Looking Ahead: Identifying Common Elements of a Customer Engagement Platform

Transcription

1 Looking Ahead: Identifying Common Elements of a Customer Engagement Platform CEE Industry Partners Meeting September 18, 2013 Derek Okada Southern California Edison DSM Strategy & Compliance Copyright 2013, Southern California Edison

2 Discussion Background & Market Trends Program Considerations Program Offerings & Opportunities Next Steps 2

3 SCE Background One of the nation s largest electric utilities Nearly 14 million residents in service territory Approximately 5 million customer accounts 50,000 square-mile service area Over 103,000 miles of distribution and transmission lines 7 8% projected average annual rate base growth through 2014 driven by: System reliability and infrastructure replacement California Renewables Portfolio Standard Technology improvements 3

4 DSM Strategy SCE is evolving toward a technologyenabled customer delivery service model Intelligent Delivery Effective and enabling customer interactions Innovative Energy Solutions This shift enables SCE to: Meet customer expectations in a timely and agile manner as needs and expectations evolve Address California s aggressive energy policies and goals while serving the specific needs of our customers Leverage the benefits of our smart grid through more engaged customer program participation and behaviors 4

5 DSM Organizational Evolution Policies Products Programs Promotion EE, DR, DG, Low Income, Renewables CLTEESP Zero Net Energy Water-Energy Nexus IDSM offerings Emerging products PCTs, IHDs, HANs, HEMs Pilots and solution development EE, DR, DG, ESA, PEV programs Behavior programs Market transformation programs Offer Management Lifestyle Plans Rate Choices TOU Rates & Dynamic Pricing Load Management Incentives & Rebates (SDP) Self-Service Offerings 5

6 Vision Adopting customer s preferred way of communication and frame of reference is essential to changing behavior towards energy usage and increasing participation in energy programs 6

7 Market Trends, Opportunities & Challenges Trends Growing innovation and enabling technologies Increasing CA focus on behavioral offerings Pressing need for deeper and targeted DSM savings Ongoing need for solutions to prepare customers for time of use pricing Converging product and delivery channels Opportunities Redefine the utility role as an energy advisor Engage customers to make informed energy use decisions Work with energy management market actors Challenges Encouraging customers to make energy savings a priority Working within regulatory frameworks to achieve attributable savings Developing the value proposition for customers, partners, and utilities Driving toward behavioral persistence and market transformation 7

8 Behavioral Framework Objectives Non-Resource Offerings Achieve 5% Adoption Target Non-Technical Behavioral Offerings Technical Behavioral Offerings Identify IDSM Potential Identify savings beyond technical measures Planned Behavioral Offerings Home/Business Energy Advisor Home Energy Reports Mailed Audits Enhance Customer Satisfaction Home Energy Management Feedback & Disaggregation Social Gaming Competition Normative Messaging SCE.com Budget Assistant Edison SmartConnect TM Offer Management 8

9 Behavioral Intervention Progression Customer Analytics Awareness Home Energy usage Education Customer Analytics Understanding usage Managing energy use Learn ways to save Customer Acceptance Energy Efficiency Habit changing Cross-cutting (Participating across all IDSM programs) Customer Persistence Maintaining habits Customer Analytics Maximize Savings 9

10 Behavioral Program Qualifications (D ) Comparative Energy Usage Residential unit usage compared to similar residences in the subscriber s geographic area Did not restrict definition to residential applications Experimental Design Control vs. Treated Groups Gold standard and most rigorous research design Allows for isolation of program impact Ex Post Measurement Measurement & Evaluation post program implementation For more information on behavior intervention strategies, please refer to the behavior whitepaper, published in Paving the Way for a Richer Mix of Residential Behavior Program, Study ID SCE

11 Energy Management Opportunities Influence Attitudes Identify new and impactful areas for policy and advocacy Change Behaviors Educate customers about their energy use Diversify Offerings Pursue all cost-effective DSM opportunities to target energy savings without impacting user experience Demonstrate Innovation Support development of customer facing energy management solutions Build upon Edison SmartConnect TM capabilities 11

12 Two Paths Into the Home The way utilities planned for Smart Meter SCE KEY POINT: Both paths enable DR and EE savings 3 rd Party Cloud The way the market is leaning ZigBee Interface Customer Router Customer PCT Utility-centric: - Requires additional technology, $ - Uniform control; connection issues - Aligns with current utility programs Interested 3 rd parties: ADT Security, some PCT manufacturers Customer-focused: - Uses home WiFi, variety of PCTs - Personalized PCT management 24/7 - Aligns with market preference Interested 3 rd parties: Cable, Telecom, HEM Platforms, Portals 12

