Ontario Energy Board Smart Price Pilot Final Report

Transcription

1 Ontario Energy Board Ontario Energy Board Smart Price Pilot Final Report July 2007 Prepared by IBM Global Business Services and emeter Strategic Consulting for the Ontario Energy Board Strategic Consulting

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3 Ontario Energy Board Smart Price Pilot Contents Executive Summary Introduction Background Pilot Objectives Other Ontario TOU Pricing Pilots Price Design Tiered Prices for Control Group RPP Time-of-Use (TOU) Prices Critical Peak Pricing Critical Peak Rebate Critical Peak Trigger Participant Population Participating Distributor Customer Participation Recruitment Results Participant Characteristics Control Group Pilot Operation Participant Recruitment Materials Customer Education Incentive Approach Billing Critical Peaks Participant Support Demand Response and Conservation Impacts Demand Response Impacts Conservation Effect Customer Bill Impacts Participant Feedback Approach Rationale for Participating Communications Feedback Electricity Use Changes and Understanding of TOU Pricing Rationale General Program Satisfaction Pricing Structures Preferences and Understanding...55 Appendices A. Analysis of Critical Peak Rebate Program Concept B. Critical Peak Trigger Analysis C. Sample Recruitment Package Materials D. Sample Confirmation Package Materials E. Load Impact and Conservation Effect Analytical Model F. Focus Group Report G. Survey Results Final Report i July 2007

4 Ontario Energy Board Smart Price Pilot List of Exhibits Exhibit 1: Tiered RPP prices applicable to all RPP consumers in Ontario and paid by control group customers Exhibit 2: Tiered and TOU RPP prices are both based on the same average RPP supply cost...16 Exhibit 3: RPP TOU prices are unchanged from the Board set prices...17 Exhibit 4: Critical Peak Prices. The Off-Peak price is reduced under Critical Peak Prices...17 Exhibit 5: A participant s CPR baseline is determined as the average of usage during the same hours over the participant s last five, non-event weekdays, increased by 25%. The rebate is calculated as the kwh difference between the participant s CPR baseline and their actual usage on the day (the rebate base) multiplied by Exhibit 6: Critical Peak Rebate prices, where the RPP TOU prices are unchanged...20 Exhibit 7: A participant response rate of at least 25% on the first mailing is significantly greater than past pilots with which we are familiar Exhibit 8: Number of pilot participants by price treatment...24 Exhibit 9: Based on a survey upon enrolment, the cooling methods of pilot participants is very consistent with the Hydro Ottawa population, and to a lesser extent with the Ontario population at large. The heating methods are quite consistent...26 Exhibit 10: Housing type and housing age comparisons between pilot participants and the Ottawa and provincial populations...26 Exhibit 11: Comparisons of education and income levels between the pilot participants and the Ottawa and Ontario averages Exhibit 12: Sample of Electricity Usage Statements provided monthly to all participants; the statements differed slightly to reflect the differences between TOU, CPP, and CPR prices Exhibit 13: A sample of the fridge magnet provided to all participants...31 Exhibit 14: Actual temperature and Humidex characteristics of declared summertime critical peak events against a temperature trigger of 28 C and a Humidex of 30 C during On-Peak times...33 Exhibit 15: Actual temperature characteristics of declared wintertime critical peak events against a temperature trigger of -14 C...33 Exhibit 16: Shifts in consumption for each of the seven days when a critical peak was declared. n/s denotes that the results where not statistically significant Final Report ii July 2007

5 Ontario Energy Board Smart Price Pilot Exhibit 17: Shifts in consumption during the seven days (four in summer, three in winter) when a critical peak was declared. n/s denotes that the results were not statistically significant Exhibit 18: Load shifting on all weekdays, except holidays, during the full pilot period. The result for the CPP customers is counterintuitive...38 Exhibit 19: Conservation Effect (total usage reduction) for the full pilot period...40 Exhibit 20: Average monthly usage by price group and control group during the pilot period Exhibit 21: Distribution of average monthly usage by price group during the pilot period...40 Exhibit 22: Distribution of participant bills savings on TOU prices for the total pilot period. Each dot represents an individual participant s net loss or savings. Those above the line paid less on TOU prices...42 Exhibit 23: Distribution of participant bills savings on TOU prices for total pilot period. In the table, a + sign equals a savings or a lower bill on TOU/CPP/CPR Exhibit 24: Distribution of total monthly statement amounts on one of the TOU prices vs. two-tiered RPP threshold prices...43 Exhibit 25: TOU savings on participant bills during individual months. Each dot represents an individual participant s net loss or savings. Those above the line pay less on TOU prices...45 Exhibit 26: TOU savings on participant bills during individual months. A + sign equals a lower bill on TOU/CPP/CPR Exhibit 27: The average monthly TOU bill savings from both load shifting and conservation effects was $ Exhibit 28: Margin of error by pricing group...49 Exhibit 29: Survey responses to anticipated frequency of accessing information on electricity usage statement if available by internet or Exhibit 30: Responses to "What is the MAIN benefit the time-of-use pricing plan offers to its customers?" Note that column percentages may add to more than 100% due to multiple responses Exhibit 31: Would you recommend the time-of-use pricing plan to your friends if the pilot project was expanded? Why or why not?...55 Exhibit 32: Three-quarters of participants preferred TOU-only pricing over the other options, including the current tiered pricing...56 Final Report iii July 2007

6 Ontario Energy Board Smart Price Pilot Acknowledgements The authors would like to acknowledge several people without whom this study would not have been possible. Without the cooperation and support of Hydro Ottawa, we simply could not have completed the study. They let us share in the carefully maintained and trusted relationship between them and their customers. In particular, Owen Mahaffy, Stuart Morrison and Morgan Barnes worked many extra hours to help design the customer materials, provide base customer information, resolve specific issues with customers, support the focus groups, and ensure we had the hourly interval data we needed. Dr Frank Wolak, a Professor in the Department of Economics at Stanford University, provided overall guidance on the study design and completed the analysis of demand response and conservation effects. The rigour and sophistication of the analysis is entirely a result of Frank s leading research. Finally, Chris Cincar of the OEB was more than a typical client project manager. We are indebted to him for his overall guidance and detailed reviews. The overall quality of the study and final report is much enhanced through his involvement. James Strapp, IBM Chris King, emeter Sharon Talbott, emeter July 2007 Final Report iv July 2007

7 Ontario Energy Board Smart Price Pilot Executive Summary In June 2006, the Ontario Energy Board (the Board) initiated the Ontario Energy Board Smart Price Pilot (OSPP) project to test the reactions and impacts on consumer behaviour of different time-sensitive price structures. By August 1, 2006, 375 of Hydro Ottawa s electricity customers had been placed into one of three pricing groups and were receiving monthly Electricity Usage Statements in addition to their bi-monthly electricity bills. The OSPP was operated until February 28, 2007 with the intent to assess: The extent to which various time-sensitive pricing structures cause a shift of electricity consumption to off-peak periods as measured by the reduction in peak demand The extent to which each price structure causes a change in total monthly consumption. The understandability of and acceptability by residential consumers of each pricing structure and the communications associated with each. Results of the OSPP were measured through the quantitative analysis of demand response, total energy conservation, and participant survey responses. Qualitative feedback was garnered from focus groups and tracking of participant support calls. The results are intended to inform the Board with respect to future decisions associated with time-sensitive prices including the potential application of critical peak pricing and any refinements to the current Regulated Price Plan (RPP) time-ofuse (TOU) pricing structure and associated consumer communications. 1 Price Designs The OSPP tested three different price structures: The existing RPP TOU prices, as in the table below. Adjusted RPP TOU prices with a critical peak price (CPP) RPP TOU prices with a critical peak rebate (CPR) 1 - The RPP is primarily for low volume electricity consumers that do not opt to switch to a retailer. The Board sets two-tier and TOU commodity prices as part of the RPP. Virtually all RPP consumers in Ontario currently pay two-tiered threshold (non-tou) prices. Final Report 1 July 2007

8 Ontario Energy Board Smart Price Pilot Time Summer Hours (Aug 1 - Oct 31) Off-Peak 10 pm - 7 am weekdays; all day on weekends and holidays Mid-Peak 7 am - 11 am and 5 pm - 10 pm weekdays Price/ kwh Winter Hours (Nov 1 - Feb 28) pm - 7 am weekdays; all day on weekends and holidays am - 5 pm and 8 pm - 10 pm weekdays On-Peak 11 am - 5 pm weekdays am - 11 am and 5 pm - 8pm weekdays TOU prices are unchanged from the Board s existing Regulated Price Plan (RPP) TOU prices Price/ kwh Critical peak pricing is the application of different prices for specific hours of the year when the electricity system is stressed and/or hourly energy market prices are high. For the OSPP, critical peaks were to occur only for 3 or 4 hours during the On-Peak period, and only on declared critical peak days. Critical peak days were declared based on temperature and Humidex thresholds. Participants were notified by telephone, or text messages one day before the event. The maximum number of critical peak days planned for the pilot was nine. During the pilot, seven critical peak events were declared due to moderate weather: two in August, two in September and three in January. A critical peak price of 30 per kwh was set based on the average of the 93 highest hourly Ontario electricity prices in the previous year. For critical peak price (CPP) participants, the RPP Off-Peak price was reduced to 3.1 /kwh to offset the increase in the critical peak price. In contrast to CPP, participants on the critical peak rebate plan were provided a refund of 30 for every kwh reduction below their baseline usage during the critical peak hours. The baseline was calculated as the average usage for the same hours of the five previous non-event, non-holiday weekdays, multiplied by 125% as a weather adjustment. All prices are related to the commodity portion of a customer s electricity bill; delivery, debt retirement, and other charges were not changed as a result of the pilot. Customer Participation Candidate participants were randomly selected from the population that would have smart meters installed in Hydro Ottawa s territory by August 1, In a marked difference from other residential TOU pilot projects, the OSPP was oversubscribed after only one recruitment solicitation and within about one week. While a 10% enrolment rate was expected, in fact, out of 1,800 recruitment letters sent (600 for each targeted price group) to customers with smart meters, 459 people Final Report 2 July 2007

9 Ontario Energy Board Smart Price Pilot responded by submitting an enrolment form before enrolment was closed, a 25.5% response rate. The result was 373 participants in the pilot, 125 in a CPR price group, and 124 each in TOU-only and CPP groups. The control group is a sample of 125 customers selected randomly from the population of Hydro Ottawa residential customers who had smart meters installed prior to the August 1, 2006 start of the pilot but continued to pay regular tiered (non- TOU) prices. All treatment and control participants are RPP consumers (i.e., not on a retailer contract). Pilot Operation Upon enrolment, participants were provided with a table of the TOU prices, periods, and seasons for the participant s price plan on a refrigerator magnet, and a PowerWise electricity conservation brochure. As an incentive to enrol, participants received a thank you payment of $75.00 at the end of the pilot, adjusted as described below. To accommodate the needs of the pilot, participants continued to receive and pay their normal bi-monthly electricity bill from Hydro Ottawa. Separately, pilot participants received monthly Electricity Usage Statements that showed their electricity supply charges on their respective pilot price plan. The statements were mailed to participants monthly, and all usage was on a calendar month basis. At the end of the pilot, participants received a final settlement statement comparing their electricity charges on the pilot prices with what their charges would have been on the two-tiered RPP prices. With a final settlement in March 2007, at the end of the pilot, participants received a cheque in an amount equal to the base $75 incentive adjusted by the amount of their savings or losses on TOU pricing. Thus, participants faced actual economic gains or losses based on their response, or lack thereof, to TOU prices. Demand Response Results The analysis of demand response or peak shifting as a result of the pilot prices was performed by Professor Frank Wolak of the Economics Department of Stanford University. The analysis was performed to assess the following: Final Report 3 July 2007

10 Ontario Energy Board Smart Price Pilot Demand response via load shifting away from critical peak hours to either Mid- Peak or Off-Peak hours on critical peak days Demand response via load shifting away from On-Peak hours to either Mid-Peak or Off-Peak hours on all non-holiday weekdays These effects are determined by comparing the electricity consumption behaviour of customers receiving the experimental prices (TOU, CPP, and CPR) and the behaviour of customers remaining on their existing two-tier RPP prices. These customer groups are the treatment and control groups respectively. Critical Peak Days The table below shows the amount of load shifting on individual critical peak days for all three price groups combined for the entire On-Peak period. A statistically significant shift in load away from peak periods was measured during On-Peak periods on two critical peak days called in August. No statistically significant shift was detected during the critical peak days declared in September or January, except for a counterintuitive result for January 17. Critical Peak Day (Entire Peak Period) Summertime Load Shifting Actual Max Temp ( C) Actual Max Humidex Friday, August % Tuesday, August % Thursday, September 7 n/s 22.4 n/a Friday, September 8 n/s Wintertime Load Shifting Actual Min Temp ( C) During Peak Period Tuesday, January 16 n/s Wednesday, January % Friday, January 26 n/s Statistically significant load shifting was detected for the first two summertime and the second wintertime critical peak events though the winter result is counterintuitive. Seven critical peak events (against a target of nine) were called during the pilot using forecast temperature thresholds of 28 C in summer (or a Humidex above 30 C) and -14 C in winter. Results are statistically significant at the 90% level, unless denoted by n/s. Results that are not statistically significant at the 90% level are denoted by n/s ; however, many of the load shift results are statistically significant at the 95% and even 99% confidence level. As detailed in the table on the following page, the resulting load shifting during critical peak hours across all four summertime critical peak days ranged from 5.7% for TOUonly participants to 25.4% CPP participants. Percentage load shifting during the Final Report 4 July 2007

11 Ontario Energy Board Smart Price Pilot entire summertime peak period (11am to 5pm) during the same critical peak days was less, ranging from 2.4% to 11.9%. Summertime Period TOU only CPP CPR Critical peak hours (3 or 4 5.7%(n/s) % 17.5% hours during the peak) Entire On-Peak period (6 hours) 2.4%(n/s) % 8.5% Percentage shift in load during the four summertime critical peak days of the pilot. All Days Load shifting away from the On-Peak period for all days in the pilot, not just critical peak days, was also analyzed. These results showed no applicable statistically significant load shifting from On-Peak periods as a result of the TOU price structure alone. Conservation Effects The analysis compared the usage of the treatment and control groups before the pilot, then after going on the pilot. These results show a 6.0% average conservation effect across all customers. All of the results are statistically significant. Price Group Percent reduction in total electricity use TOU 6.0% 3 CPP 4.7%(n/s) 3 CPR 7.4% 3 Average 6.0% 3 Conservation Effect (total usage reduction) for the full pilot period Customer Bill Impacts Total Load Shift Impacts The impacts on bills were determined by calculating each individual participant s bills during the pilot under the TOU prices versus the two-tiered RPP prices. Thus, any 2 The percentage reductions for the TOU-only customers are not statistically significant at a 90% confidence level and can therefore not be as readily generalized to a large population. They do represent actual reductions recorded for that group. Had there been more critical peak days, it is likely these results would be statistically significant. 3 - This result is not statistically significant at the 90% confidence level but is included here because it is significant at a confidence level of 88%, or just less than 90%. This small difference does not apply to the other n/s results in this report. Final Report 5 July 2007

12 Ontario Energy Board Smart Price Pilot bill savings is entirely a result of load shifting. Conservation effects which lower a participant s usage compared to what it would have been without TOU prices are not considered in these results. 4 Over the course of the entire pilot period, on average, participants shifted load and paid 3.0% lower bills on the TOU pilot prices than they would have on regular tiered RPP price. Savings were spread across participants with three quarters of participants paying less on the TOU prices. Since only seven critical peak days were declared against a target of nine, CPP participants realized savings that were somewhat overstated. Conversely, CPR participants realized lower rebates during the pilot for the same reason. Total TOU Bill Savings over the Total Pilot Period $ $ $ $80.00 $60.00 $40.00 $20.00 Paid less on TOU $0.00 Paid more on TOU 0% 25% 50% 75% 100% -$ $ $60.00 Distribution of participant bills savings on TOU prices for the total pilot period as a result of load shifting alone (i.e. not conservation). Each dot represents an individual participant s net loss or savings. Those above the line paid less on TOU prices. Monthly Load Shift Impacts Monthly comparisons between TOU and the two-tiered RPP threshold prices are problematic. The RPP threshold prices are designed from a year-long perspective, taking into consideration expected higher usage in summer and winter months, and 4 - While it was the TOU price plans that triggered the conservation effect, the reduction in consumption would be reflected in charges on both two-tier prices and TOU prices. Final Report 6 July 2007

13 Ontario Energy Board Smart Price Pilot lower usage in spring and fall months. The RPP seasonal tier threshold changes from 600 kwh to 1,000 kwh per month in November. Under this price structure, consumers who use more than the threshold level of usage pay a higher average price in the summer than the winter. Over the full pilot, such threshold effects are offset when looking at the total bill impacts. Monthly comparisons are provided in this report to understand the implications for participant s making individual bill comparisons. Results by individual month were generally consistent with the total. August was the only month that the average savings across all three price groups was below zero. It was in August that the most participants experienced a significant increase, with one participant experiencing monthly increases as high as $ Savings of up to $35.55 in an individual month were experienced by some participants. These cost increases or savings were extreme. Of the approximately 2625 statements issued, 5% had TOU savings greater than $8.84. Similarly, only 5% had costs greater than $3.46. Savings from Conservation Impacts Savings when the conservation effect is considered would be greater. Assuming a 6.0% conservation effect alone, and based on the average price of 5.9 /kwh, the savings would range from a few cents for the lowest volume user to over $6 per month for the largest user. Average monthly use for pilot participants was 727 kwh after conserving 6%, ranging from 683 kwh for the TOU-only group to 774 kwh for the CPR group. Thus the conservation effect at the average price of 5.9 /kwh resulted in savings averaging $2.73 per month. With this conservation effect added to the load shifting impacts, the average monthly TOU bill savings from both load shifting and conservation effects was $4.17. With conservation considered, 93% of customers would pay less on RPP TOU prices over the course of the pilot, than they would have on RPP threshold prices (compared to 75% without conservation being considered). Participant Feedback Participant feedback was gained from two primary methods: Three focus groups with 44 participants were conducted in Ottawa during the second week of October; one group each for CPP, CPR, and TOU participants. A survey of the program participants was conducted. A total of 298 surveys were returned by the survey cut-off date of December 14, 2006, for an overall response rate of 79%. The margin of error (at 95% confidence) for the overall results is ± 5.7% for the 298 surveys received. Final Report 7 July 2007

14 Ontario Energy Board Smart Price Pilot Overall satisfaction The majority (78%) of survey respondents would recommend the time-of-use pricing plan to their friends, while only 6% would definitely not. These results are consistent regardless of which pricing plan the participants were enrolled in for the pilot. Respondents most frequently cited more awareness of how to reduce their bill, giving greater control over their electricity costs and environmental benefits as the top three reasons behind the satisfaction. Those not sure or who would not recommend the program cited insufficient potential savings and too much effort as the reasons why. Pricing preferences Regardless of the pricing plan in which they were enrolled, the majority of participants (74%) preferred TOU-only pricing out of the four options. While interest in the CPP and CPR plans was only moderate, less than 20% prefer the existing two-tier threshold pricing used by Hydro Ottawa before the pilot. Most would not want to go back to two-tier pricing. Expected Bill Impact The impact on individual bills seemed to be less than many focus group participants had hoped. Few of the focus group participants felt they had realized large savings on their electricity bills. In fact, many focus group participants expressed disappointment that their efforts did not result in greater savings. These bill comparisons by participants are complicated by many factors: Comparisons of pilot Electricity Usage Statements calculated for each calendar month against bi-monthly bills from Hydro Ottawa calculated from various billing dates Comparisons of electricity commodity changes alone against a Hydro Ottawa bill that includes distribution and other charges (As described above in 5.3.3) comparisons between pricing structures that are designed to be revenue neutral for an entire year, but have different effects on individual months Finally, comparisons that do not consider the bill reductions resulting from the average conservation effect realized by participants on TOU prices. Information Provision Participants in the focus groups and survey respondents particularly valued the monthly usage statement and refrigerator magnet as the most useful resources to help understand the TOU prices, overshadowing the fact sheet, brochure, or any other pilot communications materials. Final Report 8 July 2007

15 Ontario Energy Board Smart Price Pilot There was a consensus among focus group participants that bi-monthly billing frequency was not adequate within the context of smart meters and TOU pricing. Nearly 70% of survey responses did indicate that they anticipate accessing an online statement at least monthly. Pricing Structure Feedback The consensus feedback among focus group participants was that the TOU pricing structure was easy to understand and did not need to change: When asked if they would prefer only two TOU periods (off- and on-peak, without mid-peak), none of the focus group participants said they desired a change to a two-period TOU structure from the current three-period TOU structure For the most part (71%), survey respondents felt that the difference in price points was large enough to encourage them to shift their electricity consumption. Final Report 9 July 2007

16 Ontario Energy Board Smart Price Pilot 1 Introduction 1.1 Background This report summarizes the design, operation and outcomes of the Ontario Energy Board Smart Price Pilot (OSPP) undertaken by the Ontario Energy Board (the Board) from August 1, 2006 to February 28, The OSPP tested the reactions and impacts on consumer behaviour of three different price structures: Time-of-use (TOU) prices TOU prices with a critical peak price TOU prices with a critical peak rebate The pilot was initiated in mid June of 2006 and recruited participants were placed on the TOU prices starting on August 1, Originally the pilot was intended to end on December 31, 2006, but the Board subsequently decided to extend the pilot period until February 28, 2007 to capture the coldest winter months. Outcomes are measured through the quantitative analysis of demand response, total electricity conservation, and participant survey responses. Qualitative feedback was garnered from focus groups and tracking of participant support calls. The Government of Ontario has committed to install a smart electricity meter in 800,000 homes and small businesses by 2007, and throughout Ontario by The continued installation of smart meters will ultimately enable the application of TOU pricing, as set by the Board, to all electricity consumers on the Regulated Price Plan (RPP), i.e., those consumers not on a retailer contract. Virtually all RPP consumers in Ontario currently pay two-tiered threshold (non-tou) prices. Since the RPP was introduced in April 2005, Ontario distributors were permitted to make TOU pricing mandatory for their customers with smart meters. Milton Hydro is the only Ontario utility that has opted to implement RPP TOU pricing on a relatively large scale for its customers with smart meters. Milton Hydro first implemented TOU pricing in October 2005 and currently has about 5,000 RPP TOU customers. The plan is to have over 15,000 customers on RPP TOU pricing by the end of the year. Chatham-Kent Hydro is already implementing TOU pricing on a small scale. On March 23, 2007, the first TOU bills were issued to 215 customers for the January 2, 2007 to March 6, 2007 read dates. Implementation of TOU pricing on a mandatory, Province-wide basis for consumers with smart meters has been deferred pending the further deployment of smart meters. The installation of smart meters and their enrolment into the provincial meter Final Report 10 July 2007

17 Ontario Energy Board Smart Price Pilot data management and repository (the MDM/R ) is being done on a phased basis. The MDM/R is currently under development by the Independent Electricity System Operator (IESO) and will be eventually operated by the Smart Metering Entity (SME). The complete services to be provided or offered by the SME through the MDM/R have yet to be determined. Regulations currently contemplate that the SME will perform the following meter data functions: Verification, validation and editing of meter data received from distributors Processing and aggregation of meter data into price periods that is ready for billing purposes Storing and maintaining of meter and associated data Deferral of mandatory TOU pricing has provided the Board with an opportunity to initiate the OSPP to test different time-sensitive price structures for RPP consumers. The Board also hopes to gain further insights into how consumers respond to TOU prices, prior to their large-scale introduction in Ontario. As part of the initial development of the RPP, the Board s RPP Proposal of December 2004 made a commitment to investigate the feasibility of implementing a critical peak pricing component to supplement the TOU RPP prices. This commitment specifically identified pilot projects as part of the investigation. 1.2 Pilot Objectives The Ontario Energy Board Smart Price Pilot is intended to assess: The extent to which various time-sensitive pricing structures cause a shift of electricity consumption to Off-Peak periods as measured by the reduction in peak demand The extent to which each price structure causes a change in total monthly electricity consumption The understandability of and acceptability by residential consumers of each pricing structure and the communications associated with each The results in this report are intended to inform the Board with respect to future decisions associated with CPP and CPR as well as whether refinements are needed to the current RPP TOU pricing construct and associated consumer communications. Final Report 11 July 2007

18 Ontario Energy Board Smart Price Pilot 1.3 Other Ontario TOU Pricing Pilots In parallel with initiating this pilot, the Board also issued Standard Supply Service Code (the SSS Code ) amendments that permit other Ontario distributors to implement similar TOU pricing pilots where they are complementary to the OSPP. As of June 2007, the Board had approved pilot programs of four distributors under section of the SSS Code Newmarket Hydro Newmarket Hydro is operating a pilot project involving smart thermostats in conjunction with RPP TOU pricing and Critical Peak Rebates (CPR). In October 2006, 253 participants began to receive TOU bills. The pilot is scheduled to run until the end of October Notification for CPR events will be a mix of day of or day before a CPR period. The same critical peak price of 30 /kwh is being used. Newmarket Hydro will automatically control the air conditioners of some participants using programmable thermostats during summertime critical periods. No CPR or thermostat control events have been conducted as yet (other than a technical test in November). The participants are included in six treatment groups based on combinations of being placed on CPR prices, exposed to enhanced education, and provided with a programmable thermostat Oakville Hydro Oakville Hydro s TOU pricing pilot project involves sub-metered residential condominiums. This project will allow the Board to assess the impact on consumption of sub-metering a bulk metered condominium alone and then the incremental impact of applying RPP TOU prices. As of December 2006, 370 participants in three condominiums had been recruited Veridian Connections Veridian Connections is operating a TOU pricing pilot project involving medium-sized business consumers. In total, 55 customer accounts with peak demand greater than 200 kw are taking part in the pilot. In aggregate, these customers represent peak demand of approximately 20 MW and annual consumption of 140 GWh. The pilot started in March 2007 and will run through to September It will allow for a direct comparison of the price elasticity of general service consumers with that of residential consumers in the other OEB-approved pilots. The results of the Veridian pilot could also be extrapolated to similar consumers of other distributors and will help inform the communication efforts of the Board, the IESO, and other electricity distributors to those designated consumers who are expected to be ineligible for RPP prices after April 1, Final Report 12 July 2007

19 Ontario Energy Board Smart Price Pilot Hydro One Hydro One s TOU pricing pilot project involves about 500 residential, farm and small business consumers and real-time in-home display monitors (as well as smart thermostats). This pilot is currently in the recruitment phase and implementation is planned over the summer of About half of the pilot participants will not receive the in-home display monitors which will allow for a comparison between customers with and without such monitors. Participants will be asked to fill out two questionnaires during the pilot (one at the beginning and the other at the end of the pilot) to gather further information about appliance and equipment usage as well as actions taken to change the consumption patterns during the pilot project. This is intended to help better understand the reasons for potential changes in the hourly electricity consumption patterns Peterborough Distribution Inc In addition to the above pilots approved under section of the SSS Code, Peterborough Distribution Inc. (PDI) has been conducting a pilot program on TOU prices since 2005 in conjunction with two of its conservation and demand management (CDM) programs. PDI has been billing TOU prices to about 200 customers for over two years. (This pilot was approved by the Board as part of PDI s CDM plan prior to the Board s issuance of SSS Code amendments requiring approval of pilot projects involving RPP TOU pricing.) Thermal Storage Heating for Social Housing PDI provided financial, technical and administrative expertise to convert 124 electrically heated social housing units from baseboard electric heating to electric thermal storage heaters. The storage heaters use electricity in Off-Peak periods and store that heat in specially designed ceramic bricks for use during On-Peak periods. As such, consumption during On-Peak periods is at Off-Peak prices. Based on calculations using the methodology in the Board s TRC guide for annual CDM filings, the consumption shifted from On-Peak to Off-Peak is calculated to be 4 million KWh over the 18 year life of the 124 units. The estimated savings to the City of Peterborough's Housing Corp. is $47,500 per year. Residential Appliance Controllers A radio signal control system is used to control residential appliances (A/C, hot water tanks, pool pumps, clothes washers, dryers, dishwashers). The controller causes a shift in discretionary use of electricity to Off-Peak times. This CDM program, currently controlling 314 appliances for 200 residential customers, is estimated to be reducing summer peak by 155 kw and winter peak by a further 645kW. Energy savings are estimated at over $896,000 over the 12 year life of the 200 controllers. Final Report 13 July 2007

20 Ontario Energy Board Smart Price Pilot With the availability of smart metering and TOU prices, customers are volunteering to participate in this CDM initiative Summary Together, these pilot projects cover the spectrum in terms of consumer groups currently eligible for RPP (residential in homes and condominiums, farms, small businesses and medium-size businesses). In addition, the first three pilots involve consumers in urban areas, while the consumers in Hydro One s pilot are in rural areas. The initial distributor proposals, the Board Decision on each and (as they become available) final outcomes for these pilots are available on the OEB s website, on the same web page dedicated to the OSPP project, at Final Report 14 July 2007

21 Ontario Energy Board Smart Price Pilot 2 Price Design Three different commodity price structures were tested during the pilot: The existing RPP TOU prices The existing RPP TOU prices with a critical peak price The existing RPP TOU prices with a critical peak rebate Participant usage on these three price plans was compared with the usage of customers in a fourth control group who also have smart meters but remained on the two-tiered RPP prices. The three price structures are designed to be as revenue neutral as possible relative to each other. This is defined such that a participant whose electrical usage is distributed across the hours in the same way as the provincial average for all RPP consumers will pay approximately the same bill on all three options in the absence of any change in usage. This revenue neutral approach is the same design used in the California Statewide Pricing Pilot and the PowerCentsDC pilot in Washington D.C. By controlling for total bill amounts prior to demand response to the prices, the revenue neutral design allows for a more accurate comparison of the demand response effects associated with the three price designs tested. All RPP TOU prices were adjusted during this pilot for all three groups to reflect changes to the RPP prices applied across the province on November 1, This change in RPP prices was relatively minor. As such, the critical peak price and rebate amount remained the same throughout the pilot. This change is important to continue a valid comparison against the prices charged to the control group. All prices on the pilot are related solely to the commodity portion of a customer s electricity bill; delivery, debt retirement, and other charges were not changed as a result of the pilot. All three price structures tested in the pilot are described in more detail below. 2.1 Tiered Prices for Control Group The conventional meter RPP has prices in two tiers, one price for monthly consumption under a tier threshold and a higher price for consumption over the threshold. The thresholds for residential consumers vary by season: 600 kwh per month during the summer season (May 1 to October 31) 1000 kwh per month during the winter season (November 1 to April 30). Final Report 15 July 2007

22 Ontario Energy Board Smart Price Pilot The two-tiered RPP prices in effect during the pilot period and applied to all control group customers are provided in Exhibit 1. Summer (Aug 1 Oct 31) Price/ kwh Winter (Nov 1 Feb 28) Price/ kwh First 600 kwh per month 5.8 First 1,000 kwh per month 5.5 Remaining kwh 6.7 Remaining kwh 6.4 Exhibit 1: Tiered RPP prices applicable to all RPP consumers in Ontario and paid by control group customers. The rationale for tiered pricing was to provide a price signal to consumers to conserve until such time as smart meters are installed and TOU pricing can be applied across the province. The tier thresholds are set such that there is roughly a 50/50 split of forecast consumption at the lower tier price and at the higher tier price, resulting in tiered prices that are distributed symmetrically around the average RPP supply cost. 5 The two-tiered RPP prices and the RPP TOU prices are established based on the same average RPP supply cost (or average RPP price) as shown in Exhibit 2 for the most recent RPP prices as of May 1, The breakdown by TOU period (i.e., % of consumption) is based on the load profile used for all RPP consumers. Tiered RPP Prices Tier 1 Tier 2 Average Price Price % of Consumption 53% 47% Time-of-Use RPP Prices Off-Peak Mid-Peak On-Peak Average Price Price % of Consumption 48% 29% 23% Exhibit 2: Tiered and TOU RPP prices are both based on the same average RPP supply cost. 5 - See Ontario Energy Board, Regulated Price Plan Price Report May 1, 2006 to April 30, 2007, April 12, 2006, for details. It is available at Final Report 16 July 2007

23 Ontario Energy Board Smart Price Pilot 2.2 RPP Time-of-Use (TOU) Prices The existing RPP TOU prices and hours alone (without any critical peak adjustments) were used for one of the treatment groups in the pilot. These prices reflect the changes to the RPP prices that came into effect November 1, Time Off-Peak Summer Hours (Aug 1 - Oct 31) 10 pm - 7 am weekdays; all day on weekends and holidays Mid-Peak 7 am - 11 am and 5 pm - 10 pm weekdays Price/ Winter Hours kwh (Nov 1 - Feb 28) pm - 7 am weekdays; all day on weekends and holidays am - 5 pm and 8 pm - 10 pm weekdays On-Peak 11 am - 5 pm weekdays am - 11 am and 5 pm - 8pm weekdays Exhibit 3: RPP TOU prices are unchanged from the Board set prices Price/ kwh Critical Peak Pricing As with RPP TOU prices, the Critical Peak Price was designed to be as revenue neutral as possible. The critical peak price was determined to be the average price of the highest 93 hours between June 2005 and June 2006, based on the hourly Ontario electricity prices (the HOEP). The applicable RPP TOU prices and hours were used for all non-critical hours during the pilot; however, the Off-Peak price was reduced to 3.1 /kwh to offset the increase in the Critical Peak Price of 30 /kwh. The resulting prices are shown in Exhibit 4. Time Off-Peak Mid-Peak Summer Hours (Aug 1 - Oct 31) 10 pm - 7 am weekdays; all day on weekends and holidays 7 am - 11 am and 5 pm-10 pm weekdays Price/ Winter Hours kwh (Nov 1 - Feb 28) pm - 7 am weekdays; all day on weekends and holidays am - 5 pm and 8 pm-10 pm weekdays On-Peak 11 am - 5 pm weekdays am - 11 am and 5 pm- 8pm weekdays CPP 3 to 4 hours during On- Peak, invoked up to 9 times during the pilot to 4 hours during On- Peak, invoked up to 9 times during the pilot Exhibit 4: Critical Peak Prices. The Off-Peak price is reduced under Critical Peak Prices Price/ kwh The CPP represents about a three-fold increase over the On-Peak price. The reason for the different percentage amounts (in terms of the reduction in the Off-Peak price versus the increase from the On-Peak price to the Critical Peak Price) is that critical Final Report 17 July 2007

24 Ontario Energy Board Smart Price Pilot peak prices are in effect during the few hours when critical events are declared, while Off-Peak prices are in effect for over 4,700 hours (or over half of all hours). Critical peak pricing only occurs for 3 or 4 hours during the On-Peak period, on critical peak days only. The maximum number of critical peak days planned for the pilot was nine. 2.4 Critical Peak Rebate The OSPP also tests the impacts of a Critical Peak Rebate (CPR) pricing structure. In contrast to the CPP, the CPR provides a refund to participants for reductions below their baseline usage during the critical peak hours. 6 To strive for revenue neutrality, the rebate amount was set to be the same as the Critical Peak Price during critical peak hours. Also, since the incentive during the critical peak hours is a rebate, there is no adjustment in the Off-Peak price. A participant making no change in response to the critical peak events will pay the same bill on TOU plus CPR as they would if they were a participant on TOU-only prices. The existing RPP TOU prices and hours were used during the pilot. As for CPP above, Critical Peak rebates were in effect only when critical events were declared, a maximum of nine events were planned during the pilot and only for three or four hours during On-Peak hours Baseline Determination For a participant to receive a rebate, their consumption had to be below a baseline. This means that the higher the baseline, the easier it is for a participant to earn a rebate (i.e. use an amount of electricity less than the baseline amount).the baseline methodology was developed by reviewing other baseline methodologies used for other residential CPR programs, as well as baselines used for large commercial consumer curtailable programs. Baseline methods considered were the following: PJM Interconnections: Usage for the same hours in the three highest of the ten previous non-event, non-holiday weekdays New York Independent System Operator: Five highest of the ten previous nonevent, non-holiday weekdays Anaheim Public Utilities: Three highest non-event, non-holiday weekdays in the first half of summer PowerCentsDC pilot in Washington D.C.: Three highest non-event, non-holiday weekdays in the previous month 6 - See Appendix A, Analysis of Critical Peak Rebate Program Concept. Final Report 18 July 2007

25 Ontario Energy Board Smart Price Pilot San Diego Gas & Electric (SDG&E): Average of previous five non-event, nonholiday weekdays The SDG&E approach is the most recently developed and was based on a detailed analysis of residential consumer data. Its advantage is its computational simplicity. However, because critical days are, by definition, the most extreme, SDG&E s baseline approach understates what the consumer would have otherwise used on critical days. 7 This artificially low baseline means that a customer would have to reduce peak consumption on critical days just to reach the baseline level then further reduce consumption to earn a rebate (and certainly resulting in consumer frustration). The team analyzed data for 2005 from a similar Anaheim TOU pilot and determined that, on average, usage of control group consumers during critical peak periods was 23% higher than their average usage during the same hours of the five previous nonevent, non-holiday weekdays. In other words, this data showed that the starting point for determining a load reduction should be 23% above the five-day average, giving the customer a greater (and appropriate) opportunity to earn a rebate. Based on this analysis, a rounded-off adjustment factor of 25% was used for the OSPP. The OSPP baseline approach gains the benefits of the San Diego method while using the adjustment factor to remove the inherent customer penalty. The result is a baseline that is calculated as the average usage for the same hours of the five previous non-event, non-holiday weekdays, multiplied by 125%. The difference between the consumer s consumption during the Critical Event and the baseline would be subject to the CPR, creating a rebate of 30 /kwh times the amount by which the participant s usage was reduced. (See Exhibit 5 for an illustration.) 7 - For a detailed discussion of baseline issues see Xenergy, Protocol Development for Demand Response Calculation, Prepared for California Energy Commission, August 1, Final Report 19 July 2007

