SMALL BUSINESS OPPORTUNITIES
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1 SMALL BUSINESS OPPORTUNITIES August 16 th 2017
2 AGENDA Define small business customers Review performance indicators by customer size Discuss opportunities to increase small business participation Discuss opportunities to increase savings per customer 2
3 Avg kw Demand Newly eligible accounts WHAT IS A SMALL BUSINESS? National Grid Electric Account Demand and Usage Small Business Definition Pre 2016 Current Electric <300 kw <1,500,000 kwh Gas <40,000 therms 300 kw Accounts no longer eligible 1.5 Million kwh Annual Usage (kwh) 3
4 Gas Electric COSTS AND ENGAGEMENT BY CUSTOMER SIZE Customer Size Incentive $ /kwh Saved Participation as % of Accounts Small <50 MWh $ % MWh $ % MWh $ % Small/Med Mix 1,000-2,499 MWh $ % Med and Large 2,500+ MWh $ % Customer Size Incentive $/therm saved Participation as % of Accounts Small <8,000 Therms $ % 8,000-40,000 Therms $ % Medium 40,000-80,000 $ % Med and Large 80,000+ $ % 2015 Customer Profile Report Excluding upstream 4
5 PARTICIPATION LOWER THAN PLANNED Evaluated Small Business Initiative Results as % of Planned % Participation Spending Annual Savings Lifetime Savings 0% Electric Gas 5
6 SMALL BUSINESS MEASURES Electric Gas 2016 Evaluated Savings by End Use- from BCR screening models Lighting is 93% of electric savings Lower than planned adoption of new gas HVAC Measures On-site study revealed potential for SBI savings through: Lighting controls, 92% manual Replace T12s and T8s Replace incandescent lamps HVAC Controls Other heating and cool redirect opportunity 6
7 EFFECTIVE SMALL BUSINESS ENGAGEMENT Customer Support Partnerships Custom Measures Targeted Account Managers Prescriptive Measures Trade Allies Small Business Engagement Upstream Community Events Direct Mail Door Knocking Website & Blogs Ads Phone Calls Adapted from VEIC Foster Getting Small Businesses 7
8 EXPAND PA LED MARKETING Vendors do not conduct widespread marketing efforts Vendors are usually not paid for energy assessments Vendors are paid for installed measures All vendors expressed desire for PA help with hard to reach customers (2015 process evaluation) Expand PA involvement in marketing Vendor Led < Marketing Cold Calls Walk-Ins 15% of leads PA Led Marketing # Direct Mail Website Bill Insert 36% of leads National Grid leads data 8
9 ENHANCE MARKETING APPROACH Comprehensive Small Business Marketing Approach Door Knocking Phone Calls Website and Blogs Ads Direct Mail Social Media Community Events Trade Allies Consider techniques to appeal broadly to small business customers 9
10 INTEGRATE EFFECTIVE DEMONSTRATIONS STATEWIDE Main street delivery Targeted delivery to high density small business areas Around 90% of customers participate Eversource On-the-ground, door-to-door canvassing is the single most useful tactic to gain participation -California Commercial Direct Install Process Evaluation-Phase 1 Report Customer directed option (CDO) Expand outreach through trade allies (nonparticipating vendors) Recognize limitations, effective for lighting only Outreach Marketing Delivery Outreach/ Marketing Partner with towns Mail, ads, & door knocking Bulk order measures PA s reach out to trade allies Trade allies bring incentives to customers 10
11 Mean kwh Consumption per Account INCLUDE STATEWIDE OUTREACH Success of vendors in the office segment Range of savings from 8-24% Statewide RFP 2016 PA Differences Study Statewide Small Business Ambassador Improve consistency across the state Promote small business customer engagement Lead statewide marketing and outreach effort 11
12 SMALL BUSINESSES SAVE OUTSIDE OF THE SMALL BUSINESS INITIATIVE 2015 Mass Save Data net annual savings 2015 C&I Profile gross annual savings Upstream offerings support smallest customers Vendor referral efforts help customers participate and maximize savings 12
13 Gas Electric SAVINGS PER PARTICIPANT VARIES Small Business Initiative Annual Savings per Participant 2014 net kwh 2015 net kwh 2016 net kwh Cape Light Compact 13,331 10,562 10,400 Eversource 26,325 30,195 34,981 National Grid 17,211 20,084 26,163 Unitil 22,167 33,774 16, net therms 2015 net therms 2016 net therms Berkshire ,261 Columbia Eversource Liberty 193 * 100 National Grid Unitil 1,500 * * *Insufficient data, under 10 participants 13
14 Bundle MARKET SEGMENT SPECIFIC MEASURE BUNDLES Estimated Small Business Remaining Savings Potential by Industry Type Calculated using on-site and C&I profile report Higher savings per participant Bundles improve comprehensiveness Also increase opportunity for custom measures Sample Segment Specific Measures Food Service Food Sales /Restaurant /Grocery Office Retail Food services, filament LEDs, hot water Cooler night covers, recycling, door heater controls, novelty cooler shut off, controls, custom Lighting fixtures, controls, t- stats, CRT monitor recycling, smart strips, EMS Lighting fixtures, controls, t- stats, EMS 14
15 SUMMARY Smallest businesses are hard to reach and expensive to serve Opportunities to increase small business participation: Expand PA and statewide marketing efforts Integrate Main Streets and CDO statewide Create new small business ambassador position Opportunities to increase savings per customer: Market bundled measures to specific business types 15
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