BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Transcription

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking on the Commission s Own Motion to Conduct a Comprehensive Examination of Investor Owned Electric Utilities Residential Rate Structures, the Transition to Time Varying and Dynamic Rates, and Other Statutory Obligations. R (Filed June 21, 2012) SOUTHERN CALIFORNIA EDISON COMPANY S (U 338-E) FIFTH QUARTERLY REPORT ON PROGRESS OF RESIDENTIAL RATE REFORM FADIA RAFEEDIE KHOURY ROBIN Z. MEIDHOF Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California Telephone: (626) Facsimile: (626) Robin.Meidhof@sce.com Dated: November 1, 2016

2 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking on the Commission s Own Motion to Conduct a Comprehensive Examination of Investor Owned Electric Utilities Residential Rate Structures, the Transition to Time Varying and Dynamic Rates, and Other Statutory Obligations. R (Filed June 21, 2012) SOUTHERN CALIFORNIA EDISON COMPANY S (U 338-E) FIFTH QUARTERLY REPORT ON PROGRESS OF RESIDENTIAL RATE REFORM Pursuant to Ordering Paragraph 16 of Decision No , Southern California Edison Company hereby timely provides its fifth Quarterly Report on the Progress of Residential Rate Reform, attached hereto as Attachment A. Respectfully submitted, Fadia R. Khoury Robin Z. Meidhof /s/ Robin Z. Meidhof By: Robin Z. Meidhof Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California Telephone: (626) Facsimile: (626) Robin.Meidhof@sce.com November 1,

3 Attachment A Southern California Edison Company s Fifth Quarterly Report on Progress of Residential Rate Reform November 1, 2016

4 SOUTHERN CALIFORNIA EDISON COMPANY S FIFTH QUARTERLY REPORT ON PROGRESS OF RESIDENTIAL RATE REFORM (PRRR) November 1, 2016

5 SOUTHERN CALIFORNIA EDISON COMPANY S FIFTH QUARTERLY REPORT ON PROGRESS OF RESIDENTIAL RATE REFORM TABLE OF CONTENTS I. Introduction... 1 II. Marketing, Education & Outreach (ME&O) Campaign... 1 III. IV. Metrics... 4 Update on Online Bill Comparison Tool and Paper Bill Comparisons... 8 A. Online Bill Comparison Tool... 8 B. Paper Bill Comparisons C. Overall Bill Presentment V. TOU Opt-In Pilots A. Summary B. Pilot Population Update C. Marketing and Education and Outreach Summer Outreach Text Messages Notice of Ineligibility Letters Rate 3 Delayed Bills D. Pilot Research VI. VII. Current Opt-In Residential Time-of-Use Rate Enrollments Budget Update A. TOU Opt-in Pilot Budget B. Marketing, Education and Outreach Actual Budget C. Residential Rate Implementation Memorandum Account Summary VIII. Conclusion i

6 SCE S FIFTH QUARTERLY PRRR REPORT I. INTRODUCTION Pursuant to California Public Utilities Commission (Commission) Decision (D.) (the Decision), the Investor-Owned Utilities (the IOUs, Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE)) must provide quarterly updates on the progress of residential rate reform efforts and the transition to default time-of-use (TOU) rates. This update is the fifth quarterly report on the progress of residential rate reform (PRRR). As directed by the Assigned Commissioner and Administrative Law Judge s previous Rulings, SCE s 5 th Quarterly PRRR includes updates on its Marketing, Education and Outreach (ME&O) plan; metrics, goals and strategies for residential rate reform; statistics on the number of customers currently enrolled in opt-in TOU rates; a status update of paper bill comparison and online bill tools; sample bill presentment for typical customers on default and opt-in rate schedules; and a summary of the status of the Residential Rate Implementation Memorandum Account (RRIMA) as required by D II. MARKETING, EDUCATION & OUTREACH (ME&O) CAMPAIGN As a follow-up to tier collapse communications sent in May , SCE s Summer Campaign launched in July and was designed to increase customer awareness and education of rate options as well as tools to manage energy usage. The multi-media campaign utilized radio and digital banner advertisements along with social media to help achieve key metrics that have been established as part of residential rate reform. The campaign will advance the rates-related conversation with customers in preparation for their ultimate default to TOU rates in The main objectives with the marketing strategy are to help ensure that: 1 See SCE s 4 th Quarterly PRRR Report, p. A-3. 1

7 SCE S FIFTH QUARTERLY PRRR REPORT Customers are aware of rate plans that may help them mitigate electricity expenditures; Customers know where to go to get more information about how to manage their energy usage; Customers understand how energy usage can impact bills; Customers understand the benefits of lowering their energy usage; and Customers are aware of the rebates, energy efficiency programs, and tips offered by their utility that can help them manage their energy bill. The advertising will run through November 2016 and ads will be translated into Spanish, Chinese, Korean and Vietnamese. As with previous summer campaigns, during high heat events, both radio and digital ads were temporarily rotated out and replaced with ads that focus on conservation and tips. This rotation was implemented during two high heat events that occurred from August and September Rate reform metrics are tracked annually following a baseline established in the first quarter of this year. The next wave of research is planned for fourth quarter of 2016 and it will evaluate the degree of influence that the campaign has had on awareness and education of rates. A. ME&O Consultant Report & Workshops ME&O planning efforts this past quarter (June through September) were primarily focused on working with the Working Group and consultant Greenberg around communications to residential customers, what would resonate with them, and best ways to communicate to the various customer segments. The ME&O working group and consultant had numerous meetings and working sessions to support the work of the consultant. Energy Division staff facilitated a 2-day workshop on August 1 st and 2 nd, where the consultant shared the ME&O Measurement and Collaboration strategies that form the core of the ME&O Blueprint. Representatives from the IOUs, ratepayer advocates and interested third parties attended the workshop and provided feedback. This two-day workshop served as a final opportunity for the Working Group and interested third parties to pose questions and seek clarity about content within the 2

8 SCE S FIFTH QUARTERLY PRRR REPORT ME&O Blueprint. This meeting concluded the scope of work for which Greenberg had been contracted. Pursuant to an August 29, 2016 Ruling, Energy Division staff and ALJ McKinney facilitated another workshop on September 12, 2016 to provide a forum for all interested parties to discuss the Greenberg ME&O Blueprint. In advance of the September 12 th workshop, parties were directed to file a proposed common outline for the IOU ME&O Plans and, where possible, to identify any issues raised by the Blueprint that might require a formal ruling. At the September 12 th workshop, representatives from the IOUs, the Office of Ratepayer Advocate, the Center for Accessible Technology, and UCAN participated in a bucket exercise with Energy Division staff and ALJ McKinney to identify the following: 1. Things that seem reasonable and should inform the IOU Plans; 2. Things that are necessary to the IOU Plans but aren t in the Blueprint; 3. Things that could be done by action at the Commission level, but not as part of this proceeding (e.g., steps for better coordination of ME&O across proceedings); 4. Things that cannot be included in the IOU Plans (e.g., recommendations that conflict with D or other law); and 5. Things that raise concerns (e.g., recommendation to include strain on the grid as part of messaging). The September 12 th workshop was an opportunity to identify practical solutions that would assist the IOUs in using the Blueprint to develop the ME&O Plans due November 1, On September 30, 2016, ALJ McKinney issued a Ruling that included a revised common outline, incorporating comments from the September 12 th workshop. The Ruling directed the IOUs to follow the common outline for their respective November ME&O Advice Letters. The IOUs were directed to categorize the content into buckets, which led to the September 22nd workshop where the following items were discussed to assist both the 3