26 Ontario Energy Board Smart Price Pilot Critical Peak Rebate Calculation Weekdays Critical Peak Day Actual Usage During Peak Period Weekends Average of last 5 non-event weekdays Increase by 25% Rebate base F S S M T W T F S S M Exhibit 5: A participant s CPR baseline is determined as the average of usage during the same hours over the participant s last five, non-event weekdays, increased by 25%. The rebate is calculated as the kwh difference between the participant s CPR baseline and their actual usage on the day (the rebate base) multiplied by 30. The resulting prices are provided in Exhibit 6. Time Off peak Mid peak Summer Hours (Aug 1 - Oct 31) 10 pm-7 am weekdays; all day weekends and holidays 7 am-11 am and 5 pm-10 pm weekdays Price/ kwh Winter Hours (Nov 1 - Feb 28) pm-7 am weekdays; all day weekends and holidays am-5 pm and 8 pm-10 pm weekdays On-peak 11 am-5 pm weekdays am-11 am and 5 pm-8pm weekdays CPR 3 to 4 hours during On- Peak, invoked up to 9 times during the pilot to 4 hours during On- Peak, invoked up to 9 times during the pilot Exhibit 6: Critical Peak Rebate prices, where the RPP TOU prices are unchanged Price/ kwh Critical Peak Trigger The team considered two approaches for triggering critical peak events. The first was to dispatch in parallel with the Independent Electricity System Operator s (IESO) voluntary Emergency Load Reduction Program, for which only large wholesale market consumers are eligible. For this program, the IESO forecasts day-ahead supply and demand and calls an event when forecast supply margins are very low. However, because this is designed to be an emergency program, it is intended to be triggered relatively infrequently (i.e., only a handful days per year are expected). Final Report 20 July 2007

27 Ontario Energy Board Smart Price Pilot While this may be appropriate for the long term (perhaps if and when CPP is implemented province-wide), the short pilot schedule made it necessary to consider a weather trigger to increase the likelihood that a sufficient number of events would be called during the pilot period to provide the necessary data for analysis. A weather trigger is commonly used in critical peak programs. The trigger is calculated based on historical data to determine how many times a particular temperature was exceeded (on the high side in summer, low side in winter). The team reviewed historical data for the past five years and selected temperatures which would have provided an appropriate number of critical peak events in at least four of the past five years. See Appendix B for details of the analysis. A conservative approach was taken in selecting the trigger temperatures because, if the threshold is exceeded too many times, events need not be called (whereas if not enough events occur, insufficient data will be available for analysis). The trigger temperatures selected were 28 C in summer and -14 C in winter. In addition, events would be called when the Humidex exceeds 30 C during On-Peak times of the day, regardless of the temperature. Final Report 21 July 2007

28 Ontario Energy Board Smart Price Pilot 3 Participant Population 3.1 Participating Distributor To conduct the pilot, the Board needed a Ontario electricity distributor to provide candidate customers, interval meter data, and ongoing communications support. Among a variety of candidates, Hydro Ottawa was selected as the participating distributor for the following reasons: Hydro Ottawa had a sufficient number of smart meters installed and operating, which thus provided a suitable population from which to recruit participants prior to the start of the pilot in August Hydro Ottawa is expected to be a key contributor in the initial implementation of smart meters in Ontario, with plans to install some 130,000 meters by the end of This meant that the results would be directly applicable to a large number of consumers in the same area expected to soon be on time-sensitive prices. Two characteristics of Hydro Ottawa meant that results could potentially be appropriately generalized to RPP-eligible consumers of other Ontario distributors, particularly those installing smart meters in 2007 (mostly in the Greater Toronto Area or GTA): The candidate customers are in a variety of neighbourhoods with a range of monthly electricity consumption, major appliance holdings, housing types, housing ages, and family incomes. The Ottawa area climate was conducive to the pilot objectives: summertime temperature highs are nearly identical to those in the GTA and wintertime lows are lower. This is important, because research indicates that the greatest response to time-based pricing occurs at extreme temperatures. 8 These responses are greater in both absolute and relative terms. Moderate weather also occurs in Ottawa. The pilot is designed to measure demand response on an hourly basis, taking advantage of the hourly data available from the smart meters. The hourly analysis allows for estimating the demand response (and extrapolation to other locations) on moderate days and extreme days. To the extent one area, such as the GTA, has more of the extreme days, this can be accounted for in the extrapolation through weighting the results by the number of extreme days versus moderate days. 8 See for instance, Charles River Associates, Impact Evaluation of the California Statewide Pricing Pilot, Final Report, February 11, Final Report 22 July 2007

29 Ontario Energy Board Smart Price Pilot Hydro Ottawa management committed support to the pilot, funding necessary internal operations and the thank you payments provided to participating customers. 3.2 Customer Participation Candidate participants were randomly selected from the population that would have smart meters installed in Hydro Ottawa s territory by August 1, The experimental design was a classic side-by-side comparison of control group versus treatment groups. Participants were recruited for the three treatment options: Time-of-use (TOU) only TOU plus Critical Peak Pricing (CPP) TOU plus Critical Peak Rebate (CPR) Participants were segregated by price structure. The participants were recruited independently and had no knowledge of the price structures offered to other customers. Participants were recruited using a stratified random sample to ensure that a sufficient number of participants were in each of the low, medium, and high monthly consumption groups. Recruitment was undertaken via direct mail, using a letter co-branded by Hydro Ottawa and the OEB. (Subsequent pilot communications were branded as OEB communications.) The initial letter notified customers that they have been selected as a participant. However, customers were not included in the pilot unless they returned the confirmation form included in the recruitment mailing. One reason confirmation was needed was to provide the correct telephone number or address for critical peak event notifications Control Group The control group was a sample of 125 customers selected randomly from the population of Hydro Ottawa residential customers who had smart meters installed prior to the August 1, 2006 start of the pilot but continued to pay tiered (non-tou) prices. All treatment and control participants were RPP consumers (i.e., not on a retailer contract). 3.3 Recruitment Results In a marked difference from other residential TOU pilot projects, the OSPP was oversubscribed after only one recruitment solicitation and within about one week. While a 10% enrolment rate was expected, in fact, out of 1,800 recruitment letters sent (600 for each targeted price group), 459 people responded by submitting an enrolment form, a 25.5% response rate. Another 50 customers contacted the customer support Final Report 23 July 2007

30 Ontario Energy Board Smart Price Pilot staff by and telephone, in most cases after the enrolment deadline. If all 50 of these additional customers had been enrolled, the total response rate would have been 28.3%. A contingency recruitment mailing, common in other pilot projects, was not necessary in this case. The table below shows the OSPP results compared to some other pilots. Note that consumers in the California Pilot were contacted by phone as well as mail, whereas the OSPP recruitment was limited to a single mailing. Program Year Enrolment Rate OSPP (1 mailing) % California Statewide Pricing Pilot 9 (2 mailings and 3 phone calls) % Idaho Power Time-of-Day and Energy Watch (1 mailing) % Exhibit 7: A participant response rate of at least 25% on the first mailing is significantly greater than past pilots with which we are familiar. Potential reasons for the high recruitment response rate are discussed in the discussion of focus group results, presented in Section 6.1. Originally, 75 participants were targeted for each treatment group. However, given the response, the Board and Hydro Ottawa decided to increase funding and expand the project to 125 participants in each price group. Of the customers who had hoped to enrol in the pilot, 84 were declined participation. One customer was added to the TOU group as a concession to their persistence, making the total number of TOU participants 126. However, upon initial pilot operation meter data was not available for three customers due to technical issues. The precise number of participants resulting in the three pricing groups is in Exhibit 8. Number of Price Treatment Group Participants TOU 124 CPP 125 CPR 124 Total 373 Exhibit 8: Number of pilot participants by price treatment 3.4 Participant Characteristics Participants were asked to complete an appliance survey upon registration. More detailed appliance usage and household characteristics data were gathered in a 9 The California Recruitment included two mailings and three phone calls per customer. Final Report 24 July 2007

31 Ontario Energy Board Smart Price Pilot subsequent survey of the pilot participants (with a 79% response rate) in November. The relevant results of the surveys are provided in the tables below, compared against the average for Hydro Ottawa and all of Ontario. Except where noted, all Ottawa and Ontario data are based on the 2001 Census. All comparisons with pilot participants are therefore affected by the 5-year difference in the data. Specific adjustments made to compensate for this difference are noted Heating and Cooling Characteristics The results in Exhibit 9 show that the cooling characteristics of participants in the pilot project are very consistent with the Hydro Ottawa population, and to a lesser extent with the Ontario population at large. The space heating characteristics of the pilot participants are quite close to the provincial figures in terms of natural gas versus electric heating, as well as the percentage with electric water heating. Also, while air conditioning penetration rates appear greater among pilot participants compared to 2003 data for Ontario as a whole, the Office of Energy Efficiency of Natural Resources Canada estimates that central air conditioning penetration is increasing in Ontario at 4.1% per annum, which would mean a 2006 penetration rate of approximately 65%. 10 Space Cooling TOU CPP CPR Total Pilot % Ottawa % 11 Ontario % 12 Central Air Conditioning % 76.5% 57.6% Window Air Conditioning % 8.9% Ductless A/C / Wall Mounted % n/a 16.1% No Air Conditioner % 12.6% 26.3% No response % n/a n/a Space Heating TOU CPP CPR Total Pilot % Ottawa % Ontario % Gas Space Heating % 86.7% 82.6% Electric Space Heating % 3.4% 7.3% Other % 9.9% 10.1% None % 0.0% 0.0% No response % n/a n/a 10 Source: Modelling and Scenario Documentation, Prepared by M.K. Jaccard and Associates for the OPA. 11 Source: Hydro Ottawa customer survey which was designed to be within +/- 3% accurate 95% of the time. 12 Source: Office of Energy Efficiency, Natural Resources Canada 2003 Survey of Household Energy Use. Final Report 25 July 2007

32 Ontario Energy Board Smart Price Pilot Water Heating TOU CPP CPR Total Pilot % Ottawa % Ontario % Gas or Oil Water Heating % 82.7% 85% Electric Water Heating % 16.2% 15% 13 No response % n/a n/a Exhibit 9: Based on a survey upon enrolment, the cooling methods of pilot participants is very consistent with the Hydro Ottawa population, and to a lesser extent with the Ontario population at large. The heating methods are quite consistent Housing Characteristics Comparisons of housing type across data sources are problematic. The Ontario average is based on the Statistics Canada surveys sampled from all Ontario households. In contrast the population of electric utility consumers in Ontario will not include apartments and other units not individually metered by the distributor. Regarding housing age, 72% of the homes in the pilot were built after While Ottawa and provincial data are from the 2001 Census, it is clear that this is not representative of the provincial housing stock. However, at the start of the pilot, Ottawa did offer one of the most diverse populations available of housing ages with smart meters installed in Ontario. Ottawa Ontario Housing Type TOU CPP CPR Total Pilot % % 14 % 14 Single-family home % 54.4% 69.4% Apartment or % 15.7% 30.6% Condominium (Under 5 storeys) Townhouse % 22.6% Duplex % 7.3% No response % n/a n/a Ottawa Ontario Housing Age TOU % CPP % CPR % Total % % % Before to to to After n/a n/a Exhibit 10: Housing type and housing age comparisons between pilot participants and the Ottawa and provincial populations. 13 Source: Electricity Demand in Ontario A Retrospective Analysis, ICF Consulting, Revised November 2005 (prepared for the Chief Conservation Officer, OPA). 14 Source: Statistics Canada Community Profiles Does not including Apartment in a building that has five or more storeys Final Report 26 July 2007

33 Ontario Energy Board Smart Price Pilot Socioeconomic Status The survey data helps further profile pilot participants against the Ottawa and provincial populations (see Exhibit 11). Pilot participants are generally more educated and have a higher household income than the general population of Ottawa. There is less of a difference in income compared to the province, as Ottawa has a higher percentage of lower income households than the province. Household income is based on income for private households in the 2001 census. It has been adjusted for inflation. Education TOU % CPP % CPR % Total % Ottawa % 15 Ontario % Some High School High School Graduate and/ or Some Postsecondary University or College Graduate Control Group Household Income TOU % CPP % CPR % Total % Ottawa % Ontario % Less than $50, $50,000 to $100, More than $100, Exhibit 11: Comparisons of education and income levels between the pilot participants and the Ottawa and Ontario averages. To create the control group, 125 customers were selected in a stratified random sample from approximately 4,500 customers with smart meters. The 4,500 customerpool included three groups: Approximately 3,200 customers who had not been solicited to participate An estimated 900 customers who had been solicited but did not read the solicitation (i.e. were unaware of it 16 ) An estimated 400 customers who had been solicited and decided not to volunteer for the pilot. 15 Data for both Ottawa (the Ontario part of Ottawa/Hull CMA) and Ontario in this table are based the 2001 census from Statistics Canada. 16 In the California Statewide Pricing Pilot, the participating utilities reported that only 31% of customers were aware of the opportunity to participate in the pilot, in spite of receiving three mailings and three attempted phone calls. The estimate above uses the 31% figure. This is likely quite conservative, as there was only one mailing in the OSPP. Final Report 27 July 2007

34 Ontario Energy Board Smart Price Pilot Thus, less than 10% of the control group were customers who consciously decided not to participate, and the control group behaviour serves as a relatively good proxy for electricity consumption behaviour of the Hydro Ottawa residential population as a whole. Final Report 28 July 2007

35 Ontario Energy Board Smart Price Pilot 4 Pilot Operation This section describes the operational details of the pilot, including participant communication approaches, billing approach, critical peak notifications and participant support. 4.1 Participant Recruitment Materials The recruitment packages consisted of the following: Cover Letter: Provides a brief introduction to the pilot, describes key features, and informs eligible participants how to confirm participation. Fact Sheet: Provides an explanation of all the key features of the pilot, shows the specific TOU prices, provides a sample of the monthly electricity usage statement to be received by participants (see Exhibit 12), and provides a sample of the final settlement that will be provided to participants. Confirmation Form: When signed, this form confirms the customer s participation and provides needed authorization for pilot data handling and analysis. There are three versions of the Letter and Fact Sheet; one per price design group. All materials are provided in both English and French. Sample recruitment materials are included in Appendix C. 4.2 Customer Education Initial participant education, beyond the material in the recruitment package, focused on a package mailed to each eligible participant following receipt of their enrolment form. This confirmation mailing included the following: Cover Letter: Confirms that the participant is enrolled. Refrigerator magnet: Provides a table of the prices, times, and seasons for the participant s price plan. The magnet to be sent is an adaptation of a design that was preferred by customers in focus groups conducted for a different pilot program by Hydro Ottawa. (See Exhibit 13.) Electricity conservation brochure: This PowerWise brochure provides a variety of conservation tips for electricity consumers that may be used during peak times or anytime. A sample of the complete Confirmation Package materials is provided in Appendix D. Final Report 29 July 2007

36 Ontario Energy Board Smart Price Pilot Exhibit 12: Sample of Electricity Usage Statements provided monthly to all participants; the statements differed slightly to reflect the differences between TOU, CPP, and CPR prices. Final Report 30 July 2007

37 Ontario Energy Board Smart Price Pilot Exhibit 13: A sample of the fridge magnet provided to all participants 4.3 Incentive Approach 4.4 Billing As an incentive to enrol, participants received a thank you payment of $75.00 (adjusted, as described in Section 4.4 below) at the end of the pilot. Specifically, $50 was provided as an incentive for remaining on the pilot for the full period and $25 was provided for completing the pilot survey. Such an incentive is consistent with incentive payments of $75 to $100 made in similar pilots. Numerous researchers have concluded that the incentive does not present an issue when analyzing the effect of prices on pilot participants. The reason is that the incentive payment is a fixed externality; participants receive credit for the $75 simply by participating. Any savings or losses on their time-based pilot prices do not change the fact that they will receive the incentive payment, beyond reducing or increasing it. To accommodate the needs of the pilot, participants continued to receive and pay their normal bi-monthly electricity bill from Hydro Ottawa. This bill was issued by Hydro Ottawa every other month at a different time during the month for any given customer. Final Report 31 July 2007

38 Ontario Energy Board Smart Price Pilot 4.5 Critical Peaks Separately, pilot participants received monthly Electricity Usage Statements that showed their electricity supply charges on their respective pilot price plan. These statements emphasized the amount of electricity consumed (in each pricing period) and the TOU price of electricity (in each period by day). The statements were mailed to participants monthly, and all usage was on a calendar month basis. Participants did not remit the dollar amounts shown on the electricity usage statements. Instead, at the end of the pilot, participants received a final settlement comparing their electricity charges on the pilot prices with what their charges would have been on the two-tiered RPP prices. With a final settlement in March 2007, following the end of the pilot, participants received a cheque in an amount equal to the base incentive adjusted by the amount of their savings or losses on TOU pricing. Thus, participants faced actual economic gains or losses based on their response, or lack thereof, to TOU prices. Given the above, only the incentive payment amount is affected. As such, the pilot has been designed to have no impact on utilities financial systems or the RPP variance account held by the Ontario Power Authority Critical Peak Notification At the time of enrolment, participants indicated their preference for receiving automated notification of critical peak events by phone, , or text messages (on cell phones). Notifications were delivered on the day before a critical peak event, usually in the afternoon, no later than 5:00 pm. Some participants asked for two modes of notification. This proved to be helpful when one mode of contact failed. A few participants did not provide any phone or e- mail contact information. Phone numbers were obtained from Hydro Ottawa for all but one of these participants, and those were put on the call list for notification. We were unable to obtain contact information beyond a mailing address for one participant in the CPR group. This person did not receive any critical peak notifications during the pilot, and was excluded from analysis of the results. Critical peak notification success rates were typically between 95% and 98% over the pilot period. If an automated phone message was picked up by the receiver, whether it was an answering machine or a live person, the message was considered to be delivered. If an was not bounced back or otherwise marked as undeliverable, it was considered successfully delivered. Focus group feedback indicated that participants were generally satisfied with the mode of day-ahead or phone notification they had chosen. Some had to work Final Report 32 July 2007

39 Ontario Energy Board Smart Price Pilot out their filtering process for unwanted phone calls, but this was not a significant barrier to participating in the critical peak test group Summertime Critical Peak Events During the summer period of the pilot, four critical peak events were called based on day-ahead forecasts that exceeded the thresholds. Actual temperatures on the event days are provided below. Critical Peak Day Time Period Actual Max Temp ( C) Actual Max Humidex Time of High Temp Mean Daily Temp ( C) Friday, August 18 1:00-5:00 pm :00 pm 23.5 Tuesday, August 29 2:00-5:00 pm :00 pm 20.8 Thursday, September 7 2:00-5:00 pm 22.4 n/a 4:00 pm 15.7 Friday, September 8 2:00-5:00 pm :00 pm 19.9 Exhibit 14: Actual temperature and Humidex characteristics of declared summertime critical peak events against a temperature trigger of 28 C and a Humidex of 30 C during On-Peak times Since the summer was moderate compared to previous summers (the previous five years were analyzed to establish the critical peak dispatch threshold), the events represented situations just slightly over the threshold values, or in some cases the actual temperature was below the day-ahead forecast and the threshold. This is significant because other pilots have found that less load shifting occurs on moderate days in comparison to extreme temperature days Wintertime Critical Peak Events Three critical peak events were called in winter based on a day-ahead forecast of below -14 C during On-Peak hours. Critical Peak Day Time Period Actual Min Temp ( C) Actual Min Temp ( C) During Peak Period Mean Daily Temp ( C) Tuesday, January 16 5:00 8:00 pm Wednesday, January 17 5:00-8:00 pm Friday, January 26 7:00 11:00 am Exhibit 15: Actual temperature characteristics of declared wintertime critical peak events against a temperature trigger of -14 C During the pilot, seven critical peak events were declared (a total of 23 hours) compared to a maximum of nine events. Final Report 33 July 2007

40 Ontario Energy Board Smart Price Pilot 4.6 Participant Support The implementation team provided both telephone and support for participants. The phone support is staffed from 11:00 am 8:00 pm Ottawa time. Support was available in both English and French. Only about a dozen participants used the support feature of the project to resolve issues related to their participation. These participants had questions regarding metering, critical peak times, and minor changes to their billing information. Where appropriate, inquiries were forwarded to a contact at Hydro Ottawa to be addressed. The OSPP telephone support line received approximately 235 calls and voice messages. About 150 of the calls were directly related to the OSPP, with most of these were inquiries during the recruitment phase of the project. Around 60 calls were mistaken faxes or wrong numbers, since another organization has mistakenly listed this number as their toll-free number. The remaining 25 calls were not related to the pilot project; they were questions about the participants regular Hydro Ottawa service or they were calls from non-participants who wanted to know about smart metering in general. Phone support logs indicate that callers were knowledgeable about and involved in the management of their electricity usage. In about a dozen of the roughly 30 calls which were specifically about the pilot project, logged in the month immediately after the enrolment period, callers articulated to the phone support staff that they were using their participation in the pilot project and their access to smart meter data as a way to gain more control over their relationship with the utility. Final Report 34 July 2007

41 Ontario Energy Board Smart Price Pilot 5 Demand Response and Conservation Impacts Impacts on pilot participants were modelled and measured from three perspectives: Demand response impacts, or the amount of load shifting away from critical peak or On-Peak hours Conservation effects, or the reduction in total electricity consumption, regardless of when (or which TOU period) the electricity is used Bill impacts, comparing what participants paid on the TOU prices versus what they would have paid on the two-tiered RPP prices 5.1 Demand Response Impacts The analysis of demand response or peak shifting as a result of the pilot prices was performed by Professor Frank Wolak of the Economics Department of Stanford University. The analysis was performed to assess the following: Demand response via load shifting away from critical peak hours to either Mid- Peak or Off-Peak hours only on critical peak days Demand response via load shifting away from On-Peak hours to either Mid-Peak or Off-Peak hours on all non-holiday weekdays These effects are determined by comparing the electricity consumption behaviour of customers receiving the experimental prices (TOU, CPP, and CPR) and the behaviour of customers remaining on their existing two-tier RPP prices. These customer groups are the treatment and control groups respectively Analytical Model To analyze the load reductions during peak and critical peak times, a nonparametric conditional mean estimation framework was used. The framework used customerlevel fixed effects and day-of-sample fixed effects. The fixed effects approach uses a separate intercept term for each customer to control for effects that are unique to that customer and relatively constant over the time period being examined. The unique effects of the stable, but unmeasured characteristics of each customer are their fixed effects from which this method takes its name. These fixed effects are held constant. The fixed effects nature of the model means the model does not need to include unchanging customer characteristics such as house size, appliances, etc. Final Report 35 July 2007

42 Ontario Energy Board Smart Price Pilot Controlling for fixed effects controls the amount of variance (noise) the model is faced with, since each customer has a different base load, a different response to weather, and a different pattern of consumption that changes over time. This approach also provides for a much closer fit to the data than most models, as individual responsiveness is incorporated. This approach has worked well in estimating the impacts of mass-market programs such as the California Statewide Pricing Pilot, the Idaho Power critical peak pricing pilot, and the Sacramento Municipal Utilities District air conditioning direct load control program. More details on the model and the full results can be found in Appendix E Critical Peak Shifting Results Exhibit 16 shows the amount of load shifting on individual critical peak days during the summer for all three price groups combined. These results are for the Entire On- Peak Period. Results that are not statistically significant at the 90% level are denoted by n/s ; however, many of the load shift results are statistically significant at the 95% and even 99% confidence level. 17 A statistically significant shift in load away from peak periods was measured during On-Peak periods on two critical peak days called in August. Critical Peak Day (Entire Peak Period) Summer Actual Max Temp ( C) Actual Max Humidex Friday, August % Tuesday, August % Thursday, September 7 n/s 22.4 n/a Friday, September 8 n/s Actual Min Temp ( C) Winter During Peak Period Tuesday, January 16 n/s Wednesday, January % Friday, January 26 n/s Exhibit 16: Shifts in consumption for each of the seven days by all price groups when a critical peak was declared. n/s denotes that the results where not statistically significant. The only statistically significant load shifting evident by members of the three price groups during the five critical peak days in September or January was an increase in 17 - The statistical precision of each specific result may be determined using the standard error, which is included in Appendix E for each of the results. Final Report 36 July 2007

43 Ontario Energy Board Smart Price Pilot load on January 17. This may be a statistical anomaly or the greater difficulty of shifting load during the winter identified during the focus groups. Given the lower number of data points, results for individual price groups, for individual events are not statistically significant. Exhibit 17 provides the estimated percentage shift in load across the seven days (four in summer, three in winter) when a critical peak event was called, broken down by season and by participant price group. Critical peak period refers to the fraction of the entire On-Peak period of the day that the critical peak period covers (only three or four hours of the six- or seven-hour On-Peak period on each critical peak day were critical peak hours). TOU only CPP CPR Period Summer Critical Peak hours (3 or 5.7%(n/s) 25.4% 17.5% 4 hours during the Peak) Entire On-Peak period 2.4%(n/s) 11.9% 8.5% Mid-Peak n/s n/s n/s Off-Peak n/s n/s n/s Winter Critical Peak periods n/s n/s n/s Entire On-Peak period n/s n/s n/s Mid-Peak n/s n/s n/s Off-Peak n/s n/s n/s Total Entire On-Peak period n/s 8.1% 5.2% Mid-Peak n/s n/s n/s Off-Peak n/s n/s n/s Exhibit 17: Shifts in consumption during the seven days (four in summer, three in winter) when a critical peak was declared. n/s denotes that the results were not statistically significant. Statistically significant results were obtained for CPP and CPR price groups during critical peak and On-Peak periods on the summer critical peak days. The most dramatic was a 27.7% shift in load during the event of August 18. Final Report 37 July 2007

44 Ontario Energy Board Smart Price Pilot The percentage reductions shown for the TOU only customers in Exhibit 16 are the actual reductions recorded for that group; had there been more critical peak days, it is likely these results would be statistically significant. 18 Other outcomes include: The average demand reduction across both critical peak groups (25.4% and 17.5% for CPP and CPR respectively) during critical peak hours was 21.5%. TOU-only participants did not demonstrate a statistically significant shift in load on critical peak event days. Unlike CPP and CPR participants, these participants were not notified of the event the day before. Participants demonstrated a much better ability to shift load in the summer relative to winter. No statistically significant load shifting was evident by members of any of the three price groups during the Mid-Peak periods of critical peak days Time-of-Use Peak Shifting Results On days when a critical peak event was not declared, all participants were effectively on the TOU-only price structure. Exhibit 18 shows the results. The only statistically significant load shifting detected on these days was a counterintuitive increase in the on-peak usage of the CPP group. Shifting from Price Group On-Peak TOU Customers n/s CPP Customers -10.8% CPR Customers n/s Exhibit 18: Load shifting on all weekdays, except holidays, during the full pilot period. The result for the CPP customers is counterintuitive. 5.2 Conservation Effect While a main purpose of time-of-use and critical peak pricing is to reduce peak demand, these programs also typically result in a small reduction in total electricity consumption as well. There are three reasons a small reduction often occurs, even though it is not the primary objective in relation to TOU pricing The results for the TOU-only participants are relatively consistent with the results of the California Statewide Pricing Pilot which were 5.5% (inner summer) and 2.3% (outer summer) when only On-peak and Off-peak prices applied. Final Report 38 July 2007

45 Ontario Energy Board Smart Price Pilot Higher peak or critical peak prices induce load reductions during peak hours, not all of which is shifted to other times. Some reductions are uses that are shifted to other time periods, such as laundry. In these cases, the usage is recovered at other times. In other words, consumption or load has only been shifted. Other reductions, such as lower lighting, are not recovered, as there is no reason for it. Dynamic pricing programs cause participants to have a higher awareness of how they use electricity, which, in turn, results in lower consumption. These programs usually increase the amount of usage information, or feedback, received by the customer, also lowering consumption Analytical Model The basic methodology for assessing the conservation effect was the same as that used for load shifting. Again, a nonparametric conditional mean estimation framework was used. A key difference from the load shifting analysis is that the conservation analysis utilized billing period data from the previous year for pilot customers. The reason is that too little of the necessary data was available from smart meters, because the conservation analysis requires comparing the usage of the control and treatment groups before and after being placed on the pilot prices. Specifically, the analysis compares the usage of the two groups (technically four, since the treatment customers were on three different price plans) before the pilot, then after going on the pilot. By comparing the differences between the groups for the pre-experimental period with the experimental period, the conservation effect is revealed. For example, if the treatment group used 2% less than the control group during the same period last year, but 5% less during the pilot period, the conservation effect is calculated as 3%. Adjustments for weather and other externalities are not required as the analysis is comparing total usage of the control and treatment groups for the same period during the previous year and during the pilot period Conservation Effect Results Exhibit 19 provides an estimate of the total reduction in electricity consumption caused by a customer s being on the pricing pilot. The average is overall reduction in electricity use across price groups is 6.0%. These results show conservation was 6.0%, 4.7%, and 7.4% for TOU, CPP, and CPR customers, respectively. All of the results are statistically significant. Final Report 39 July 2007

46 Ontario Energy Board Smart Price Pilot Price Group Percent reduction in total electricity use TOU 6.0% 16 CPP 4.7%(n/s) 19 CPR 7.4% 16 Average 6.0% 16 Exhibit 19: Conservation Effect (total usage reduction) for the full pilot period Average Electricity Usage We calculated the average electricity usage of the three price groups during the pilot period. Exhibits 20 and 21 summarize the results. The higher consumption of the control group relative to the three price groups is consistent with the finding of the load impact analysis that participation in the pilot produced a conservation effect. Control Average TOU CPP CPR Total Group Average Monthly Electricity Usage (kwh) Exhibit 20: Average monthly usage by price group and control group during the pilot period. TOU-only Participants CPP Participants CPR Participants Number of participants < ,000-1,249 Average monthly usage (kwh) >1,500 Number of participants < ,000-1,249 Average monthly usage (kwh) >1,500 Number of participants < ,000-1,249 Average monthly usage (kwh) >1,500 Exhibit 21: Distribution of average monthly usage by price group during the pilot period 19 - This result is not statistically significant at the 90% confidence level but is included here because it is significant at a confidence level of 88%, or just less than 90%. Final Report 40 July 2007

47 Ontario Energy Board Smart Price Pilot 5.3 Customer Bill Impacts Quantifying Load Shift Bill Impacts This element of the evaluation compares what consumers on the pilot price plans paid for their electricity commodity charge relative to what they would have paid had they remained on the two-tiered RPP prices. For the pilot, the three price structures were designed to be as revenue neutral as possible relative to each other and the tiered RPP prices. Revenue neutral was defined such that a participant whose electricity usage is distributed across the hours in the same way as the provincial average for all RPP consumers would pay approximately the same bill on all three options (and the tiered RPP prices) in the absence of any change in usage. Given the above, any change in the timing of electricity use caused a change in the bill. The change in the bill was calculated by determining the bill amount each month for each participant for two pricing plans: TOU prices (TOU, CPP, or CPR) and twotiered RPP prices. Both the RPP TOU and two-tiered RPP bill amounts were calculated using the hourly electricity usage information collected via the smart meters. Thus, for this portion of the bill impact analysis, it was assumed that the TOU prices had zero effect on total electricity use. Based on the above, the analysis below addresses five key questions: How many participants saved money on TOU prices, and how many paid more compared to the existing two-tiered RPP prices? What was the average savings? What were the extremes, the greatest individual participant savings and the greatest individual loss? What were the differences by price group? What were the monthly variations; particularly how extreme could the difference for one month be for an individual participant? Entire Pilot Period Load Shift Bill Impacts Exhibit 22 and Exhibit 23 summarize the total impacts on bills from load shift across the entire seven months of the pilot August 1, 2006 through February 28, The pilot prices were designed with the intent to be revenue neutral for CPP participants. The summertime Off-Peak price was reduced from 3.5 to 3.1 /kwh to compensate for the higher CPP price, based on an assumption of nine critical peak events. However, due to the moderate weather, only seven critical peak events could Final Report 41 July 2007

48 Ontario Energy Board Smart Price Pilot be called. If this was known upfront, it suggests the Off-Peak price should have been reduced by only 0.3 /kwh. As a result, the savings for the CPP participants are somewhat overstated. Total TOU Bill Savings over the Total Pilot Period $ $ $ $80.00 $60.00 $40.00 $20.00 Paid less on TOU $0.00 Paid more on TOU 0% 25% 50% 75% 100% -$ $ $60.00 Exhibit 22: Distribution of participant bills savings on TOU prices for the total pilot period. Each dot represents an individual participant s net loss or savings. Those above the line paid less on TOU prices. Total Pilot Period Difference (Tiered-TOU) TOU only CPP CPR All Average +$5.46 +$ $ $10.13 Minimum -$ $ $ $41.37 Maximum +$ $ $ $ Average 1.8% 4.2% 2.9% 3.0% Minimum -12.3% -7.6% -9.1% -12.3% Maximum +13.9% +13.8% +10.7% +13.9% % of Participants Saving on TOU 64% 83% 77% 75% Exhibit 23: Distribution of participant bills savings on TOU prices for total pilot period. In the table, a + sign equals a savings or a lower bill on TOU/CPP/CPR. Key observations include: Participants, on average, paid lower bills on the TOU pilot prices than they would have on tiered RPP price, with 75% of participants paying less on the TOU prices. The average total savings was $10.13, or $1.44 on average per month. Final Report 42 July 2007

49 Ontario Energy Board Smart Price Pilot The greatest individual savings was $136.64, (although this was an extreme individual result, the 95 th percentile was $46.90, or an average of $6.70 per month). The greatest individual cost was $41.37 (similarly, the 5 th percentile was much less extreme at $11.30, or an average of $1.61 per month). As expected given their lower average usage (see Exhibit 20), TOU-only participants had the lowest average savings. Lower consumption results in a lower average price on the two-tier prices which in turn results in lower savings relative to charges on the TOU price plans. This effect is greater than any difference in load shifting behaviours between the groups. Monthly TOU Cost $350 $300 $250 $200 $150 $100 Paid more on TOU 10% cost Paid less on TOU 10% saving $50 $0 $0 $50 $100 $150 $200 $250 $300 $350 Monthly Threshold RPP cost Exhibit 24: Distribution of total monthly statement amounts on one of the TOU prices vs. two-tiered RPP threshold prices Individual Month Impacts from Load Shifting Monthly comparisons between TOU and the two-tiered RPP threshold prices are problematic. The RPP threshold prices are designed from a year-long perspective, taking into consideration expected higher usage in summer and winter months, and lower usage in spring and fall months. The RPP seasonal tier threshold changes from 600 kwh to 1,000 kwh per month in November. Under this price structure, consumers who use more than the threshold level of usage pay a higher average price in the summer than the winter. Over the full pilot, such threshold effects are offset when looking at the total bill impacts. Final Report 43 July 2007

50 Ontario Energy Board Smart Price Pilot Monthly comparisons are provided in this report to understand the implications for participant s making individual bill comparisons. Exhibit 25 and Exhibit 26 summarize the same information, but by individual month. Results by individual month were generally consistent with the total. Key observations include: As expected, savings were generally greater in the shoulder months ; September through to a mild December. More than 80% of customers paid less than the threshold RPP prices during these months, and no one paid an increase of more than $7.00 in a month during these four months. Savings of up to $35.55 in an individual month were experienced by participants. These savings were extreme. The 95 th percentile over all months was $8.84, meaning only 130 of the approximately 2,625 statements issued had savings greater than $8.84. Not unexpectedly, August was the only month that the average savings across all three price groups was below zero. August was the month when a participant experienced the largest increase for an individual monthly bill compared to the tiered RPP price ($12.81 for a TOU-only participant). The highest individual increase in any other month was $8.28 in February, whereas in August, 14 customers costs increased that much. Results in January, when three critical peak events were declared, are also as to be expected. Participants paying CPP prices paid the most (average of -$1.29), TOU participants were nearly neutral (+$0.58), and CPR participants saved the most (+$1.63). The average savings for all three price groups was greater than zero for every month, except three instances: TOU and CPP customers paid more on average in August (with two critical peak events) CPP customers paid more on average in January (with three critical peak events) Final Report 44 July 2007

51 Ontario Energy Board Smart Price Pilot $40.00 Monthly TOU Bill Savings Summertime $35.00 August $30.00 September $25.00 October $20.00 $15.00 $10.00 $5.00 Paid less on TOU $0.00 Paid more on TOU 0% 25% 50% 75% 100% -$5.00 -$ $15.00 $40.00 Monthly TOU Bill Savings Wintertime $35.00 November $30.00 December January $25.00 February $20.00 $15.00 $10.00 $5.00 Paid less on TOU $0.00 Paid more on TOU 0% 25% 50% 75% 100% -$5.00 -$ $15.00 Exhibit 25: TOU savings on participant bills during individual months. Each dot represents an individual participant s net loss or savings. Those above the line pay less on TOU prices. Final Report 45 July 2007