13 Smart Thermostat Study Overview: The purpose of this study is to evaluate the capability of third parties to shed load during Save Power Days using internetcontrolled thermostats in homes Details: Part of the SONGS Summer Readiness effort to reduce peak energy usage Provides guidance on efficacy of leveraging third party service providers to reduce HVAC energy usage during Save Power Days Uses SCE s new SmartConnect meters to quantify amount of energy reduced and reward customers for that reduction Informs future DR program design Minimizes costs by using third party to market to their existing connected customers Other companies in addition to Nest are included in this summer 2013 Study to increase diversity of learning Study runs from June 1 through October 1 (Summer DR Season) 13

14 Gamification Pilot Overview: Partnership with Zema Good to conduct a behavioral pilot using virtual currency from casual social games to engage, educate and reward customers for becoming more energy efficient Goal is to test this emerging technology and discover whether it can be successful in the marketplace Details: New Emerging Technology assessment pilot planned to launch in 2013 Residential customers will be targeted to qualify for this pilot and randomly selected to participate in the trial Participants will earn digital rewards for each qualified action taken that moves the customer up the Behavior Intervention Progression lifecycle Energy savings will be measured over a 12- month period after the pilot launches 14

15 Home Energy Report Pilots Overview: Enhance SCE HEES mail-in survey by adding treatment messages to cover letter Rationale: Test message type effectiveness and test whether behavioral treatments can drive customers to other programs Benefits: Employs proven tools for energy savings, but tests new approaches/theories, uses existing program infrastructures and learn about program synergies and sequencing Theoretical approach: Loss aversion and Referencing Focus: High Usage Customers 15

16 Universal Audit Tool Offerings Overview: Home Energy Advisor and Business Energy Advisor provides audit information that is calibrated to customer profiles Integrates DSM including EE, DR, DG, Emerging Technologies, Smart Connect, Budget Assistant, Rate Analysis, New Digital Customer Experience, and Engagement Marketing Comparative energy usage Ongoing interactive customer engagement Enhancements focused on utilizing social media, rapid rewards and gamification tactics 16

17 Load Disaggregation Opportunities 17

18 Next Steps Continue to explore innovative energy management and behavioral offerings Expand PCT, IHD, and other energy management solutions and partnerships Test new DSM measures Expand the scope of behavioral measures Continue exploration within the behavioral community for measures meeting the behavioral framework Explore opportunities to expand the definition of behavioral programs in California 18

19 Q&A Derek Okada Southern California Edison (626)

20 Home Energy Management Opportunities Technology Intervention Opportunities Strategies Barriers/Risks PCT Increase adoption of DR enabled PCTs Develop new cloud to cloud channels IHD/Mobile Increase availability of IHD/Mobile customer offerings HAN/HEM Educate consumers about market availability Test market for EE/DR savings potential Work with retailers on customer strategies Smart Appliances Smart Plugs Work with ENERGY STAR and CEE on connected device standards and strategies Test cost effective delivery channels Educate customers on plug controls Web Tools Develop customer centric tools to better manage energy use Engage Energy Information Service Providers on DR opportunities Pilot IHDs in homes Evaluate apps for EE/DR Field test HANs via DR Pilots Support retailer HAN strategies Evaluate HEMs savings potential Field test Smart Appliance Evaluate EE/DR savings potential Test consumer behaviors Evaluate EE savings potential Pilot web channel opportunities Test consumer behaviors Enhance customer facing tools Budget Assistant Universal Audit Tool Energy Disaggregation Pilot Business case for Residential OpenADR not yet established IHDs may be short-lived No SmartApps other than Outage Management Emerging product class Savings benefit still TBD Limited availability Savings not yet documented Behavior strategy not defined Low consumer awareness Long ROI No energy standards Customer engagement strategy not yet defined 20

21 Behavioral Offerings Technology Description Customer Needs Benefits Home Energy Advisor Online audit tool, offering ways to save energy including behavioral changes, EE, DR, water and solar to homeowners, renters, and landlords Straight forward tools to identify energy use and energy saving tips and recommendations Provides custom recommendations, breakdown of key energy loads, links to programs and services Business Energy Advisor Online audit tool offering energy saving tips and recommendations for EE, DR, water and solar opportunities for small business owners and tenants Information about how to prioritize EE investments Provides custom recommendations, breakdown of key energy loads, links to programs and services Home Energy Guide Provides a guide to home energy use including product and energy use information for building materials, heating & cooling, lighting, appliances & electronics, and pools & spas Straightforward resource to guide them on product features, purchase considerations and other tips on how to incorporate EE measures into their use Energy education Home Energy Reports Proactive report sent to customers which compares their usage to similar households Information about energy use and how they compare to their peers (neighbors) Provides peer comparison of energy use, normative messaging and behavioral influence Budget Assistant Allows customers to set monthly spending goals and track progress while receiving automated alerts Information about monthly energy usage and how it contributes to their bills Provides hourly interval data (from the day before) to help customers set saving targets and monitor ongoing usage 21