9 SCE S FIFTH QUARTERLY PRRR REPORT ME&O plans and to surface issues for the Default TOU pilots and implementation of default TOU, which could impact the ME&O plans: 1. Big Bang cutover of all customers in a short period vs. having a rolling 2 default in 2019; 2. Identifying and tracking customers eligible for statutory exclusion from default TOU; and 3. Identifying and tracking customers in hot climate zones that are either eligible for CARE/FERA or have a full-time senior household member. B. Outreach for Tier Change and Super User Electric (SUE) Surcharge Pursuant to Ordering Paragraph (OP) 8 of D and conversations with the Energy Division, SCE submitted its supplemental advice filing 3294-E-B, on August 5, 2016, to provide a sample of the residential bill presentment (i.e., bill format) of its High Usage Charge, which is scheduled to become effective January 1, The bill presentment was included within the filing as Appendix A, which depicted a sample bill of a customer who has exceeded 400 percent of baseline and the resulting High Usage Charge that applies. Subject to a timely Commission approval of Advice 3294-E, and E-A, SCE plans to commence ME&O activities for the SUE surcharge in the fourth quarter of SCE seeks timely resolution of Advice Letter 3294-E-A so SCE can proceed as planned to commence ME&O activities in advance of the implementation of the High Usage Charge. III. METRICS Although the ME&O Working Group previously developed a list of 23 proposed metrics provided in an earlier PRRR update and below, SCE collaborated with the ME&O consultant (Greenberg) and ME&O Working Group members (principally the 2 The Term Big Bang has typically referred to converting all eligible customers from tiered rates to TOU rates within one to two months while Rolling Default has been used to refer to conversion over a period of time longer than just a few months. 4

10 SCE S FIFTH QUARTERLY PRRR REPORT Metrics leads from the other IOUs) to refine the proposed metrics and determine next steps for finalizing and formalizing them through a series of conference calls, in-person meetings, and workshops between May and August. Greenberg conducted its own secondary research on industry-accepted metrics to determine which baseline or additional metrics should be used to monitor the success of TOU ME&O efforts. Additionally, Greenberg conducted qualitative research (small online focus groups and one-on-one in-depth interviews) in late June with SCE residential customers (highusage / high-tier, coastal, inland, and low-income) to identify changes that may be required to the proposed metrics and what message concepts might resonate with customers. Greenberg presented a report of this qualitative research to the Working Group on July 13. The final Greenberg ME&O Blueprint (including its Measurement Strategy) was issued in mid-august. Figure 1: Proposed Metrics of the ME&O Working Group Metric # Metric Goal vs. Tracking 1 Customers are aware that there are rate plans that may help them mitigate electricity expenditures. 2 Customers know where to go to get more information about how to manage their energy use Goal Goal 3 Customers understand how energy use can impact bills Goal 4 Customers understand the benefits of lowering their energy use Goal 5 Customers are aware of the rebates, energy efficiency programs, and tips offered by their utility that can help them manage their energy bill. Goal 6 Customers feel they were provided useful info explaining their bills Goal 7 Customers were provided with information explaining their bill Tracking 8 Customers were provided with information and services to help reduce their energy bill 9 Percent of CARE/FERA/Non-CARE customers on arrearage remains stable based on the average of last five years ( ) 10 Percent of CARE/FERA/Non-CARE customers experience service disconnection remains stable based on the average of last five years (2010 Tracking / Goal Tracking Tracking 5

11 SCE S FIFTH QUARTERLY PRRR REPORT 2014) 11 Customers are provided with info & service to be able to avert service Disconnection 12 Number of rate reform-related escalated customer complaints (The IOUs will be coordinating with the Consumer Affairs Branch of the CPUC to determine how best to measure this) 13 Number of community partners utilized to support Rate Education outreach and education and number of people reached 14 Number of events and presentations held in support of Rate Education outreach and education and number of people reached 15 Percent of customers provided a personalized pricing plan comparison Report Tracking Tracking Tracking Tracking Tracking 16 Open rates and click-thru rates for Rate Education-related s Tracking 17 Number of views to Rate Education web pages Tracking 18 Number of customers who have changed rates over the last quarter Tracking 19 Percent of customers on opt-in TOU rates Tracking (potentially Goal) 20 Number of unique visitors using bill comparison tools Tracking 21 Proportion of customers that are aware of the rate changes and potential impacts on their bills 22 Website activity: Length of time, # of pages visited, unique visitors, referrals to outside sites such as Energy Upgrade CA Goal Tracking 23 Digest of featured stories in news and social media regarding rate reform Tracking From the original list, Greenberg recommended that for core IOU goal-tracking, Metrics 1 through 5 should be retained, and the IOUs should drop Metric 6 ("Customers feel they were provided useful info explaining their bills") in favor of Metric 8 ("Customers were provided with information and services to help reduce their energy bill"), and add Metric 19 (% of customers on opt-in TOU rates). The Greenberg team and the Metrics Sub-Working Group proposed three overarching Vision Success Metrics to which the Working Group unanimously agreed in early August and incorporated into the Blueprint. It focused on the intended outcomes 6

12 SCE S FIFTH QUARTERLY PRRR REPORT of key ME&O top-level activities 1) Affinity, 2) Retention, and 3) Action. At the September 12 th workshop, parties debated these concepts (especially Retention keeping customers on TOU versus offering rate choices / getting customers on the best rate for them), despite recognizing the value in pursuing these Vision Success Metrics in some form. It was acknowledged that the actual measurement of these Vision Metrics would involve a series of appropriate sub-metrics, as would the primary goaltracking metrics with appropriate "constructs" and indicators" (Greenberg's terms) for the specific questions that would be used to ultimately develop survey instruments. SCE has begun evaluating the Greenberg Blueprint in detail to identify areas of agreement (many) and things that could be modified or changed (relatively few). Additional metrics also under consideration would supplement the awareness / understanding / engagement framework and provide a bridge to other utility experiences customers may have: customer effort (how easy or difficult it is to transact with the utility / choose a new rate) and customer satisfaction with rate (or confidence in your rate selection best for you ). SCE s proposal for moving forward was articulated in its November 1 ME&O advice letter. With regard to the statewide messaging campaign proposed in the Greenberg Blueprint, SCE and the other IOUs agree that the campaign should utilize EQ (Emotional Quotient) messaging in order to engage / motivate customers and give them something to care about. An effort of this scale must appeal to consumers emotions to gain their attention. There is also a need to give customers something more than just the rates themselves to connect with. However, concern was expressed by the IOUs about the efficacy of the proposed Greenberg Blueprint central statewide messaging concept (electricity as lifeline and preserving / protecting the grid). Consequently, SCE conducted an online survey in September with over 3,000 SCE residential customers (similar studies were done by the other IOUs as well) to determine opportunities to validate or improve the messaging platform and to assess customer preferences for alternative themes or concepts. Message concepts included a Lifeline or Power Grid Something to Care For, which Greenberg suggested, Environmental/Thoughtfulness, Smarter Ways/Incorporating Innovative Technology, 7