52 Ontario Energy Board Smart Price Pilot Month TOU Savings TOU only CPP CPR All August Average -$1.71 -$1.49 $0.42 -$0.94 Minimum -$ $ $7.84 -$12.81 Maximum $4.01 $4.60 $10.52 $10.52 % of Participants on TOU 40% 34% 54% 43% September Average $1.26 $2.45 $2.63 $2.11 Minimum -$4.95 -$2.96 -$4.76 -$4.95 Maximum $12.91 $15.81 $23.90 $23.90 % of Participants on TOU 76% 93% 81% 83% October Average $1.85 $6.61 $2.36 $3.62 Minimum -$5.31 -$0.81 -$6.06 -$6.06 Maximum $17.77 $26.58 $20.81 $26.58 % of Participants on TOU 78% 100% 82% 86% November Average $0.39 $1.24 $0.61 $0.75 Minimum -$4.36 -$6.89 -$3.73 -$6.89 Maximum $9.46 $10.03 $13.11 $13.11 % of Participants on TOU 60% 78% 55% 64% December Average $3.01 $4.28 $4.03 $3.77 Minimum -$3.08 -$1.76 -$1.68 -$3.08 Maximum $18.48 $16.32 $34.29 $34.29 % of Participants on TOU 95% 96% 92% 94% January Average $0.60 -$1.29 $1.64 $0.32 Minimum -$4.86 -$8.15 -$5.74 -$8.15 Maximum $12.41 $7.14 $33.35 $33.35 % of Participants on TOU 55% 22% 70% 50% February Average $0.08 $1.07 $0.61 $0.59 Minimum -$8.28 -$5.63 -$7.48 -$8.28 Maximum $15.46 $22.22 $35.55 $35.55 % of Participants 38% 52% 33% 41% All Months Average $0.79 $1.85 $1.76 $1.44 Minimum -$ $ $7.84 -$12.81 Maximum $18.48 $26.58 $35.55 $35.55 Exhibit 26: TOU savings on participant bills during individual months. A + sign equals a lower bill on TOU/CPP/CPR Bill Impacts from Conservation The above analysis on bill impacts considers only the load shifting aspects of TOU prices; conservation effects are not included. In other words, it mimics the results of what a shadow bill program would portray to consumers, where consumers would Final Report 46 July 2007

53 Ontario Energy Board Smart Price Pilot receive two statements one based on threshold prices, the other based on TOU prices for the same amount of consumption. As described in Section 5.2, however, TOU prices have a conservation effect that lowers the overall consumption. Here, we are limited to applying averages. Assuming a 6.0% conservation effect alone, and based on the average RPP price of about 6.3 /kwh during the summer months and the lower-tier RPP price of 5.5 /kwh for the winter months, the savings would range from a few cents for the lowest volume user to over $6 per month for the largest user. Average monthly use for pilot participants was 727 kwh after conserving 6%. Thus the conservation effect at an average price of about 5.9 /kwh resulted in savings averaging $2.73 per month. 20 Therefore, on average, participants experienced a monthly savings from both load shifting and conservation on the TOU prices as compared to the two-tiered threshold prices is $4.17. TOU Bill Savings Source Savings Load Shifting $1.44 Conservation $2.73 Total Average Monthly Bill Savings During the Pilot Period $4.17 Exhibit 27: The average monthly TOU bill savings from both load shifting and conservation effects was $4.17. With this conservation effect considered, 93% of customers would pay less on RPP TOU prices over the course of the pilot, than they would have on RPP threshold prices (compared to 75% without conservation being considered) The average RPP price was not used for the winter months because the usage of participants in the pilot was below the winter threshold of 1000 kwh. As a result, the lower RPP tiered price was used to provide a more accurate estimate of the savings due to conservation. Final Report 47 July 2007

54 Ontario Energy Board Smart Price Pilot 6 Participant Feedback 6.1 Approach Two formal means of gathering participant feedback were used: focus groups with representatives from each pricing group and a survey targeted at all participants Focus Groups Three focus groups were conducted in Ottawa during the second week of October; one group each for CPP, CPR, and TOU participants. There were 44 participants involved. The focus groups were scheduled so that participants would have had sufficient experience with the program to speak knowledgeably, yet there would be enough time to make minor changes in the pilot if warranted by the feedback. The focus groups provided the OEB with participant feedback on the following items: Why participants chose to participate in the pilot How did participants feel about various elements of the recruitment process How did participants like the monthly electricity usage statements and what did participants value the most (i.e., if one item could be included in their regular bill) Where relevant, participant responses to the information on the critical peak events What actions they took and their understanding of the rationale for TOU pricing More detail on the focus groups is provided in Appendix F Participant Survey As part of this study, IBM s National Survey Centre conducted a survey of the program participants. A dual methodology was implemented for the survey: Invitations to participate in an online survey were sent to all participants on November 22, 2006 who had provided an address as part of the study. The mail survey was distributed by regular mail on November 23, 2006 to all participants who did not provide addresses as part of the study. The mail surveys also contained unique links to the online survey to encourage participants to complete it online. A total of 298 surveys were returned by the survey cut-off date of December 14, 2006, for an overall response rate of 79%. The margin of error (at 95% confidence) for the overall results is ± 5.7% for the 298 surveys received. The margin of error for the different sub-groups presented throughout the report varies depending on the sample size (See Exhibit 28). Final Report 48 July 2007

55 Ontario Energy Board Smart Price Pilot Price Group Responses Margin of Error TOU only 94 ±10.2% CPP 103 ± 9.7% CPR 101 ± 9.8% Total 298 ± 5.7% Exhibit 28: Margin of error by pricing group As a reference, ± 10% margin of error indicates a difference of at least 20 percentage points is needed to prove a statistically conclusive result. The complete survey results are provided in Appendix G. 6.2 Rationale for Participating The top reasons given by focus group participants in all three treatment groups for participating in the pilot were: They knew TOU pricing was coming in the near future and wanted to be prepared by seeing how they would fare economically under the TOU price plan They liked the idea of being able to monitor their own electricity usage with the tools provided by the project They perceived that the design of the TOU pricing and the feedback on their usage would give them more control over their electricity bill Only a handful of focus group participants indicated that receiving a $75 incentive payment was one of the top three motivations to enrol in the project. 6.3 Communications Feedback Letters and Fact Sheets The focus group results indicated that the initial participant education (e.g. recruitment letter, fact sheets, enrolment confirmations, magnets, and electricity conservation brochures) were clear and understandable. In some cases, participants who scrutinized the educational materials overcame initial scepticism towards the project and came to understand that TOU prices were beneficial to consumers and not a money grab Refrigerator Magnet The discussion in the focus groups regarding the magnet underscored two things: The importance of presenting TOU prices and periods in a clear and concise format, because virtually all participants found the prices understandable because of the magnet Final Report 49 July 2007

56 Ontario Energy Board Smart Price Pilot The importance of producing this information in a durable and reproducible form, such as a magnet, because consumers refer to the information frequently and in multiple places as they are adjusting to the TOU prices. Participants used the refrigerator magnet frequently and provided the most feedback on this educational tool. They reported that it was easy to explain the TOU prices or the pilot project s intent to their friends and neighbours, and to understand it themselves, by referring to the magnet. They also manage their own electricity usage in response to the prices by referring to the magnet at various times and in various places. They often duplicated the information on the magnet to post in their kitchens, laundry rooms, and near their thermostats, where they would be making decisions about running major appliances such as dishwashers, laundry machines, and air conditioners. The survey results reinforced the importance of the magnet and on the format used. Participants prefer (61%) the tabular format for displaying the different time periods and associated time-of-use prices over a more graphical approach. All participants were provided with a replacement fridge magnet before the price change in November. (If it continues to include actual prices, a requirement for keeping the magnet up to date should be noted before any larger distributions are undertaken.) Conservation Brochure Because most participants understood the primary purpose of this project was to encourage load shifting, the conservation brochure was not as salient an educational tool. However, many would characterize their participation in the pilot as including an awareness of conservation as well as peak load shifting, and they referred to the brochure to find out how to lower their consumption in general ways at all times, which they saw as contributing to their successful peak load reduction Statement Provision Focus group participants and survey results were generally complimentary of the frequency of the usage statements, the colors and presentation of their daily usage graphs, and that the statements seemed more personal or informative than their regular utility bill. In fact, 93% of 282 survey respondents agreed (strongly or otherwise) that the information on the statements was helpful in understanding how much electricity was used during different periods. The most important aspect of the statements to focus group participants was the daily consumption breakdown by TOU price. Participants identified this as the priority item that should be added to their normal electricity bill from their utility, in any future mandatory TOU pricing regime. Final Report 50 July 2007

57 Ontario Energy Board Smart Price Pilot The statements were provided monthly, in contrast to the bi-monthly bills Hydro Ottawa customers currently receive. There was a consensus among focus group participants that bi-monthly frequency was not adequate within the context of smart meters and TOU pricing. Online access to energy information was seen by focus group members as less important than informative monthly bills. Nearly 70% of survey responses did indicate that they anticipate accessing an online statement at least monthly. Nearly 11% indicated a desire for accessing information daily. Frequency of accessing usage statement by internet/ Responses Daily 10.6% Weekly 27.4% Monthly 31.8% Less frequently 18.8% Never 11.3% Exhibit 29: Survey responses to anticipated frequency of accessing information on electricity usage statement if available by internet or In the majority of cases across the three treatment groups, participants understood the information as presented, paying close attention to the times and amount of their electricity usage. They actively used the information to gauge their hourly consumption and made adjustments in the times of their electricity use. They were well versed enough in the format to be able to look at their daily records and attempt to explain spikes or declines in usage ( I was working from home that week or, as one phone caller said, I m going to see what happens when I fire up my kiln on a weekday ). Focus groups also indicated a strong desire to compare costs under current Twotiered RPP prices with the RPP TOU prices. They suggested that the Electricity Usage Statements be modified to include their other charges (e.g. distribution and debt recovery) so that they could see what they would really be paying under the TOU prices. They also suggested that, in order to compare the monthly statement with the regular bi-monthly bill, the statement needed to include a calculation of what they would have actually paid under the tiered prices. These and other suggestions about format were considered and incorporated where possible by the project implementation team. For instance, subsequent statements provided pilot participants with a comparison of their bills under the TOU and tiered prices. This was the change that most participants felt was most important. The other change was not felt to be as important given that all of the other (non-commodity) charges would not be materially affected or not affected at all. Final Report 51 July 2007

58 Ontario Energy Board Smart Price Pilot 6.4 Electricity Use Changes and Understanding of TOU Pricing Rationale Participant feedback, particularly the focus groups, also provided qualitative input regarding actions participants took in response to being in the pilot and having the pilot prices. Most focus group participants understood that an appropriate response to TOU prices would be to find opportunities to shift more electricity usage to the Off-Peak periods. For a typical participant, this translated into doing their laundry and dishwashing during Off-Peak times, and adjusting their thermostats in advance of critical peak events. Some participants also implemented some less common measures. For example, prior to the pilot, one participant cleaned his pool from 7-7 during the day; after the pilot started, the pool was cleaned from 7-7 during the night. Survey respondents indicated that they were more likely to significantly change how they use electricity during On-Peak and critical peak periods. They indicated that the Mid-Peak price point did not have much of an influence on their electricity usage patterns (which is consistent with the intent). The typical focus group participant would post the TOU price and schedule table (as printed on their refrigerator magnet and in the enrolment fact sheets) in their kitchen and laundry room to remind them of the best times to do laundry or run their dishwashers. Many considered these to be easy practices to implement to keep their electricity bills under control. Others were willing to change their behaviour to fit the reality of electricity costs, in the hopes that this would result in lower overall prices in the future. Most focus group participants began these practices as soon as they enrolled in the pilot. After receiving their first few Electricity Usage Statements and seeing the effect of their usage behaviour on their costs, many participants continued their load shifting practices with little adjustment, although a few later realized that they wanted to compare how they fared on TOU prices with and without shifting their usage, and considered trying a month without shifting to develop their own baseline for consumption. Some found it difficult to fit load-shifting behaviour in their lifestyles. For example, some families with small children attested to the difficulty of curtailing their laundry activity during Mid-Peak and On-Peak periods. However, it is encouraging to note that even those families that were unable to change their load shape felt they were not penalized under the existing TOU prices. No one felt as if the TOU prices were Final Report 52 July 2007

59 Ontario Energy Board Smart Price Pilot the money grab and gouging that many had feared and/or perceived going into the pilot. Not all participants understood the policy rationale behind managing peak demand, but a few expressed the perception that, regardless of whether the peak demand was attributable to industry or the residential sector, if every consumer did their part to reduce peak load, eventually the system would be more reliable and they could keep electricity prices down as a result. A number of participants also discussed the need to avoid brown-outs and/or black-outs Critical Peak Groups In response to a critical peak notification, customers might reset their thermostats by a few degrees, as suggested by the PowerWise marketing materials provided to the participants, or plan on dining out or cooking on an outdoor grill during a critical peak event. Those participants with timers on their dishwashers and programmable thermostats would experiment with setting their appliances to consume less power during peak times. Some noted that they first used their timers after the pilot started. The rule of thumb used was that for a critical peak event, only the essential nonnegotiable appliances (such as refrigerators) would continue to run. However, for the most part, focus group respondents felt that they had already pared back their electricity consumption to the minimum in response to the On-Peak price, and that there was no more shifting they could accomplish in response to CPP or CPR during a critical peak period Expected Bill Impact The impact on individual bills seemed to be less than many focus group participants had hoped. Very few of the focus group participants realized what they would consider large savings on their electricity bills, and in fact many focus group participants expressed disappointment that their efforts did not result in greater savings. Some considered that it was not worth the extra effort to do laundry late at night or on weekends for such small bill savings, while some stated that their primary motivation was electricity conservation and that the small savings were not a concern. These bill comparisons by participants are complicated by many factors: Comparisons of pilot Electricity Usage Statements calculated for each calendar month against bi-monthly bills from Hydro Ottawa calculated from various billing dates Comparisons of electricity commodity changes alone against a Hydro Ottawa bill that includes distribution and other charges Final Report 53 July 2007

60 Ontario Energy Board Smart Price Pilot Comparisons between pricing structures that are designed to be revenue neutral for an entire year, but have different effects on individual months (As described above in the description of monthly bill impacts) Finally, comparisons that do not consider the bill reductions resulting from the average conservation effect realized by participants on TOU prices. 6.5 General Program Satisfaction Main Benefits of the Program Based on survey results, being more aware of how to reduce their bill and knowing when electricity is being used are clearly the top benefits of the time-of-use pricing plan. Being more conscious of peak usage is also a main benefit according to pilot participants. Total CPP CPR TOU More aware of how to reduce bill 100.0% 100.0% 100.0% 100.0% More aware of when electricity is used 90.6% 94.7% 93.2% 84.2% More conscious of peak usage 85.6% 87.2% 82.5% 87.1% Gives greater control over costs 67.1% 59.6% 75.7% 65.3% More aware of total consumption 56.4% 58.5% 49.5% 61.4% Benefits the environment 52.3% 50.0% 53.4% 53.5% Other benefits 1.3% 2.1% 1.0% 1.0% No benefits 0.7% 1.1% 1.0% Total 100.0% (n=298) 31.5% (n=94) 34.6% (n=103) 33.9% (n=101) Exhibit 30: Responses to "What is the MAIN benefit the time-of-use pricing plan offers to its customers?" Note that column percentages may add to more than 100% due to multiple responses Program Satisfaction The majority (78%) of survey respondents would recommend the time-of-use pricing plan to their friends, while only 6% would definitely not. Respondents most frequently cited more awareness of how to reduce their bill, giving greater control over their electricity costs and environmental benefits as the top three reasons behind recommending time-of-use pricing. (See Exhibit 31 for further reasons why and why not.) These results are consistent regardless of which pricing plan the participants were enrolled in for the pilot. Final Report 54 July 2007

61 Ontario Energy Board Smart Price Pilot Why Not? Requires too much effort to reduce consumption (n=7) Potential savings are not great enough (n=6) No 6% Yes 78% Not Sure 16% Why? More aware of how to reduce bill (n=53) Gives greater control over costs (n=45) Benefits the environment (n=32) More conscious of peak usage (n=24) More aware of when electricity is used (n=15) Increases awareness (n=12) Reduces consumption (n=9) More beneficial (n=6) Prepares consumers for future implementation of smart meters (n=6) Increases consumers responsibility (n=2) (n=298) Why Not Sure? Requires too much effort to reduce consumption (n=10) Unsure if the time-of-use pricing plan is actually beneficial (n=8) Potential savings are not great enough (n=5) Information provided is either too complicated or insufficient (n=4) Plan is only beneficial if you have a flexible schedule (n=3) Exhibit 31: Would you recommend the time-of-use pricing plan to your friends if the pilot project was expanded? Why or why not? 6.6 Pricing Structures Preferences and Understanding Pricing Structure Preferences Based on survey responses, the majority of participants (74%) preferred TOU-only pricing out of the four options. This was consistent regardless of which pricing plan in which they were enrolled. While interest in the CPP and CPR plans was only moderate, less than 20% prefer the existing two-tier pricing used by Hydro Ottawa before the pilot. Most would not want to go back to two-tier pricing. (See Exhibit 32). Notably, participants enrolled in the TOU-only pricing plan were significantly less likely to indicate that the CPP plan was of most interest to them. Final Report 55 July 2007

62 Ontario Energy Board Smart Price Pilot Note that participants were provided with a one-sentence description of the pricing plans and most likely had no experience with any plans other than the one they were on for the pilot. TOU only 74% TOU with CPP 33% TOU with CPR 23% Regular two-tier prices 17% (n=298) Not sure / No opinion 5% 0% 20% 40% 60% 80% 100% Exhibit 32: Three-quarters of participants preferred TOU-only pricing over the other options, including the current tiered pricing. Other notable results include: Participants enrolled in the TOU-only price plan were significantly less likely to indicate that the CPP or CPR plans were of most interest to them (only 19%). 42% of CPP participants chose CPP as the most interesting to them. While 36% of CPR chose the CPR plan Pricing Structure Recall We tested the recall abilities of participants during the survey. Participants were instructed to not refer to their fridge magnets or other materials. This survey was completed after only less than four months on the new TOU prices and within one month after a change to the TOU periods from the summer to the winter periods. The following were the results: 38% of survey respondents were able to correctly identify that the price changed four times during a summer weekday. 30% of survey respondents were able to correctly identify that the price changed five times during a winter weekday. In regard to the start time of the On-Peak and Off-Peak periods: 35% of survey respondents could correctly identify 11:00 AM as the start of the summertime On-Peak period. Final Report 56 July 2007

63 Ontario Energy Board Smart Price Pilot Another 25% confused the start of the Mid-Peak with the start of the On-Peak period. They thought the On-Peak started at 7:00 AM. That is actually the start of the summertime Mid-Peak period. Other responses were spread evenly from 5:00 AM to as late as 5:00 PM Respondents were better able to recall the end of the On-Peak period: Over half of the survey respondents correctly identified 5:00 PM as the end of the summertime On-Peak period. Responses from remaining participants ranged from 10:00 PM to 7:00 PM. After being one month into the winter period when surveyed, participants were more likely to correctly identify the start and end times of the wintertime On-Peak periods than summertime: 47% correctly identified the start and end of the morning peak 40% correctly identified the start and end of the evening peak. All of these results are consistent regardless of the plan in which participants were enrolled Pricing Structure Feedback The consensus feedback among focus group participants was that TOU pricing structure was easy to understand and did not need to change: When asked if they would prefer only two TOU periods (off- and on-peak, without mid-peak), none of the focus group participants said they desired a change to a two-period structure from the current three-period structure For the most part (71%), survey respondents felt that the difference in price points was large enough to encourage them to shift their electricity consumption. While all except one focus group participant considered these TOU prices relatively easy to understand, the one participant who would not have characterized the prices as easy wanted to acknowledge an added layer of complexity in that there were seasonal changes in the schedule of on-, mid- and off-peak periods; and that winter TOU prices would be more difficult with two onpeak periods each weekday. At the same time, he did not consider this too difficult to understand. Final Report 57 July 2007

64 Ontario Energy Board Smart Price Pilot Appendix A: Analysis of Critical Peak Rebate Program Concept

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66 Introduction Critical Peak Rebate Program Analysis June 2006 As part of its AMI filing in March 2006, SDG&E proposed to implement a Peak Time Rebate (PTR) Program. It amounts to a peak power buyback program for residential consumers. Similar programs for large industrial customers in the Northwest, Northeast, Mid-Atlantic, and Southeast have proven very popular and effective for reducing peak demand. 1 During the 2001 Energy Crisis, California, Washington, and Oregon reduced electricity demand by more than six percent through politically-politically popular 20/20-type buyback programs from residential customers 2 not surprising, since residential customers are often the most responsive to price signals. 3 Due to limited metering capability only monthly consumption data was available the residential buyback programs were in effect 24 hours a day for the entire summer, and they would not be cost-effective on an ongoing basis. However, SDG&E concludes that a peak power buyback program operated during only the top 100, critical peak, hours of the year can be costeffective, even when paying residential consumers 65 cents per kwh for all electricity usage reduced below the customer s average usage for those hours. Program Concept The PTR program is a simple design and easy to explain to customers. Customers in the program remain on their standard electricity rate, which continues to have inverted tiers, thus avoiding any conflict with California s AB1x restrictions. Customers will be notified a day ahead of time of critical peak days, which will occur up to 15 days per year when reserve margins are expected to be tight. Notification will be via pubic media, such as radio announcements that Tomorrow is a Peak Power Day, along the lines of Spare the Air days now announced when heavy air pollution is foreseen. On critical peak days, a standard critical period 11 a.m. to 6 p.m. will be established. This standard period makes it easier for consumers to remember when to curtail peak load, and it makes the billing calculation simpler and cheaper to implement. During the critical period, customers reducing their load below their baseline load will be paid a fixed amount of 65 cents per kwh. This amount equals $650 per MWh, which is consistent with prices seen in the top 50 to 100 hours in competitive wholesale markets in the U.S. A customer s baseline load will be calculated as the average load for that individual customer during the same hours for the five previous non-event similar weekdays. Similar, means comparing weekdays to weekdays and weekends/holidays to weekends/holidays. While such a calculation for every residential customer would have been expensive and difficult a few years ago, new software, databases, and computing capability make it cost-effective today. 1 - Goldman, C. et al. 2 - Goldman, C. et al, California Customer Load Reductions during the Electricity Crisis: Did They Help to Keep the Lights On?, Lawrence Berkeley National Laboratory LBNL-49733, May Energy Information Administration, Issues in Midterm Analysis and Forecasting 1999, August Also, SDG&E estimates that residential customers will provide 49 percent of total demand reductions from all of its customer classes (Steve George Testimony, March 27, 2006, p. 8). emeter Corporation All rights reserved. -1-

67 Billing of PTR customers will be done through a single line-item credit on a customer s bill. The credit calculation would be the number of kwh curtailed times 65 cents, as in this sample: Credit = (Average Load Actual Peak Power Load) x 50 cents = (15 kwh 11 kwh) x 65 cents = 4 kwh x 65 cents = $2.60 This calculation can be performed outside the utility s existing billing system and imported as a single data field for addition to the bill. 4 Because the PTR concept is so simple, it is probably unnecessary to produce a bill insert or detailed report. The calculation also requires a data system to keep track of each customer s baseline load for use in calculating the credit. Again, this system need not be part of the existing billing system. Program Considerations As with all demand response programs, the PTR program must resolve several questions to be successful. These include the following: Reasonableness of buying power back from customers Cost-effectiveness of the peak demand reductions Levels of customer acceptance and peak demand reductions Interaction with other demand response programs such as load control The concept of free riders Avoiding gaming Appropriate rate treatment to ensure utilities are kept whole Reasonableness Is it reasonable to pay customers for not doing something? SDG&E argues that it is. The reason is that customers are already paying for peaking capacity in their procurement rates. Those rates recover costs of all energy and capacity requirements for the utility for the entire year. Those costs are averaged over kwh sales, then recovered in rates. Thus, since individual customers have already paid for the peaking capacity required to serve them, SDG&E argues that it is appropriate and proper to pay them for not using that peaking capacity via the PTR program. 4 - It is not known whether SDG&E will show the number of curtailed kwh on the bill so the customer could perform a verification calculation independently. emeter Corporation All rights reserved. -2-

68 Cost-Effectiveness SDG&E s application provides testimony to the effect that the PTR program is costeffective, based on assumed capacity value of $85 per kw year (somewhat higher than the value used by PG&E in its AMI application analysis). SDG&E assumes that it will have good coincidence between the times that PTR is dispatched and the times when SDG&E would have had to purchase marginal capacity. A significant factor in this analysis is the number of hours per year when marginal capacity is needed. As Figure 1 shows for PG&E, there is a sharp spike in load during these hours; the situation for California is similar. Figure 1 Load Duration Curves for PJM for Recent Years Top 1% of hours Since electricity cannot be stored, the costs of peaking plants must be recovered in the few hours each year in which the plants are operated. With regulated rates the costs are spread over the year. In competitive wholesale markets, this short window for cost recovery results in prices that parallel electricity demand, as seen in Figure 2 for PJM. The goal of the PTR program is to avoid the construction of new peaking plants as customer load continues to grow overall. Thus, the savings associated with the demand reductions, over the long term, will equal the costs avoided by not building and maintaining those peaking plants. SDG&E determined this amount is $85 per kilowatt per year. emeter Corporation All rights reserved. -3-

69 Figure 2 Price Duration Curves for PJM for 2002 Top 1% of hours A quick review of the program economics suggests SDG&E s analysis, if one agrees with the $85 figure, yields reasonable results. To begin, since line losses at the consumer level add up to approximately 10 percent during peak hours, a 1.0 kilowatt load reduction translates into 1.1 kilowatts fewer peaking plant needed, and a corresponding savings of 1.1 times $85, or $ Customers are actually receiving a savings of 80 cents per kwh (65 cent rebate plus avoiding electricity purchases at an average rate of approximately 15 cents per kwh). If the PTR program operates 105 hours per year, the cost of the demand reductions would be 80 cents times 100 hours, or $84.00, yielding net gross savings of $9.50 per kilowatt year for the maximum number of operations. SDG&E argues that an advantage of PTR is that events can be called only when needed, as opposed to a critical peak price that must be called for the designed number of events each year to be revenue neutral. On the other hand, a few operations are needed every year to validate demand response levels and remind customers of the program features. A minimum of five operations per year is desirable to fulfill these requirements. With at least five and at most 15 operations per year, a likely average will be around 10 per year. Ten operations at seven hours each (11 a.m. to 6 p.m.) would yield a cost for demand reductions of 70 times 80 cents, or $56.00 per kilowatt per year. This is a savings of $37.50 per kilowattyear, based on SDG&E s assumed avoided capacity cost. A further consideration is the effect of the b aseline, which reduces the cost per kilowatt-hour reduced. There are tow reasons. First, the baseline undersates the average load on a critical peak day; by definition, these days normally have higher loads than non-critical peak days. Second, some customers will reduce loads but not earn any rebates, by not going below their baselines (an effect offset by those emeter Corporation All rights reserved. -4-

70 customers who earn rebates but reduce load as a result of coincidence rather than response to the PTR rebate incentive. Customer Acceptance SDG&E notes that the PTR program promotes strong customer acceptance in five key ways and, like the 2001 residential buyback programs in the West and industrial buyback programs around the U.S., can be expected to be very popular. The program begins by being meaningful: it asks consumers to respond only a few days per year, only when their demand reduction is needed the most, and only when their demand reduction is valuable enough at 65 cents per kwh to be worth taking action to reduce load. 5 In addition, the concept is simplicity itself: if I reduce usage on peak days, I can earn a credit on my bill; if I do nothing, I will pay my regular bill. Moreover, consumers need not think about the program. They would be reminded by media announcements of Peak Time Rebate days, and the peak hours will be fixed at the same hours on each critical peak day. Also, the incentive amount will be fixed, eliminating any need for participants to adjust their load responses to changing levels of incentives. Finally, a universal program that works the same way for all residential consumers greatly magnifies understanding, acceptance, and load response. The universality results in reinforcement or program awareness and features in the media and in the community by family, friends, colleagues, and neighbors. This reinforcement was extremely effective in promoting conservation behavior by consumers in the 2001 buyback programs. 6 Last and not least, the concept of a residential rebate program has already proved to be immensely and broadly popular with consumers, based on the response to the 2001 programs. Peak Demand Reductions Residential consumers are well suited to reduce peak demand via the buyback program. First, residential consumers are major contributors to the peaking problem, as seen in Figure 3 below. Second, residential consumers have shown in programs over the past three decades that they reduce loads significantly in response to peak price signals. The programs most like the PTR program are critical peak pricing programs without automated response. In three programs, in Illinois, California, and France, residential customers reduced peak load by an average of 22% on critical peak days. 7 Over time, for customers who implement automated response, those 5 - At Puget Sound Energy, in the residential time-of-use program, many consumers were upset that they had taken extensive actions to reduce peak loads for savings of only 0.9 cents per kwh. 6 - Op cit. 7 - Budd, C. Making Electricity Markets Work: Hourly Prices for the Home, EUCI Load Management Conference, October 2003; Pacific Gas & Electric et al. Monthly Report on Statewide Pricing Pilot to California Public Utilities Commission and California Energy Commission, December 15, 2003; and Aubin, Christophe et al. "Real-Time Pricing of Electricity for Residential Customers: Econometric Analysis of an Experiment. Journal of Applied Econometrics. Dec emeter Corporation All rights reserved. -5-

71 reductions can be expected to average approximately 45%, the result of six such integrated pricing and automated control programs operated in nine states around the U.S. 8 Figure 3 Contribution to System Demand by End Use, California % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cool Day Hot, Critical Peak Day Other Commercial Residential Interaction with Other Demand Response Programs The PTR program could work well with other demand response programs. PTR may be considered an alternative to supply-side resources at times of system peaks. As such, a customer could participate in any other tariff be it inverted tier rates, flat pricing, a flat bill, time-of-use rates, or critical peak prices and still participate in the PTR program. Provided the other tariff is designed to recover costs from its participating customers, there is no double counting; with PTR, the utility is simply buying peaking power from its customers rather than from wholesale power marketers. However, to reduce potential confusion, it may be preferable to exclude from the buyback program customers participating in other dynamic pricing tariffs in which special rates are dispatched on critical peak days. Passive Credit Earners or Free Riders A potential concern regarding the PTR program is passive customers who receive incentive payments for actions they would have taken in the absence of the program. While the term free rider is often used to describe such customers, a more neutral term is passive. Passive is defined to be a customer who reduced load on a critical peak day not because of the buyback program incentive, but because he went on a vacation or took some other action he would have taken without the program. 8 - King, C. Integrating Residential Dynamic Pricing and Load Control: The Literature, January California Energy Commission, 1998 Baseline Energy Outlook, August emeter Corporation All rights reserved. -6-

72 Three reasons have been given that passive customers should not be a problem for a program such as PTR. First, this problem was not identified as a problem in the 2001 buyback programs, large programs with total incentive payments exceeding $250 million. 10 Importantly, these buyback incentive payments are discounts back to ratepayers and, thus reduce rates, as opposed to payments to third parties, such as power producers, which increase rates. Second, the calculation of the incentive requires that consumers reduce peak demand even before beginning to earn a credit. Figure 4 shows that the average customer must reduce peak demand by about 10% on critical peak days to get down to the level of peak demand on non-critical days and beginning to earn a rebate. Figure 4 Average Residential Demand in Northern California, September Demand (kw) Non-Critical Days Critical Days :30 2:00 3:30 5:00 6:30 8:00 9:30 11:00 12:30 14:00 15:30 17:00 18:30 20:00 21:30 23:00 Time of Day Third, PTR rebates are not a significant proportion of annual bill amounts, so the amount that a passive customer could receive is quite limited. Residential usage during the critical peak hours, for the maximum dispatch of 15 days, totals an average of 2.5% of annual electricity use. 12 In California, for an average user of 6,000 kwh, reducing the 2.5% amount by an extreme of 50% would mean a reduction of 68 kwh, including factoring in the 10% start-up amount from Figure 4 above. At 65 cents per kwh, the credit would be $ This compares to annual bills averaging approximately $780. Thus, in this extreme case, the customer s annual savings is still only 5%. 13 Avoiding Gaming The PTR program is very difficult to game, which is usually defined as manipulating usage to generate artificially high bill credits. First, because critical peak days are not known until the evening before the event, customers do not 10 - Op. cit Pacific Gas & Electric Company dynamic load profiles for residential customers Working Group 3 Report to the California Public Utilities Commission, January EIA, State Electricity Profiles 2001 Pennsylvania, May emeter Corporation All rights reserved. -7-

73 know which days will be used to determine their baseline usage for calculating the credit. Second, even if a customer could predict critical peak days precisely, gaming would actually backfire. For example, a customer might use excess energy during the peak period on expected averaging days so he could realize excess reductions on the critical peak day. Since five days are used in the averaging, the customer must use five extra kwh during the averaging for every one kwh in excess load reduction. At rates of 15 cents per kwh and a rebate of 65 cents per kwh, the net gaming benefit is 65 cents minus five times 15 cents, or negative 10 cents per kwh. And this assumes perfect knowledge; a customer guessing wrong and incorrect guesses are far more likely than correct guesses will pay even higher bills by trying to game. Rate Treatment SDG&E has proposed that the PTR rebates be accounted for in procurement coss. Since these are pass through, SDG&E would ensure that it is neither helped nor harmed by calling events. California s policy decouples utility kwh sales from utility profits. Final Observations SDG&E s goal with PTR is to obtain significantly higher demand response benefits, and its testimony supports achievement of this goal. It remains to be seen how the California PUC and intervenors will respond. emeter Corporation All rights reserved. -8-

74 Ontario Energy Board Smart Price Pilot Appendix B: Critical Peak Trigger Analysis

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76 Ontario Smart Price Pilot Recommended Temperature Triggers for Critical Peak Days Objectives Define the maximum and minimum temperatures thresholds that will be used to trigger critical peak days for the Ontario Smart Price Pilot Define the hours to be called for a critical peak event Understand the historical temperature trends by week to be able to identify if action needs to be taken to change the thresholds during the pilot Targets The target number of critical peak days are: - Summertime: 6 days - Wintertime: 3 days The thresholds should be designed to result in at least that many days being called. If a sufficient number of days have been called during the pilot, we can stop declaring them (Better to have too many callable days, than too few) Critical peak days are not called on weekends or holidays The number of consecutive days that a critical peak is declared is limited to three Critical peak periods may be called for either three hours or four hours Analysis Historical data on the number of days equal or exceeding a specified threshold from the August 1 to December 31 period are provided in the tables on the following pages (Temperatures from other months are not relevant) The data are from Environment Canada for Ottawa International Airport The numbers in the tables include weekends and holidays. Assuming ⅔ (5/7 = 71%, less holidays) of high temperature days will occur on weekdays, the minimum number of expected days over the high temperature threshold should be 10, to achieve 6 weekdays. Similarly, the minimum number of expected days below the low temperature threshold should be 5, to achieve 3 weekdays. The critical peak period lengths should vary to provide feedback on the effect of having different critical peak period lengths. The higher (or lower in winter) the temperature, the greater the stress on the system; thus, the longer critical peak periods should be called on the hottest and coldest days. Recommendation High Temperature Threshold A 28ºC high temperature threshold is recommended Historically a minimum of 4 days (in 2004) and a maximum of 18 (in 2002) achieved this threshold. The median over the last five years was 16 days over this threshold In June and July of this year, Ottawa has experienced 18 days over the 28º threshold. However, past months temperatures are not a good indication of future months 1

77 The high for Tuesday, July 25 was 27.2º, below the threshold When forecast temperatures are 30º or above, a four-hour critical peak should be called; for 28º to 29º, a three-hour critical peak should be called Humidex Threshold Additionally, a Humidex threshold should be considered. The recommended Humidex threshold is 32 during peak times of the day 1, regardless of temperature 2. On two occasions in 2005, the Humidex in Ottawa exceed 32 during midday when the temperature during the day did not reach 28º. Humidex from temperature and relative humidity (Source: Environment Canada) Low Temperature Threshold A -14ºC low temperature threshold is recommended Historically a minimum of 0 days (in 2001) and a maximum of 15 (in 2004) achieved this threshold The median over the last five years was 8 days over this threshold When forecast temperatures are -16º or below, a four-hour critical peak should be called; for -14º to -15º, a three-hour critical peak should be called 1 Humidex can sometimes be high in the humid early morning hours but decline as the day progresses. 2 Environment Canada issues Humidex Advisories as a Special Weather Statement (not a warning) when the Humidex will reach 40 or more with a dew-point temperature of 15 C or higher, and these conditions are expected to last for 1 hour or more. 2

78 Past High Temperature Distribution Temperature Year Threshold (ºC) Recommended 4-hour Threshold Recommended 3-hour Threshold Number of days where the temperature reached at least the threshold in the left-hand column (Thresholds resulting in 10 or more days are shaded) 3

79 Past Low Temperature Distribution Temperature Year Threshold (ºC) Recommended 3-hour Threshold Recommended 4-hour Threshold Number of days where the temperature was equal or below the threshold in the left-hand column (Thresholds resulting in 5 or more days are shaded) 4

80 Past Distribution of Critical Peak Days The charts below illustrate the number of days by week where the recommended threshold was achieved in the last five years. This is intended to help identify when we should expect critical peak days to be achieved and respond accordingly (In particular, how long we should wait in August before acting if the threshold is not reached.) Conclusions We need to be ready to declare a critical peak day as soon as sufficient customers have been recruited for the pilot. Days exceeding the high threshold beyond the second week of September are extremely unlikely. It is unlikely that Ottawa will experience any days below the low threshold before December. 6 Number of Days July 30 Aug 6 Aug 13 Aug 20 Aug 27 Sep 3 Sep 10 Sep 17 Week Starting Number of days exceeding the high threshold of 28ºC over the last five years (High, low and average) 7 6 Number of Days Nov 12 Nov 19 Nov 26 Dec 3 Dec 10 Dec 17 Dec 24 Week Starting Number of days below the low threshold of -14ºC over the last five years (High, low and average) 5

81 Ontario Energy Board Smart Price Pilot Appendix C: Sample Recruitment Package Materials

82 Ontario Energy Board Smart Price Pilot Contents English Time-of-Use (TOU) 1. Recruitment Letter 2. Fact Sheet 3. Sample Monthly Energy Statement 4. Sample Final Pilot Statement TOU with Critical Peak Pricing 1. Recruitment Letter 2. Fact Sheet 3. Sample Monthly Energy Statement 4. Sample Final Pilot Statement TOU with Critical Peak Rebate 1. Recruitment Letter 2. Fact Sheet 3. Sample Monthly Energy Statement 4. Sample Final Pilot Statement French Time-of-Use (TOU) 1. Recruitment Letter 2. Fact Sheet 3. Sample Monthly Energy Statement 4. Sample Final Pilot Statement TOU with Critical Peak Pricing 1. Recruitment Letter 2. Fact Sheet 3. Sample Monthly Energy Statement 4. Sample Final Pilot Statement TOU with Critical Peak Rebate 1. Recruitment Letter 2. Fact Sheet 3. Sample Monthly Energy Statement 4. Sample Final Pilot Statement

