the loading order to meet increased electrical demands, ahead of traditional generation or supply resources. SCE s demand response programs have undergone significant changes in the past few years, including the Critical Peak Pricing program, Summer Discount Plan, Capacity Bidding Program, Automated Demand Response, Aggregator Managed Portfolio program, Technical Assistance and Technology Incentives, the Base Interruptible Program and Demand Bidding Program. To increase customer engagement in these programs, it is necessary for account managers to receive training and be equipped with up-to-date program materials, fact sheets, case studies, and rate analyses. Specially developed seminars delivered by BCD employees familiarize customers with new programs and changes to existing programs and help them better evaluate and understand how available programs and technologies apply to their operations. Account managers make on-site customer visits to explain 1

29 demand response programs, conduct site evaluations to identify potential benefits to operations, and answer customer questions. Soon after new demand response programs are launched or changes are made to existing programs, account managers receive training and then contact eligible customers to explain program features, assist with evaluating which program options may best serve their operational needs, and identify potential load reduction strategies. Rate analyses help customers identify possible energy cost savings and help communicate these changes, as well as the excess energy charges or penalties customers may incur if committed program load reductions are not achieved. () Outage Communications One of the most important and valued services SCE provides to its customers is critical communication during planned and unplanned power outages. When an unplanned outage occurs, non-residential customers often contact SCE s Customer Contact Center or their account managers with questions about the outage and restoration status. Non-residential customers receive automated messages for both planned and unplanned outages that provide the estimated restoration time and the status of the outage. The outage communications team provides follow-up s to customers as the status of the outage changes. Coordinated planned and unplanned outage information is critical because non-residential customers may need to alter production or work schedules or send employees or students home for the duration of the outage. The BCD outage communications team communicates thousands of events and updates each month. Half of the nearly,000 planned outages in 01 impacted non-residential customers with assigned account managers. With the implementation of SCE s automated outage notification system, SCE was able to expand the number of electronic notifications sent to customers with over 00,000 electronic outage notifications delivered in 01. SCE also increased the planned outage notification lead time to days from the previous three to five day notification lead time. Because SCE provides updates, reschedule information, and outage information, customers can better plan the actions they need to take during an outage. Customers rely on this level of service to ensure they receive the accurate and timely information necessary to meet their business needs. BCD s outage communications efforts will be impacted over the next few years as a result of a forecasted increase in distribution equipment maintenance activities due to SCE s aging infrastructure. To help customers, BCD will increase its focus on before- and after-outage customer care. This outreach will include phone 1