13 SCE S FIFTH QUARTERLY PRRR REPORT and a message linking TOU rates to more visibility into the utility s cost to serve customers. Final results from the study were reported in late October and are summarized in more detail in the November 1 ME&O advice letter. Preliminary results suggest that the Greenberg-recommended lifeline message concept is less preferred than the Environmental/Thoughtfulness message and therefore may not be as effective. Preliminary findings from the other two IOUs appear to be consistent. More work will need to be completed prior to determining the best communication approach to activate positive emotions among customers. In August, at the request of Energy Division, SCE began investigating, the opportunity to conduct "design thinking" research with residential customers about TOU rates and the impact these rates might have on different types of customers and how customers might make TOU rates work best for them. After a series of conference calls (including two with Energy Division staff), SCE engaged Bovitz Research to develop a proposal to address the research objectives. This qualitative study will consist of two phases: in-home ethnographic-type visits and co-creation workshops. The contract was completed in September, with the actual research taking place in late October / early November and a final report expected by mid-december. SCE has worked closely with other IOUs' research leads to share our experience designing this study with Bovitz and shaping its efforts, as PG&E and SDG&E evaluate their own vendors and consider conducting similar research. IV. UPDATE ON ONLINE BILL COMPARISON TOOL AND PAPER BILL COMPARISONS A. Online Bill Comparison Tool As required by the December 17, 2015 ruling, SCE made its online rate comparison tool available to residential customers on June 30, The tool is accessible to customers through any mobile, tablet, or laptop device and will enable SCE to offer new means of customer engagement in addition to existing channels of customer communications. To facilitate access to the tool, customers are required to 8

14 SCE S FIFTH QUARTERLY PRRR REPORT enter their service account number, which can be found on their bills, and their zip code, and they are not required to create a MyAccount login. 3 The tool informs customers of rate options that are available to them, provides information on how residential rates work, and helps customers take actions to better manage their bills. The tool provides tailored information for each available rate schedule subject to some exclusions 4 and, to the extent possible, shows customers how they may be impacted by comparing the cost of a tiered rate plan to optional TOU rates. SCE is exploring reasonable steps to increase the tool s efficacy and to include more customers in future releases. The tool will allow for routine updates and will provide an online experience for customers who were excluded from the initial release. SCE has added the functionality for customers to submit a rate change through the tool and will continue to update the tool to enhance customer experience based on feedback from previous focus groups. Since the first release of the online tool, it has targeted approximately 80% of SCE s residential customer base. 5 Customers excluded from the tool in the first release are receiving one of three messages when attempting to access the online tool related to their status: 1) Existing TOU customers will receive a message of appreciation for their participation in a TOU rate and will be provided with a webpage link to learn additional ways to best manage their bill under their current rate plan; 2) Net Energy Metering (NEM) customers will receive a message informing them that SCE plans to provide NEM rate analyses in a future release; and 3) Customers who do not have 12 months of usage data will be provided information about the usage requirement for 3 As of August 2016, approximately 60% of residential customers are enrolled in MyAccount and 26% of residential customers use online billing. 4 Nearly 20% of residential customers will not be able to access the online bill comparison tool. These include, but are not limited to, customers with less than 12 months of data, Direct Access or Community Choice Aggregation customers, and current Time-of-Use customers. 5 See footnote 3. SCE plans to provide a rate analysis for current residential customers who are Net Energy Metering customers by the end of 2016 and the online tool will be available for current TOU customers in Q

15 SCE S FIFTH QUARTERLY PRRR REPORT accurate results and will be directed to a webpage that will include information on SCE s rate options, details on TOU rates, and a phone number to call if more information is desired. SCE continues to focus on the customer experience through post-launch research and measurement to identify opportunities for future enhancements. SCE will measure the number of visits to the website where customers can learn more about rate options. Currently, the website is tracking 800 weekly visitors to learn about the rate analysis tool and 100 (weekly average) view their rate analysis. B. Paper Bill Comparisons On May 13, 2016, ALJ McKinney issued an Ruling confirming that only one paper bill comparison to be sent in fall 2016 would be necessary for compliance with D The May 13 th Ruling also permitted the IOUs to communicate an electronic version of the bill comparisons to any customers who had indicated a preference to communicate with their utility electronically. The IOUs will continue to work with interested stakeholders to seek improvements to electronic communications that raise customer awareness about rate options. In a July 22, 2016 Ruling, ALJ McKinney clarified the scope of the Fall 2016 bill comparison and confirmed that the IOUs could send the Fall 2016 bill comparison to a limited number of residential customers using a test-and-learn approach, including a representative sample of customers who would either be neutral or not benefit from a TOU rate. 6 In the July 22 nd Ruling, each IOU was directed to include in its quarterly PRRR report, the details of its bill comparisons, including information such as sample bill comparisons used to communicate with customers via mail and ; number of mailings sent by mail and ; and impacts on customer call centers. 6 In a September 15, 2016 Decision on the Requirements of California Public Utilities Code 745 for Default Time-Of-Use (TOU) Rates for Residential Customers (D ), ALJ McKinney confirmed that the IOUs could deliver the bill comparison information via if chosen by the customer. 10

16 SCE S FIFTH QUARTERLY PRRR REPORT Consistent with the directives in the July 22 nd Ruling and the September 15, 2016 Decision (D ), on October 25 th and 28 th, SCE issued its first bill comparison, attached as Appendix A, to 100,000 customers as part of the test-and-learn approach. Of the 100,000 customers, 62,000 were benefitting customers, 22,000 were neutral customers, and 16,000 were non-benefitting customers. 7 This test-and-learn approach will assist in defining the operational impacts of the number of customers who may request a rate change or call with questions so that SCE can mitigate potential operational impacts associated with a much larger deployment. These results will help SCE prepare for the potential need to increase staffing and training to handle rate change requests and related calls. Customers in this initial test-and-learn have the option of going online to the rate comparison tool to learn more or to change their rate, or if they received a paper communication, they can send back the business reply card (BRC) that was included with the bill comparison letter. Those positively and neutrally impacted customers who received the BRC could send it back to request a rate change. Negatively impacted customers received a different BRC that provided them information on how to sign up for Budget Assistant. SCE also hopes to learn about the operational impacts of communicating rate option-specific bill impact information to non-benefiting residential customers. SCE plans to use customized messaging to target a small sample size (approximately 1,000) of Net Energy Metering (NEM) by the end of December SCE will be testing three different types of letters that would apply to the various customer segments: Benefitting customers will receive a letter with a personalized rate analysis encouraging them to switch service from their current plan to another rate schedule where they are likely to see a financial benefit; Neutrally impacted customers will receive a letter with a personalized rate analysis, tips and solutions to educate them about TOU rates and the potential of shifting usage to lower-cost time periods; and 7 Approximately 40% of the fall 2016 bill comparisons were delivered electronically consistent with the customer s request not to receive paper communications from SCE. 11