83 July 14, 2006 [NAME] 123 Main Street Ottawa Ontario Dear [NAME], You have been selected to participate in the Ontario Smart Price Pilot, an initiative sponsored by the Ontario Energy Board (the independent agency that regulates the province s electricity and natural gas utilities) and supported by Hydro Ottawa. The pilot is designed to help us learn about consumers ability to conserve electricity using smart meters and time-of-use prices in advance of the province s plan to provide smart meters to all homes and small businesses by In the Ontario Smart Price Pilot your electricity prices will change throughout the day, like long distance telephone rates (many don t realize it, but the cost to produce electricity changes by time of day). If you use less electricity or make changes to shift your usage, particularly during peak times, you can save a few dollars on your bills and help keep the environment cleaner. To thank you for being part of the pilot which runs from August through December of this year we will give you a thank you payment of $ Since this is a pilot program, you will still receive a Hydro Ottawa bill, which you should continue to pay in your usual manner. In addition, each month the OEB will send you an Electricity Usage Statement showing your charges on the time-of-use prices. At the end of the pilot, in January 2007, we will send you a final statement and a cheque with your thank you payment plus a credit for your time-of-use savings (or less a debit if you ve spent more on time-ofuse). Customers paying time-of-use prices in similar pilot programs generally saw small changes in their bills on these prices compared to their current prices, with some customers saving a few dollars and some customers paying a few dollars more. The enclosed Fact Sheet has samples and other program details. Feel free to call us toll free at for more information. To indicate your agreement to participate, please complete the enclosed enrollment card and send it back to us in the enclosed postagepaid envelope, or fax it to by July 28 th. Thank you for participating in this important program. Name Position Hydro Ottawa

84 Ontario Smart Price Pilot WHO Who is sponsoring the pilot program? The Ontario Energy Board (the OEB ), with help from Hydro Ottawa. The OEB is an independent agency that regulates electricity and natural gas utilities in the public interest. Who is participating? Between 200 and 300 Hydro Ottawa residential customers will be selected at random. The goal is to reflect the diversity of different customers who use power in a variety of ways. WHAT What is the Ontario Smart Price Pilot program? The program will provide you with more information on how you use electricity and how shifting usage to off-peak periods will allow you to save money. It also includes a short survey (and optional attendance at a focus group) near the end of the pilot, where we will ask you how you like the program, how you use energy, any changes you made because of time-of-use prices, etc. What is the thank you payment? You will receive $75 in appreciation for assisting us, providing you remain on the program the full five months, through December 31, Any savings or higher bills on time-of-use pricing will be added to or deducted from this thank you payment. What is the special pricing? The pricing is called time-of-use and has three different prices per kilowatt-hour based on the time of day the electricity is used (average consumers use about 25 kilowatt hours [kwh] per day). See the chart below. Will I pay more for electricity on time-of-use prices? On average, customers who make no changes in their consumption habits will pay about the same on time-of-use as on their current electricity prices. Some customers who make no changes could pay a few dollars more over the course of the pilot, while others could pay a few dollars less. Will I need to buy any equipment? No, you don t need to buy any special equipment. You already have (or will soon have) a smart meter on your home that records when you use electricity, so we can calculate your time-of-use bills. The smart meter sends the data to Hydro Ottawa over a wireless data link. WHY Why is this pilot being done? The Government of Ontario plans to install smart meters across the province by The OEB has designed timeof-use prices that take advantage of smart meters so that consumers can better manage their electricity use. Soon, all consumers with smart meters will have time-of-use prices. The OEB is undertaking this pilot to learn how smart meters and prices can work better for consumers. The changes that customers make in the pilot will also inform the OEB of what can be expected when all consumers have smart meters. HOW How do I earn my thank you payment? To earn your thank you payment, just stay on the program five months, through December 31, If you must drop out of the program, but have completed the survey, you will still earn $25. How will my time-of-use prices be billed? You will continue to receive and pay your regular Hydro Ottawa electricity bill. Also, the OEB will mail you an Electricity Usage Statement each month that shows your time-of-use charges. This is not a bill. At the end of the pilot, in January, the OEB will send you a statement that separately shows your thank you payment and any time-ofuse savings (or losses) compared to your bill on your current electricity prices. See samples of the Electricity Usage Statement and Final Statement attached. How should I reduce peak electricity use? You can use less power during peak times by doing your laundry on weekends, turning your dishwasher on before going to bed, turning off lights or other appliances, using less air conditioning or heating, putting a timer on your electric water heater, etc. Do what makes sense for you and your lifestyle. WHEN When should I reduce electricity usage? You can save the most by reducing usage during the onpeak hours and, where possible, shifting your usage to offpeak times (e.g. running the dishwasher before going to bed when prices are lower instead of during the day when prices are high). See chart for hours and days. WHERE Where can I get more information about the program? or info@ontariosmartpricepilot.ca. Time-of-Use Periods and Prices Day of the Week Time Period Price ( /kwh) Weekends & Holidays All Day Off-peak am-11 am Mid-peak 7.5 Summer Weekdays 11 am-5 pm On-peak 10.5 (May 1st - Oct 31st) 5 pm-10 pm Mid-peak pm-7 am Off-peak am-11 am On-peak am-5 pm Mid-peak 7.5 Winter Weekdays 5 pm-8 pm On-peak 10.5 (Nov 1st - Apr 30th) 8 pm-10 pm Mid-peak pm-7 am Off-peak 3.5

85 Ontario Smart Price Pilot Sample Electricity Usage Statement Ontario Smart Price Pilot Time-of-Use Electricity Usage Statement Note: this is not a bill Account John Doe 123 Main St SE Ottawa ELECTRICITY USE Electricity Service Dates Usage On Peak 8/05/2006 To 9/04/ kwh Mid Peak 8/05/2006 To 9/04/ kwh Off Peak 8/05/2006 To 9/04/ kwh Account Number ABC Total Electricity Use 1,000 kwh 24 hr Customer Service xxx-xxxx 60 Electricity Use By Day Price Season: Summer Price Definitions Off Peak Price for usage from 10 pm-7 am weekdays and all day, weekends and holidays Electricity Used (kwh) On Peak Mid Peak Off Peak Mid Peak Price for usage from 7 am-11 am & 5 pm-10 pm weekdays 8/5/2006 8/7/2006 8/9/2006 8/11/2006 8/13/2006 8/15/2006 8/17/2006 8/19/2006 8/21/2006 8/23/2006 8/25/2006 8/27/2006 8/29/2006 8/31/2006 9/2/2006 9/4/2006 On Peak Price for usage from 11 am-5 pm weekdays TIME-OF-USE CHARGES (Electricity Only, excludes taxes & other) Electricity Price Usage kwh Amount On Peak 10.5 cents per kwh 200 $21.00 Mid Peak 7.5 cents per kwh 300 $22.50 Off Peak 3.5 cents per kwh 500 $17.50 Total Time-of-Use Charges (Do Not Pay) $61.00 Price of Electricity Cents per kwh Off Peak Mid Peak On Peak

86 Ontario Smart Price Pilot Sample Smart Price Pilot Program Final Statement Customer with Savings on Time-of-Use Prices Ontario Smart Price Pilot Program Final Statement Billing Period Bill on Time of Use Prices Bill on Current Electricity Prices Savings or (Loss) August 4, 2006-September 3, 2006 $75.68 $77.22 $1.54 September 4, 2006-October 3, 2006 $84.44 $88.97 $4.53 October 4, 2006-November 3, 2006 $66.21 $65.88 ($0.33) November 4, 2006-December 3, 2006 $54.89 $55.17 $0.28 December 4, 2006-January 1, 2007 $88.34 $91.21 $2.87 TOTAL SAVINGS (OR LOSS) $8.89 Thank You Payment $75.00 TOTAL FINAL CHEQUE AMOUNT $83.89 Sample Smart Price Pilot Program Final Statement Customer with Higher Bills on Time-of-Use Prices Ontario Smart Price Pilot Program Final Statement Bill on Time of Use Bill on Current Savings or Billing Period Prices Electricity Prices (Loss) August 4, 2006-September 3, 2006 September 4, 2006-October 3, 2006 $75.68 $84.44 $72.01 $88.97 ($3.67) $4.53 October 4, 2006-November 3, 2006 November 4, 2006-December 3, 2006 $66.21 $54.89 $62.88 $55.17 ($3.33) $0.28 December 4, 2006-January 1, 2007 $88.34 $84.22 ($4.12) TOTAL SAVINGS (OR LOSS) ($6.31) Thank You Payment $75.00 TOTAL FINAL CHEQUE AMOUNT $68.69

87 July 14, 2006 [NAME] 123 Main Street Ottawa Ontario Dear [NAME], You have been selected to participate in the Ontario Smart Price Pilot, an initiative sponsored by the Ontario Energy Board (the independent agency that regulates the province s electricity and natural gas utilities) and supported by Hydro Ottawa. The pilot is designed to help us learn about consumers ability to conserve electricity using smart meters and time-of-use prices in advance of the province s plan to provide smart meters to all homes and small businesses by In the Ontario Smart Price Pilot your electricity prices will change throughout the day, like long distance telephone rates (many don t realize it, but the cost to produce electricity changes by time of day). If you use less electricity or make changes to shift your usage, particularly during peak times, you can save a few dollars on your bills and help keep the environment cleaner. On a handful of Critical Peak days each year, there is a higher electricity price for three to four onpeak hours. Critical peak days tend to occur when temperatures are extreme and electricity use is high. They can also occur on days when the temperature isn t far from normal but one of the province s power plants is unable to produce electricity temporarily. If Ontarians can use less power for those few peak hours, it could help ensure remaining resources are sufficient to meet everyone s needs. We will tell you the day before each Critical Peak Day by calling your home (using an automated phone call), by , or by text message, whichever you choose. To thank you for being part of the pilot which runs from August through December of this year we will give you a thank you payment of $ Since this is a pilot program, you will still receive a Hydro Ottawa bill, which you should continue to pay in your usual manner. In addition, each month the OEB will send you an Electricity Usage Statement showing your charges on the time-of-use prices. At the end of the pilot, in January 2007, we will send you a final statement and a cheque with your thank you payment plus a credit for your time-of-use savings (or less a debit if you ve spent more on time-ofuse). Customers paying time-of-use prices in similar pilot programs generally saw small changes in their bills on these prices compared to their current prices, with some customers saving a few dollars and some customers paying a few dollars more. The enclosed Fact Sheet has samples and other program details. Feel free to call us toll free at for more information. To indicate your agreement to participate, please complete the enclosed enrollment card and send it back to us in the enclosed postagepaid envelope, or fax it to by July 28 th. Thank you for participating in this important program. Name Position Hydro Ottawa

88 WHO Who is sponsoring the pilot program? The Ontario Energy Board (the OEB ), with help from Hydro Ottawa. The OEB is an independent agency that regulates electricity and natural gas utilities in the public interest. Ontario Smart Price Pilot The OEB is undertaking this pilot to learn how smart meters and prices can work better for consumers. The changes that customers make in the pilot will also inform the OEB of what can be expected when all consumers have smart meters. Who is participating? Between 200 and 300 Hydro Ottawa residential customers will be selected at random. The goal is to reflect the diversity of different customers who use power in a variety of ways. WHAT What is the Ontario Smart Price Pilot program? The program will provide you with more information on how you use electricity and how shifting usage to off-peak periods will allow you to save money. It also includes a short survey (and optional attendance at a focus group) near the end of the pilot, where we will ask you how you like the program, how you use energy, any changes you made because of time-of-use and critical peak prices, etc. What is the thank you payment? You will receive $75 in appreciation for assisting us, providing you remain on the program the full five months, through December 31, Any savings or higher bills on time-of-use and critical peak pricing will be added to or deducted from this thank you payment. What is the special pricing? The pricing is called time-of-use with critical peak and has four different prices per kilowatt-hour based on the time of day the electricity is used (average consumers use about 25 kilowatt hours [kwh] per day). See the chart below. Will I pay more for electricity on time-of-use prices? On average, customers who make no changes in their consumption habits will pay about the same on time-of-use as on their current electricity prices. Some customers who make no changes could pay a few dollars more over the course of the pilot, while others could pay a few dollars less. Will I need to buy any equipment? No, you don t need to buy any special equipment. You already have (or will soon have) a smart meter on your home that records when you use electricity, so we can calculate your time-of-use bills. The smart meter sends the data to Hydro Ottawa over a wireless data link. WHY Why is this pilot being done? The Government of Ontario plans to install smart meters across the province by The OEB has designed timeof-use prices that take advantage of smart meters so that consumers can better manage their electricity use. Soon, all consumers with smart meters will have time-of-use prices. HOW How do I earn my thank you payment? To earn your thank you payment, just stay on the program five months, through December 31, If you must drop out of the program, but have completed the survey, you will still earn $25. How will my time-of-use prices be billed? You will continue to receive and pay your regular Hydro Ottawa electricity bill. Also, the OEB will mail you an Electricity Usage Statement each month that shows your time-of-use charges. This is not a bill. At the end of the pilot, in January, the OEB will send you a statement that separately shows your thank you payment and any time-ofuse savings (or losses) compared to your bill on your current electricity prices. See samples of the Electricity Usage Statement and Final Statement attached. How should I reduce peak electricity use? You can use less power during peak times by doing your laundry on weekends, turning your dishwasher on before going to bed, turning off lights or other appliances, using less air conditioning or heating, putting a timer on your electric water heater, etc. Do what makes sense for you and your lifestyle. WHEN When should I reduce electricity usage? You can save the most by reducing usage during the critical peak and on-peak hours and, where possible, shifting your usage to off-peak times (e.g. running the dishwasher before going to bed when prices are lower instead of during the day when prices are high). See chart for hours and days. When are Critical Peak days? Critical Peak days occur weekdays, but not holidays. They are often the hottest days of the summer or coldest days of winter, when air conditioning or heating and other electricity use soars. There may be up to 9 of them in the pilot (of up to 4 hours in duration each). When will I know about Critical Peak days? We will notify you by 5 p.m. the afternoon before a Critical Peak day. Notification is by an automated phone call, , or text message your choice. WHERE Where can I get more information about the program? or info@ontariosmartpricepilot.ca. Time-of-Use Periods and Prices Day of the Week Time Period Price ( /kwh) W eekends & Holidays All Day Off-peak am-11 am Mid-peak 7.5 Summer Weekdays (May 1st - Oct 31st) W inter W eekdays (Nov 1st - Apr 30th) 11 am-5 pm On-peak pm-10 pm Mid-peak pm-7 am Off-peak 3.1 Upon notification Critical peak* am-11 am On-peak am-5 pm Mid-peak pm-8 pm On-peak pm-10 pm Mid-peak pm-7 am Off-peak 3.1 Upon notification Critical peak* 30.0 * - Critical peak occurs for 3 or 4 hours during the on-peak period, on critical peak days only. The maximum number of such days in the pilot will be 9.

89 Ontario Smart Price Pilot Sample Electricity Usage Statement Ontario Smart Price Pilot Time-of-Use Electricity Usage Statement Note: this is not a bill Account John Doe 123 Main St SE Ottawa Account Number ABC ELECTRICITY USE Electricity Service Dates Usage Critical Peak 8/05/2006 To 9/04/ kwh On Peak 8/05/2006 To 9/04/ kwh Mid Peak 8/05/2006 To 9/04/ kwh Off Peak 8/05/2006 To 9/04/ kwh Total Electricity Use 1,000 kwh 24 hr Customer Service xxx-xxxx Electricity Use By Day Price Season: Summer Price Definitions Off Peak Price for usage from 10 pm-7 am weekdays and all day, weekends and holidays Mid Peak Price for usage from 7 am-11 am & 5 pm-10 pm weekdays Electricity Used (kwh) /5/2006 8/7/2006 8/9/2006 8/11/2006 8/13/2006 8/15/2006 8/17/2006 8/19/2006 8/21/2006 8/23/2006 8/25/2006 8/27/2006 8/29/2006 8/31/2006 9/2/2006 9/4/2006 Critical Peak On Peak Mid Peak Off Peak On Peak Price for usage from 11 am-5 pm weekdays Critical Peak Price for usage on critical peak days from 11 am-5 pm TIME-OF-USE CHARGES (Electricity Only, excludes taxes & other) Electricity Price Usage kwh Amount Critical Peak 30.0 cents per kwh 25 $7.50 On Peak 10.5 cents per kwh 175 $18.38 Mid Peak 7.5 cents per kwh 300 $22.50 Off Peak 3.1 cents per kwh 500 $15.50 Total Time-of-Use Charges (Do Not Pay) $63.88 Critical Peak Days This Month August 10, 2006 August 11, 2006 August 29, 2006 Cents per kwh Price of Electricity Off Peak Mid Peak On Peak Critical Peak

90 Ontario Smart Price Pilot Sample Smart Price Pilot Program Final Statement Customer with Savings on Time-of-Use Prices Ontario Smart Price Pilot Program Final Statement Billing Period Bill on Time of Use Prices Bill on Current Electricity Prices Savings or (Loss) August 4, 2006-September 3, 2006 $75.68 $77.22 $1.54 September 4, 2006-October 3, 2006 $84.44 $88.97 $4.53 October 4, 2006-November 3, 2006 $66.21 $65.88 ($0.33) November 4, 2006-December 3, 2006 $54.89 $55.17 $0.28 December 4, 2006-January 1, 2007 $88.34 $91.21 $2.87 TOTAL SAVINGS (OR LOSS) $8.89 Thank You Payment $75.00 TOTAL FINAL CHEQUE AMOUNT $83.89 Sample Smart Price Pilot Program Final Statement Customer with Higher Bills on Time-of-Use Prices Ontario Smart Price Pilot Program Final Statement Billing Period Bill on Time of Use Prices Bill on Current Electricity Prices Savings or (Loss) August 4, 2006-September 3, 2006 $75.68 $72.01 ($3.67) September 4, 2006-October 3, 2006 $84.44 $88.97 $4.53 October 4, 2006-November 3, 2006 November 4, 2006-December 3, 2006 $66.21 $54.89 $62.88 $55.17 ($3.33) $0.28 December 4, 2006-January 1, 2007 $88.34 $84.22 ($4.12) TOTAL SAVINGS (OR LOSS) ($6.31) Thank You Payment $75.00 TOTAL FINAL CHEQUE AMOUNT $68.69

91 July 14, 2006 [NAME] 123 Main Street Ottawa Ontario Dear [NAME], You have been selected to participate in the Ontario Smart Price Pilot, an initiative sponsored by the Ontario Energy Board (the independent agency that regulates the province s electricity and natural gas utilities) and supported by Hydro Ottawa. The pilot is designed to help us learn about consumers ability to conserve electricity using smart meters and time-of-use prices in advance of the province s plan to provide smart meters to all homes and small businesses by In the Ontario Smart Price Pilot your electricity prices will change throughout the day, like long distance telephone rates (many don t realize it, but the cost to produce electricity changes by time of day). If you use less electricity or make changes to shift your usage, particularly during peak times, you can save a few dollars on your bills and help keep the environment cleaner. On a handful of Critical Peak days each year, you can earn a special rebate by reducing electricity use for three to four on-peak hours. Critical peak days tend to occur when temperatures are extreme and electricity use is high. They can also occur on days when the temperature isn t far from normal but one of the province s power plants is unable to produce electricity temporarily. If Ontarians can use less power for those few peak hours, it could help ensure remaining resources are sufficient to meet everyone s needs. We will tell you the day before each Critical Peak Day by calling your home (using an automated phone call), by , or by text message, whichever you choose. To thank you for being part of the pilot which runs from August through December of this year we will give you a thank you payment of $ Since this is a pilot program, you will still receive a Hydro Ottawa bill, which you should continue to pay in your usual manner. In addition, each month the OEB will send you an Electricity Usage Statement showing your charges on the time-of-use prices. At the end of the pilot, in January 2007, we will send you a final statement and a cheque with your thank you payment plus a credit for your time-of-use savings (or less a debit if you ve spent more on time-ofuse). Customers paying time-of-use prices in similar pilot programs generally saw small changes in their bills on these prices compared to their current prices, with some customers saving a few dollars and some customers paying a few dollars more. The enclosed Fact Sheet has samples and other program details. Feel free to call us toll free at for more information. To indicate your agreement to participate, please complete the enclosed enrollment card and send it back to us in the enclosed postagepaid envelope, or fax it to by July 28 th. Thank you for participating in this important program. Name Position Hydro Ottawa

92 WHO Who is sponsoring the pilot program? The Ontario Energy Board (the OEB ), with help from Hydro Ottawa. The OEB is an independent agency that regulates electricity and natural gas utilities in the public interest. Who is participating? Between 200 and 300 Hydro Ottawa residential customers will be selected at random. The goal is to reflect the diversity of different customers who use power in a variety of ways. WHAT What is the Ontario Smart Price Pilot program? The program will provide you with more information on how you use electricity and how shifting usage to off-peak periods will allow you to save money. It also includes a short survey (and optional attendance at a focus group) near the end of the pilot, where we will ask you how you like the program, how you use energy, any changes you made because of time-of-use and critical peak rebates, etc. What is the thank you payment? You will receive $75 in appreciation for assisting us, providing you remain on the program the full five months, through December 31, Any savings or higher bills on time-of-use and critical peak rebates will be added to or deducted from this thank you payment. What is the special pricing? The pricing is called time-of-use with critical peak rebate and has four different prices per kilowatt-hour based on the time of day the electricity is used (average consumers use about 25 kilowatt hours [kwh] per day). See the chart below. Will I pay more for electricity on time-of-use prices? On average, customers who make no changes in their consumption habits will pay about the same on time-of-use as on their current electricity prices. Some customers who make no changes could pay a few dollars more over the course of the pilot, while others could pay a few dollars less. Will I need to buy any equipment? No, you don t need to buy any special equipment. You already have (or will soon have) a smart meter on your home that records when you use electricity, so we can calculate your time-of-use bills. The smart meter sends the data to Hydro Ottawa over a wireless data link. WHY Why is this pilot being done? The Government of Ontario plans to install smart meters across the province by The OEB has designed timeof-use prices that take advantage of smart meters so that consumers can better manage their electricity use. Soon, all consumers with smart meters will have time-of-use prices. Ontario Smart Price Pilot The OEB is undertaking this pilot to learn how smart meters and prices can work better for consumers. The changes that customers make in the pilot will also inform the OEB of what can be expected when all consumers have smart meters. HOW How do I earn my thank you payment? To earn your thank you payment, just stay on the program five months, through December 31, If you must drop out of the program, but have completed the survey, you will still earn $25. How will my time-of-use prices be billed? You will continue to receive and pay your regular Hydro Ottawa electricity bill. Also, the OEB will mail you an Electricity Usage Statement each month that shows your time-of-use charges. This is not a bill. At the end of the pilot, in January, the OEB will send you a statement that separately shows your thank you payment and any time-ofuse savings (or losses) compared to your bill on your current electricity prices. See samples of the Electricity Usage Statement and Final Statement attached. How should I reduce peak electricity use? You can use less power during peak times by doing your laundry on weekends, turning your dishwasher on before going to bed, turning off lights or other appliances, using less air conditioning or heating, putting a timer on your electric water heater, etc. Do what makes sense for you and your lifestyle. WHEN When should I reduce electricity usage? You can save the most by reducing usage during the critical peak and on-peak hours and, where possible, shifting your usage to off-peak times (e.g. running the dishwasher before going to bed when prices are lower instead of during the day when prices are high). See chart for hours and days. When are Critical Peak days? Critical Peak days occur weekdays, but not holidays. They are often the hottest days of the summer or coldest days of winter, when air conditioning or heating and other electricity use soars. There may be up to 9 of them in the pilot (of up to 4 hours in duration each). When will I know about Critical Peak days? We will notify you by 5 p.m. the afternoon before a Critical Peak day. Notification is by an automated phone call, , or text message your choice. WHERE Where can I get more information about the program? or info@ontariosmartpricepilot.ca. Time-of-Use Periods and Prices Day of the Week Time Period Price ( /kwh) Weekends & Holidays All Day Off-peak am-11 am Mid-peak am-5 pm On-peak 10.5 Summer W eekdays 5 pm-10 pm Mid-peak 7.5 (May 1st - Oct 31st) 10 pm-7 am Off-peak 3.5 Upon notification Critical peak* 30.0 for each kwh reduced 7 am-11 am On-peak am-5 pm Mid-peak 7.5 W inter W eekdays 5 pm-8 pm On-peak 10.5 (Nov 1st - Apr 30th) 8 pm-10 pm Mid-peak pm-7 am Off-peak 3.5 Upon notification Critical peak* 30.0 for each kwh reduced * - Critical peak occurs for 3 or 4 hours during the on-peak period, on critical peak days only. The maximum number of such days in the pilot will be 9.

93 Ontario Smart Price Pilot Sample Electricity Usage Statement Ontario Smart Price Pilot Time-of-Use Electricity Usage Statement Note: this is not a bill Account John Doe 123 Main St SE Ottawa Account Number ABC hr Customer Service xxx-xxxx ELECTRICITY USE Electricity Service Dates Usage On Peak 8/05/2006 To 9/04/ kwh Mid Peak 8/05/2006 To 9/04/ kwh Off Peak 8/05/2006 To 9/04/ kwh Total Electricity Use 1,000 kwh Critical Peak Usage Reduction Dates Reduction Critical Peak 8/10/ kwh Critical Peak 8/11/ kwh Critical Peak 8/29/ kwh Price Season: Summer Total Reductions for Rebate 7.0 kwh Price Definitions Off Peak Price for usage from 10 pm-7 am weekdays and all day, weekends and holidays Mid Peak Price for usage from 7 am-11 am & 5 pm-10 pm weekdays Electricity Used (kwh) Electricity Use By Day Critical Peak On Peak Mid Peak Off Peak On Peak Price for usage from 11 am-5 pm weekdays 0 8/5/2006 8/7/2006 8/9/2006 8/11/2006 8/13/2006 8/15/2006 8/17/2006 8/19/2006 8/21/2006 8/23/2006 8/25/2006 8/27/2006 8/29/2006 8/31/2006 9/2/2006 9/4/2006 Critical Peak Rebate Rebate for reductions during critical peak hours (3 or 4 hours during the on-peak period, upon notification) Critical Peak Days This Month TIME-OF-USE CHARGES (Electricity Only, excludes taxes & other) Electricity Price kwh Amount Critical Peak 30.0 cents per kwh 7 -$2.10 On Peak 10.5 cents per kwh 200 $20.27 Mid Peak 7.5 cents per kwh 307 $23.03 Off Peak 3.5 cents per kwh 500 $17.50 Total Time-of-Use Charges (Do Not Pay) $58.69 August 10, 2006 August 11, 2006 August 29, 2006 Cents per kwh Price of Electricity Rebate price Off Peak Mid Peak On Peak Critical Peak Sample Smart Price Pilot Program Final Statement Customer with Savings on Time-of-Use Prices

94 Ontario Smart Price Pilot Ontario Smart Price Pilot Program Final Statement Billing Period Bill on Time of Use Prices Bill on Current Electricity Prices Savings or (Loss) August 4, 2006-September 3, 2006 $75.68 $77.22 $1.54 September 4, 2006-October 3, 2006 $84.44 $88.97 $4.53 October 4, 2006-November 3, 2006 $66.21 $65.88 ($0.33) November 4, 2006-December 3, 2006 $54.89 $55.17 $0.28 December 4, 2006-January 1, 2007 $88.34 $91.21 $2.87 TOTAL SAVINGS (OR LOSS) $8.89 Thank You Payment $75.00 TOTAL FINAL CHEQUE AMOUNT $83.89 Sample Smart Price Pilot Program Final Statement Customer with Higher Bills on Time-of-Use Prices Ontario Smart Price Pilot Program Final Statement Billing Period Bill on Time of Use Prices Bill on Current Electricity Prices Savings or (Loss) August 4, 2006-September 3, 2006 $75.68 $72.01 ($3.67) September 4, 2006-October 3, 2006 $84.44 $88.97 $4.53 October 4, 2006-November 3, 2006 November 4, 2006-December 3, 2006 $66.21 $54.89 $62.88 $55.17 ($3.33) $0.28 December 4, 2006-January 1, 2007 $88.34 $84.22 ($4.12) TOTAL SAVINGS (OR LOSS) ($6.31) Thank You Payment $75.00 TOTAL FINAL CHEQUE AMOUNT $68.69

95 Le 14 juillet 2006 [NOM] 123, rue Principale Ottawa (Ontario) Madame, Monsieur, Vous avez été choisi pour participer au projet pilote ontarien des prix intelligents, une initiative commanditée par la Commission de l énergie de l Ontario (l organisme indépendant qui régit les services publics d électricité et de gaz naturel de la province) et appuyée par Hydro Ottawa. Le projet pilote a pour but de nous aider à mieux connaître la capacité de nos consommateurs à économiser l électricité grâce aux compteurs intelligents et aux prix «selon l heure de la consommation» avant la mise en œuvre du plan d installation de compteurs intelligents dans tous les foyers et les petites entreprises de la province d ici Dans le cadre du projet pilote ontarien des prix intelligents, vos tarifs d électricité varieront tout au long de la journée, comme c est le cas avec les tarifs interurbains (peu de personnes le réalisent, mais le coût de production de l électricité varie selon le moment de la journée). Si vous consommez moins d électricité, ou si vous modifiez ou reportez votre consommation, particulièrement pendant les périodes de pointe, vous pouvez épargner quelques dollars sur vos factures en plus de contribuer à assainir l environnement. Afin de vous remercier de participer à ce projet pilote qui se tiendra d août à décembre cette année nous vous verserons un paiement de remerciement de 75,00 $. Étant donné qu il s agit d un programme pilote, votre facture de Hydro Ottawa continuera à vous être acheminée et vous devrez continuer à l acquitter comme vous le faisiez auparavant. De plus, la CEO vous enverra aussi tous les mois un relevé sur votre consommation d électricité montrant les prix «selon l heure de la consommation». En janvier 2007, à la fin du projet pilote, nous vous ferons parvenir un relevé final ainsi qu un chèque au montant de votre paiement de remerciement plus un crédit pour vos économies selon l heure de la consommation (ou moins un débit si vous avez consommé davantage selon l heure de la consommation). Les consommateurs qui participent à d autres programmes pilotes semblables selon l heure de la consommation constatent généralement une légère variation par rapport aux prix actuels, tandis que certains consommateurs épargnent quelques dollars et d autres paient un peu plus. La feuille de renseignements ci-jointe contient des exemples et d autres détails du programme. N hésitez pas à nous appeler sans frais au si vous désirez davantage de renseignements. Si vous acceptez de participer, veuillez remplir le bulletin d adhésion ci-joint et nous le faire parvenir dans l enveloppe préaffranchie ci-jointe, ou par télécopieur au , d ici le 28 juillet. Nous vous remercions de participer à ce programme de très grande importance. Nom Poste Hydro Ottawa

96 Projet pilote prix intelligents de l Ontario QUI Qui commandite le projet pilote? La Commission de l énergie de l Ontario (la CEO), avec le concours de Hydro Ottawa. La CEO est un organisme indépendant qui réglemente les services publics d électricité et de gaz naturel dans l intérêt public. Qui participe au projet? De 200 à 300 consommateurs résidentiels de Hydro Ottawa seront choisis au hasard. Le but de la sélection consiste à représenter la diversité des consommateurs qui utilisent l électricité de manières différentes. QUOI Qu est-ce que le projet pilote ontarien des prix intelligents? Le projet vous fournira davantage de renseignements sur la façon dont vous utilisez l électricité et vous indiquera comment vous pouvez économiser en déplaçant votre consommation dans les périodes creuses. Il comporte également une courte enquête (ainsi que la participation facultative à des groupes de discussions) vers la fin du projet, durant laquelle nous vous demanderons si vous aimez le projet, comment vous utilisez l électricité, les changements que vous avez apportés en raison des prix selon l heure de la consommation, etc. Qu est-ce que le paiement de remerciement? En guise de remerciement, vous recevrez 75 $ si vous participez au projet de cinq mois jusqu à la fin, soit jusqu au 31 décembre Toute économie ou surcharge de facturation selon l heure de la consommation sera ajoutée au paiement de remerciement ou en sera déduite. Qu est-ce que les prix exceptionnels? Le barème de prix est appelé «selon l heure de la consommation» et comporte trois différents prix au kilowattheure selon l heure de la journée à laquelle l électricité est utilisée (le consommateur moyen utilise environ 25 kilowattheures [kwh] par jour). Voir le tableau cidessous. La CEO a lancé ce projet pilote afin d apprendre comment les compteurs intelligents et les prix peuvent avantager les consommateurs. Les changements que les consommateurs apportent à leur consommation durant le projet pilote indiqueront à la CEO à quoi elle peut s attendre lorsque tous les consommateurs auront des compteurs intelligents. COMMENT Comment puis-je obtenir mon paiement de remerciement? Pour obtenir votre paiement de remerciement, il suffit de participer au projet cinq mois, jusqu au 31 décembre Si vous devez quitter le projet, mais que vous avez répondu à l enquête, vous obtiendrez 25 $. Comment les prix selon l heure de la consommation me seront-ils facturés? Vous continuerez de recevoir et de payer votre facture d électricité ordinaire de Hydro Ottawa. De plus, la CEO vous fera parvenir par la poste chaque mois un relevé selon l heure de la consommation d électricité qui indique vos frais. Ce relevé n est pas une facture. À la fin du projet pilote, en janvier, la CEO vous fera parvenir un relevé qui vous montre séparément votre paiement de remerciement et toute économie (ou augmentation) selon l heure de la consommation et compare ces chiffres aux prix de l électricité que vous payez actuellement. Des exemples du relevé selon l heure de la consommation d électricité et du relevé final figurent plus bas. Comment devrais-je réduire ma consommation d électricité durant les périodes de pointe? Vous pouvez utiliser moins d électricité durant les périodes de pointe en faisant la lessive les fins de semaine, en mettant le lave-vaisselle en marche avant d aller au lit, en fermant les lampes et les autres appareils ménagers, en réduisant la puissance du climatiseur ou de la fournaise, en reliant votre chauffe-eau à une minuterie, etc. Vous devez faire ce qui vous semble sensé et mieux convenir à votre mode de vie. Paierai-je davantage pour l électricité en raison des prix selon l heure de la consommation? En moyenne, les consommateurs qui modifient leurs habitudes de consommation paieront environ la même chose qu avec les prix de l'électricité actuels. Certains consommateurs qui n apportent aucun changement pourraient payer quelques dollars de plus au cours de la durée du projet pilote, tandis que d autres pourraient payer moins. Devrai-je acheter un équipement particulier? Non, vous n avez pas à acheter d équipement particulier. Vous avez déjà (ou aurez bientôt) dans votre foyer un «compteur intelligent» qui enregistre le moment où vous utilisez l électricité, ce qui nous permet de calculer vos factures selon l heure de la consommation. Le compteur intelligent envoie les données à Hydro Ottawa grâce à une connexion sans fil. QUAND? Quand devrais-je réduire ma consommation d électricité? Vous pouvez économiser le plus en réduisant votre consommation durant les heures de pointe et, lorsque c est possible, en déplaçant votre consommation durant les heures creuses (par ex., en faisant fonctionner le lavevaisselle avant d aller au lit, lorsque les prix sont moins élevés comparativement à durant la journée). Consultez le tableau ci-joint. OÙ Où puis-je obtenir davantage de renseignements sur le projet? Composez le ou écrivez à l adresse suivante : info@ontariosmartpricepilot.ca. POURQUOI Pourquoi réalise-t-on ce projet pilote? Le gouvernement de l Ontario prévoit installer des compteurs intelligents à l échelle de la province d ici La CEO a établi les prix selon l heure de la consommation qui tirent parti des compteurs intelligents afin que les consommateurs puissent mieux gérer leur consommation d électricité. Bientôt, tous les consommateurs qui ont un compteur intelligent paieront les prix selon l heure de la consommation. Périodes de tarification et prix selon l heure de la consommation Prix selon l'heure de la journée Jour de la semaine Heure Période Prix ( /kwh) Fins de semaine et jours fériés Toute la journée Période creuse 3,5 7 h à 11 h Période médiane 7,5 Jours de semaine, l'été 11 h à 17 h Période de pointe 10,5 (1er mai au 31 octobre) 17 h à 22 h Période médiane 7,5 22 h à 7 h Période creuse 3,5 7 h à 11 h Période de pointe 10,5 Jours de semaine, l'hiver (1er nov. au 30 avril) 11 h à 17 h Période médiane 7,5 17 h à 20 h Période de pointe 10,5 20 h à 22 h Période médiane 7,5 22 h à 7 h Période creuse 3,5

97 Projet pilote prix intelligents de l Ontario Échantillon de relevé selon l heure de la consommation d électricité Projet pilote prix intelligents de l Ontario Relevé selon l heure de la consommation d'électricité Remarque : Ce relevé n est pas une facture Compte John Doe 123, rue Main Ottawa VOTRE CONSOMMATION Frais d'électricité Date du service Consommation Période de pointe 8/05/2006 au 9/04/ kwh Période médiane 8/05/2006 au 9/04/ kwh Période creuse 8/05/2006 au 9/04/ kwh Numéro de compte ABC Votre consommation totale kwh Service à la clientèle 24 h sur xxx-xxxx Saison tarifaire : Été Définition des prix Période creuse Prix appliqué à la consommation de 22 h à 7 h les jours de semaine et toute la journée les fins de semaine et les jours fériés. Période médiane Prix appliqué à la consommation de 7 h à 11 h et de 17 h à 22 h les jours de semaine. Période de pointe Prix appliqué à la consommation de 11 h à 17 h les jours de semaine. Consommation d'électricité (kwh) Consommation d'électricité par jour 8/5/06 8/7/06 8/9/06 8/11/06 8/13/06 8/15/06 8/17/06 8/19/06 8/21/06 8/23/06 8/25/06 8/27/06 8/29/06 8/31/06 9/2/06 9/4/06 FRAIS SELON L HEURE DE LA CONSOMMATION (Frais d'électricité seulement, taxes et autres frais en sus) Période de pointe Période médiane Période creuse Frais d'électricité Prix Consommation en kwh Montant Période de pointe 10,5 cents le kwh ,00 $ Période médiane 7,5 cents le kwh ,50 $ Période creuse 3,5 cents le kwh ,50 $ Total des frais selon l heure de la consommation (Ne pas payer) 61,00 $ Prix d'électricité Prix ( /kwh) Période creuse Période médiane Période de pointe

98 Projet pilote prix intelligents de l Ontario Échantillon de relevé final du projet pilote ontarien des prix intelligents Économies du consommateur grâce aux prix selon l heure de la consommation Relevé final du projet pilote ontarien des prix intelligents Période de facturation Facture prix selon l heure de la consommation Facture Prix de l électricité actuels Économie (ou augmentation) 4 août 2006 au 3 septembre $ $ 1.54 $ 4 septembre 2006 au 3 octobre $ $ 4.53 $ 4 octobre 2006 au 3 novembre $ $ $ 4 novembre au 3 décembre $ $ 0.28 $ 4 décembre au 3 janvier $ $ 2.87 $ ÉCONOMIE TOTALE (OU AUGMENTATION) 8.89 $ Paiement de remerciement $ TOTAL FINAL DU CHÈQUE $ Échantillon de relevé final du projet pilote ontarien des prix intelligents Augmentation de la facture du consommateur en raison des prix selon l heure de la consommation Relevé final du projet pilote ontarien des prix intelligents Période de facturation Facture prix selon l heure de la consommation Facture Prix de l électricité actuels Économie (ou augmentation) 4 août 2006 au 3 septembre $ $ $ 4 septembre 2006 au 3 octobre $ $ 4.53 $ 4 octobre 2006 au 3 novembre $ $ $ 4 novembre au 3 décembre $ $ 0.28 $ 4 décembre au 3 janvier $ $ $ ÉCONOMIE TOTALE (OU AUGMENTATION) $ Paiement de remerciement $ TOTAL FINAL DU CHÈQUE $

99 Le 14 juillet 2006 [NOM] 123, rue Principale Ottawa (Ontario) Madame, Monsieur, Vous avez été choisi pour participer au projet pilote ontarien des prix intelligents, une initiative commanditée par la Commission de l énergie de l Ontario (l organisme indépendant qui régit les services publics d électricité et de gaz naturel de la province) et appuyée par Hydro Ottawa. Le projet pilote a pour but de nous aider à mieux connaître la capacité de nos consommateurs à économiser l électricité grâce aux compteurs intelligents et aux prix «selon l heure de la consommation» avant la mise en œuvre du plan d installation de compteurs intelligents dans tous les foyers et les petites entreprises de la province d ici Dans le cadre du projet pilote ontarien des prix intelligents, vos tarifs d électricité varieront tout au long de la journée, comme c est le cas avec les tarifs interurbains (peu de personnes le réalisent, mais le coût de production de l électricité varie selon le moment de la journée). Si vous consommez moins d électricité, ou si vous modifiez ou reportez votre consommation, particulièrement pendant les périodes de pointe, vous pouvez épargner quelques dollars sur vos factures en plus de contribuer à assainir l environnement. Chaque année, lors de certaines journées de «période critique», un prix plus élevé s applique durant trois à quatre heures «de pointe». Les jours de période critique surviennent souvent lorsque les températures sont extrêmes et que la consommation d électricité est élevée. Ils peuvent aussi survenir les jours où la température n est pas loin de la normale, mais qu une des centrales électriques de la province est temporairement incapable de produire de l électricité. Si les Ontariennes et Ontariens utilisent moins d électricité pendant ces quelques heures de pointe, cela aiderait les ressources restantes à satisfaire aux besoins de tous. Vous serez averti le jour précédant chaque jour de période critique par téléphone (grâce à un appel téléphonique automatisé) par courriel ou par message alphabétique, selon ce que vous aurez choisi. Afin de vous remercier de participer à ce projet pilote qui se tiendra d août à décembre cette année nous vous verserons un paiement de remerciement de 75,00 $. Étant donné qu il s agit d un programme pilote, votre facture de Hydro Ottawa continuera à vous être acheminée et vous devrez continuer à l acquitter comme vous le faisiez auparavant. De plus, la CEO vous enverra aussi tous les mois un relevé sur votre consommation d électricité montrant les prix «selon l heure de la consommation». En janvier 2007, à la fin du projet pilote, nous vous ferons parvenir un relevé final ainsi qu un chèque au montant de votre paiement de remerciement plus un crédit pour vos économies selon l heure de la consommation (ou moins un débit si vous avez consommé davantage selon l heure de la consommation). Les consommateurs qui participent à d autres programmes pilotes semblables selon l heure de la consommation constatent généralement une légère variation par rapport aux prix actuels, tandis que certains consommateurs épargnent quelques dollars et d autres paient un peu plus. La feuille de renseignements ci-jointe contient des exemples et d autres détails du programme.