17 SCE S FIFTH QUARTERLY PRRR REPORT Non-benefitting customers will receive a letter in which SCE will begin the education process about TOU rates versus tiered rates, emphasizing that customers have options. SCE will test a portion of the non-benefitting customers with a rate analysis and the other portion without a rate analysis and provide a couple of versions of the letter to: (1) promote sign-up for MyAccount and/or Budget Assistant; or (2) if customers are already on My Account and Budget Assistant, they will receive a different version of the letter to provide conservation tips. Additionally, SCE plans to send out a survey to the 100,000 customers to gather feedback and incorporate learnings from its fall 2016 customer communications. Based on this feedback, SCE will continue to refine its messaging and delivery strategies to better prepare for the much broader communications to residential customers that will start in spring This schedule mitigates concerns about sending rate comparison mailers during the summer months, avoids the winter holiday season, and complies with the directive in the July 22 nd Ruling to have communications spaced out over a sixmonth period. Based on this initial fall 2016 bill comparison test-and-learn, SCE will provide updates to the Commission to inform and guide the scope of subsequent bill comparison communications in spring 2017, fall 2017, spring 2018, and fall 2018, which would follow the same annual mailing sequence. SCE acknowledges that residential customers may not understand that they have rate choices. Therefore, our bill comparison letters will open with the rate choice concept and explain the difference between tiered rates and TOU rates with a simple graphic depiction; the bills will also direct customers to our website for further information. Per clarifying direction of D , SCE plans to develop different communication strategies for different customer segments based upon their estimated TOU bill impacts. Samples of the following examples were provided in our August 1, th Quarterly PRRR report. Example 1: Benefitting Customers, who would structurally benefit by moving to a TOU rate option even without changing their usage pattern. Example 2: "Neutral Customers," who may experience a minor bill increase or decrease as a result of moving to a TOU option. 12

18 SCE S FIFTH QUARTERLY PRRR REPORT Example 3: Non-Benefitting Customers, who would pay higher bills on optional TOU schedules if sufficient usage were not shifted to lower-cost periods of the day will be provided higher level messaging without providing customer specific negative bill impact analysis. To enhance the value of the paper bill comparisons, SCE may include customized inserts based on a variety of market research segments, either through previous program participation or interactions with SCE (e.g., Summer Discount Plan enrollees that have already demonstrated a desire to take action to save money) or through other forms of segmentation. SCE s goal is to communicate effectively to residential customers through clear, customized messages and through other information sources that explain to customers that they have TOU rate options available to them and that for some customers benefits can be achieved under current TOU rate plans. C. Overall Bill Presentment SCE understands that the customer billing statement is a core customer touch point that can be leveraged to aid in enhancing customer awareness and understanding of their energy usage and their rate plan. SCE will continue to focus on making changes to how information is presented in the bill to help customers better understand their rate plan. In the short-term, SCE is developing plans to implement bill presentment changes for tiered rate bills 8 that will coincide with the implementation of the SUE surcharge in As part of this development process, SCE has collected customer feedback to inform the design, and some of the planned changes to the bill have been shared with Energy Division and interested stakeholders. SCE filed a supplemental Advice letter 3294-E-B with the proposed design on August 5, SCE is also assessing further opportunities to enhance its tiered and TOU bill presentment, with the 8 An example of SCE s current residential tiered and TOU rate bills were provided in Appendices C and D of SCE s 3 rd Quarterly PRRR Report. May 2,

19 SCE S FIFTH QUARTERLY PRRR REPORT goal of making larger wholesale bill presentment changes in time for the default TOU pilot, beginning in early SCE recently conducted qualitative customer interviews with residential customers on some potential new bill designs for both tiered and TOU rates. Based on feedback from these interviews, SCE has updated the bill designs for customer testing planned for October/November. V. TOU OPT-IN PILOTS A. Summary On December 24, 2015, SCE filed its opt-in TOU Pilot Advice Letter 3335-E in accordance with D The advice letter set forth SCE s plan for three opt-in TOU rates that will inform SCE s January 1, 2018 Rate Design Window (RDW) application for a default residential TOU rate and a menu of optional TOU rates. On February 25, 2016, Resolution E-4761 approved SCE s plan with modifications. On March 17, 2016, SCE made a supplemental filing in compliance with Resolution E Final rates for the three TOU pilot rates became effective on June 1, Throughout the 18-month pilot, SCE will provide pilot participants with ongoing education and outreach in an effort to increase customers awareness of TOU periods and how to take advantage of their TOU rate while on the pilot. B. Pilot Population Update As of October 4 th, 2016, 19,802 customers remain on the pilot. Of the 1,732 customers who are no longer on the pilot, 438 are due to opt-outs, 856 are due to account closures and the remaining accounts are primarily due to customers signing up for an ineligible rate or program (i.e. net energy metering, medical baseline, TOU rate, etc.) that is not supported by the pilot. The table below provides an update on the 19,802 customers that remain on the pilot by rate assignment and segment. 14

20 SCE S FIFTH QUARTERLY PRRR REPORT Table 1: TOU Pilot Participants as of October 4, 2016 Segment Description Rate 1 Rate 2 Rate 3 Rate 4 Total Hot Climate Zones, Non CARE Customers ,166 Hot Climate Zones, CARE Customers ,207 Hot Climate Zones, General 2,006 2,103 4,109 Hot Climate Zones, Seniors below FPL Hot Climate Zones, Seniors above FPL Hot Climate Zones, Non Senior CARE Customers below FPL Hot Climate Zones, Non Senior CARE Customers above FPL Moderate Climate Zones, Non CARE Customers ,462 Moderate Climate Zones, CARE Customers ,617 Cool Climate Zones, Non CARE Customers ,720 Cool Climate Zones, CARE Customers ,690 Technology Total 4,341 5,785 3,373 6,303 19,802 C. Marketing and Education and Outreach The table below provides a high level overview of the planned 2016 ME&O activities for SCE s TOU Opt-in Pilot. Table 2: 2016 ME&O Activities Planned for SCE s TOU Opt-In Pilot 1. Summer Outreach As part of the ongoing education for participants in the pilot, the first seasonal newsletter was mailed late July 2016 to customers on pilot TOU rates. A copy of the newsletter is attached as Appendix B. Control group customers did not receive a 15

21 SCE S FIFTH QUARTERLY PRRR REPORT newsletter. The newsletter contained reminders about the current summer peak periods and pricing, key dates for the pilot, additional information about their rate, and tips for managing their energy use in the summer. There were three core versions of the newsletter, one for each rate option. The three core versions were further segmented by persona: Green Elite/Connected, Pragmatist/Disengaged, and Constrained. The resulting nine versions of the newsletter were then translated from English into four additional languages: Spanish, Chinese, Korean and Vietnamese. Following the summer newsletters, a summer postcard was developed for customers in the enhanced ME&O treatment group. Copies of the postcard are attached as Appendix C. The postcards contained additional tips for summer usage while on a TOU rate and were mailed at the end of August: There were three versions of the postcard, one for each persona described above, which were not differentiated by rate; the postcards generally announced summer rates were in effect and provided tips on how to save on a TOU rate. The three versions of the postcard were then translated from English into Spanish, Chinese, Korean and Vietnamese. 2. Text Messages Pilot participants in the enhanced ME&O customer group who opted-in for text messages received their first TOU Pilot text the last week of August, followed by two additional messages the second and fourth week of September. The text messages included reminders about how TOU works, which season currently applies for their rate, and additional tips. Text messages were delivered to approximately 3,000 pilot participants. Examples of the text messages are included as Appendix D. 3. Notice of Ineligibility Letters On a monthly basis, SCE continues to inform ineligible customers (NEM, TOU, and Medical Baseline customers, as well as customers served on any other ineligible rate/program) that they are being removed from the pilot. 16