100 N hésitez pas à nous appeler sans frais au si vous désirez davantage de renseignements. Si vous acceptez de participer, veuillez remplir le bulletin d adhésion ci-joint et nous le faire parvenir dans l enveloppe préaffranchie ci-jointe, ou par télécopieur au , d ici le 28 juillet. Nous vous remercions de participer à ce programme de très grande importance. Nom Poste Hydro Ottawa Page 2 of 2

101 Projet pilote prix intelligents de l Ontario QUI Qui commandite le projet pilote? La Commission de l énergie de l Ontario (la CEO), avec le concours de Hydro Ottawa. La CEO est un organisme indépendant qui réglemente les services publics d électricité et de gaz naturel dans l intérêt public. La CEO a lancé ce projet pilote afin d apprendre comment les compteurs intelligents et les prix peuvent avantager les consommateurs. Les changements que les consommateurs apportent à leur consommation durant le projet pilote indiqueront à la CEO à quoi elle peut s attendre lorsque tous les consommateurs auront des compteurs intelligents. Qui participe au projet? De 200 à 300 consommateurs résidentiels de Hydro Ottawa seront choisis au hasard. Le but de la sélection consiste à représenter la diversité des consommateurs qui utilisent l électricité de manières différentes. QUOI Qu est-ce que le projet pilote ontarien des prix intelligents? Le projet vous fournira davantage de renseignements sur la façon dont vous utilisez l électricité et vous indiquera comment vous pouvez économiser en déplaçant votre consommation dans les périodes creuses. Il comporte également une courte enquête (ainsi que la participation facultative à des groupes de discussions) vers la fin du projet, durant laquelle nous vous demanderons si vous aimez le projet, comment vous utilisez l électricité, les changements que vous avez apportés en raison des prix selon l heure de la consommation, des prix liés aux périodes critiques etc. Qu est-ce que le paiement de remerciement? En guise de remerciement, vous recevrez 75 $ si vous participez au projet de cinq mois jusqu à la fin, soit jusqu au 31 décembre Toute économie ou surcharge de facturation selon l heure de la consommation et les prix liés aux périodes critiques sera ajoutée au paiement de remerciement ou en sera déduite. Qu est-ce que les prix exceptionnels? Le barème de prix est appelé «barème selon l heure de la consommation et les périodes critiques» et comporte quatre différents prix au kilowattheure selon l heure de la journée à laquelle l électricité est utilisée (le consommateur moyen utilise environ 25 kilowattheures [kwh] par jour). Voir le tableau ci-dessous. Paierai-je davantage pour l électricité en raison des prix selon l heure de la consommation? En moyenne, les consommateurs qui modifient leurs habitudes de consommation paieront environ la même chose qu avec les prix de l électricité actuels. Certains consommateurs qui n apportent aucun changement pourraient payer quelques dollars de plus au cours de la durée du projet pilote, tandis que d autres pourraient payer moins. Devrai-je acheter un équipement particulier? Non, vous n avez pas à acheter d équipement particulier. Vous avez déjà (ou aurez bientôt) dans votre foyer un «compteur intelligent» qui enregistre le moment où vous utilisez l électricité, ce qui nous permet de calculer vos factures selon l heure de la consommation. Le compteur intelligent envoie les données à Hydro Ottawa grâce à une connexion sans fil. POURQUOI Pourquoi réalise-t-on ce projet pilote? Le gouvernement de l Ontario prévoit installer des compteurs intelligents à l échelle de la province d ici La CEO a établi les prix selon l heure de la consommation qui tirent parti des compteurs intelligents afin que les consommateurs puissent mieux gérer leur consommation d électricité. Bientôt, tous les consommateurs qui ont un compteur intelligent paieront les prix selon l heure de la consommation. COMMENT Comment puis-je obtenir mon paiement de remerciement? Pour obtenir votre paiement de remerciement, il suffit de participer au projet cinq mois, jusqu au 31 décembre Si vous devez quitter le projet, mais que vous avez répondu à l enquête, vous obtiendrez 25 $. Comment les prix selon l heure de la consommation me seront-ils facturés? Vous continuerez de recevoir et de payer votre facture d électricité ordinaire de Hydro Ottawa. De plus, la CEO vous fera parvenir par la poste chaque mois un relevé selon l heure de la consommation d électricité qui indique vos frais. Ce relevé n est pas une facture. À la fin du projet pilote, en janvier, la CEO vous fera parvenir un relevé qui vous montre séparément votre paiement de remerciement et toute économie (ou augmentation) selon l heure de la consommation et compare ces chiffres aux prix de l électricité que vous payez actuellement. Des exemples du relevé selon l heure de la consommation d électricité et du relevé final figurent plus bas. Comment devrais-je réduire ma consommation d électricité durant les périodes de pointe? Vous pouvez utiliser moins d électricité durant les périodes de pointe en faisant la lessive les fins de semaine, en mettant le lave-vaisselle en marche avant d aller au lit, en fermant les lampes et les autres appareils ménagers, en réduisant la puissance du climatiseur ou de la fournaise, en reliant votre chauffe-eau à une minuterie, etc. Vous devez faire ce qui vous semble sensé et mieux convenir à votre mode de vie. QUAND? Quand devrais-je réduire ma consommation d électricité? Vous pouvez économiser le plus en réduisant votre consommation durant les périodes critiques et les heures de pointe et, lorsque c est possible, en déplaçant votre consommation durant les heures creuses (par ex., en faisant fonctionner le lave-vaisselle avant d aller au lit, lorsque les prix sont moins élevés comparativement à durant la journée). Consultez le tableau ci-joint. Quand sont les jours de période critique? Les périodes critiques surviennent durant les jours de semaine, sauf les jours fériés. Ils sont souvent les jours les plus chauds de l été ou les plus froids de l hiver, lorsque la consommation d électricité en raison de la climatisation ou du chauffage grimpe en flèche. Il pourra y avoir jusqu à 9 périodes critiques durant le projet pilote (ces périodes peuvent durer jusqu à 4 heures). Quand saurai-je quels sont les jours de période critique? Nous vous aviserons avant 17 h la veille d une période critique. Les avis sont effectués par appel téléphonique automatisé, par courriel ou message alphabétique, selon votre préférence. OÙ Où puis-je obtenir davantage de renseignements sur le projet? Composez le ou écrivez à l adresse suivante : info@ontariosmartpricepilot.ca. Périodes de tarification et prix selon l heure de la consommation Jour de la semaine Heure Période Prix ( /kwh) Fins de semaine et jours fériés Toute la journée Période creuse 3,1 7 h à 11 h Période médiane 7,5 Jours de semaine, l'été (1er mai au 31 octobre) Jours de semaine, l'hiver (1er nov. au 30 avril) 11 h à 17 h Période de pointe 10,5 17 h à 22 h Période médiane 7,5 22 h à 7 h Période creuse 3,1 Sur avis Période critique* 30,0 7 h à 11 h Période de pointe 10,5 11 h à 17 h Période médiane 7,5 17 h à 20 h Période de pointe 10,5 20 h à 22 h Période médiane 7,5 22 h à 7 h Période creuse 3,1 Sur avis Période critique* 30,0 * - Les périodes critiques surviennent de 3 à 4 heures durant les périodes de pointe, uniquement durant les jours de période critique. Il y

102 Projet pilote prix intelligents de l Ontario Échantillon de relevé selon l heure de la consommation d électricité Projet pilote prix intelligents de l Ontario Relevé selon l heure de la consommation d électricité Remarque : Ce relevé n est pas une facture Compte John Doe 123, rue Main Ottawa Numéro de compte ABC Service à la clientèle 24 h sur xxx-xxxx Saison tarifaire : Été Définition des prix Période creuse Prix appliqué à la consommation de 22 h à 7 h les jours de semaine et toute la journée les fins de semaine et les jours fériés. Période médiane Prix appliqué à la consommation de 7 h à 11 h et de 17 h à 22 h les jours de semaine. Période de pointe Prix appliqué à la consommation de 11 h à 17 h les jours de semaine. Période critique Prix appliqué à la consommation de 11 h à 17 h durant les périodes critiques. VOTRE CONSOMMATION Frais d électricité Date du service Consommation Période critique 8/05/2006 au 9/04/ kwh Période de pointe 8/05/2006 au 9/04/ kwh Période médiane 8/05/2006 au 9/04/ kwh Période creuse 8/05/2006 au 9/04/ kwh Votre consommation totale Consommation d'électricité (kwh) kwh Consommation d'électricité par jour 8/5/06 8/7/06 8/9/06 8/11/06 8/13/06 8/15/06 8/17/06 8/19/06 8/21/06 8/23/06 8/25/06 8/27/06 8/29/06 8/31/06 9/2/06 9/4/06 FRAIS SELON L HEURE DE LA CONSOMMATION (Frais d électricité seulement, taxes et autres frais en sus) Période critique Période de pointe Période médiane Période creuse Frais d électricité Prix Consommation en kwh Montant Période critique 30,0 cents le kwh 25 7,50 $ Période de pointe 10,5 cents le kwh ,38 $ Période médiane 7,5 cents le kwh ,50 $ Période creuse 3,1 cents le kwh ,50 $ Total des frais selon l heure de la consommation (Ne pas payer) 63, 88 $ Prix d'électricité Journées critiques durant ce mois 10 août août août 2006 Prix ( /kwh) Période creuse Période médiane Période de pointe Période critique

103 Projet pilote prix intelligents de l Ontario Échantillon de relevé final du projet pilote ontarien des prix intelligents - Économies du consommateur grâce aux prix selon l heure de la consommation Relevé final du projet pilote ontarien des prix intelligents Période de facturation Facture prix selon l heure de la consommation Facture Prix de l électricité actuels Économie (ou augmentation) 4 août 2006 au 3 septembre $ $ 1.54 $ 4 septembre 2006 au 3 octobre $ $ 4.53 $ 4 octobre 2006 au 3 novembre $ $ $ 4 novembre au 3 décembre $ $ 0.28 $ 4 décembre au 3 janvier $ $ 2.87 $ ÉCONOMIE TOTALE (OU AUGMENTATION) 8.89 $ Paiement de remerciement $ TOTAL FINAL DU CHÈQUE $ Échantillon de relevé final du projet pilote ontarien des prix intelligents - Augmentation de la facture du consommateur en raison des prix selon l heure de la consommation Relevé final du projet pilote ontarien des prix intelligents Période de facturation Facture prix selon l heure de la consommation Facture Prix de l électricité actuels Économie (ou augmentation) 4 août 2006 au 3 septembre $ $ $ 4 septembre 2006 au 3 octobre $ $ 4.53 $ 4 octobre 2006 au 3 novembre $ $ $ 4 novembre au 3 décembre $ $ 0.28 $ 4 décembre au 3 janvier $ $ $ ÉCONOMIE TOTALE (OU AUGMENTATION) $ Paiement de remerciement $ TOTAL FINAL DU CHÈQUE $

104

105 Le 14 juillet 2006 [NOM] 123, rue Principale Ottawa (Ontario) Madame, Monsieur, Vous avez été choisi pour participer au projet pilote ontarien des prix intelligents, une initiative commanditée par la Commission de l énergie de l Ontario (l organisme indépendant qui régit les services publics d électricité et de gaz naturel de la province) et appuyée par Hydro Ottawa. Le projet pilote a pour but de nous aider à mieux connaître la capacité de nos consommateurs à économiser l électricité grâce aux compteurs intelligents et aux prix «selon l heure de la consommation» avant la mise en œuvre du plan d installation de compteurs intelligents dans tous les foyers et les petites entreprises de la province d ici Dans le cadre du projet pilote ontarien des prix intelligents, vos tarifs d électricité varieront tout au long de la journée, comme c est le cas avec les tarifs interurbains (peu de personnes le réalisent, mais le coût de production de l électricité varie selon le moment de la journée). Si vous consommez moins d électricité, ou si vous modifiez ou reportez votre consommation, particulièrement pendant les périodes de pointe, vous pouvez épargner quelques dollars sur vos factures en plus de contribuer à assainir l environnement. Chaque année, lors de certaines journées de «période critique», vous pouvez bénéficier d un rabais spécial en réduisant votre consommation d électricité durant trois à quatre heures qualifiées «de pointe». Les jours de période critique surviennent souvent lorsque les températures sont extrêmes et que la consommation d électricité est élevée. Ils peuvent aussi survenir les jours où la température n est pas loin de la normale, mais qu une des centrales électriques de la province est temporairement incapable de produire de l électricité. Si les Ontariennes et Ontariens utilisent moins d électricité pendant ces quelques heures de pointe, cela aiderait les ressources restantes à satisfaire aux besoins de tous. Vous serez averti le jour précédant chaque jour de période critique par téléphone (grâce à un appel téléphonique automatisé) par courriel ou par message alphabétique, selon ce que vous aurez choisi. Afin de vous remercier de participer à ce projet pilote qui se tiendra d août à décembre cette année nous vous verserons un paiement de remerciement de 75,00 $. Étant donné qu il s agit d un programme pilote, votre facture de Hydro Ottawa continuera à vous être acheminée et vous devrez continuer à l acquitter comme vous le faisiez auparavant. De plus, la CEO vous enverra aussi tous les mois un exposé de votre consommation d électricité montrant les prix «selon l heure de la consommation». En janvier 2007, à la fin du projet pilote, nous vous ferons parvenir un relevé final ainsi qu un chèque au montant de votre paiement de remerciement plus un crédit pour vos économies selon l heure de la consommation (ou moins un débit si vous avez consommé davantage selon l heure de la consommation). Les consommateurs qui participent à d autres programmes pilotes semblables selon l heure de la consommation constatent généralement une légère variation par rapport aux prix actuels, tandis que certains consommateurs épargnent quelques dollars et d autres paient un peu plus. La feuille de renseignements ci-jointe contient des exemples et d autres détails du programme.

106 N hésitez pas à nous appeler sans frais au si vous désirez davantage de renseignements. Si vous acceptez de participer, veuillez remplir le bulletin d adhésion ci-joint et nous le faire parvenir dans l enveloppe préaffranchie ci-jointe, ou par télécopieur au , d ici le 28 juillet. Nous vous remercions de participer à ce programme de très grande importance. Nom Poste Hydro Ottawa Page 2 of 2

107 Projet pilote prix intelligents de l Ontario QUI Qui commandite le projet pilote? La Commission de l énergie de l Ontario (la CEO), avec le concours de Hydro Ottawa. La CEO est un organisme indépendant qui réglemente les services publics d électricité et de gaz naturel dans l intérêt public. La CEO a lancé ce projet pilote afin d apprendre comment les compteurs intelligents et les prix peuvent avantager les consommateurs. Les changements que les consommateurs apportent à leur consommation durant le projet pilote indiqueront à la CEO à quoi elle peut s attendre lorsque tous les consommateurs auront des compteurs intelligents. Qui participe au projet? De 200 à 300 consommateurs résidentiels de Hydro Ottawa seront choisis au hasard. Le but de la sélection consiste à représenter la diversité des consommateurs qui utilisent l électricité de manières différentes. QUOI Qu est-ce que le projet pilote ontarien des prix intelligents? Le projet vous fournira davantage de renseignements sur la façon dont vous utilisez l électricité et vous indiquera comment vous pouvez économiser en déplaçant votre consommation dans les périodes creuses. Il comporte également une courte enquête (ainsi que la participation facultative à des groupes de discussions) vers la fin du projet, durant laquelle nous vous demanderons si vous aimez le projet, comment vous utilisez l électricité, les changements que vous avez apportés en raison des prix selon l heure de la consommation, des rabais liés aux périodes critiques etc. Qu est-ce que le paiement de remerciement? En guise de remerciement, vous recevrez 75 $ si vous participez au projet de cinq mois jusqu à la fin, soit jusqu au 31 décembre Toute économie ou surcharge de facturation selon l heure de la consommation et les rabais liés aux périodes critiques sera ajoutée au paiement de remerciement ou en sera déduite. Qu est-ce que les prix exceptionnels? Le barème de prix est appelé «barème selon l heure de la consommation avec rabais lié aux périodes critiques» et comporte quatre différents prix au kilowattheure selon l heure de la journée à laquelle l électricité est utilisée (le consommateur moyen utilise environ 25 kilowattheures [kwh] par jour). Voir le tableau ci-dessous. Paierai-je davantage pour l électricité en raison des prix selon l heure de la consommation? En moyenne, les consommateurs qui modifient leurs habitudes de consommation paieront environ la même chose qu avec les prix de l électricité actuels. Certains consommateurs qui n apportent aucun changement pourraient payer quelques dollars de plus au cours de la durée du projet pilote, tandis que d autres pourraient payer moins. Devrai-je acheter un équipement particulier? Non, vous n avez pas à acheter d équipement particulier. Vous avez déjà (ou aurez bientôt) dans votre foyer un «compteur intelligent» qui enregistre le moment où vous utilisez l électricité, ce qui nous permet de calculer vos factures selon l heure de la consommation. Le compteur intelligent envoie les données à Hydro Ottawa grâce à une connexion sans fil. POURQUOI Pourquoi réalise-t-on ce projet pilote? Le gouvernement de l Ontario prévoit installer des compteurs intelligents à l échelle de la province d ici La CEO a établi les prix selon l heure de la consommation qui tirent parti des compteurs intelligents afin que les consommateurs puissent mieux gérer leur consommation d électricité. Bientôt, tous les consommateurs qui ont un compteur intelligent paieront les prix selon l heure de la consommation. COMMENT Comment puis-je obtenir mon paiement de remerciement? Pour obtenir votre paiement de remerciement, il suffit de participer au projet cinq mois, jusqu au 31 décembre Si vous devez quitter le projet, mais que vous avez répondu à l enquête, vous obtiendrez 25 $. Comment les prix selon l heure de la consommation me seront-ils facturés? Vous continuerez de recevoir et de payer votre facture d électricité ordinaire de Hydro Ottawa. De plus, la CEO vous fera parvenir par la poste chaque mois un relevé selon l heure de la consommation d électricité qui indique vos frais. Ce relevé n est pas une facture. À la fin du projet pilote, en janvier, la CEO vous fera parvenir un relevé qui vous montre séparément votre paiement de remerciement et toute économie (ou augmentation) selon l heure de la consommation et compare ces chiffres aux prix de l électricité que vous payez actuellement. Des exemples du relevé selon l heure de la consommation d électricité et du relevé final figurent plus bas. Comment devrais-je réduire ma consommation d électricité durant les périodes de pointe? Vous pouvez utiliser moins d électricité durant les périodes de pointe en faisant la lessive les fins de semaine, en mettant le lave-vaisselle en marche avant d aller au lit, en fermant les lampes et les autres appareils ménagers, en réduisant la puissance du climatiseur ou de la fournaise, en reliant votre chauffe-eau à une minuterie, etc. Vous devez faire ce qui vous semble sensé et mieux convenir à votre mode de vie. QUAND? Quand devrais-je réduire ma consommation d électricité? Vous pouvez économiser le plus en réduisant votre consommation durant les périodes critiques et les heures de pointe et, lorsque c est possible, en déplaçant votre consommation durant les heures creuses (par ex., en faisant fonctionner le lave-vaisselle avant d aller au lit, lorsque les prix sont moins élevés comparativement à durant la journée).consultez le tableau ci-joint. Quand sont les jours de période critique? Les périodes critiques surviennent durant les jours de semaine, sauf les jours fériés. Ils sont souvent les jours les plus chauds de l été ou les plus froids de l hiver, lorsque la consommation d électricité en raison de la climatisation ou du chauffage grimpe en flèche. Il pourra y avoir jusqu à 9 périodes critiques durant le projet pilote (ces périodes peuvent durer jusqu à 4 heures). Quand saurai-je quels sont les jours de période critique? Nous vous aviserons avant 17 h la veille d une période critique. Les avis sont effectués par appel téléphonique automatisé, par courriel ou message alphabétique, selon votre préférence. OÙ Où puis-je obtenir davantage de renseignements sur le projet? Composez le ou écrivez à l adresse suivante : info@ontariosmartpricepilot.ca. Périodes de tarification et prix selon l heure de la consommation Jour de la semaine Heure Période Prix ( /kwh) Fins de semaine et jours fériés Toute la journée Période creuse 3,5 7 h à 11 h Période médiane 7,5 11 h à 17 h Période de pointe 10,5 Jours de semaine, l'été 17 h à 22 h Période médiane 7,5 (1er mai au 31 octobre) 22 h à 7 h Période creuse 3,5 Sur avis Période critique* our chaque réduction d'un kwh 7 h à 11 h Période de pointe 10,5 11 h à 17 h Période médiane 7,5 Jours de semaine, l'hiver 17 h à 20 h Période de pointe 10,5 (1er nov. au 30 avril) 20 h à 22 h Période médiane 7,5 22 h à 7 h Période creuse 3,5 Sur avis Période critique* our chaque réduction d'un kwh * - Les périodes critiques surviennent de 3 à 4 heures durant les périodes de pointe, uniquement durant les jours de période critique. Il y

108 Projet pilote prix intelligents de l Ontario Échantillon de relevé selon l heure de la consommation d électricité Projet pilote prix intelligents de l Ontario Relevé selon l heure de la consommation d'électricité Remarque : Ce relevé n est pas une facture Compte John Doe 123, rue Main Ottawa Numéro de compte ABC Service à la clientèle 24 h sur xxx-xxxx VOTRE CONSOMMATION Frais d'électricité Date du service Consommation Période de pointe 8/05/2006 au 9/04/ kwh Période médiane 8/05/2006 au 9/04/ kwh Période creuse 8/05/2006 au 9/04/ kwh Votre consommation totale kwh Réduction de la consommation durant les périodes critiques Date Réduction Période critique 8/10/2006 2,5 kwh Période critique 8/11/2006 2,1 kwh Période critique 8/29/2006 2,4 kwh Saison tarifaire : Été Définition des prix Période creuse Prix appliqué à la consommation de 22 h à 7 h les jours de semaine et toute la journée les fins de semaine et les jours fériés. Période médiane Prix appliqué à la consommation de 7 h à 11 h et de 17 h à 22 h les jours de semaine. Période de pointe Prix appliqué à la consommation de 11 h à 17 h les jours de semaine. Rabais de période critique Rabais s appliquant aux réductions de la consommation durant les périodes critiques (3 ou 4 heures durant une période de pointe, sur avis). Total des réductions de consommation aux fins du rabais Consommation d'électricité (kwh) Consommation d'électricité par jour 8/5/06 8/7/06 8/9/06 8/11/06 8/13/06 8/15/06 8/17/06 8/19/06 8/21/06 8/23/06 8/25/06 8/27/06 8/29/06 8/31/06 9/2/06 9/4/06 FRAIS SELON L HEURE DE LA CONSOMMATION (Frais d'électricité seulement, taxes et autres frais en sus) Période critique Période de pointe Période médiane Période creuse Frais d'électricité Prix kwh Montant Période critique 30,0 cents le kwh 7-2,10 $ Période de pointe 10,5 cents le kwh ,27 $ Période médiane 7,5 cents le kwh ,03 $ Période creuse 3,5 cents le kwh ,50 $ Total des frais selon l heure de la consommation (Ne pas payer) 58, 69 $ 7,0 kwh Journées critiques durant ce mois 10 août août août 2006 Prix ( /kwh) Prix d'électricité Prix du Remboursement Période creuse Période médiane Période de pointe Période critique

109 Projet pilote prix intelligents de l Ontario Échantillon de relevé final du projet pilote ontarien des prix intelligents - Économies du consommateur grâce aux prix selon l heure de la consommation Relevé final du projet pilote ontarien des prix intelligents Période de facturation Facture prix selon l heure de la consommation Facture Prix de l électricité actuels Économie (ou augmentation) 4 août 2006 au 3 septembre $ $ 1.54 $ 4 septembre 2006 au 3 octobre $ $ 4.53 $ 4 octobre 2006 au 3 novembre $ $ $ 4 novembre au 3 décembre $ $ 0.28 $ 4 décembre au 3 janvier $ $ 2.87 $ ÉCONOMIE TOTALE (OU AUGMENTATION) 8.89 $ Paiement de remerciement $ TOTAL FINAL DU CHÈQUE $ Échantillon de relevé final du projet pilote ontarien des prix intelligents - Augmentation de la facture du consommateur en raison des prix selon l heure de la consommation Relevé final du projet pilote ontarien des prix intelligents Période de facturation Facture prix selon l heure de la consommation Facture Prix de l électricité actuels Économie (ou augmentation) 4 août 2006 au 3 septembre $ $ $ 4 septembre 2006 au 3 octobre $ $ 4.53 $ 4 octobre 2006 au 3 novembre $ $ $ 4 novembre au 3 décembre $ $ 0.28 $ 4 décembre au 3 janvier $ $ $ ÉCONOMIE TOTALE (OU AUGMENTATION) $ Paiement de remerciement $ TOTAL FINAL DU CHÈQUE $

110 Ontario Energy Board Smart Price Pilot Appendix D: Sample Confirmation Package Materials

111 Ontario Energy Board Smart Price Pilot Contents English 1. TOU Confirmation Letter 2. CPP/CPR Confirmation Letter 3. TOU Enrolment and Release Form 4. CPP/CPR Enrolment and Release Form 5. Energy Saving Tips Brochure French 1. TOU Confirmation Letter 2. CPP/CPR Confirmation Letter 3. TOU Enrolment and Release Form 4. CPP/CPR Enrolment and Release Form 5. Energy Saving Tips Brochure Bilingual 1. TOU Fridge Magnet 2. CPP Fridge Magnet 3. CPR Fridge Magnet

112 Follow up letter to participants, version 1-TOU Only Ontario Energy Board Commission de l Énergie de l Ontario P.O. Box 2319 CP Yonge Street 2300, rue Yonge 27 th Floor 27e étage Toronto, ON M4P 1E4 Toronto (ON) M4P 1E4 Telephone: (416) Téléphone: (416) Facsimile: (416) Télécopieur: (416) July, 2006 [name field] [address field] Dear [name field], Thank you for confirming your participation in the Ontario Smart Price Pilot. We hope to give you the power to make informed choices about your energy consumption. With the information from smart meters, you ll know how much energy you are using at different times of the day and, with the pilot prices, how much it is costing you. The best way to ensure that you achieve energy savings is to check what time energy prices are lowest and to run appliances (such as dishwashers and laundry) during those off-peak hours; and to conserve energy during those times when prices are highest. We have enclosed a handy refrigerator magnet to help you remember the peak times and prices. We have also enclosed a brochure with energy saving tips you can apply to save money at all hours of the day. If you have specific questions about the Ontario Smart Price Pilot, please call our tollfree information line, METER [ ], between the hours of 11 am and 8 pm, or us at info@smartprice.ca. Thank you for participating in this important program. Sincerely, [name] Ontario Energy Board Enclosures

113 Follow up letter to participants, version 2-CPP/CPR Ontario Energy Board Commission de l Énergie de l Ontario P.O. Box 2319 CP Yonge Street 2300, rue Yonge 27 th Floor 27e étage Toronto, ON M4P 1E4 Toronto (ON) M4P 1E4 Telephone: (416) Téléphone: (416) Facsimile: (416) Télécopieur: (416) July, 2006 [name field] [address field] Dear [name field], Thank you for confirming your participation in the Ontario Smart Price Pilot. We hope to give you the power to make informed choices about your energy consumption. With the information from smart meters, you ll know how much energy you are using at different times of the day and, with the pilot prices, how much it is costing you. The best way to ensure that you achieve energy savings is to check what time energy prices are lowest and run appliances (such as dishwashers and laundry) during those off-peak hours; and to conserve energy during those times when prices are highest. We have enclosed a handy refrigerator magnet to help you remember the peak times and prices. We have also enclosed a brochure with energy saving tips you can apply to save money at all hours of the day. You can expect to receive a phone call, , or text message the day before a Critical Peak event, so that you can plan your energy usage accordingly. If you have specific questions about the Ontario Smart Price Pilot, please call our tollfree information line, METER [ ], between the hours of 11 am and 8 pm, or us at info@smartprice.ca. Thank you for participating in this important program. Sincerely, [name] Ontario Energy Board Enclosures

114 Ontario Smart Price Pilot Enrollment and Release Form Participant Name (Hydro Ottawa Account Holder): Participant Account # Participant Service Address: I wish to voluntarily participate in the Ontario Smart Price Pilot (the Pilot) and therefore covenant and agree, in consideration for my participation in this Pilot, to the following: I consent to the disclosure of my customer and electricity consumption data by Hydro Ottawa Limited to its approved agents and contractors as necessary to perform its duties with respect to the Pilot provided that such agents and contractors have executed a non-disclosure agreement. I acknowledge that my customer and electricity consumption data may be stored at Hydro Ottawa Limited s approved agent s or contractor s facilities located in the United States of America and I consent to the storage of the said information in such facilities. I hereby certify that I am at least 18 years of age and acknowledge that I have not relied upon any advice, representations or inducements by or on behalf of Hydro Ottawa Limited in deciding to either participate in the Pilot or sign this document. I ACKNOWLEDGE that I have read this document and that I fully understand its terms. Please accept this as confirmation of my enrollment in the Ontario Smart Price Pilot. Dated at this day of Signature: Name: Signature[Witness]: Name: [Witness]: I live in a: I have: I have: I have: single-family house apartment or condominium central air conditioning window air conditioning no air conditioning electric space heating gas space heating electric water heating gas water heating Please return in pre-paid envelope or fax to (1-866) by July 28, 2006

115 Ontario Smart Price Pilot Enrollment and Release Form Participant Name (Hydro Ottawa Account Holder): Participant Account # Participant Service Address: I wish to voluntarily participate in the Ontario Smart Price Pilot (the Pilot) and therefore covenant and agree, in consideration for my participation in this Pilot, to the following: I consent to the disclosure of my customer and electricity consumption data by Hydro Ottawa Limited to its approved agents and contractors as necessary to perform its duties with respect to the Pilot provided that such agents and contractors have executed a non-disclosure agreement. I acknowledge that my customer and electricity consumption data may be stored at Hydro Ottawa Limited s approved agent s or contractor s facilities located in the United States of America and I consent to the storage of the said information in such facilities. I hereby certify that I am at least 18 years of age and acknowledge that I have not relied upon any advice, representations or inducements by or on behalf of Hydro Ottawa Limited in deciding to either participate in the Pilot or sign this document. I ACKNOWLEDGE that I have read this document and that I fully understand its terms. Please accept this as confirmation of my enrollment in the Ontario Smart Price Pilot. Dated at this day of Signature: Name: Signature[Witness]: Name: [Witness]: I live in a: I have: I have: I have: I prefer: single-family house apartment or condominium central air conditioning window air conditioning no air conditioning electric space heating gas space heating electric water heating gas water heating notify me of critical peak days at phone number: notify me via text message: notify me via Please return in pre-paid envelope or fax to (1-866) by July 28, 2006

116 Fridges and freezers Owning a second fridge may be costing you several hundred dollars per year. If you use the fridge occasionally, consider removing it and/or replacing it with a smaller, more energy efficient model. Turn up the temperature to the point that food still lasts as long as before. If applicable, turn OFF the butter warmer and turn ON the energy saver switch. Vacuum the coils on the back of or under the fridge, make sure there is enough air space between it and the wall, and clean the door seal so that it closes tightly. Don t overfill the fridge but keep the freezer as full as possible; when you need to defrost food, put it in your fridge, instead of on the counter. Don t let frost in the freezer exceed 1/4 inch. Defrost it regularly but don t use a sharp object to remove ice as you could puncture the walls. Taps and showerheads Install low flow showerheads and encourage everyone to take short showers instead of filling up the bathtub with hot water. Tighten leaky taps or replace the gasket if necessary, especially for hot water taps. Install a faucet aerator to save on both water and water heating costs. Laundry Use the cold or warm water setting on the washer whenever possible and always rinse with cold water. Dry your clothes outside or use an indoor rack set near a sunny window that you can open during the summer. The extra humidity will make your house more comfortable in the winter. If you use a clothes dryer, clean the lint trap after every load, and make sure the vent isn t blocked. Add a dry towel to help spread the moisture around and dry similar thickness clothes together. Avoid putting really wet clothes in the dryer. Run the spin cycle again or wring them out by hand. If drying more than one load, do the second load right away so the dryer doesn t cool down. Dishwashing Washing dishes by hand in a sink (without the water running) and rinsing them in a basin of cold water is the most energy-efficient way. If you use a dishwasher, scrape excess food off dishes, don t pre-rinse, use the shortest cycle (econo) only when the dishwasher is full, and air dry dishes instead of using the heating element.

117 Interested in learning simple, energy and cost-saving techniques? This guide is designed to help you, your family, friends and neighbours reduce electricity bills without making big investments. To make it easier, each tip includes symbols that indicate how much electricity you might save, how much effort it takes, if you need to buy anything, and if there are additional benefits: larger savings moderate savings smaller savings easy to do you need to keep doing this you need to buy something health and comfort benefits Electric hot water tanks If your water comes out steaming hot and you rarely run out of hot water, lower the temperature setting to a safer level ONLY AFTER turning off the power. Wrap your hot water tank with an insulating blanket, especially if it is in an unheated space, and insulate the hot and cold water pipes leaving the tank. Drain a bucket of water from the bottom of your tank once a year. Turn the tank off at the breaker if you are going to be away for more than a few days. Space heating and cooling Install programmable, digital thermostats and program them to lower the temperature when you are not home or are sleeping. If you know your house is too drafty, seal up the cracks and holes that let hot air OUT during the winter and muggy air IN during the summer. Caulking and weatherstripping are cheap and effective ways to save energy but should not be used in homes with inadequate ventilation. Use plastic window film or removable caulking on windows you won t open during the winter.you can remove both in the spring and re-use them in the fall. Cover unused windows with two layers of aluminum foil bubble wrap when it gets too hot or cold outside. Use heavy curtains, especially ones with insulated liners, that go all the way down to the floor. Ensure they won t interfere with heaters or vents. In the winter, open curtains during the day to let in the sun and close them at night to keep the heat in. In the summer, open your windows at night and close them and any curtains during the day to keep the sun out. Use fans instead of air conditioners. If you must use an air conditioner, turn the temperature setting up so that it runs the least amount of time possible.

118 Cooking Use a microwave or a toaster oven instead of the oven to heat up, toast or cook small amounts of food. Use an electric kettle for boiling water, instead of a pot on the stove. Boil only as much water as you need each time. If buying an electric kettle, get one with a water level indicator as it makes boiling the right amount of water easier. Turn off the stove top or oven before you re finished cooking as the retained heat will keep things cooking for several minutes. Use pots the same size as the element, always use covers, and keep the trays underneath clean so that they reflect the heat up towards the pots. Lighting Use compact fluorescent lights (CFLs) in fixtures that are on more than four hours per day.they are more expensive to buy but will save you money in the long-term. Use non-dimming motion sensors or timers for exterior lights instead of leaving them on all night. Use lower wattage lights where you need them instead of lighting up the whole room. Take advantage of natural light as much as possible. Use LED holiday lights instead of incandescent ones. How much does it cost to use appliances? If your appliance doesn t have a label showing how many watts it consumes, use a Watt Meter to find out. Multiply the watts (W) by the number of hours 1 2 1,000 to 3 it is used per year to get watt-hours (Wh). Divide by get kwh. Divide by 10 to get the estimated cost in dollars (your electricity rates are about $0.10 per kwh but there are fixed fees that you pay regardless of how much you consume or conserve). On average, a 5W digital clock plugged in all the time = 5W x 24hrs x 365 days 1, cents = $4.38 / year for consuming 43.8 kwh/year

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120 Ontario Energy Board Commission de l énergie de l Ontario P.O. Box 2319 CP Yonge Street 2300, rue Yonge 27 th Floor 27 e étage Toronto, ON M4P 1E4 Toronto (ON) M4P 1E4 Telephone: (416) Téléphone : Facsimile: (416) Télécopieur : Le juillet 2006 [name field] [address field] [name field], Nous vous remercions de participer au Projet pilote ontarien des prix intelligents. Ce programme vous donne l occasion de faire des choix informés concernant votre consommation d énergie. Grâce aux données des compteurs intelligents, vous saurez combien d énergie vous utilisez à différents moments de la journée et, grâce aux prix du projet pilote, combien cela vous coûte. La meilleure façon d économiser l énergie est de vérifier à quel moment les prix sont les plus bas afin d utiliser les appareils ménagers (comme le lave-vaisselle et la machine à laver) durant les «heures creuses» et d économiser l énergie durant les périodes où les prix sont les plus élevés. Vous trouvez ci-joint un aide-mémoire magnétique que vous pourrez coller sur le réfrigérateur afin de connaître les périodes de pointe où les prix sont les plus élevés. Nous avons également joint à la présente une brochure offrant des conseils pour réduire votre consommation d énergie et économiser toute la journée. Si vous avez des questions concernant le Projet pilote ontarien des prix intelligents, veuillez appeler notre ligne de renseignements sans frais au , de 11 à 20 h ou écrivez-nous un courriel à l adresse suivante : info@smartprice.ca. Nous vous remercions de participer à ce programme de très grande importance. Veuillez agréer l expression de mes sentiments les meilleurs. Marika Hare Commission de l énergie de l Ontario P.j TOU-FR

121 Ontario Energy Board Commission de l énergie de l Ontario P.O. Box 2319 CP Yonge Street 2300, rue Yonge 27 th Floor 27 e étage Toronto, ON M4P 1E4 Toronto ON M4P 1E4 Telephone : (416) Téléphone : Facsimile : (416) Télécopieur : Le juillet 2006 [name field] [address field] [name field], Nous vous remercions de participer au Projet pilote ontarien des prix intelligents. Ce programme vous donne l occasion de faire des choix informés concernant votre consommation d énergie. Grâce aux données des compteurs intelligents, vous saurez combien d énergie vous utilisez à différents moments de la journée et, grâce aux prix du projet pilote, combien cela vous coûte. La meilleure façon d économiser l énergie est de vérifier à quel moment les prix sont les plus bas afin d utiliser les appareils ménagers (comme le lave-vaisselle et la machine à laver) durant les «heures creuses» et d économiser l énergie durant les périodes où les prix sont les plus élevés. Vous trouvez ci-joint un aide-mémoire magnétique que vous pourrez coller sur le réfrigérateur afin de connaître les périodes de pointe où les prix sont les plus élevés. Nous avons également joint à la présente une brochure offrant des conseils pour réduire votre consommation d énergie et économiser toute la journée. Vous recevrez un appel téléphonique, un courriel ou un message alphabétique la veille d une période critique, ce qui vous permettra de planifier votre consommation d énergie en conséquence. Si vous avez des questions concernant le Projet pilote ontarien des prix intelligents, veuillez appeler notre ligne de renseignements sans frais au , de 11 à 20 h ou écrivez-nous un courriel à l adresse suivante : info@smartprice.ca. Nous vous remercions de participer à ce programme de très grande importance. Veuillez agréer l expression de mes sentiments les meilleurs. Marika Hare Commission de l énergie de l Ontario P.j.

122 Projet pilote prix intelligent Inscription et autorisation Nom du participant (titulaire du compte d Hydro Ottawa) : Numéro du compte : Adresse de service : Je souhaite de mon plein gré participer au projet pilote «Prix intelligent de l Ontario» (le Projet), en conséquence de quoi, je conviens et accepte ce qui suit. Je consens à ce qu Hydro Ottawa limitée divulgue les données sur mon compte et ma consommation d électricité à ses agents et sous-traitants autorisés dans la mesure où la divulgation de ces données est nécessaire au respect de ses obligations dans le cadre du Projet, pourvu que lesdits agents et sous-traitants aient signé une entente de non-divulgation. Je comprends que les données sur mon compte et ma consommation d électricité pourront être stockées aux installations de l agent ou du sous-traitant autorisé de Hydro Ottawa limitée situées aux États-Unis d Amérique et j accepte que ces données y soient stockées. J atteste par la présente avoir au moins 18 ans et reconnais ne pas m être fondé sur les conseils, les déclarations ou les incitations de Hydro Ottawa limitée ou faites en son nom pour décider de participer au Projet ou de signer ce document. JE RECONNAIS avoir lu ce document et en comprendre entièrement les conditions. Ceci constitue la confirmation de mon inscription au projet pilote «Prix intelligent de l Ontario». Signé à ce e jour de Signature : Nom : Signature[Témoin] : Nom [Témoin] : J habite dans : J ai : J ai : J ai : une habitation unifamiliale un appartement ou un condominium la climatisation centrale un climatiseur de fenêtre aucune climatisation un système de chauffage électrique un système de chauffage au gaz un chauffe-eau électrique un chauffe-eau au gaz Prière de renvoyer dans l enveloppe port payé ou par télécopieur au (1-866) d ici le 28 juillet 2006

123 Projet pilote prix intelligent Inscription et autorisation Nom du participant (titulaire du compte d Hydro Ottawa) : Numéro du compte : Adresse de service : Je souhaite de mon plein gré participer au projet pilote «Prix intelligent de l Ontario» (le Projet), en conséquence de quoi, je conviens et accepte ce qui suit. Je consens à ce qu Hydro Ottawa limitée divulgue les données sur mon compte et ma consommation d électricité à ses agents et sous-traitants autorisés dans la mesure où la divulgation de ces données est nécessaire au respect de ses obligations dans le cadre du Projet, pourvu que lesdits agents et sous-traitants aient signé une entente de non-divulgation. Je comprends que les données sur mon compte et ma consommation d électricité pourront être stockées aux installations de l agent ou du sous-traitant autorisé de Hydro Ottawa limitée situées aux États-Unis d Amérique et j accepte que ces données y soient stockées. J atteste par la présente avoir au moins 18 ans et reconnais ne pas m être fondé sur les conseils, les déclarations ou les incitations de Hydro Ottawa limitée ou faites en son nom pour décider de participer au Projet ou de signer ce document. JE RECONNAIS avoir lu ce document et en comprendre entièrement les conditions. Ceci constitue la confirmation de mon inscription au projet pilote «Prix intelligent de l Ontario». Signé à ce e jour de Signature : Nom : Signature[Témoin] : Nom [Témoin] : J habite dans : J ai : J ai : J ai : Je préfère : une habitation unifamiliale un appartement ou un condominium la climatisation centrale un climatiseur de fenêtre aucune climatisation un système de chauffage électrique un système de chauffage au gaz un chauffe-eau électrique un chauffe-eau au gaz qu on me signale les jours de pointe critiques au numéro de téléphone : qu on me les signale par messagerie textuelle au numéro : qu on me les signale par courriel à l adresse : Prière de renvoyer dans l enveloppe port payé ou par télécopieur au (1-866) d ici le 28 juillet 2006

124 ONTARIO SMART PRICE PILOT TIME OF USE PERIODS AND RATES PROJET PILOTE DE PRIX INTELLIGENT PÉRIODES D UTILISATION ET PRIX Day of the Week Jours de la semaine Weekends & Holidays Fins de semaine et fériés Summer Weekdays (May 1 st - Oct 31 st ) Jours de semaine l été (du 1 er mai au 31 octobre) Winter Weekdays (Nov 1 st - Apr 30 th ) Jours de semaine l hiver (du 1 er novembre au 30 avril) Time Heures Time of Use Périodes d utilisation Price/Prix* ( /kwh) All Day / Toute la journée Off-peak / Période creuse am to 11 am / 7 h à 11 h Mid-peak / Période moyenne am to 5 pm / 11 h à 17 h On-peak / Période de pointe pm to 10 pm / 17 h à 22 h Mid-peak / Période moyenne pm to 7 am / 22 h à 7 h Off-peak / Période creuse am to 11 am / 7 h à 11 h On-peak / Période de pointe am to 5 pm / 11 h à 17 h Mid-peak / Période moyenne pm to 8 pm / 17 h à 20 h On-peak / Période de pointe pm to 10 pm / 20 h à 22 h Mid-peak / Période moyenne pm to 7 am / 22 h à 7 h Off-peak / Période creuse 3.5 Effective August 2006 / Efficace le 2006 août

125 ONTARIO SMART PRICE PILOT CRITICAL PEAK PERIODS AND RATES PROJET PILOTE DE PRIX INTELLIGENT PÉRIODES D UTILISATION ET PRIX Day of the Week Time Period Price/Prix* Jours de la semaine Heures Périodes d utilisation ( /kwh) Weekends & Holidays Fins de semaine et fériés Summer Weekdays (May 1 st - Oct 31 st ) All Day / Toute la journée Off-peak / Période creuse am to 11 am / 7 h à 11 h Mid-peak / Période moyenne am to 5 pm / 11 h à 17 h On-peak / Période de pointe 10.5 Jours de semaine l été (du 1 er mai au 31 octobre) Winter Weekdays (Nov 1 st - Apr 30 th ) Jours de semaine l hiver (du 1 er novembre au 30 avril) 5 pm to 10 pm / 17 h à 22 h Mid-peak / Période moyenne pm to 7 am / 22 h à 7 h Off-peak / Période creuse 3.1 Upon notification / Sur la notification Critical peak / Pointe critique am to 11 am / 7 h à 11 h On-peak / Période de pointe am to 5 pm / 11 h à 17 h Mid-peak / Période moyenne pm to 8 pm / 17 h à 20 h On-peak / Période de pointe pm to 10 pm / 20 h à 22 h Mid-peak / Période moyenne pm to 7 am / 22 h à 7 h Off-peak / Période creuse 3.1 Upon notification / Sur la notification Critical peak / Pointe critique 30.0 * Critical peak occurs for 3 or 4 hours during the on-peak period, on critical peak days only. The maximum number of such days in the pilot will be 9. Effective August 2006 * Le pointe critique arrive pour 3 ou 4 heures pendant le sur les heures de pointe, sur les jours de pointe critiques seulement. Le nombre maximum de tels jours dans le pilote sera 9. Efficace le 2006 août

126 ONTARIO SMART PRICE PILOT CRITICAL PEAK REBATE PERIODS AND RATES PROJET PILOTE DE PRIX INTELLIGENT PÉRIODES D UTILISATION ET PRIX Day of the Week Time Period Price/Prix* Jours de la semaine Heures Périodes d utilisation ( /kwh) Weekends & Holidays Fins de semaine et fériés Summer Weekdays (May 1 st - Oct 31 st ) Jours de semaine l été (du 1 er mai au 31 octobre) All Day / Toute la journée Off-peak / Période creuse am to 11 am / 7 h à 11 h Mid-peak / Période moyenne am to 5 pm / 11 h à 17 h On-peak / Période de pointe pm to 10 pm / 17 h à 22 h Mid-peak / Période moyenne pm to 7 am / 22 h à 7 h Off-peak / Période creuse 3.1 Upon notification / Sur la notification Critical peak / Pointe critique 30.0 per kwh reduced / réduit Winter Weekdays (Nov 1 st - Apr 30 th ) Jours de semaine l hiver (du 1 er novembre au 30 avril) 7 am to 11 am / 7 h à 11 h On-peak / Période de pointe am to 5 pm / 11 h à 17 h Mid-peak / Période moyenne pm to 8 pm / 17 h à 20 h On-peak / Période de pointe pm to 10 pm / 20 h à 22 h Mid-peak / Période moyenne pm to 7 am / 22 h à 7 h Off-peak / Période creuse 3.1 Upon notification / Sur la notification Critical peak / Pointe critique 30.0 per kwh reduced / réduit * Critical peak occurs for 3 or 4 hours during the on-peak period, on critical peak days only. The maximum number of such days in the pilot will be 9. Effective August 2006 * Le pointe critique arrive pour 3 ou 4 heures pendant le sur les heures de pointe, sur les jours de pointe critiques seulement. Le nombre maximum de tels jours dans le pilote sera 9. Efficace le 2006 août

127 Ontario Energy Board Smart Price Pilot Appendix E: Load Impact and Conservation Effect Analytical Model

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129 Load Impact and Conservation Effect Analytical Model Ontario Smart Price Pilot July 2007 Abstract This paper summarizes the analysis performed to assess the effects of dynamic pricing in the Ontario Smart Price Pilot on participant electricity consumption over the experimental period of August 1, 2006 to February 28, The pilot was for residential customers. Participants were placed on time-of-use prices (TOU) and divided into three sub-sets: TOU only, TOU plus critical peak prices, and TOU plus critical peak rebates. The analysis assessed demand response defined as load shifting away from critical peak hours during critical peak events, demand response defined as load shifting away from all peak hours, and conservation defined as reduction in total usage of electricity for the calendar period. To analyze demand response and conservation, a nonparametric conditional mean estimation framework was used. The framework used customer-level fixed effects and day-of-sample fixed effects. The model estimation results indicate statistically significant reductions in peak usage during critical peak hours in the summer for customers on critical peak pricing plans, in peak usage during all peak hours in the summer, and in total electricity consumption over the seven months of the pilot. 1. Introduction The Ontario Smart Price Pilot involved 501 residential customers of Hydro Ottawa in Ottawa, Ontario for an experimental period of August 1, 2006 to February 28, The purposes of the pilot included determining the effects of dynamic pricing on participant electricity consumption over the experimental period of August 1, 2006 to February 28, The load impact and conservation econometric analysis was performed to assess the following: 1. Demand response via load shifting away from critical peak hours during critical peak events, 2. Demand response via load shifting away from all peak hours, and 3. Conservation via reducing total usage of electricity for the duration of the pilot, regardless of which hours the electricity was used. -1-

130 These effects are determined by comparing the electricity consumption behavior of customers receiving the experimental prices (TOU, CPP, and CPR) and the behavior of customers remaining on their existing prices (increasing block tiered prices). These customer groups are the Treatment and Control groups, respectively. The analytical model used is a nonparametric conditional mean estimation framework. This framework is the most general model one can estimate to recover the impact of a critical peak event, the independent variable in the model. Unlike other pilot results, with this framework, it is hard to think of any omitted variable that is not controlled for that could be causing the results. Additional information is provided under Methodology. Details of the analysis are given in the respective sections below, Demand Response Impacts and Conservation Effects. During July 2006, a random sample of Hydro Ottawa customers was selected and randomly assigned to three treatment options: TOU, CPP, and CPR prices. The selected customers were then solicited to participate in the experiment. Customers who volunteered to participate were then enrolled, resulting in three groups of approximately 125 customers each for TOU, CPP, and CPR prices. Such customers received monthly energy statements showing their bill amounts for the TOU, CPP, and CPR prices for the electricity commodity (i.e., excluding distribution, transmission, and other charges). To create the Control group, 125 customers were selected in a stratified random sample from approximately 4,500 customers with smart meters. The stratification ensured that customers with low, medium, and high consumption would be included. The 4,500 customer sample pool from which the control customers were selected included approximately 3,200 customers who had not been solicited to participate and 1,300 customers who had received the pilot solicitation but did not respond for a variety of reasons, including lack of awareness (did not open the solicitation letter), apathy, and conscious decision not to participate. -2-

131 Table 1 summarizes the results of the analysis. In understanding the results, it is helpful to remember: 1) regarding critical peak usage, that TOU customers were not notified of critical peak events, and 2) regarding peak period usage, that CPP and CPR customers had both critical peak prices/rebates as well as TOU prices. Also note that many of the results are not very precisely estimated; the most robust results are those for reduction in usage during the critical peak hours on critical peak days. Additional analysis details are provided in the subsequent discussion. Table 1: Demand Response and Conservation Effects Change Resulting from Participating in Ontario Smart Pricing Pilot Pilot Pricing Group Critical Peak Usage* Peak Period Usage* Total Electric Usage Time of Use (TOU) -5.7% ** -6.0% Critical Peak Pricing (CPP) -25.4% -8.1% -4.7%*** Critical Peak Rebate (CPR) -17.5% -5.2% -7.4% * - These results are for summer only (August 1-November 30). Results for the winter period for these variables were not statistically significant. ** - Result not statistically significant. *** - Result not statistically significant at the 90% level, but nearly so (approximately 88% probability). While the three treatment groups have been referred to as TOU, CPP, and CPR in this paper, it is important to clarify that the participants subject to CPP and CPR also paid the same TOU prices as the TOU-only group during all non-critical peak event hours. Accordingly, the three price plans for the treatment groups are technically characterized as TOU, CPP(+TOU), and CPR(+TOU). -3-

132 2. Methodology The demand response impact and conservation effect analysis used a nonparametric conditional mean estimation framework. The framework uses customerlevel fixed effects and day-of-sample fixed effects. The demand response impacts were determined using hourly data for the pilot period of August 2006 through February 2007, while the conservation effect was determined using bi-monthly billing consumption data for the treatment and control customers for the 12 months preceding the pilot in combination with the hourly data during the pilot. The fixed effects approach uses a separate intercept term for each customer to control for effects that are unique to that customer and constant over the time period being examined. The unique effects of the stable, but unmeasured characteristics of each customer are their fixed effects from which this method takes its name. The fixed effects nature of the model means the model does not need to include unchanging customer characteristics such as square footage, number of floors, equipment, etc. Controlling for fixed effects controls the amount of variance (noise) the model is faced with, since each customer has a different base load, a different response to weather, and a different pattern of consumption that changes over time. We are also using time effects, which means that the model controls for all differences in consumption across days in the sample due to temperature, sunshine and any other factors common to all customers for the same day. {{I don t think any of these studies use day-of-sample fixed effects too.}} This approach also provides for a much closer fit to the data than most models, as individual responsiveness is incorporated. This approach has worked well in estimating the impacts of mass-market programs such as the California Statewide Pricing Pilot, the Idaho Power critical peak pricing pilot, and the Sacramento Municipal Utilities District air conditioning direct load control program. Such an approach is also consistent with the recommendations of the California Evaluation Framework prepared for the California Public Utilities Commission The Framework, a 500-page compendium, was prepared in June 2004 by the team of TecMarket Works, Megdal Associates, Architectural Energy Corporation, RLW Analytics, Resource Insight, B&B -4-

133 The Framework describes the various regression models available for the type of data in the pilot and highlights the benefit of a more general approach: Most regression models are estimated as ordinary least squares (OLS), generalized least squares (GLS), or other forms of maximum likelihood estimation. These methods generally produce similar results under similar circumstances. Generalized least squares, as its name implies, is a more generalized statistical equation. If the error term is normally distributed, both OLS and GLS may be identical to the maximum likelihood estimate (MLE). There are differences in these estimation methods, however, that lead to the decision of which model specification is more appropriate for different circumstances. The more generalized the method, the more it can often be used to correct for different issues. At the same time, it can become more computationally difficult. 2 The analysis of the pilot could be estimated by GLS but that would not be as robust as the technique used for this pilot. To use technical statistical jargon, we are using OLS with standard errors that are robust to heteroscedasticity and autocorrelation of an unknown form. If we modeled the structure of correlation and used a GLS estimator, we may be able to improve the apparent efficiency of the estimates, but we would be subject to the criticism that our results may be driven by the method we used to correct for autocorrelation and heteroscedasticity, a complaint that cannot be lodged against the results presented here. Demand Response To estimate the analysis results for demand response, we use the model y (i,t) = α i + λ t + Treat i *TOU t * β1 + Treat i *CPP t * β2 + Treat i *CPR t * β3 + ε (i,t) [1] where: Resources, Ken Keating Associates, Ed Vine Associates, American Council for an Energy Efficient Economy, Ralph Prahl Associates, and Innovologie. 2 - TecMarket Works, The California Evaluation Framework, June 2004, p

134 y (i,t) is the natural logarithm of consumption for customer i during the peak hours on day t, α i is the customer-level fixed effects, λ t is the day of sample fixed effect, Treat i is the dummy variable whether a customer is treatment or control, TOU t or CPP t or CPR t is the dummy variable indicating whether a day is a critical peak day or not, β1, 2, 3 is the change in consumption due to the pricing plan for TOU, CPP, and CPR customers, respectively, and ε (i,t) is the error term for customer i during the peak hours on day t. The estimate of β controls for persistent differences in consumption across customers (the α i ) and persistent differences in consumption across days for all customers (the λ t ). In this way, it isolates the impact of the desired effect only to the treatment group. The day-of-sample fixed effects account for weather, and other common factors impacting all Hydro Ottawa customers during a given day. Thus, claims cannot be made that the load impacts are because it is a hot day or a selected sample was selected, because we control for both of these factors. The statistical error term (the ε (i,t) ) is the unexplained variance in hourly electricity consumption for customer i during the peak hours on day t. The simplicity of the model is its strength: it is the most general model one can estimate to recover the impact of a critical peak day. Conservation To estimate the analysis results for conservation, the same approach is used. For this analysis, we use the model y (i,t) = α i + δ t + Treat i *TOU t * β1 + Treat i *CPP t * β2+ Treat i *CPR t * β3 + ε (i,t) [2] where: -6-

135 y (i,t) is the natural logarithm of consumption for customer i during the bimonthly billing period for period t, α i is the customer-level fixed effects, δ t is the year of sample fixed effect, Treat i is the dummy variable whether a customer is treatment or control, TOU t or CPP t or CPR t is the dummy variable indicating whether a period is for the previous year or not, β is change in consumption due to the pricing plan, and ε (i,t) is the error term for customer i during the bimonthly billing period for period t. The period-of-sample fixed effects account for weather, and other common factors impacting all Hydro Ottawa customers during a given bimonthly period. Thus, claims cannot be made that the conservation effects are because it is a hot day or a selected sample was selected, because we control for both of these factors. The statistic error term (the ε (i,t) ) is the unexplained variance in bimonthly energy consumption for customer i during the period t. 3. Demand Response Impacts The analysis of demand response characterizes the effects of dynamic pricing on critical peak and peak electricity usage over the experimental period of August 1, 2006 to February 28, This analysis uses the estimates developed from the models above. Two sets of results were calculated for critical peak reductions: one where all critical peak days are assigned a value of 1 for the dummy variable and a second where critical peak days are assigned a fractional value for the dummy variable, based on the portion of peak hours covered by the critical peak hours. Thus, the interpretation of the coefficients for the second specification assumes the critical peak event was for the entire peak period, whereas the coefficients for the first specification just assume a critical event occurred during the specified critical peak hours. Another set of results was calculated to -7-

136 estimate peak load reductions all weekdays. For these results, the dummy variable was assigned a value of 1 for all weekdays (except holidays), not just critical peak days. Table 2 uses a CPP day dummy for CPP t and shows statistically significant at the 90% confidence level reductions in peak period consumption of 11.9% and 8.5% for CPP, and CPR customers, respectively. The results for the other pricing periods mid-peak and off-peak are not statistically significant. Table 2: CPP Treatment Effect on Peak Period Consumption Summer Period (08/01/ /31/2006) Natural Log of Peak Consumption in KWh Natural Log of Mid- Peak Consumption in KWh Natural Log of Off- Peak Consumption in KWh Treatment Group Coefficient Estimate Standard Error Coefficient Estimate Standard Error Coefficient Estimate Standard Error TOU CPP CPR In Table 3, the dummy variable CPP t is set as the fraction of the entire peak period of the day that the critical peak period covers (only three or four hours of the sixhour peak period for each critical peak day were critical peak hours). Table 3 shows statistically significant reductions in peak period consumption of 25.4%, and 17.5% for CPP and CPR customers, respectively under the assumption that the CPP event occurred for the entire peak period rather than simply fraction of the peak period as was in fact that case for all CPP events. -8-

137 Table 3: CPP Treatment Effect on Critical Peak Hours Consumption Summer Period (08/01/ /31/2006) Natural Log of Peak Consumption in KWh Natural Log of Mid- Peak Consumption in KWh Natural Log of Off- Peak Consumption in KWh Treatment Group Coefficient Estimate Standard Error Coefficient Estimate Standard Error Coefficient Estimate Standard Error TOU CPP CPR Tables 4 and 5 use data for the winter period to estimate the same models as above. In this case, only four results are significant and all are counterintuitive, i.e., opposite of the expected effect of higher or lower electricity prices. Table 4: CPP Treatment Effect on Peak Period Consumption Winter Period (11/01/ /28/2007) Natural Log of Peak Consumption in KWh Natural Log of Mid- Peak Consumption in KWh Natural Log of Off- Peak Consumption in KWh Treatment Group Coefficient Estimate Standard Error Coefficient Estimate Standard Error Coefficient Estimate Standard Error TOU CPP CPR

138 Table 5: CPP Treatment Effect on Critical Peak Hours Consumption Winter Period (11/01/ /28/2007) Natural Log of Peak Consumption in KWh Natural Log of Mid- Peak Consumption in KWh Natural Log of Off- Peak Consumption in KWh Treatment Group Coefficient Estimate Standard Error Coefficient Estimate Standard Error Coefficient Estimate Standard Error TOU CPP CPR Table 6 provides an estimate of load shifting away from the on-peak period for CPP days over the entire pilot period from August 1, 2006 to February 28, These results show statistically significant reductions in peak period consumption of 8.1% and 5.2% for CPP and CPR customers during CPP days, respectively. The results for the TOU customers are not statistically significant. Table 6: Load Shifting on All Critical Peak Days for Full Pilot Period (8/01/2006-2/28/2007) Natural Log of Peak Load Consumption in KWh Variable Name Coefficient Estimate Standard Error TOU*CP(t) CPP*CP(t) CPR*CP(t)

139 Table 7 shows the model estimates of load shifting away from the on-peak period for each of the seven critical peak days, individually. Table 7: Load Shifting on Individual Critical Peak Days for Full Pilot Period (8/01/2006-2/28/2007) Natural Log of Peak Load Consumption in KWh Critical Peak Day Coefficient Estimate Standard Error T statistic Table 8 shows the model estimates of load shifting away from the on-peak period for all non-holiday weekdays over the entire pilot period from August 1, 2006 to February 28, Only the result for CPP is significant and counterintuitive. Table 8: Load Shifting on All Non-Holiday Weekdays for Full Pilot Period (8/01/2006-2/28/2007) Natural Log of Peak Load Consumption in KWh Variable Name Coefficient Estimate Standard Error TOU*Experiment(t) CPP*Experiment(t) CPR*Experiment(t)

140 4. Conservation Effect In addition to estimating load shifting away from the critical peak hours, the load impact analysis estimated the conservation effect associated with the program. Conservation is defined as a reduction in total electricity consumption, regardless of when the electricity is used. While a main purpose of time-of-use and critical peak pricing is to reduce peak demand via the shifting of consumption, these programs typically result in a small reduction in total electricity consumption (or a conservation effect ) as well. There are three reasons a reduction often occurs. First, higher peak or critical peak prices induce load reductions during peak hours, not all of which is shifted to other times. Some reductions are uses that are shifted to other time periods, such as laundry for a residence or a production process for a business. In these cases, the usage is recovered at other times. Other reductions, such as lower lighting, are not recovered, as there is no reason for it. Second, dynamic pricing programs cause participants to have a higher awareness of how they use electricity, which, in turn, results in lower consumption. Third, these programs usually increase the amount of usage information, or feedback, received by the customer, also lowering consumption. As described above, the basic methodology for assessing the conservation effect was the same as that used for load shifting. Again, a nonparametric conditional mean estimation framework was used. The framework used customer-level fixed effects, time effects, and a 2006 fixed effect, where 2006 denotes the customer s usage in the year-earlier period in either 2005 or Specifically, usage from August 2006 through December 2006 is compared with usage from August 2005 through December 2005, and usage from January through February 2007 is compared with usage from January through February

141 The key difference from the load shifting analysis is that the conservation analysis utilized previous period billing data for pilot customers. The reason is that too little of the necessary data was available from smart meters, because the conservation analysis requires comparing the usage of the control and treatment groups before and after being placed on the pilot prices. Specifically, the analysis compares the usage of the two groups (technically four, since the treatment customers were on three different price plans) before the pilot, then after going on the pilot. By comparing the differences between the groups for the pre-experimental period with the experimental period, the conservation effect is revealed. Table 9 provides an estimate of the total reduction in electricity consumption caused by a customer s being on the pricing pilot. These results show conservation of 6.0%, 4.7%, and 7.4% for TOU, CPP, and CPR customers, respectively; the average is 6.0%. All of the results are fairly precisely estimated. Table 9: Conservation Effect (Total Usage Reduction) Full Pilot Period (8/01/2006-2/28/2007) Natural Log of Peak Load Consumption in KWh Treatment Group Coefficient Estimate Standard Error T statistic TOU CPP * CPR * - Probability level approximately 88%. -13-

142 Ontario Energy Board Smart Price Pilot Appendix F: Focus Group Report

143

144 OSPP Final Report - Appendix F: Focus Group Report Ontario Energy Board Smart Price Pilot - FOCUS GROUPS TOU (Time of Use Pricing Only): October 10, 2006, 6:00-7:30 pm CPP (TOU + Critical Peak Pricing): October 10, 2006, 8:00-9:30 pm CPR (TOU + Critical Peak Rebate): October 11, 2006, 7:00 8:30 pm Introduction The Ontario Energy Board (the OEB ) initiated a pilot project that began operating in early August 2006 to test time sensitive prices. Hydro Ottawa is assisting the OEB with this pilot project and all participants are customers of Hydro Ottawa. The pilot project was designed by the OEB to include a series of focus groups in order to obtain direct feedback from participants. emeter Strategic Consulting was retained by the OEB, in part, to carry out these focus groups and to prepare this summary report. emeter Strategic Consulting has conducted focus groups for similar projects, such as the SmartPowerDC project in Washington, D.C. In addition, emeter s staff have managed and participated in other time-of-use pricing pilots, including the management or observation of focus groups. Such projects include the California Statewide Pricing Pilot and Pacific Gas & Electric s Residential Time-of-Use Program (which has grown to 100,000 participants). Most of the questions were the same across the three pricing groups noted above, with minor variations that focused on questions specific to Critical Peak Pricing (CPP) and Critical Peak Rebates (CPR). The report is organized as follows: A general overview summarizing the more salient feedback provided by the participants for each pricing group; Detailed responses of participants in the TOU pricing focus group, by topic; Detailed responses of participants in the TOU + CPP pricing focus group, by topic; and Detailed responses of participants in the TOU + CPR focus group, by topic Focus Group Recruitment Process Focus group participants were recruited from the list of all Ontario Energy Board Smart Price Pilot participants, separated by pricing group. Participants were only invited to the sessions relevant to their pricing group. They were solicited by telephone, and in each group participants responded and attended. Focus group participants were each given an honorarium of $75. The weekday evening sessions each lasted 90 minutes. Focus Group Topics 1

145 OSPP Final Report - Appendix F: Focus Group Report Participants were guided through a series of discussion questions covering the following topics: Reasons for agreeing to participate in the pilot project Understanding of time-of-use bills, pricing and periods Feedback on the project recruitment and associated educational materials Feedback on monthly Electricity Usage Statements Behavioural change after going on time-of-use prices Feedback on the critical peak process and critical peak pricing (CPP/CPR groups only) Role of feedback in behavioural change Post-pilot behaviour expectations Understanding of the pilot s sponsorship and future implications 2

146 OSPP Final Report - Appendix F: Focus Group Report Overview of TOU Group findings: Most participants were aware that time-of-use prices were coming to the province in the near future. Their answers reflected an understanding of the rationale behind time-of-use prices. Many participants had an accurate understanding that electricity costs vary from hour to hour according to variations in supply and demand in Ontario s electricity market, and that time-ofuse (TOU) prices were a way to take this into account. Most understood that the off-peak, mid-peak and on-peak price periods also addressed demand and reliability (e.g., many references to shifting consumption to help avoid brownouts). They also understood that there was a difference between the charge for their electricity usage and other charges on their electricity bill such as distribution or debt retirement. They perceived the pilot project to be an opportunity to gain experience in learning how to control their own electricity consumption (i.e., shift and conserve) in order to achieve bill savings and increase reliability of supply, in anticipation of the future province-wide roll-out of TOU prices. They were interested in the benefit of receiving regular monthly statements with interval meter information and saw smart meter data as a tool to help them understand and manage their own electricity consumption. The single most helpful reference for all participants was a table of the times and prices that was distributed in the form of a refrigerator magnet to each participant at the outset of the pilot. Participants stressed the importance of posting this information around the house in order to respond appropriately to price signals. Participants also placed great importance on the information provided in the Electricity Usage Statements mailed to them at the beginning of each month. They desired evidence of bill savings and evidence that their efforts to shift consumption from high price periods ( on-peak ) to low price periods ( offpeak ) were making a difference. Their suggestions for improvements on the statements included adding their electricity costs under the regular (tiered) flat prices so they could compare those against their charges based on the new TOU prices. The reason for this was that they wanted to be able to better understand or measure the results associated with their behavioural changes (i.e., shifting consumption) so far on the pilot project. This additional information would also help them make decisions about their future electricity consumption. The majority of participants appeared to understand that the primary purpose of the time-of-use prices in conjunction with smart meters is to provide consumers with an incentive to shift consumption from expensive to cheaper periods and that such efforts could result in bill savings. They also understood that they could benefit from conservation efforts regardless of the type of meter they had or the type of prices they were charged. For example, in the first focus group when asked if TOU prices were more about conservation or more about shifting, there were 14 that raised their hand in response to shifting while one 3

147 OSPP Final Report - Appendix F: Focus Group Report felt it was more about conservation. Some of the specific comments of pilot participants that demonstrated this include the following: It s not about conservation. The focus of the pilot is to shift as much consumption to off-peak as possible. I can reduce my bill by reducing my consumption on the old rates. I don t need a smart meter for that. I ve done about as much as I can do to conserve. What I use is now going to stay pretty constant. This pilot is about shifting. The pilot is not about what you use, it s about when you use it. It was about shifting, like doing laundry on the weekends. When the pilot started is also the first time I ever used the time delay switch on my dishwasher. I used to run the filter on my pool from 7-7 during the day. Now I run the filter from 7-7 at night when it s cheaper. Some participants saw the prices as a way to educate the other members of their households and even their neighbors in the importance of being conscientious and perhaps motivate more responsible electricity consumption. More importantly, all were interested in measuring the benefits of this behaviour. From the discussion regarding the Electricity Usage Statements, it was clear that most participants tried to understand and use the data on their electricity consumption in order to quantify, validate, confirm or inform their behavioural choices. They combined feedback on their own electricity consumption with other available information on ways to shift and reduce usage and saw these as working together. While some experts have suggested that the current design of the TOU prices (as used in this pilot project) was too complex for residential consumers, all except one of these participants considered these TOU prices easy to understand; the one participant who would not have characterized the prices as easy wanted to acknowledge an added layer of complexity in that there were seasonal changes in the schedule of on-, mid- and off-peak periods; still, he did not consider this too difficult to understand. Participants agreed that it was possible, and not too much of a hardship, to respond to TOU prices and to shift consumption by running laundry and dishwashing appliances late at night or on weekends. Some said that they would have to see more savings on their monthly bills to motivate them to continue the inconvenience of doing laundry late at night, but many also said that the prospect of avoiding brownouts would motivate them to continue load shifting practices around the home. 4