22 SCE S FIFTH QUARTERLY PRRR REPORT 4. Rate 3 9 Delayed Bills To accommodate the rate structure for Rate 3, SCE developed a customized manual process for calculating these bills. SCE encountered challenges with this manual process which resulted in delayed issuance of bill statements for some Rate 3 customers in July and August. Some customers may have received two bill statements arriving within a short period of one another. Payment due dates were based on the date of the delayed bills, giving customers the standard 19 days to pay each statement. A letter explaining the delayed bills was sent to all Rate 3 customers in September. D. Pilot Research As the lead utility for the contract for the Opt-In TOU Evaluation Study, SCE completed the Purchase Orders for Nexant and Research into Action (RIA) in May Nexant was awarded Task 1 Lead Project Management / Working Group Coordination and Task 2 -- Load / Bill Impact Analysis. RIA was awarded Task 3 Survey Research. During May and June, SCE worked with PG&E, SDG&E, the Energy Division, RIA, Nexant and other interested parties included in the TOU Working Group to develop the Research Plan (subsequently finalized July 7) for the survey research and the section 745 analysis. The Research Plan documents the data collection approach, the sampling plan, the research topics (prioritized), the analytical approach, and a schedule for key deliverables. The objectives of the survey are to evaluate the: Degree of hardship caused by TOU rates relative to tiered rates and identify key population segments most affected by the rate changes 9 SCE s pilot rate three was inspired by TOU periods initially proposed by the CAISO and features three seasons and three TOU periods including a super-off peak period during spring mornings and afternoons to reflect low generation prices due to the abundance of renewable generation during that time. 17

23 SCE S FIFTH QUARTERLY PRRR REPORT Level of customer understanding of TOU rates and reasons for them and effectiveness of the messaging and outreach used during the Pilot Level of satisfaction customers have with the TOU rates. In July, RIA presented a draft survey questionnaire to the TOU Working Group for input and review. Survey questions were mapped to research questions to ensure all research objectives were adequately covered. The final survey draft was provided to the TOU Working Group on August 23, It addressed the comments discussed at the TOU Working Group meeting on July 28, 2016 and the written comments provided by TOU Working Group members the following week. RIA and the IOU evaluation Project Coordination Group (PCG) spent the month of September finalizing survey logistics and communications. The survey will be sent to customers between the first week of October and mid-november, and will sequence from online, to paper and phone modes. As of October 25 th, the global (across all IOUs) response rate to the survey had reached 59%, which will increase even more once outbound calling is launched. The Draft Research Plan for the Load / Bill Impact Analysis was released to the Working Group on September 19, 2016 by Nexant. This document describes the analysis methods and approach that will be taken by Nexant to conduct the load and bill impact evaluation of the Opt-In TOU Pilot. Nexant also assessed whether each IOU is likely to meet the analysis requirements set forth by D Nexant also included documentation of the experimental assignment validation. The randomization implemented by the IOUs for their respective pilots was successful and no major issues were found across the IOUs. Limited preliminary survey results are expected in late February 2017, with the first interim report expected to be released in late March

24 SCE S FIFTH QUARTERLY PRRR REPORT VI. CURRENT OPT-IN RESIDENTIAL TIME-OF-USE RATE ENROLLMENTS As of September 30, 2016, SCE has approximately 32,850 residential customers enrolled on optional TOU rate plans, as shown in the table below. Table 3: 2016 Opt-In Residential TOU Enrollments TOU Rate Option Number of Customers Jan. 31, 2016 Number of Customers Mar. 31, 2016 Number of Customers Jun. 30, 2016 Number of Customers Sept. 30, 2016 TOU-D Option-A 5,603 6,247 6,798 7,087 TOU-D Option-B 7,536 8,657 9,672 10,306 TOU-D-T 16,599 16,696 14,909 14,675 TOU-EV Total 30,512 32,385 32,168 32,850 VII. BUDGET UPDATE A. TOU Opt-in Pilot Budget SCE has incurred a total cost of $3,134,508 from January 2016 September 2016 for the TOU opt-in pilots, including costs for: 2016 TOU Pilots Design and Power Analysis Consultant (Nexant); 2016 TOU Pilots Pretest (includes postage, printing and design); 2016 TOU Pilots Recruitment (includes postage, printing, design and solicitation); 2016 TOU Pilots Welcome Kit (includes postage, printing and design); Second incentive payout to pilot participants; and Other expenses, including incremental labor, travel, materials and contract work. The pilot costs estimated in SCE's Tier 3 Advice Letter 3335-E, filed on December 24, 2015, ranged between $5,909,483 and $15,290,090 for The estimated costs for this pilot were highly dependent on the number of customers SCE would need to target to achieve the 22,000 sample size, the channel that would be used to send recruitment letters, and the incentive level that would be adopted for 19

25 SCE S FIFTH QUARTERLY PRRR REPORT participation on the pilot. The pilot costs estimate is trending toward the lower end of the range due to refined recruitment tactics as noted in Section V of this document. 10 While there were many activities in Q for the TOU Opt-in Pilot, primary costs were attributed to the completion and distribution of the TOU pilot participant newsletter, and the second round of incentive payouts to participants. B. Marketing, Education and Outreach Actual Budget To implement the ME&O plans described in Section II, SCE estimates expenditures of approximately $4.4 million for 2016 activities. This includes costs associated with customer communications regarding the four-to-three tier collapse in June 2016 and the three-to-two tier collapse in January 2017, a conservation tips brochure, a broad market awareness campaign, and other rate education materials distributed to improve rate literacy. In addition, it includes costs associated with the paper bill comparison in October 2016, customer communication for the super-user electric surcharge, market research, and SCE's share of the Greenberg consultant fees. These estimates do not include implementation of any of the ME&O consultant s recommendations. Further budget guidance is provided in SCE s November 1, 2016 ME&O advice letter. C. Residential Rate Implementation Memorandum Account Summary Pursuant to Ordering Paragraph (OP) 12 of D , SCE filed Advice E on July 29, 2015 establishing the Residential Rate Implementation Memorandum Account (RRIMA), Preliminary Statement Part N The RRIMA allows SCE to track its verifiable incremental costs associated with: (i) TOU pilots, (ii) TOU studies, including hiring of a consultant or consultants to assist in developing study parameters, 10 The high costs estimates included using FedEx to deliver solicitations, but SCE found it was significantly more economical, and just as efficient to use standard US Postal Service mail. 11 Advice Letter 3251-E was approved by letter dated September 15, 2015 from the Director of the Energy Division, effective July 29,