148 OSPP Final Report - Appendix F: Focus Group Report Overview of CPP Group findings: This group was particularly aware of the energy industry, including public policy and sophisticated topics such as peak load management. The group included several ex-engineers, a former facility manager and an employee of Johnson Controls, which markets energy management control products. About two thirds of the participants participated in the pilot project in order to prepare themselves for the TOU prices they knew were coming. Some of these respondents were specifically interested in knowing how well they would fare under the new time-of-use prices; specifically, they wanted to know to what degree doing household tasks at different times when the price was lower would affect their current lifestyles, and whether these practices would be tolerable on a permanent basis. Conservation and reliability of supply were also cited as motivating factors, with a number of references to the need to avoid brown-outs. Half the group expressed an interest in the aspect of having more control over their electricity bill, being more aware of their usage patterns, or saving money on their bills. A few participants cited the $75 incentive payment (for agreeing to be in the pilot project) as one of their top 3 reasons for participation. This group felt that there would always be those consumers in the community who were wasteful, but that pricing was potentially a good inducement for more people to consume electricity more responsibly. However, the group was not convinced that the pricing reflected on this project would motivate more people to conserve or reduce peak load by shifting consumption, because they felt that the pricing might not result in a significant enough bill savings. Many participants commented that they had expected TOU prices to be more beneficial to them than has turned out to be the case on the project. However, no one reported a negative reaction to TOU prices and the group was generally supportive of these prices as a way to motivate individuals and communities to control electricity consumption. In response to a comment about small savings after making a concerted effort, one participant noted that It s not about how much we each save from bill to bill. If we don t do these changes, we ll end up paying a lot more in the future. If we keep [using electricity] like we were, it s just going to cost us all more. In the future, this change will save us all money. Participants recommended that one simple way to assist consumers when implementing or marketing time-of-use prices across the province in the future would be to replicate the refrigerator magnet and include the table from that magnet on a simpler fact sheet page. Similar to the TOU pricing group, it was very important to participants to be able to refer to their Electricity Usage Statements to compare their electricity costs on TOU prices with their costs on (tiered) flat prices. The reason for this is that they wanted to know how they were doing in order to make informed decisions about their consumption. To that end, they recommended that when TOU prices are implemented in the future, that the regular electricity bills come monthly, as the 5

149 OSPP Final Report - Appendix F: Focus Group Report current bi-monthly schedule would not give them timely enough information to assess the effectiveness of their practices. For example, if they changed their consumption habits on a particular day or week, they wanted to find out if it made a positive or negative impact on their bill soon enough to decide whether they should continue the practice. If one change could be made on the format of their regular bill, participants would want to add the usage data (in color, by day and TOU period, in bar chart format) as currently shown in the Electricity Usage Statements. Some also desired that their personal usage data be made available more often than monthly, for instance a daily or real time update accessed via the Internet, for the same reasons discussed above. Every participant rescheduled their usage of dishwashers and laundry machines to off-peak hours. Most felt that this load-shifting behaviour was not rewarded significantly under the TOU pricing system, but were still committed to continuing this behavioural change for reasons that went beyond bill savings. The participants were asked if they felt the TOU prices were difficult or easy to understand. All responded that they felt it was easy, however, one did note that winter TOU prices would be more difficult with two on-peak periods. When asked if they would prefer only two periods [off- and on-peak], those that did respond said they preferred it the way it was with three periods with none saying they would prefer a change to just off-peak and on-peak. A concern was expressed that in comparing the TOU prices against the tiered prices, all of the TOU prices except the off-peak price were higher than the tiered prices. In other words, during virtually all of the hours they were not sleeping on the weekdays, the TOU prices mid-peak and on-peak were higher. Critical peak pricing was not as salient a category as on-peak pricing for this group of participants. Many were so responsive to regular on-peak TOU prices that they did not think that they could or would do anything differently when a critical peak event was called than they would do anyway for a regular on-peak period. However, they all understood the importance of reliability underscored by critical peak times, and there was discussion about avoiding brownouts and the contribution that the business and commercial sector should make toward peak load reduction. There was a greater awareness in this regard than the group on only TOU prices. The suggestion came up to use mass media for critical peak days if this is implemented in the future on a province-wide basis. Participants were committed to managing their electricity usage better, and needed two resources: more accessible interval meter data on their recent usage (some would check this daily if it were possible) and more ways to measure or sub-meter their home appliances to see where the usage was occurring (i.e., to know exactly how much electricity each appliance uses). 6

150 OSPP Final Report - Appendix F: Focus Group Report TOU prices with the Critical Peak prices were not too difficult for these participants to understand, and participants were generally supportive of the prices because of benefits to supply and cost, with the caveat that they want the price structure to fairly reward responsible consumption: The point is not so much saving money now, but in the future, we ll be paying more if we continue without changing our behaviour. I agree. It s like the people who never recycle, you can t tell them anything, so move on. They just have to pay more for their consumption I see all my other neighbors, who have 4,000, 5,000 square foot homes, and they have their air conditioning blasting and the lights on in every room of the house 24/7 I hope that if we get into (TOU pricing) for real, all over Ottawa, that it will go against these guys and not against us who are trying hard to save money for our own pockets but also for the environment and everything. So that s where I have problems with the program, but it seems to be going the right way. 7

151 OSPP Final Report - Appendix F: Focus Group Report Overview of CPR Group findings: This group expressed that they had already been familiarized with ideas about conservation during peak hours because of a recent Hydro Ottawa education campaign on this topic. They perceived that commercial use was the biggest contributor to peak demand on the system, and did not think that residential electricity usage patterns would be penalized under TOU prices. They did, however, believe that if enough residents responded to peak pricing, there would be a positive affect on both supply and prices. As we found with the TOU focus group, the CPP focus group participants also thought that the TOU prices and periods were easy to understand. One participant expressed that it took a little more work to understand the Critical Peak Rebate, but it was not difficult. To help them understand the prices and explain the prices to others, the group was unanimous in their preference for the magnet, with its table of TOU prices and periods. They also relied upon the Critical Peak notifications (phone and ) for awareness of the Critical Peak periods and prices. Participants paid close attention to the Electricity Usage Statements and used them to make decisions about their electricity usage based on the perceived cost to them. They wanted to see their other regular electricity charges reflected on the usage statements because they felt it was important to confirm that TOU prices were not negatively impacting them, and also to confirm that, under the TOU prices, they were managing their costs and consumption well. They wanted more frequent access to their own usage data for the same reasons. All changed the times they ran dishwashers and laundry machines. Most cited this project as raising their awareness of the times they used electricity. This group of participants was conscientious about energy conservation and used this portion of the discussion to share tips on ways to conserve more, both during on-peak and off peak periods. They did not change their behaviour significantly when a critical peak event was called because they felt they were already doing their utmost to minimize electricity usage to what they characterized as basic power during peak times in response to the on-peak TOU price. Basic power to them meant the nonnegotiables, such as appliances that they could not shut off or unplug, such as refrigerators or clocks. They felt it was easy to implement load-shifting strategies in response to TOU periods, and that it would be worth it to continue these practices even if it resulted in only $1 savings on their bill, because they felt it would benefit the province by promoting reliable electric supply. The group understood that TOU prices (but not necessarily CP prices) would be implemented throughout the province in the future, and participants felt they could support and promote this as a result of being on the pilot project. They would tell their friends and neighbors that TOU prices are easy to adapt to and a good way to address the supply problems faced by the province. One participant 8

152 OSPP Final Report - Appendix F: Focus Group Report pointed out that it is important for people to know that the new pricing is not to be feared, that if you change the times at which you use electricity there would be no negative impact on your bill, and that responding to the TOU prices would achieve savings and also help the province. I tell my neighbors that you re in control of your usage. It puts the power back in your hands. I curl, so I had a captive audience the other night and I was telling them about this project. One of the skeptics said, but what if you only save three bucks over a few months? and I replied, but if all eight of us saved, that would mean something! It doesn t matter to me that it s just a dollar, you re doing something right and important. I would tell people not to fear change. People will be skeptical, they ll be looking at the new format of the bill versus the old and saying, am I really saving, so maybe in the first bulk bills you could send out information on what they re saving, because people will get lost in the stats and there will always be skeptics. There will be people who end up spending more, and maybe they ll call to complain, but they re going to be paying the right price and it will be up to them to manage it. Dual bills in the beginning to assure people that they re saving would be good. 9

153 OSPP Final Report - Appendix F: Focus Group Report Focus Group Responses by Topic: TOU (Time of Use) Group Why did they agree to participate in the pilot TOU Participants were asked to reflect on their top three reasons for joining the pilot project. Most participants were aware that time-of-use prices were coming to the province. Their answers reflected an understanding for the rationale behind timeof-use prices, and they perceived this to be an opportunity to control their own electricity consumption in order to achieve bill savings, conservation and reliability of supply. They were interested in the benefit of receiving regular statements with interval meter information and saw smart meter data as a tool to help them understand and manage their own energy consumption. Anticipation of coming TOU prices: Savings: 11 participants knew that TOU prices were coming and wanted to be prepared 1 was from England and wanted to compare this pricing system with what she had experienced there 9 hoped to see cost savings on their bill and get some money back Conservation: 4 saw the project as a way to practice conservation; one of these said that they were energy conscious anyway and this project fits their lifestyle Understanding or managing (shifting) electricity consumption: 6 wanted to understand their electricity usage better; one of these, who had a new house and wanted to start new habits, saw this as a good way to assess their electricity consumption 3 wanted to see where and when they could improve their electricity usage 2 were interested in seeing how their electricity usage varied at different times of the day Concern about brown-outs and adequate supply: 7 were concerned about brown-outs and adequate electricity supply One wanted to specifically reduce their peak demand One joined out of curiosity (the person did not elaborate on this) 10

154 OSPP Final Report - Appendix F: Focus Group Report Understanding of prices, bills, usage TOU Many participants had an accurate understanding that electricity costs vary from hour to hour according to the market, and that time-of-use prices were a way to reflect this. Most understood that the price periods also addressed demand and reliability. They also understood that there was a difference between the charge for their electricity usage and other charges such as distribution or debt retirement (one customer who had recently moved back to the country complimented herself, in jest, since she was doing her part to pay back a debt she had nothing to do with). Most people were active about telling their friends, neighbors and co-workers about their participation in the project and showed the magnet and their Electricity Usage Statements to others as a way to explain TOU prices and the terms of the project. Only one participant thought the periods and prices were of medium difficulty to understand, citing the change in mid-peak times in the winter rates; all others thought the periods and prices were easy to understand. Most participants understood that their Electricity Usage Statement did not reflect distribution and other charges, and was in this way different than their regular Hydro Ottawa bill. A few participants had never thought about electricity costs being timedifferentiated until they became familiar with the pilot project. There s probably lots of moms who just turn on the dishwasher at 2 in the afternoon because the dishes are dirty, and it wouldn t make a difference if they did it at 10 pm, but they just don t know that it would save them money to do it later. True, but sometimes I m wiped out by 10:00 and can t wait to do all that. Feedback on recruitment and educational materials TOU It was clear from this discussion of the pilot project correspondence and educational materials (letters, fact sheets, enrollment forms and the fridge magnet) that the prices, the periods, and the terms of the project had been clearly presented and were understood. The single most helpful reference for all participants was the refrigerator magnet with a table of the time periods and associated prices. Participants stressed the importance of posting this information around the house in order to respond appropriately to price signals. All participants felt that the materials they received during the pilot were clear and understandable. 11

155 OSPP Final Report - Appendix F: Focus Group Report The magnet was the most helpful item in helping them understand the TOU prices and time periods. They all have posted the magnet prominently and have referred to it repeatedly. Participants were shown the two graphics from OEB: a description of TOU prices in pie format, and one in bar format, and asked to compare these with each other and against the table on the magnet they received for the project. All thought that the best graphic to explain TOU was the table format that was on the project magnet: All preferred the table (as presented on the magnet) to the two chart graphics supplied by OEB. Many liked the pie chart because it reminded them of a clock, but they also thought the pie chart was too busy, and the weekends and holidays pie in particular was seemingly unnecessary information. They also felt that the specific times not being clearly spelled out in the bar charts was problematic because they had to figure out the time periods by studying the chart. All emphasized that any such information on times and prices should be able to fit on a magnet, as they post and use this information regularly. They suggested issuing separate magnets for summer and winter prices. One suggested that a list of typical electricity consumption of major appliances be put on the same page to help someone make a decision of what to run when. Most comments addressed the actual electricity usage statements (see below). Feedback on the Electricity Usage Statements TOU Customers placed great importance on the information from their Electricity Usage Statements. They desired evidence of bill savings and evidence that their efforts to shift and conserve were making a difference. Their suggestions for improvements on the statements were motivated by interest in understanding their own household consumption, comparing against their historical behaviour or their electricity costs under the (tiered) flat rate plan, and a desire for information that would help them make decisions about their future electricity consumption. The statement has colors! It s more personalized than a regular bill, it has your name and address. I d be interested in seeing how my usage compares to similar households. I liked the breakdown by day instead of aggregate; I was able to see that the week I worked at home I used way more energy and it varied more than the days I m gone from the house. 12

156 OSPP Final Report - Appendix F: Focus Group Report One customer was particularly upset that the Electricity Usage Statements did not reflect the distribution and other charges from the regular Hydro Ottawa bill, nor did the monthly data of the Electricity Usage Statement coincide with the bimonthly usage period of his Hydro Ottawa bill, so he had no way of comparing his charges based on the old tiered price versus the new TOU prices. He emphasized that he felt misled. It doesn t give you apples-to-apples comparison. You re just time-shifting. I would recommend that for the first month, you go about your business as normal, then the next month shift usage, and then you ll be able to compare what your regular usage would be against what it would be with time-shifting. But another pointed out that since you re going to pay the delivery charges anyway, you should just look at what he called the number in the corner to see your actual usage. A few others expressed satisfaction with the savings reflected in just the electricity commodity charges on their Electricity Usage Statements, and did not need to know what more they would be paying in terms of distribution and other regular charges as these were not affected. Some were disappointed that they had not saved more. Some suggested that the bar graph illustrating the TOU prices (found at the bottom of the statement) was superfluous. They would prefer in its place a chart summarizing their usage by TOU period for the entire month. Behavioural change after going on the new prices TOU Most understood that the point of TOU pricing was not merely conservation but focus on peak load management and encouraging shifting behaviour. All were interested in quantifying the benefits of this behaviour. About half the participants were already enthusiastic about energy conservation, and some of these saw the prices as a way to educate the other members of their households in the importance of being conscientious and perhaps motivate more responsible electricity consumption. Some reported that they did not change their habits to accommodate peak and off-peak pricing; two reasons mentioned were that they wanted to see how the prices would affect their normal behaviour, or that they were already engaging in shifting and conservation prior to the project. 4 people said that they did not change any of their habits significantly as a result of being on the project. 13

157 OSPP Final Report - Appendix F: Focus Group Report One commented that he is learning more about his own usage patterns. Most said they focused mostly on shifting, and not on conservation, in response to the project. The participants who said that they shifted noted that they shifted the times in which they washed dishes and clothes, and some had already been resetting their thermostats all the time, but they did not change their behaviour in other ways. They understand that even though there are appliances that never get turned off, there are also choices they can make about other energy usage based on the cost; they cited laundry and dishwasher. The point was made that one could get the most energy-efficient of the constantly running appliances, and then make other decisions about whether to keep that extra freezer or get a gas heater. One person said that there is a lot of focus on peak and non-peak hours, what about general conservation? To this another participant responded, Conservation can be done whether you have a smart meter or not. As I understand the focus of the pilot, is to convince people to use power in the off peak periods because it s going to be a) to stop brown-outs and b) it s going to be cheaper. I ve changed my habits a little bit, but it s not necessarily from the pilot, it s from learning a little bit more. We haven t changed a lot of our habits, because I want to see how my current habits would cost under the new rates. If I see that it would be a big difference in costs, I would maybe find it more cost effective to buy more clothes and do laundry on weekends! This year there was big push in Ottawa to set your A/C at 25; I always try to get people to turn things off or get my daughter to stop leaving the fridge door open when she s standing there; but I never used the delayed start feature on the washer and dryer until now, and my wife is now trying to get the laundry done on weekends. Another was also prompted to use the delayed start feature on his dishwasher as a result of participating in the pilot project. We re not changing our behaviour, we just wanted to learn our own energy usage. I want to know if the difference in the rate changes what we pay; we may have changed our behaviour a bit and will probably not revert to the old behaviour, but we just want to see how the rate change affects us. I m not changing anything, just baking and cooking. I bought a timer for my pool filter and flipped my filter to run during offpeak. I don t think I could change any more unless I hang my clothes to dry. I have two small babies, and when they [make messes], you wash! I didn t do that much, but I m comfortable with what I did and it s not hurting. 14

158 OSPP Final Report - Appendix F: Focus Group Report Role of feedback in behavioural change TOU From the discussion of electricity usage statements, it was clear that most participants tried to understand and use the data on their electricity consumption in order to quantify, validate, confirm or inform their behavioural choices. They combined feedback on the timing of their electricity consumption (i.e., shifting) with available information on ways to conserve and saw these as working together. The most significant information on the TOU Electricity Usage Statements was information on how much money they were saving during peak times, which helped them assess their load shifting behaviour and decide whether to continue this behaviour or not. One person said that if the Electricity Usage Statements were to tell him how much he was actually saving by shifting his consumption on the new TOU prices, It would drive the nail home. If I knew that we had saved, I d get a warm fuzzy, I d know we had done all we can, I d think we were going to save a whole potful of money if and when these rates go in. Another said, I did make the comparison, and it was a savings of a dollar and even after changes; if I hadn t made changes, it would have cost me more, how much I don t know, but it s still cheaper than if I had not made the changes. It s not much, but there s still the greater social good of energy conservation during peak hours. If you want to drive it home, then ask people to ignore behaviour change in month of November, and then compare a time-shifting month with that to see what the difference is. What about motion sensing switches for lights? Bad for rolling over at night! I don t think I d live long enough to see the savings on that. Three or four participants were already very conscientious about finding resources to help them conserve and manage their electricity use. These were the ones who looked at their Electricity Usage Statements and tried to figure out what they were doing differently on spiky days. So the project and the TOU rate structure helped them pay attention to load shift as well as conservation. One participant referred to the Hydro Ottawa Energy Guide website as a helpful way to manage their home electricity consumption. 5 participants (about 1/3 of the group) would not use a website that gave them up-to-the-day information on their electricity consumption, but the other twothirds of the focus group would check such a site regularly or frequently. The group was very computer literate; only one did not own or use a computer. One participant had read their Hydro Ottawa bill about the Kill-A-Watt meter and how someone had determined the inefficiency of his freezer. 15

159 OSPP Final Report - Appendix F: Focus Group Report Post-pilot expectations TOU This question was addressed to some extent above. There was no indication that they have seen time-of-use prices to have a negative effect. In some cases even if the actual cost savings was small, the fact that they were contributing to reliability and it wasn t costing them anything to shift consumption was enough to motivate them to continue shifting their consumption to off-peak. Many would keep shifting their electricity usage if they found out that they were only saving $1 a month, because it s an easy way to avoid brown-outs. But I could see us shifting back to mid-peak instead of off-peak rates and just be conscientious about not going to high-peak because of brownouts, if there s no financial benefits. My wife and I are retired, we can use the delayed start mechanism on our appliances, and we have the time to change our usage habits. This project has shown that we can easily time-shift. But one pointed out that if it s not saving that much and she s up until 11:30 at night folding laundry, she d go back to doing the laundry after dinner. Another participant echoed this, saying that he gets up at 4:30 every morning and won t be doing laundry at 10 pm. For others, the importance or possibility of saving money on TOU prices was not going to sway their behaviour. I don t think money is the issue for me; doing something to avoid brownouts and blackouts is more important. My husband got me into this, but I think it s a good thing and would continue this, even though laundry on the weekend isn t my idea Sponsorship and future implications of project This question was addressed in large part during the previous discussions. Participants understood that TOU prices would be implemented throughout the province and that the Ontario Smart Price Pilot project would help to design future implementation of those TOU prices. 16 TOU 6 participants knew that the project was sponsored by the OEB and understood that the the OEB regulates rates for the province. Those who aren t on the pilot should be made aware of this as an education campaign to tell them that this is what s coming and this is what happened. What if you had bonus points if you met your quota, and then got a credit on your next bill or something if you conserve enough and were within a limit? Question about the wholesale market, Do they get charged for time of day? Everyone asks me about smart meters, and everyone wants to know how to save money and how much it would affect their bills; everyone knows

160 OSPP Final Report - Appendix F: Focus Group Report our lifestyles are expensive and they want to know how to manage and help out. Will we be charged to participate in smart metering? The people in this room are all energy conscious and interested in helping the environment, but a lot of the people who aren t on the pilot project, I don t think they ll be as easily swayed, and that s where I think the savings will play much more to leverage their behaviour change. The Energy Board is going to set the [TOU] rates to keep people doing this, and it s an iterative process. This pilot won t make a difference, if they set it at a rate to keep the rest of the province time shifting, and it reduces the peak in a way that means enough to them financially, and the net result is that the peak is reduced... 17

161 OSPP Final Report - Appendix F: Focus Group Report Focus Group Responses by Topic: CPP (TOU + Critical Peak Price) Group Why did they agree to participate in the pilot CPP This group was particularly aware of the energy industry, including public policy and sophisticated topics such as peak load management. The group included several ex-engineers, a former facility manager and an employee of Johnson Controls, which markets energy management control products. About two thirds of the participants participated in the pilot project in order to prepare themselves for the TOU prices they knew were coming. Some of these respondents were specifically interested in knowing how well they would fare under the new prices, and if their current lifestyles would tolerate a change in prices. Half the group cited conservation and reliability of supply as motivating factors. Half the group expressed an interest in the aspect of taking more control over their electricity bill, being more aware of their usage patterns, or saving money on their bills. A few participants cited the $75 incentive payment for volunteering to be on the pilot as a main reason for participation. Consciousness of conservation and supply issues: 3 were environmentally conscious and said the project was in line with their habit of conserving and being energy conscious 1 was motivated by concern about brown-outs and energy waste Anticipation of time-of-use prices coming: 3 wanted to learn the best times to use electricity 4 wanted a head start on TOU prices 3 wanted to know how possible it was to embrace or tolerate timedependent electricity charges Managing electricity bill costs: 5 wanted to save money on their electricity bills 1 wanted to have a greater awareness of the cost of electricity Like technological solutions or controls: 1 likes technical measurements of any kind 1 was an early adopter type Similarly, 1 liked the idea of smart meters Managing electricity usage: 1 has an energy efficient house, had been monitoring usage with the old meter, and wanted to compare results between the new and the old meter 18

162 OSPP Final Report - Appendix F: Focus Group Report 1 thought it was a good idea for people to know the price of electricity in order to conserve appropriately Incentives to participation: 1 thought the project seemed easy to participate in, so why not do it 4 did it because they wanted the $75 Additionally, several also mentioned that they thought this would be a good way to get other members of their household, or to get their neighbors, to be more energy-conscious and less wasteful about electricity usage. I m a bit of an environmentalist, and the fact that there was someone who was willing to track my energy usage for me, I thought that was pretty neat. Understanding of prices, bills, usage CPP Many participants had a sophisticated knowledge of time-of-use pricing and peak load management, and the discussion sometimes veered toward wider public policy issues. Many did comment that they had expected TOU prices to be more beneficial to them than has turned out to be the case on the project; however, no one reported a negative reaction to TOU prices and the group was generally supportive of these prices as a way for individuals and communities to control consumption in a socially responsible manner. 5 had not known that electricity prices fluctuated by time of day, or that demand and the wholesale market price affected the cost of the electricity they use About half of the group was very knowledgeable about the electricity market, because of their professions (quite a few in engineering or business management that involved knowledge of energy markets; one worked for Johnson Controls, which gave him insight into demand response and energy management systems). A few commented that they didn t save that much on their bills by going on TOU prices; for them, the intent of participating in a TOU pilot was to achieve cost savings on their bills, and they thought that knowledge of peak and off-peak times would help them achieve more significant savings than they actually did. Other comments included: I honestly don t think we pay enough for our electricity now, given how much it really costs. We should take it off our tax dollars. I was explaining time-of-use to one guy and said that it s cheaper after 10 and before 7 and he said, oh great, what am I doing sleeping?? My co-workers and friends want me to bring the card in so they can start practicing. 19

163 OSPP Final Report - Appendix F: Focus Group Report There s a lot of resentment in my neighborhood because my neighbors think smart meters are a money-grab that would just increase the price of electricity; they wanted nothing to do with the pilot. It s not that they re profligate with their power, it s just that it s a change. Our neighborhood is going through a lot of change sewer renovation, other upsetting changes in our older neighborhood. Another participant also overcame his initial negative reaction to smart metering as a way for businesses to make more money and realized that this would help individuals manage consumption in a way that would benefit themselves and society - not having to build more power plants. It puts some control in people s lives about how to use electricity; in winter, I don t know how people are going to save as much money. You can t just turn off the heat and leave the house. I hope that business and industrty, non-residential, would have the same incentives to save on peak since they contribute so much to the problem. If I were you I d change from electric heat to gas [heat] since this TOU is coming. Feedback on recruitment and educational materials CPP The project materials (letters, fact sheets, and magnet) were clear, but participants recommended that a simple way to explain time-of-use prices in the future would be to replicate the refrigerator magnet and include the table from that magnet on a simpler fact sheet page for distribution to consumers. Whether it was a table or a graphic, they emphasized the importance of being able to post a summary of the prices and periods in a durable form in any place in the house where they would be scheduling the usage of major appliances. They were confused by the administration of the pilot project and having so many organizations involved in disseminating information (OEB, Hydro Ottawa and emeter); in particular, a few participants had specific questions about their smart meters and were dissatisfied with how many different calls they had to make to get appropriate answers. All thought that the time-of-use prices (including critical peak price periods) were not difficult to understand. Everyone referred most to the information from the magnets when they were managing their consumption. Some revised or copied this information. All emphasized that they posted this information in various places in the house, at the very least in both their kitchens and laundry areas. In terms of understanding TOU prices, everyone favored the information posted on the magnet. They commented that as long as the information was presented in some durable form like the magnet, they would use it as a constant reference. 20

164 OSPP Final Report - Appendix F: Focus Group Report One person thought the fridge magnet was too hard to read microscopic script so he made his own chart with colors that corresponded with the Electricity Usage Statement, and larger type; he made several and posted them on appliances around the house in an effort to educate his teenaged children and motivate the rest of his household to both shift and conserve. One person had received a letter with his smart meter, but the letter was not addressed to him, so there was a mix-up in the ownership/resident information for his enrollment and he was not sure that he was in the project until he called and then received the first statement. One thought that the recruitment materials were overwhelming, too much text and information, and that if this were to be rolled out province-wide the information would need to be consolidated and simplified. The visuals (electricity usage graphs, the magnet chart) were the best way to convey the project information. The fact sheet was a thorough way to address all their questions but some felt it was too much to look at. About five expressed dissatisfaction with the way project information was disseminated, and were especially confused by where to call to get answers for their questions about metering and billing; they did not like that the toll free number in California and the Hydro Ottawa customer support line could not give them consistent information, and that they were getting messages from both OEB and Hydro Ottawa. Some cut out the TOU schedule chart from their fact sheet to post in their laundry areas, and used the fridge magnet for their kitchen/living areas appliance usage. It was almost an even split about whether the OEB s bar graph or pie chart was easier to understand, and people were adamant about their dislike for whichever option they didn t choose; however, consensus was to stick to the existing table on the fridge magnet. A few people pointed out that the other graphics wouldn t fit on a fridge magnet as well as a table. One participant preferred a graphic in which he would not need to read line by line each time he looked at it. Feedback on the Electricity Usage Statements CPP It was very important to participants to be able to refer to their usage statements to compare their costs on TOU prices with their costs on (tiered) flat rates and to make informed decisions about their consumption. He provided the moderators with a copy of his graphic to forward to the OEB. A scanned version is attached to this document. 21

165 OSPP Final Report - Appendix F: Focus Group Report The biggest complaint, almost unanimous from those who were also aware of their regular Hydro Ottawa bill, was that the Electricity Usage Statement did not reflect other charges (e.g. delivery, debt retirement, regulatory) and they were not able to truly compare. They would have added a comparison to the charges on tiered prices on the Electricity Usage Statements. Two participants seemed to exhibit misunderstanding about the fact that their Electricity Usage Statements reflected one month s charges and not the two months that their regular Hydro bill covered; they perceived the two statements to be equivalent. This perception was not corrected during the course of discussion, but they did become aware that their Electricity Usage Statement was only a measure of their electrical charges and not delivery or other charges. They liked the visual that reflected daily usage with parallel bars. They would include the daily usage bar graph on regular bills when TOU pricing is rolled out. They would prefer their regular bills and statements to come monthly instead of bi-monthly, especially if they remain on TOU pricing. Several said that daily or close to real time would be better. They liked the colors chosen. One participant used the same color scheme (green for off-peak, yellow for mid-peak, orange for on-peak, and red for critical peak) to make a larger schedule chart that he posted in several places in his house for his teenage children to heed. He prefers his own chart to the magnet, which he thought was too small to be useful. There was evenly mixed feedback about whether the savings shown on their own Electricity Usage Statements was as much as they expected. Some didn t mind that there was not a significant amount of savings, and were still satisfied, but others were dissatisfied with the amount of savings reflected in the usage statements. These participants did not think it was worth it to shift consumption for the bill savings they achieved. One participant had already been reading his regular meter and trying to extrapolate that data to know his own usage and limits; was excited about getting a usage statement that would tell him this, and converted his wife to monitoring times and limits as well. Other comments included: I just go by kwh, because I have no influence on price. This participant paid attention to the spikes in consumption on his usage statement to analyze his own consumption behaviour. I noticed that we used less kwh in the month. This person had kept his own records about previous usage. Can you change the TOU prices to give us a break to have off-peak prices in the middle of the week instead of on weekends? It gets difficult to follow these hours if you have a bigger household. 22

166 OSPP Final Report - Appendix F: Focus Group Report Feedback on critical peak pricing CPP Several participants understood Critical Peak events to be related to the demand on the power grid, and no one objected to the high price of the Critical Peak period. However, the Critical Peak Price was not as salient a motivator for behavioural change as the general TOU structure (on-peak, mid- and off-) No one readily recalled the number of critical peak days or the specific days. Four participants said that they did not do anything differently in response to a critical peak day notification. One did not think that the Critical Peak events corresponded with what was going on with the power grid but understood that it was for purposes of experimentation. All received phone notification with the exception of one who received s. No one had difficulty receiving the messages in time to respond with load-shifting strategies. I liked the day-ahead automated notification. A few inquired about whether mass media could be used for Critical Peak events in the future. When asked if they would prefer only two periods [off- and on-peak], those that did respond said they preferred it the way it was with three periods with none saying they would prefer a change to just off-peak and on-peak. Behavioural change after going on the new prices CPP This group felt that there would always be those consumers in the community who were wasteful but that TOU pricing was potentially a good inducement for more people to be more responsible about their electricity consumption. Every participant rescheduled their usage of dishwashers and laundry machines to offpeak hours. Most felt that this load-shifting behaviour was not rewarded significantly under the TOU pricing system, but were still committed to both load shifting and energy efficiency for other reasons. While most participants felt they were already doing all that they could in response to the on-peak TOU price, a couple took additional actions during Critical Peak events such as going out for dinner and, relative to the TOU pricing group, it was apparent that the participants that were also on CPP had a greater awareness of the potential for brown-outs. All participants said that they began thinking differently about their electricity consumption at the very beginning of the project (i.e., as soon as they were invited to participate). Some participants had already been monitoring their consumption and were eager for more detailed data regarding their usage. 23

167 OSPP Final Report - Appendix F: Focus Group Report Behavioural changes cited: All rescheduled usage of dishwashers and laundry machines to off-peak hours 1 consolidated laundry into a smaller number of larger loads 2 changed their dinner and breakfast to off-peak hours 1 used other means of cooking (BBQ) All used only basic power in Critical Peak times (fridge/freezer, water heaters) Some ate out on Critical Peak days Most switched to energy-efficient bulbs (which they called twisty bulbs ) Some raised the level of awareness of other family members to electricity usage Two vacuumed only on weekends One participant works for a home improvement chain and has already been making a habit of buying energy saving enabling technologies. He and another participant would consider investing in more such technologies to make the most of TOU prices in the future. Although most participants changed their behaviour in response to timedependent prices, most felt that they would NOT have been able to change their behaviour any more for a critical peak day. They were all using only basic power during critical peak times. Other comments included: What we found out is that I m the least affected, and my wife is most affected by our behavioural changes when we do clothes, run the dishwasher, etc. As the male of the house, it was easier on me It s easier if you re at work all day, but if you re retired or home with kids all day, it would be harder to do this. I m at home right now with both kids; to not use television, it s tough; I don t want to be ironing shirts at 10:00 pm. Can one live with the hour brackets? I don t think one will really save, but I wanted to know if one could live with the limits. We watched the Critical Peak Periods but didn t pay too much attention to the on-peak times. This made us more environmentally aware, if only because we were discussing it more. 24

168 OSPP Final Report - Appendix F: Focus Group Report Role of feedback in behavioural change CPP Participants were committed to managing their electricity usage better, and desired two additional resources: more accessible interval meter data on their recent usage (some would check this daily if it were possible) and more ways to measure or sub-meter their home appliances to see where the power consumption was occurring. Until people have to pay more for electricity, they don t worry about how it s used, so I thought this project was a good idea. The most helpful feedback for behavioural change was the Electricity Usage Statement. Participants would have liked more resources to help them identify the sources and the amount of electricity consumption in their households. Some already referred to the Hydro Ottawa conservation tip sheets but sought resources with more specific calculations and data to help them manage their consumption. None mentioned any awareness of HO s energy calculator on the PowerWise website. One participant shared with the others that he had checked out a kw meter from his public library to help him measure the consumption of his own appliances. About half the group wanted to have access to their personal electricity usage data on a daily basis so that they could adjust and control their consumption in a more timely manner: They liked the idea of accessing the data in close to real time via a webbased interface. Two raised concerns about Internet security but said that if security issues were addressed they would like access to such data. One person said he would use the real time data so much it would be his screen saver. Post-pilot expectations CPP The group was supportive of energy conservation and responsible electricity usage, but was not convinced that time-of-use pricing would motivate more people to reduce peak load because the pricing did not result in a significant enough bill savings. There was a tepid response as to whether the TOU pricing was a better deal. Although previous responses indicated that this group felt right about energy conservation, and their daily practices (especially the retired engineers) showed their commitment to controlling their own consumption, they were skeptical that a new pricing structure would motivate more of this kind of behaviour. 25

169 OSPP Final Report - Appendix F: Focus Group Report The more environmentally conscious participants expressed that they realized that even though their individual savings were not significant, that eventually the sum of everyone s efforts would result in benefits to society such as future price stability and reliability of supply. However, all agreed that if the motivation were merely for bill savings, one or even ten dollars a month would not make their efforts worth it. I changed my lifestyle enthusiastically and only saved 8 cents. It s easy to do, and we made a concerted effort, but it s not worth 8 cents! The point is not so much saving money now, but in the future, we ll be paying more if we continue without changing our behaviour. I agree. It s like the people who never recycle, you can t tell them anything, so move on. They just have to pay for their consumption One participant discussed the TOU prices in relation to the price she is currently paying on flat rate. The way it s set up right now (tiered pricing), the only less expensive time [than my 5.8 cent flat rate] is offpeak. If people were paying more on the current [tiered] rates, then shifting to accommodate the TOU prices would be more of an incentive. I d like to see more timers available for clothes or dishwashers, even external timers, so that we could sleep at night. Sponsorship and future implications of project About half knew that OEB was the sponsor; a couple of participants knew that the OEB was the regulatory entity in charge of setting prices. CPP What happens to the smart meter program if the government changes in a year s time?? I see all my other neighbors, who have 4,000, 5,000 square foot homes, and they have their air conditioning blasting and the lights on in every room of the house 24/7, and I I feel that I m ok with the pilot part; but I hope that if we get into [TOU pricing] for real, all over Ottawa, that it will go against these guys and not against us who are trying hard to save money for our own pockets but also for the environment and everything. So that s where I have problems with the program but it seems to be going the right way. I wanted to know how the meter functions. I tried calling Hydro Ottawa first, they sent me to the OEB, and they weren t completely in sync about the answers. I think that they better cross fertilize in the future. Would it be possible to incorporate monitoring so that you could build a credit if you were under usage for a peak time, and have that carry over to the next period? 26

170 OSPP Final Report - Appendix F: Focus Group Report Focus Group Responses by Topic: CPR (Critical Peak Rebate) Group Why did they agree to participate in the pilot CPR Most of the participants were interested in managing their electricity consumption and having more control over their electricity costs. Participants were interested in the impact that TOU prices would have on their household expenses with their unique electricity usage patterns. Many hoped that via participation in the project they would understand their Hydro Ottawa bill, see why their bill was so high, and be able to control their electricity costs. In June I called Hydro to ask how I could save on my bill; I was paying around $450 for just me and my son! When I got the info about this project I thought, Thank God, a way to save! 6 participated because thought the project was a good idea 2 overcame initial skepticism about the project and TOU rates 5 wanted to cut costs 4 were concerned about the uncertainty of supply 3 were early adopter types and wanted to be part of the project Similarly, 1 wanted to be prepared specifically for the new meters and 1 found the experimental design to be appealing 3 liked the idea of monitoring their usage and access to statistics and data Similarly, 2 wanted to see if they were really saving 2 wanted to have greater control over their electricity bill 1 thought the project would be a good way to educate other family members about the impact of their electricity usage Understanding of prices, bills, usage CPR This group expressed that they had already been familiarized with the ideas about conservation during peak hours because of a recent Hydro Ottawa education campaign on this topic. They perceived that commercial use was the biggest contributor to peak demand on the system, and did not think that residential electricity usage patterns would be penalized under TOU prices. They did, however, believe that if enough residents responded to peak pricing, there would be a positive affect on both supply and prices. 27