26 SCE S FIFTH QUARTERLY PRRR REPORT (iii) ME&O costs associated with the rate changes approved in the Decision, and (iv) other reasonable expenditures as required to implement D In Advice Letter 3335-E-A filed on March 17, 2016, SCE modified the RRIMA to also include bill protection credits if bill protection is offered. 12 As directed by the March Ruling, below is the summary of the operation of the RRIMA from January 2016 through September Advice Letter 3335-E-A was approved by letter dated March 30, 2016 from the Director of the Energy Division, effective February 29, Summary table includes costs recorded in the RRIMA as of September 30, SCE may have incurred other costs during this time, which have not yet been recorded due to processing delays, and those costs will appear in the next reporting period. For further reference an additional Summary table is attached as Appendix E, which includes recorded costs from inception October 2015 to date. 21

27 SCE S FIFTH QUARTERLY PRRR REPORT While not noted in the table above, capital-related expenditures have been incurred to modify SCE's back-office billing systems as well as sce.com. These system changes are needed in order to meet the Decision requirements for the residential rate reform changes. Capital costs incurred through September 30, 2016 were $884,476. SCE has established guidelines to ensure that only appropriate incremental costs are charged to the RRIMA. As part of these guidelines, incremental costs are defined for labor and non-labor expenses, and capital expenditures, therefore providing clarity 22

28 SCE S FIFTH QUARTERLY PRRR REPORT on what costs can appropriately be charged to this account and avoiding the possibility of double recovery of costs. All costs that are tracked in the RRIMA are verified and confirmed under the RRIMA charging guidelines. There are certain costs that are incurred to support Residential Rate Reform that are not deemed incremental and therefore are not tracked in the RRIMA. Examples of such costs include, but are not limited to, GRC-funded labor hours of an employee working on Residential Rate Reform related activities, or pre-approved Residential Rate GRC funds set aside for marketing or other non-labor related activities. SCE has taken the initiative to proactively identify and exclude these costs from our RROIR budget forecast, and therefore these costs will not be tracked in the RRIMA. VIII. CONCLUSION SCE and the other IOUs continue to collaborate with both the TOU Pilot and ME&O Working Groups, along with the consultants and Energy Division staff, and look forward to continuing to work towards the successful development of the TOU Pilot and the proposals that will assist in the success of the default TOU implementation and best practices to effectuate the letter and intent of the Decision. 23

29 SCE S FIFTH QUARTERLY PRRR REPORT Appendix A Sample Bill Comparison Correspondences

30 Residential Rate Comparison Letter Benefiter Choosing a new rate plan option may help you lower your bill by $200 /YR John Q Sample 1234 Any Street Anytown, USA Service Account ending in 6789 Dear John Q Sample, You Have Rate Plan Options To better meet the electricity needs of your household and lifestyle, we are making more flexible rate plan options available to you. One option that provides more control over your monthly electricity bill is a Time-Of-Use (TOU) rate plan. By reducing electricity use during higher energy cost periods of the day, you may save money throughout the year since TOU rates are based on when and how much you use. Reducing electricity use during peak times may also help reduce greenhouse gas (GHG) emissions and may defer the construction of additional power plants. Your Custom Rate Plan Comparison Based on your annual historical usage, without making changes to your household energy use, you could potentially lower your electricity bill by $200 a year by switching to our Time-of-Use rate plan, TOU-D-A. To get more information on your customized analysis and TOU rate plans, visit on.sce.com/tougorates. Your Current Plan Standard Tiered Residential Rate $1,260 /YR Best Time-of-Use Rate Plan Option TOU-D-A 10 p.m. - 8 a.m. off peak $1,060 /YR The above cost estimates are based your annual historical usage from August 2015-July 2016 and assume estimated 2017 rates. If you are enrolled in rate discount programs including CARE, FERA, Summer Discount Plan, and employee discounts, they are also factored into the Time-of-Use calculations you see. Changes to your future usage amounts and usage pattern and changes in our rates will affect these estimates, so your actual costs may vary. Greater Control Over Your Bill With a Time-of-Use rate plan, the price of electricity varies by time-of-day and with the season. When you re able to reduce usage during the on-peak hours or shift usage to lower cost periods, you can better control your monthly electricity bill. Please see reverse for the rate pricing chart and frequently asked questions. If you prefer to remain on your current plan, no action is necessary. Your Home, Your Option to Switch Here s How: Go online to on.sce.com/tougorates, or Complete and return the Rate Change Request form below using the envelope provided, or Call Monday-Friday from 8 a.m. to 5 p.m. B FOR OVER 100 YEARS...LIFE. POWERED BY EDISON. Confirm your optional TOU rate plan below. Rate Change Request Fill out your contact information below and sign. Send back your reply card in the postage-paid reply envelope provided. PERF Yes! I would like my account changed to the TOU-D-A rate plan, effective with my next scheduled read date. Service Account Number: ending in 6789 Service Address: 1234 Any Street Anytown, CA Signature Required Customer Name: Telephone Number: I consent to receive phone calls from SCE regarding products and services at the phone number above. l confirm I am an authorized user of the phone number provided. I understand these calls may be generated using an automated technology. I also agree to the Terms and Conditions and the Privacy Notice at sce.com/privacynotice. John Q Sample Yes, I would like to receive occasional updates from SCE, including information about rebates, savings, and promotions. I agree to my rate being changed effective with my next scheduled read date and to the provisions on the back of this card. Signature Date Scan Code

31 Residential Rate Comparison Letter Neutral How much could you lower your bill with a few changes? Explore your options. John Q Sample 1234 Any Street Anytown, USA Service Account ending in 6789 Dear John Q Sample, Did You Know You Have Rate Plan Options? We want to keep you informed about rate changes, your rate plan options, and a new rate plan that could help lower your energy costs if you make a few changes to your household energy use. To better meet the energy lifestyle of different households, more flexible rate plan options have become available, giving you the opportunity to choose what is best for you. Tiered Rates increase as your energy use increases. Time-of-Use (TOU) Rates are based on when and how much energy you use. Your Custom Rate Plan Comparison Based on your annual historical usage, the rate plan comparison below indicates you currently may not have significant savings by switching to another rate plan. However, if you have some flexibility with when your household uses energy, our Time-of-Use rate plan, TOU-D-A may be an opportunity for you to lower your electricity costs. To get more information on your customized analysis and other TOU rate plans, visit on.sce.com/toucheckrates. Your Current Plan Standard Tiered Residential Rate $1,260 /YR Best Time-of-Use Rate Plan Option TOU-D-A 10 p.m. - 8 a.m. off peak $1,265 /YR The above cost estimates are based your annual historical usage from August 2015-July 2016 and assume estimated 2017 rates. If you are enrolled in rate discount programs including CARE, FERA, Summer Discount Plan, and employee discounts, they are also factored into the Time-of-Use calculations you see. Changes to your future usage amounts and usage pattern and changes in our rates will affect these estimates, so your actual costs may vary. Time-of-Use (TOU) Rate Plans Offer Flexibility and Control Over Your Bill No action on your part is necessary if you do not want to switch to a TOU rate plan. However, if you are able to make some changes to when and how much electricity your household uses, you may lower your electricity costs. Please see reverse for a sample rate plan pricing chart and frequently asked questions. Your Home, Your Option to Switch Here s How: Go online to on.sce.com/toucheckrates, or Complete and return the Rate Change Request form below using the envelope provided, or Call Monday-Friday from 8 a.m. to 5 p.m. N FOR OVER 100 YEARS...LIFE. POWERED BY EDISON. Confirm your optional TOU rate plan below. Rate Change Request Fill out your contact information below and sign. Send back your reply card in the postage-paid reply envelope provided. PERF Yes! I would like my account changed to the TOU-D-A rate plan, effective with my next scheduled read date. Service Account Number: ending in 6789 Service Address: 1234 Any Street Anytown, CA Signature Required Customer Name: Telephone Number: I consent to receive phone calls from SCE regarding products and services at the phone number above. l confirm I am an authorized user of the phone number provided. I understand these calls may be generated using an automated technology. I also agree to the Terms and Conditions and the Privacy Notice at sce.com/privacynotice. John Q Sample Yes, I would like to receive occasional updates from SCE, including information about rebates, savings, and promotions. I agree to my rate being changed effective with my next scheduled read date and to the provisions on the back of this card. Signature Date Scan Code

32 Residential Rate Comparison Letter Non-Benefiter Did you know you have rate plan options? Learn about other plans available to you. John Q Sample 1234 Any Street Anytown, USA Service Account ending in 6789 Dear John Q Sample, We are continuing to design rate plans to meet our customers needs and want to let you know you have electricity rate plan options. Currently your tiered rate plan is a good fit for your household; however, we offer Time-of-Use (TOU) rate plans that may be beneficial for you in the future, as your household and lifestyle may change. A Time-Of-Use (TOU) rate plan provides more control over your monthly electricity bill. You decide which rate you pay for electricity based on when and how much you use. By reducing your electricity usage during on-peak hours, you ll be able to take advantage of alternative rate plans that may save you money throughout the year. Visit on.sce.com/toulearnrates for a customized analysis and information about TOU rate plans. In addition to saving money by avoiding higher energy cost periods, reducing electricity use during peak times may help to reduce greenhouse gas (GHG) emissions and may defer the construction of additional power plants. If you have any questions about the TOU rate plans, please call Comparing Tiered Rates with Time-of-Use Rate Plans Tiered Rates increase as your energy use increases. Time-of-Use (TOU) Rates are based on when and how much energy you use. A tiered rate plan has multiple pricing tiers. During each billing period, your household s energy consumption starts in Tier 1, where the price per kilowatt hour (kwh) is lowest. Each tier has a certain amount of energy allocated to it if you use more energy than is allocated to that tier, you move to the next, higher-priced tier. The best way to keep energy costs lower is to limit your energy consumption to the lower tiers. TOU pricing varies depending on when you use power during the day, week and season. If you can reduce your electricity usage during on-peak hours (usually weekdays between the hours of 2 p.m. and 8 p.m.), you ll be able to take advantage of lower rates during weekends, holiday and evening hours. Please see reverse for a sample rate pricing chart and frequently asked questions. Gain More Control Over Your Bill If you re not already tracking your energy usage with My Account, sign up for the online tool that puts energy management at your fingertips by visiting sce.com/myaccount. My Account has tools designed to help you manage your energy use. View projected bills and plan your usage to optimize savings and manage your account. Analyze your daily usage and compare year over year to better manage your energy consumption and costs. You can also receive proactive alerts with Budget Assistant. It will help you set monthly spending amounts, track your progress and receive proactive alerts to stay in control and on budget. Take control today. Sign up for Budget Assistant alerts using the reply card below or directly online at sce.com/myaccount. FOR OVER 100 YEARS...LIFE. POWERED BY EDISON. NB Yes, I d like to receive Budget Assistant alerts. Service Account Number: Name: Service Address: City: John Q Sample 1234 Any Street Anytown State: CA Zip: Signature: Date: 3 Set your monthly electricity-spending goal. You can always change your monthly spending goal at sce.com/myaccount. (Example: $70) Winter $ (Oct - May) $ How would you prefer to receive alerts? Please choose one of the following options: By providing a phone number below, I understand I am giving permission to SCE to send me Budget Assistant alerts. This information will only be used by SCE to send alert notifications. It will not be used for marketing purposes. Please refer to SCE s privacy notice at sce.com/ privacynotice. Text Message: Voice Message: When do you want to receive alerts? Weekly Only if I m over my spending Summer (Jun - Sep) PERF

33 Residential Rate Comparison Letter Non-Benefiter + Analysis Did you know you have rate plan options? Learn about other plans available to you. John Q Sample 1234 Any Street Anytown, USA Service Account ending in 6789 Dear John Q Sample, We are continuing to design rate plans to meet our customers needs and want to let you know you have electricity rate plan options. Currently your tiered rate plan is a good fit for your household; however, we offer Time-of-Use (TOU) rate plans that may be beneficial for you in the future, as your household and lifestyle may change. A Time-Of-Use (TOU) rate plan provides more control over your monthly electricity bill. You decide which rate you pay for electricity based on when and how much you use. By reducing your electricity usage during on-peak hours, you ll be able to take advantage of alternative rate plans that may save you money throughout the year. Visit on.sce.com/touanalyzerates for a customized analysis and for information about our TOU rate plans. In addition to saving money by avoiding higher energy cost periods, reducing electricity use during peak times may help to reduce greenhouse gas (GHG) emissions and may defer the construction of additional power plants. If you have any questions about the TOU rate plans, please call Your Custom Rate Plan Comparison Based on your annual historical usage, the rate plan comparison below indicates you currently would not benefit by switching to another rate plan. However, if you have some flexibility with when your household uses energy, our Time-of-Use rate plan, TOU-D-A may be an opportunity for you to lower your electricity costs. To get more information on your customized analysis and other TOU rate plans, visit on.sce.com/touanalyzerates. Your Current Plan Best Time-of-Use Rate Plan Option Standard Tiered Residential Rate $X,XXX /YR TOU-D-A 10 p.m. - 8 a.m. off peak $X,XXX /YR The above cost estimates are based your annual historical usage from August 2015-July 2016 and assume estimated 2017 rates. If you are enrolled in rate discount programs including CARE, FERA, Summer Discount Plan, and employee discounts, they are also factored into the Time-of-Use calculations you see. Changes to your future usage amounts and usage pattern and changes in our rates will affect these estimates, so your actual costs may vary. Gain More Control Over Your Bill If you re not already tracking your energy usage with My Account, sign up for the online tool that puts energy management at your fingertips by visiting sce.com/myaccount. My Account has tools designed to help you manage your energy use. View projected bills and plan your usage to optimize savings and manage your account. Analyze your daily usage and compare year over year to better manage your energy consumption and costs. You can also receive proactive alerts with Budget Assistant. It will help you set monthly spending amounts, track your progress and receive proactive alerts to stay in control and on budget. Take control today. Sign up for Budget Assistant alerts using the reply card below or directly online at sce.com/myaccount. NB-A FOR OVER 100 YEARS...LIFE. POWERED BY EDISON. Yes, I d like to receive Budget Assistant alerts. Service Account Number: Name: Service Address: City: John Q Sample 1234 Any Street Anytown State: CA Zip: Signature: Date: 3 Set your monthly electricity-spending goal. You can always change your monthly spending goal at sce.com/myaccount. (Example: $70) Winter $ (Oct - May) $ How would you prefer to receive alerts? Please choose one of the following options: By providing a phone number below, I understand I am giving permission to SCE to send me Budget Assistant alerts. This information will only be used by SCE to send alert notifications. It will not be used for marketing purposes. Please refer to SCE s privacy notice at sce.com/ privacynotice. Text Message: Voice Message: When do you want to receive alerts? Weekly Only if I m over my spending Summer (Jun - Sep) PERF