171 OSPP Final Report - Appendix F: Focus Group Report As was the case in the TOU and CPP groups, no one thought the periods and prices were too hard to understand. One thought they needed some explanation. The others thought the pricing was easy to understand. Responding to TOU pricing was the right thing to do. This group has already been heavily influenced by Hydro Ottawa s campaign to educate residents about conservation and load-shifting. They were already familiar with the concept of peak hours and the need to use electricity at times when there was less demand on the grid. They were also familiar with strategies, both energy efficiency strategies and load-shifting strategies. Some participants expressed their understanding that time-dependent prices were a way to address the problem of adequate electricity supply. Some understood the time-dependent costs as a problem of high commercial and business use during peak times, since the peak times seemed to be during times when most people were not at home, and other participants affirmed this understanding. They concluded that the peak time schedule was targeted toward businesses and industries, that commercial use was the biggest contributor to peak demand, and that the load shape of the residential sector already complies to a greater extent to the TOU peak time schedule. They also thought that the aggregate impact of more residents doing their part to shift load would have a positive affect on supply and prices. I ve been telling people that during certain times I ve been cutting back on my dishwashing and my laundry and running the air conditioning. The benefits are that it s shown me that I can cut back and not take for granted that power will always be there. I basically just say wash your dishes and clothes at night and on weekends. Most people are concerned about how they re going to save money on this. I have a hard time explaining that you will; in fact I don t know that they will, since you have to make up a lot on the off-peak in order to even up the on-peak. It s making me think before I turn something on, giving me the decision on my bill. I think big business and manufacturing are sucking up a lot of energy during the peak hours It s the cost of firing up the big nuclear plants. I think it will be harder to get businesses to cut consumption, so it s easier to get people like us to do it. Re: smart metering, I d like to see if the savings pays for the cost, and it balances out it s kind of like going to the bank and getting less interest charges, but there s more service charges. 28

172 OSPP Final Report - Appendix F: Focus Group Report Feedback on recruitment and educational materials CPR The table of TOU prices on the fact sheet and the graphs on the Electricity Usage Statement were most helpful in understanding the project, the TOU periods, and the TOU prices. The magnet is the tool that participants referred to the most. Participants unanimously preferred the information as laid out in the magnet. If the information on TOU pricing were to be on a web site or another format, their second choice would be to use the graphics supplied by the OEB; five liked the pie chart, four liked the bar chart. However, they emphasized that they preferred a table schedule like that on the magnet. Feedback on the Electricity Usage Statements CPR Participants paid close attention to the Electricity Usage Statements and used them to make decisions about their electricity usage based on the perceived cost to them. They wanted to see their other regular electricity charges reflected on the Electricity Usage Statements because they felt it was important to confirm that TOU prices were not negatively impacting them, and also to confirm that they were managing their costs and consumption well. They wanted more frequent access to usage data for the same reasons. It has dates on the charts, but it doesn t have times, so we have to figure that out, maybe if you had a legend reminding us of the times. It took me a while to figure out that on the peak days I ll only get credited for the amount against what I would normally use. Something bigger that would help me say, Oh good, I m doing what I m supposed to do, would be good. Is it worth the effort for 7 kwh for the rebate? But then I looked at the rest of it and saw the overall usage, but it wasn t that helpful because I couldn t compare with my regular bill. They wanted to be able to better compare with their actual Hydro Ottawa bill, so suggested including the other charges (delivery, debt recovery, etc.) they would see on a regular bill. They wanted some form of comparison as a pat on the back to see how they were doing; suggestions were 1. to compare to the average residential user, 2. to compare with an average residential user with similar square footage and appliance/household demographic, 3. to compare to themselves, possibly their own usage, on the tiered rate, on the same days in the previous year. 29

173 OSPP Final Report - Appendix F: Focus Group Report If they could add anything to their normal Hydro Ottawa bill once TOU pricing was in place, they would add the colored daily electricity usage chart and some indication of when the critical peak hours occurred in that billing period. They suggested that billing cycles would have to change if they were to go on the TOU prices permanently. Specifically, they would prefer monthly feedback on electricity usage: then you can see whether you re making a difference or not, and if you tried something different in order to reduce, you want to see if it worked.. More often than monthly would be better. In fact, if there were a daily read of their usage which they could access via a secure Internet service, they would check it often. One man wanted to be able to see the metering bar fluctuate in real time as he turned appliances on and off (It d be good it it were real time, you d turn off your AC and see the bar go down ). They suggested that if TOU prices were to be implemented province-wide, the first few months of billing should include a shadow bill so customers would know what they would have paid under the old pricing versus what they were actually paying on TOU pricing. One participant suggested that this would help people not to be afraid of change, that they would see that the TOU costs were not that different from the old costs and in fact could be better for the average customer. Feedback on the critical peak pricing CPR Critical peak notifications did not seem to be crucial to participants, as several participants had problems receiving the transmissions but were not upset at having missed notifications. Most participants received their notifications but did not necessarily feel it was important to respond with strategies (see next question). They would consider it unreasonable to extend the hours of a critical peak period past the 3 or 4 hours used in the pilot. No one remembered definitively which days were Critical Peak. However, some did recall how many events had been called. About half the group received notification by , the other half received notification by phone. issues: One person said that notification and the day-ahead notice was good, since he could be more proactive about thermostat settings and other strategies. Another didn t always check her s and missed seeing a notice in time, but understood the rationale behind a day-ahead notice. They liked that the Subject line of the has all the information they need to know. 30

174 OSPP Final Report - Appendix F: Focus Group Report Phone issues: Because it s a recorded message, a few participants either screened out the calls or never received them because they would hang up on the recording. They suggested having a Caller ID that says Critical Peak Day Notice or something of that sort, so that they would not screen out or hang up on these calls. They would consider it unreasonable to extend the hours of a critical peak period past the 3 or 4 hours used in the pilot. Six hours would be too much [for a Critical Peak event]. If critical peak happened at night, it would be harder because it would be too uncomfortable; I want to save, but not make it uncomfortable for my kids. Critical peak during the day is better. Many understood that critically high demand was in part a factor of temperature and some were surprised that there were critical peak days called when the temperature was not very high. The notifications themselves did not seem to stimulate a change in consumption behaviour for many participants: It didn t make much difference to me whether I knew there was critical peak or not, because even before the project the thermostat is always set to a few degrees higher during the day, the dishwasher is always set to go in the evening, the laundry s always done after 7:00 at night, so we didn t really have to change much of anything. Yeah there was warnings sent even before the pilot project that said when to cut down on power. But one participant did have a category in his mind for Critical Peak notifications: Critical peak [rebate], it s like the $1.99 sale, you know you re going to save; you hear critical peak and you automatically change the thermostat and your fans and you know you ll save. All thought that if Critical Peak pricing were to be province-wide then use of mass media, such as radio and television, would be the preferred method of communicating the Critical Peak times. Behavioural change after going on the new prices CPR All changed the times they ran dishwashers and laundry machines, and most implemented other measures in general energy efficiency as a result of being more conscious of their electricity usage through this project. This group of participants was also conscientious about energy conservation and used this portion of the discussion to share tips on ways to conserve more, both on and off peak. They did not change their behaviour significantly for a critical peak day because they felt they were already doing their utmost to minimize electricity usage during peak times. They also felt it was easy to implement load-shifting 31

175 OSPP Final Report - Appendix F: Focus Group Report strategies in response to TOU periods, and that it would be worth it to continue these practices even if it resulted in $1 savings on their bill; they felt it would benefit the province by promoting reliable electric supply. Some participants were already aware of the need for a change in their electricity usage, both energy efficiency and during peak demand times before the pilot project started, and all had already begun energy efficiency measures in their own homes. Hydro Ottawa s light-bulb program was mentioned as one trigger. Most were not consistent or aware about load shifting and peak times until the pilot project. As a result of the project, not many were able to change their practices much more than they already had, but they did have a better idea of when to run their laundry machines and dishwashers in order to reduce their bill. The discussion centered on how many kwhs various appliances used, energy vampires like microwave clocks and cell phone chargers, and how to reduce electricity consumption overall (conservation measures). The behavioural changes cited by participants: All changed the time they ran dishwashers and laundry machines Turning off computers when not in use (8) Turning thermostats up on critical peak days because when it s that hot outside, it still feels nice even if it s set higher than 26 Unplugging cell chargers Turning off lights (5) Installing timers on lights and other appliances (2) - one man had a timer on his washing machine Changing appliances to be more energy efficient Unplugging a freezer or an old fridge (2) Turning furnace fans from always running to auto mode Changing A/C air exchangers to intermittent mode Changing to energy efficient lighting Role of feedback in behavioural change 32 CPR Participants paid close attention to their electricity usage data and applied that information to make decisions about times of electricity use and appliance purchases. They were interested in more informative resources that would help them further understand their usage, for example the electricity consumption of specific appliances and how one appliance would impact their total load. If there

176 OSPP Final Report - Appendix F: Focus Group Report were a way for them to access their usage data more often than once a month, they would do so. All found it easy to effect the changes in behaviour mentioned above. Participants would have liked more resources to help them identify the sources and the amount of electricity consumption in their households; they already referred to the Hydro Ottawa conservation tip sheets. They would like more detailed information on how much electricity various appliances use, and would like this information to consider specific makes and models of appliances.they would use this kind of information to manage their home energy consumption. This would affect their purchasing decisions about electric appliances as well. None mentioned any awareness of Hydro Ottawa s energy calculator on the PowerWise website or the fact that they could check out a kw meter from their public library. I felt that I tried to cut back on some of these things, but that it didn t make much of a difference. Does one really need to go around unplugging the computer at night? Does it make a difference? Hydro has been good about giving tips, but I want to know what kind of a draw these have and if it makes a difference. As mentioned before, if there were a way to check hourly or periodic electricity consumption more often than once a month (every day would be preferable), most of the group would use this to actively manage their electricity usage. Post-pilot expectations CPR This group felt that they could advocate TOU pricing as a result of their participation in the pilot project. Most would continue practicing these strategies, and would definitely keep conserving and load shifting even if the savings were only $1 a month on their electricity bills. They would tell their friends and neighbors that TOU prices are easy to adapt to and a good way to address the supply problems faced by the province. I would tell people not to fear change. People will be skeptical, they ll be looking at the new format of the bill versus the old and saying, am I really saving, so maybe in the first bulk bills you could send out information on what they re saving, because people will get lost in the stats and there will always be skeptics. I curl, so I had a captive audience the other night and I was telling them about this project. One of the skeptics said, What if you only save three bucks over a few months? and I replied, But if all eight of us saved, that would mean something! It doesn t matter to me that it s just a dollar, you re doing something right and important. 33

177 OSPP Final Report - Appendix F: Focus Group Report I remember coming to Ottawa six years ago and being impressed because people had signs on their doors saying No Flyers because they wanted to save trees; so helping the environment is very important here. I think people just don t know how much their appliances are using if people are more conscious about certain things, they ll know to check, for example when people would let an AC unit constantly run until it was dry and a hazard. One participant asked How will we handle the winter, when it s harder to shift? (Response from the group included numerous suggestions of switching to gas ovens and heaters, and to use crock pots and other timedelay devices) Sponsorship and future implications of project About a third of the group knew that the OEB was the project sponsor and that the OEB sets rates for the province. Most knew that smart metering was in store for everyone in the province. Even though they felt that individual contributions to electricity savings were small, they believed in the appropriateness of asking all residents to save in order to help the entire province. They felt that big business should be called upon to do their share. CPR I tell my neighbors that you re in control of your usage. It puts the power back in your hands. There will be people who end up spending more, and maybe they ll call to complain, but they re going to be paying the right price and it will be up to them to manage it. Dual bills in the beginning to assure people that they re saving would be good. 34

178 Ontario Energy Board Smart Price Pilot Appendix G: Survey Results

179

180 IBM Global Business Services Ontario Energy Board Smart Price Pilot Survey Results January 25, IBM Corporation

181 IBM Global Business Services Methodology 2006 IBM Corporation

182 IBM Global Business Services Methodology As part of this study, IBM s National Survey Centre conducted a survey of the Ontario Energy Board Smart Price Pilot participants. A dual methodology was implemented for this study: - Invitations to participate in an online survey were sent to all participants on November 22nd who had provided an addresses as part of the study. - The mail survey was distributed by regular mail on November 23rd to all participants who did not provide addresses as part of the study. The mail surveys also contained unique links to the online survey to encourage participants to complete online. A total of 289 surveys were returned by the survey cut-off date of December 14th for an overall response rate of 77%. Response rate by survey invite type was: - Online invites = 183 / 199 (92%) - Mail invites = 106 / 176 (60%) completed either by mail or online IBM Corporation

183 IBM Global Business Services Sampling and Margin of Error The margin of error (at 95% confidence) for the overall results is ± 5.7% for the 289 surveys received. The margin of error for the different sub-groups presented throughout the report will vary depending on the sample size: - TOU : n=94; ± 10.2% - CPP : n=103; ± 9.7% - CPR : n=101; ± 9.8% As a reference, the margin of error associated with the different sub groups (± 10%) indicates a difference of at least 20 percentage points is needed to prove a statistically conclusive result. Significant results are highlighted throughout the report IBM Corporation

184 IBM Global Business Services General Opinions about the Time-of-Use Pricing Plan and the Ontario Smart Price Pilot Program 2006 IBM Corporation

185 IBM Global Business Services Q2A/B: What benefits do you feel the time-of-use pricing plan offers to electricity consumers? What is the MAIN benefit the time-of-use pricing plan offers to its customers? More aware of how to reduce bill More aware of when electricity is used More conscious of peak usage Gives greater control over costs 21% 14% 21% 39% 67% 100% 91% 86% Being more aware of how Being more aware of how to reduce their bill and to reduce their bill and knowing when electricity is knowing when electricity is being used are clearly the being used are clearly the top benefits of the time-ofuse pricing plan. Being top benefits of the time-ofuse pricing plan. Being more conscious of peak more conscious of peak usage is also a main usage is also a main benefit according to pilot benefit according to pilot participants. participants. More aware of total consumption 3% 56% Benefits the environment 1% 52% Other benefits No benefits 1% 0% 1% 1% All Mentions (n=298)* Top Mention (n=298) Note: * Percentages add to more than 100% due to multiple responses. 0% 20% 40% 60% 80% 100% IBM Corporation

186 IBM Global Business Services Q3A/B: Would you recommend the time-of-use pricing plan to your friends if the pilot project was expanded? Why or why not? The majority of pilot study participants The majority of pilot study participants would recommend the time-of-use pricing would recommend the time-of-use pricing plan to their friends. Results are plan to their friends. Results are consistent regardless of which plan the consistent regardless of which plan the participants were enrolled in for the pilot participants were enrolled in for the pilot TOU (69%), CPP (85%) and CPR (80%). TOU (69%), CPP (85%) and CPR (80%). No 6% Why Not? Requires too much effort to reduce consumption (n=7) Potential savings are not great enough (n=6) 7 Yes 78% Why? More aware of how to reduce bill (n=53) Gives greater control over costs (n=45) Benefits the environment (n=32) More conscious of peak usage (n=24) More aware of when electricity is used (n=15) Increases awareness (n=12) Reduces consumption (n=9) More beneficial (n=6) Prepares consumers for future implementation of smart meters (n=6) Increases consumers responsibility (n=2) (n=298) Not Sure 16% Why Not? Requires too much effort to reduce consumption (n=10) Unsure if the time-of-use pricing plan is actually beneficial (n=8) Potential savings are not great enough (n=5) Information provided is either too complicated or insufficient (n=4) Plan is only beneficial if you have a flexible schedule (n=3) 2006 IBM Corporation

187 IBM Global Business Services Q3C: Do you feel the current difference between the Off-peak price and On-peak price is large enough to provide you with the necessary incentive to shift your electricity consumption to Off-peak periods? For the most part, participants felt that the For the most part, participants felt that the difference in price points was large difference in price points was large enough to encourage them to shift their enough to encourage them to shift their electricity consumption. electricity consumption. No (increase onpeak and reduce off-peak prices) 16% Not sure 13% Yes (keep the difference about the same) 71% (n=298) Pricing Plan Enrolled In: TOU CPP CPR (n=94) (n=103) (n=101) Yes (keep the difference about the same) 67% 81% 64% No (increase on-peak and reduce off-peak prices) 16% 12% 21% Not sure 17% 8% 15% IBM Corporation

188 IBM Global Business Services Pricing Plans 2006 IBM Corporation

189 IBM Global Business Services Q4A: What type of pricing plan (the amount you are charged for electricity consumption) is of most interest to you? Three quarters of pilot Three quarters of pilot participants indicated that participants indicated that time-of-use prices was the time-of-use prices was the plan of most interest to them. plan of most interest to them. While interest in the CPP and While interest in the CPP and CPR plans was only CPR plans was only moderate, less than a fifth moderate, less than a fifth prefer the regular two-tier prefer the regular two-tier pricing used by Hydro Ottawa pricing used by Hydro Ottawa before the pilot. This shows before the pilot. This shows good uptake of the pilot and good uptake of the pilot and rates by participants most rates by participants most would not want to go back to would not want to go back to two-tier pricing. two-tier pricing. Time-of-use prices Critical peak prices Critical peak rebates Regular twotier prices Not sure / No opinion 5% 17% 23% 33% 74% (n=298) 0% 20% 40% 60% 80% 100% Interestingly, participants Interestingly, participants enrolled in the TOU rate enrolled in the TOU rate plan were significantly less plan were significantly less likely to indicate that the likely to indicate that the CPP plan was of MOST CPP plan was of MOST interest to them. interest to them. Pricing Plan Enrolled In: TOU CPP CPR (n=94) (n=103) (n=101) Time-of-use prices 76% 75% 71% Critical peak prices 19% 42% 36% Critical peak rebates 19% 21% 27% Regular two-tier prices 25% 13% 16% Not sure / No opinion 6% 3% 5% Note: * Percentages add to more than 100% due to multiple responses IBM Corporation

190 IBM Global Business Services Q4B: What resources did you find useful in helping you understand the time-of-use (or smart ) prices? Fridge magnet Participants found the fridge magnet and electricity usage statements Participants found the fridge magnet and electricity usage statements very useful in helping them understand the time-of-use prices. very useful in helping them understand the time-of-use prices. 74% 19% 4% 4% Electricity usage statements 67% 24% 5% 4% Fact sheet 45% 47% 4% 4% Recruitment letter 31% 57% 5% 7% Enrollment letter 21% 64% 9% 6% Toll-free number Hydro Ottawa website OEB website 4% 4% 2% 13% 13% 12% 18% 19% 18% 65% 65% 68% Very useful Somewhat useful Not useful Did not receive / use Other resources 2% 1% 3% 94% (n=298) 0% 20% 40% 60% 80% 100% While early pilot communications (e.g., the fact sheet, recruitment letter and enrollment letter) While early pilot communications (e.g., the fact sheet, recruitment letter and enrollment letter) were considered useful by most; the toll-free number and client websites were not considered were considered useful by most; the toll-free number and client websites were not considered a key resource when obtaining information to help understand the time-of-use prices. a key resource when obtaining information to help understand the time-of-use prices IBM Corporation

191 IBM Global Business Services Q4C: What resources did you find MOST useful in helping you understand the time-of-use (or smart ) prices? Participants found the fridge magnet Participants found the fridge magnet and electricity usage statements the and electricity usage statements the MOST useful resources in helping them MOST useful resources in helping them understand the time-of-use prices. understand the time-of-use prices. (n=296) Fridge magnet 49% Electricity usage statements 38% Fact sheet 5% Recruitment letter 4% Other resources 1% Not sure 3% Pricing Plan Enrolled In: TOU CPP CPR (n=94) (n=103) (n=101) Fridge magnet 45% 47% 57% Electricity usage statement 43% 41% 31% Fact sheet 0% 9% 5% Recruitment letter 5% 4% 3% IBM Corporation

192 IBM Global Business Services Q5A/B: Thinking about the time-of-use prices, how many times does the price change during a summer / winter weekday? Number of price changes during summer weekday (n=285) Number of price changes during winter weekday (n=288) Five 14% Six or more 4% One 1% Two 6% Six or more 6% One 1% Two 7% Three 37% Five 30% Three 28% Four 38% Two fifths (38%) were able to correctly Two fifths (38%) were able to correctly identify that the price changed four times identify that the price changed four times during a summer weekday. Results are during a summer weekday. Results are consistent regardless of which plan consistent regardless of which plan participants were enrolled in TOU participants were enrolled in TOU (35%), CPP (40%) and CPR (36%). (35%), CPP (40%) and CPR (36%). Four 28% A third (30%) were able to correctly identify that the price A third (30%) were able to correctly identify that the price changed five times during a winter weekday. Results are changed five times during a winter weekday. Results are consistent regardless of which plan participants were enrolled consistent regardless of which plan participants were enrolled in TOU (33%), CPP (29%) and CPR (26%). in TOU (33%), CPP (29%) and CPR (26%) IBM Corporation

193 IBM Global Business Services Q5C/D: Do you recall the specific hours for the following time periods for weekdays in the summer / winter? The percentages in the graph The percentages in the graph identify the number of pilot identify the number of pilot study participants who study participants who correctly identified the start correctly identified the start and end times for the and end times for the different time periods. different time periods. Participants had considerable Participants had considerable difficulty remembering the difficulty remembering the start and end times of the onpeak and off-peak periods. start and end times of the onpeak and off-peak periods. This emphasizes the This emphasizes the importance of a well importance of a well designed and easily designed and easily accessible format for accessible format for communicating the time communicating the time periods to participants. There periods to participants. There were no significant were no significant differences in terms of recall differences in terms of recall between the different between the different enrollment groups. enrollment groups. 30% 53% 40% 53% 47% IBM Corporation

194 IBM Global Business Services Q6A/B: Which format do you find easier to understand? Why do you prefer this format? Clearer Clearer / / easier easier to to read read (n=163) (n=163) Already Already familiar familiar with with the the format format (n=10) (n=10) Colors Colors in in Format Format B B are are hard hard to to look look at at (n=5) (n=5) Participants definitely prefer the tabular format for displaying the different time format for displaying the different time periods and associated time-of-use periods and associated time-of-use prices. This is consistent with the findings prices. This is consistent with the findings Format A - from the focus groups. from the focus groups. Tabular Format 61% Format B - Graphical Format 27% (n=298) No preference 12% Participants definitely prefer the tabular Clearer Clearer / / easier easier to to read read (n=75) (n=75) Easier Easier to to remember remember (n=4) (n=4) Pricing Plan Enrolled: TOU CPP CPR (n=94) (n=103) (n=101) Format A Tabular Format 54% 67% 61% Format B Graphical Format 33% 21% 28% No preference 13% 12% 11% IBM Corporation

195 IBM Global Business Services Q6C: Also, are there any changes you would suggest should be made to the other format that would make it more helpful? Format A Tabular Format: - Change colour coding - Make it less busy / use fewer colours - Separate summer and winter magnets - Use a larger or different font - Eliminate it / I would not use it - Change chart format Suggestions for Suggestions for - Add more information improvement were improvement were similar for both - Make magnets unilingual similar for both formats; unique formats; unique suggestions are suggestions are indicated in bold. indicated in bold. Format B Graphical Format: - Make it less busy / use fewer colours - Change colour coding - Separate AM and PM clocks / change clock format - Eliminate it / I would not use it - Add more information - Use a larger or different font - Make magnets unilingual IBM Corporation

196 IBM Global Business Services Electricity Usage Statements 2006 IBM Corporation

197 IBM Global Business Services Q7A/B: Do you recall receiving/reading customized electricity usage statements in? Received statement in Read statements in September 87% September 86% October 87% October 84% November 72% November 67% Do not remember receiving statements 3% (n=298) Did not read / receive statements 5% (n=298) 18 0% 20% 40% 60% 80% 100% Note: * Percentages add to more than 100% due to multiple responses. 0% 20% 40% 60% 80% 100% Participants recall receiving and took time to review their Participants recall receiving and took time to review their monthly statements each month. The drop off in November monthly statements each month. The drop off in November may be attributed to the fact that participants had a short may be attributed to the fact that participants had a short window between the statement and survey mailings. window between the statement and survey mailings IBM Corporation

198 IBM Global Business Services Q7C: Thinking about the last customized electricity usage statement that you received and read, to what extent do you agree with each of the following statements? Information was helpful in understanding how much electricity was used during different periods (n=282) Information was easy to understand (n=281) Information was helpful for shifting electricity usage to cheaper periods (n=281) Overall, participants agreed that the information they received on their Overall, participants agreed that the information they received on their electricity usage statement was helpful, easy to understand and timely. electricity usage statement was helpful, easy to understand and timely. 32% 29% 42% 49% 51% 57% It is important to It is important to note that CPR note that CPR participants were participants were significantly less significantly less likely to indicate likely to indicate that they strongly that they strongly agree with these agree with these two statements. two statements. Information was helpful in understanding how to save on electricity bill (n=281) 29% 44% Information was helpful in reducing total electricity usage (n=282) Information was provided at the right time (n=280) 17% 23% 40% 47% Strongly agree Agree 0% 20% 40% 60% 80% 100% IBM Corporation

199 IBM Global Business Services Q7D: After reviewing your electricity usage statements, to what extent have you (or others in your household) made a change in how you use electricity? Participants were more likely to significantly change how they use electricity during Participants were more likely to significantly change how they use electricity during on-peak and critical-peak periods. The mid-peak price point did not seem to have as on-peak and critical-peak periods. The mid-peak price point did not seem to have as much of an effect in influencing participants to change their electricity usage. much of an effect in influencing participants to change their electricity usage. Overall 36% 53% 9% 3% During off-peak hours 40% 35% 23% 3% During mid-peak hours 19% 59% 17% 5% During on-peak hours 51% 38% 9% 2% During critical-peak periods* 67% 22% 7% 4% 0% 20% 40% 60% 80% 100% (n=283) Significantly changed how you use electricity Slightly changed how you use electricity Did not change how you use electricity Not sure / No answer Note: * Asked only to CPP and CPR pricing groups (n=191) IBM Corporation

200 IBM Global Business Services Q7E: As a result of reviewing your electricity usage statements, how likely are you to change how you use electricity in the future? Again, participants can see themselves changing their electricity usage in the Again, participants can see themselves changing their electricity usage in the future more often during the on-peak and critical-peak periods. future more often during the on-peak and critical-peak periods. Overall 47% 43% 9% 2% During off-peak hours 42% 32% 23% 4% During mid-peak hours 25% 51% 20% 4% During on-peak hours 52% 36% 9% 3% During critical-peak periods* 71% 22% 6% 2% (n=281) 0% 20% 40% 60% 80% 100% Very Likey Likely Not Very Likely Not at All Likely Note: * Asked only to CPP and CPR pricing groups (n=190) IBM Corporation

201 IBM Global Business Services Communications 2006 IBM Corporation

202 IBM Global Business Services Q8A: Thinking about the different communications you received, please indicate your preferred method of receiving this information General communications Electricity usage statement 68% 74% 28% 21% 4% 5% Participants prefer to Participants prefer to receive any general receive any general communications and communications and electricity usage electricity usage statements by mail. statements by mail. Critical peak Critical peak notifications should notifications should be sent by or be sent by or via an automated via an automated telephone system. telephone system. Critical peak periods* 12% 56% 30% 2% (n=297) 0% 20% 40% 60% 80% 100% It is important to It is important to note that TOU note that TOU participants were participants were significantly more significantly more likely to indicate that likely to indicate that they prefer to they prefer to receive general receive general communications by communications by mail (83%). mail (83%). Sent by Mail Sent by Automated Telephone System Provided Online Note: * Asked only to CPP and CPR pricing groups (n=203) IBM Corporation

203 IBM Global Business Services Q8B: How often would you access information on your electricity usage statement if the information was available by Automated Telephone System (n=294) Internet / (n=292) Never 52% Daily 5% Weekly 2% 6 to 12 times per year 7% 1 to 5 times per year 7% Less frequently 6% Never 11% Daily 11% Monthly 14% Most participants Most participants would not use an would not use an automated telephone automated telephone system to access system to access their electricity usage their electricity usage statements. statements. Less frequently 15% 6 to 12 times per 1 to 5 year times per 5% year 7% Monthly 31% Weekly 27% There is significant interest among There is significant interest among participants to have this information available participants to have this information available online and/or via . Most (69%) would online and/or via . Most (69%) would access this information electronically on a access this information electronically on a monthly (or more frequent) basis. monthly (or more frequent) basis IBM Corporation

204 IBM Global Business Services Appliance Holdings 2006 IBM Corporation

205 IBM Global Business Services Q9A/B: Do you pay for air conditioning for your home? What type of air conditioning systems do you have in your home? No, do not have air conditioning 7% Central AC 93% Window AC 7% (n=298) Yes 93% Wall AC 0% (n=278) Almost all pilot participants Almost all pilot participants have central air conditioning have central air conditioning in their homes. in their homes. 0% 20% 40% 60% 80% 100% IBM Corporation

206 IBM Global Business Services Q9C: How do you usually operate your main air conditioning system? Half of participants use programmable Half of participants use programmable thermostats that adjust the AC thermostats that adjust the AC automatically at different times during automatically at different times during the day and/or week. the day and/or week. Manually turn on / off as needed 28% Thermostat setting automatically changes at different times 50% (n=278) Raise the thermostat when no one is at home 6% Rarely use 4% Maintain the thermostat at a constant temperature 12% IBM Corporation

207 IBM Global Business Services Q9D: How often is your air conditioning turned on during the summer during the following time periods... Weekday mornings (7 to 11 am) 29% 29% 20% 22% Weekday afternoons (11 am to 5 pm) 16% 22% 30% 32% Weekday evenings (5 to 10 pm) 2% 13% 39% 47% Weekday evenings Weekday evenings are a key time for AC are a key time for AC to be in use. to be in use. Weekday overnight (10 pm to 7 am) 17% 26% 27% 30% (n=277) 0% 20% 40% 60% 80% 100% Never Rarely (1 day/week) Sometimes (2-3 days/week) Often (4+ days/week) IBM Corporation

208 IBM Global Business Services Q10A/B: Do you pay to heat your home? What type of heating systems do you have in your home? Most participants use a Most participants use a natural gas forced air natural gas forced air furnace to heat their homes. furnace to heat their homes. Natural gas - forced air furnace Natural gas - other 2% 89% Electric - forced air system 1% Electric - resistance 9% Electric - other 1% (n=297) Fireplace / Wood stove 1% Yes 100% Oil 2% Natural gas - other 2% (n=297) 0% 20% 40% 60% 80% 100 % IBM Corporation

209 IBM Global Business Services Q10C: How do you usually operate your main heating system? Three fifths of participants use Three fifths of participants use programmable thermostats that adjust the programmable thermostats that adjust the heating system automatically at different heating system automatically at different times during the day and/or week. times during the day and/or week. Manually turn on / off as needed 11% Thermostat setting automatically changes at different times 61% Maintain the thermostat at a constant temperature 14% (n=297) Lowering the thermostat when no one is at home 14% IBM Corporation

210 IBM Global Business Services Q11A/B: Do you pay for heating water at your home? What type of water heating systems do you have in your home? No, part of rental / condo fee 3% Natural gas heaters are also Natural gas heaters are also commonplace among pilot commonplace among pilot participants. participants. Natural gas 82% Electric 16% Other 1% (n=297) Yes 97% Don't Know 2% (n=289) 0% 20% 40% 60% 80% 100% IBM Corporation

211 IBM Global Business Services Q12A: Which of the following appliances do you use in your home? Washing machine Refrigerator Microwave Television Dishwasher Computer Cooktop, stove or range Printer, scanner, copier Electronic clothes dryer Oven(s) - Electric Fan(s) - portable or ceiling Stand-alone freezer Humidifier Dehumidifier Oven(s) - Natural gas Natural gas clothes dryer Aquarium Spa / Hot tub Heated swimming pool Heated waterbed 17% 14% 9% 4% 2% 0% 30% 26% 62% 58% It is important to note that It is important to note that respondents indicated that they are respondents indicated that they are likely to have more than one likely to have more than one television, computer, printer, fridge television, computer, printer, fridge and/or fan in use in the home. and/or fan in use in the home. 84% 83% 79% 100% 99% 98% 98% 94% 94% 93% (n=297) Most households use Most households use common kitchen common kitchen (refrigerator, microwave, (refrigerator, microwave, dishwasher, cook top, dishwasher, cook top, oven), laundry (washing oven), laundry (washing machine, clothes dryer) machine, clothes dryer) and telecom (television, and telecom (television, computer, printer) computer, printer) appliances in their home. appliances in their home. 0% 20% 40% 60% 80% 100% Note: Responses are the percentages of participants using at least one appliance in that category IBM Corporation

212 IBM Global Business Services Q12B: How often are the following appliances used on weekdays between 11 am and 8 pm? Washing machine 36% 38% 22% 4% Natural gas clothes dryer Electronic clothes dryer Cooktop, stove or range Oven(s) - Natural gas 4% 6% 12% 47% 37% 24% 28% 26% 39% 66% 30% 19% 21% 30% 9% 3% Cooktops, Cooktops, microwaves and microwaves and other kitchen other kitchen appliances are appliances are often used during often used during the daytime hours the daytime hours of 11am to 8pm. of 11am to 8pm. Oven(s) - Electric 6% Refrigerator 2% Stand-alone freezer 5% 6% 25% 96% 49% 88% 20% Not surprisingly, Not surprisingly, refrigerators and refrigerators and stand alone freezers stand alone freezers are almost always are almost always turned on. turned on. Dishwasher 36% 30% 23% 11% Microwave 1% 8% 29% 62% 0% 20% 40% 60% 80% 100% Never Rarely (1 day/week) Sometimes (2-3 days/week) Often (4+ days/week) Base: Those that have the appliance in their home IBM Corporation

213 IBM Global Business Services Q12B: How often are the following appliances used on weekdays between 11 am and 8 pm? Television 1% 2% 12% Computer 2% 7% 14% Printer, scanner, copier 7% 42% 85% 78% 32% 19% Televisions and Televisions and computers are computers are also commonly also commonly used during the used during the hours of 11am to hours of 11am to 8pm. 8pm. Humidifier 14% 28% 23% 34% Dehumidifier 17% 31% 16% 36% Fan(s) - portable or ceiling 16% 36% 24% 25% Heated waterbed Aquarium Spa / Hot tub 4% 4% 4% 18% 9% 27% 100% 89% 46% Again, heated Again, heated waterbeds and waterbeds and aquariums are aquariums are almost always almost always turned on. turned on. Heated swimming pool 14% 29% 57% 0% 20% 40% 60% 80% 100% Never Rarely (1 day/week) Sometimes (2-3 days/week) Often (4+ days/week) Base: Those that have the appliance in their home IBM Corporation

214 IBM Global Business Services Your Home and Demographics 2006 IBM Corporation

215 IBM Global Business Services Q13A/B/C: Demographics Home Type of Dwelling: ALL (n=298) TOU (n=94) CPP (n=103) CPR (n=101) Single-family detached house 51% 52% 50% 53% Single-family semi-detached house 12% 13% 14% 11% Townhouse, duplex or row house 28% 27% 30% 27% Condominium 8% 9% 7% 10% Home Ownership: Own 99% 99% 99% 98% Rent / lease 1% 1% 1% 2% Year Home Built: Before % 2% 2% 5% 1970 to % 1% 1% 3% 1980 to % 3% 0% 3% 1990 to % 17% 23% 24% 2000 to % 75% 70% 60% % 2% 4% 5% IBM Corporation

216 IBM Global Business Services Q13D/E: Demographics Home (cont d) Sq. Ft of Living Space: ALL TOU CPP CPR (n=295) (n=92) (n=102) (n=101) Less than 1,500 17% 17% 15% 19% 1,501 to 2,000 41% 39% 43% 42% 2,001 to 2,500 28% 32% 29% 23% 2,501 to % 7% 8% 14% 3,001 or more 4% 5% 5% 3% Basement : ALL TOU CPP CPR (n=298) (n=94) (n=103) (n=101) Sq. Ft. provided includes basement 42% 42% 42% 42% Average sq. ft of basement: IBM Corporation

217 IBM Global Business Services Q14A/B/C/D: Demographics - Family Number of People Living in Home: ALL (n=298) TOU (n=94) CPP (n=103) CPR (n=101) One 14% 15% 9% 19% Two 41% 39% 41% 42% Three 21% 20% 23% 19% Four 18% 21% 17% 16% Five or more 7% 4% 11% 5% Average Number of People Living in Home: Total (mean) year of age or older (mean) Highest Level of Education: Elementary (grades 1 to 8) / some high school (9 to 12) 1% 2% 2% 1% High school graduate 6% 8% 5% 5% Some college / university 10% 14% 8% 9% College / university graduate 58% 47% 61% 64% Post graduate degree 25% 29% 24% 21% Total Annual Income: Less than $50,000 11% 9% 10% 13% $50,000 to $74,999 19% 25% 14% 17% $75,000 to $99,999 24% 24% 26% 21% $100,000 to $149,999 30% 29% 27% 33% $150,000 or more 17% 12% 23% 16% IBM Corporation

218 IBM Global Business Services Q14E/F/G: Demographics - Vacation Took a Vacation: ALL (n=298) TOU (n=94) CPP (n=103) CPR (n=101) % took a vacation 39% 34% 42% 40% Number of Nights Away From Home: 1 to 5 23% 17% 34% 16% 6 to 10 41% 40% 42% 41% 11 to 20 30% 33% 22% 35% 21 or more 6% 10% 2% 8% Average number of nights away from home (mean) 3.7 Someone Remained in Home: % had someone remain in home during vacation 28% % % % Of those participants who went away on vacation since August 1st, the average number of nights Of those participants who went away on vacation since August 1st, the average number of nights away from home was 3.7 and 28% reported that someone stayed at home during their vacation. away from home was 3.7 and 28% reported that someone stayed at home during their vacation IBM Corporation

219 IBM Global Business Services The Ontario Energy Board 2006 IBM Corporation