34 Residential Rate Comparison Letter Non-Benefiter with MYA & Budget Assistant Did you know you have rate plan options? Explore your options. John Q Sample 1234 Any Street Anytown, USA Service Account ending in 6789 Dear John Q Sample, We are continuing to design rate plans to meet our customers needs and want to let you know you have electricity rate plan options. Currently your tiered rate plan is a good fit for your household; however, we offer Time-of-Use (TOU) rate plans that may be beneficial for you in the future, as your household and lifestyle may change. A Time-Of-Use (TOU) rate provides more control over your monthly electricity bill. You decide which rate you pay for electricity based on when and how much you use. By reducing your electricity usage during on-peak hours, you ll be able to take advantage of alternative rate plans that may save you money throughout the year. In addition to saving money by avoiding higher energy cost periods, reducing electricity use during peak times may help to reduce greenhouse gas (GHG) emissions and may defer the construction of additional power plants. To learn more about the TOU rate plans we offer, please visit on.sce.com/toulearnrates. If you have any questions about the TOU rate plans, please call Comparing Tiered Rates with Time-of-Use Rate Plans Tiered Rates increase as your energy use increases. Time-of-Use (TOU) Rates are based on when and how much energy you use. A tiered rate plan has multiple pricing tiers. During each billing period, your household s energy consumption starts in Tier 1, where the price per kilowatt hour (kwh) is lowest. Each tier has a certain amount of energy allocated to it if you use more energy than is allocated to that tier, you move to the next, higher-priced tier. The best way to keep energy costs lower is to limit your energy consumption to the lower tiers. TOU pricing varies depending on when you use power during the day, week and season. If you can reduce your electricity usage during on-peak hours (usually weekdays between the hours of 2 p.m. and 8 p.m.), you ll be able to take advantage of lower rates during weekends, holiday and evening hours. If Your Needs Change It s Easy To Find a New Rate Plan If you discover that most of your electricity usage is on weekends, morning or late weeknights, TOU may be right for you in the future. By using our Residential Rate Comparison tool, you can view and compare costs based on your historical energy usage with our Time-of-Use (TOU) rate options. We have made it simple for you to find the right plan for your home, lifestyle, and energy usage. Please see reverse for a sample rate plan pricing chart and frequently asked questions. Take Control of Your Household Energy Use Everyone likes to be energy efficient and save money. Here are a few simple tips to help you reduce your energy use: Shift the time you do laundry to late evenings or weekends when rates are lowest. Set your A/C thermostat to 78 degrees when at home and use fans to move cool air. Use energy-efficient LED light bulbs and turn off unneeded lights. Run full dishwasher loads and delay start time until late at night and use the no-heatair-dry feature. If you have a pool, set your pool pump to run in the late evening hours. NB-BA FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.

35 Residential Rate Comparison Letter Non-Benefiter with MYA & Budget Assistant + Analysis Did you know you have rate plan options? Explore your options. John Q Sample 1234 Any Street Anytown, USA Service Account ending in 6789 Dear John Q Sample, We are continuing to design rate plans to meet our customers needs and want to let you know you have electricity rate plan options. Currently your tiered rate plan is a good fit for your household; however, we offer Time-of-Use (TOU) rate plans that may be beneficial for you in the future, as your household and lifestyle may change. A Time-Of-Use (TOU) rate plan provides more control over your monthly electricity bill. You decide which rate you pay for electricity based on when and how much you use. By reducing your electricity usage during on-peak hours, you ll be able to take advantage of alternative rate plans that may save you money throughout the year. In addition to saving money by avoiding higher energy cost periods, reducing electricity use during peak times may help to reduce greenhouse gas (GHG) emissions and may defer the construction of additional power plants. If you have any questions about the TOU rate plans, please call Your Custom Rate Plan Comparison Based on your annual historical usage, he rate plan comparison below indicates you currently would not benefit by switching to another rate plan. However, if you have some flexibility with when your household uses energy, our Time-of-Use rate plan, TOU-D-A may be an opportunity for you to lower your electricity costs. To get more information on your customized analysis and other TOU rate plans, visit on.sce.com/touanalyzerates. Your Current Plan Standard Tiered Residential Rate $X,XXX /YR Best Time-of-Use Rate Plan Option TOU-D-A 10 p.m. - 8 a.m. off peak $X,XXX /YR The above cost estimates are based your annual historical usage from August 2015-July 2016 and assume estimated 2017 rates. If you are enrolled in rate discount programs including CARE, FERA, Summer Discount Plan, and employee discounts, they are also factored into the Time-of-Use calculations you see. Changes to your future usage amounts and usage pattern and changes in our rates will affect these estimates, so your actual costs may vary. If Your Needs Change It s Easy To Find a New Rate Plan If you discover that most of your electricity usage is on weekends, morning or late weeknights, TOU may be right for you in the future. By using our Residential Rate Comparison tool, you can view and compare costs based on your historical energy usage with our Time-of-Use (TOU) rate plan options. We have made it simple for you to find the right plan for your home, lifestyle, and energy usage. Please see reverse for a sample rate plan pricing chart and frequently asked questions. Take Control of Your Household Energy Use Everyone likes to be energy efficient and save money. Here are a few simple tips to help you reduce your energy use: Shift the time you do laundry to late evenings or weekends when rates are lowest. Set your A/C thermostat to 78 degrees when at home and use fans to move cool air. Use energy-efficient LED light bulbs and turn off unneeded lights. Run full dishwasher loads and delay start time until late at night and use the no-heatair-dry feature. If you have a pool, set your pool pump to run in the late evening hours. NB-BA-A FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.

36 Residential Rate Comparison Letters TOU-D-A Back Estimated 2017 TOU-D-A Pricing and Time Periods Weekdays Summer Estimated 2017 Tiered Rates Winter Price/kWh Summer 8 a.m. 2 p.m. 8 p.m. 10 p.m. 8 a.m. Weekends % of Baseline 101% 400% of Baseline 401%+ of Baseline Winter a.m. 10 p.m. 8 a.m. Frequently Asked Questions Monthly Baseline Credit: 10 per Baseline kwh Daily Basic Charge: 3 A portion of the energy charges will be lowered through a baseline credit applied monthly on a $ per kwh basis. Summer Rates: June through September, 4 months Winter Rates: October through May, 8 months Price/kWh: Super Off-Peak Off-Peak On-Peak If I am currently enrolled in any programs, can I still keep it with the TOU rate I choose? Do the current programs I m on transfer? Your enrollment in CARE, FERA, and/or Summer Discount Plan is included in both rate calculations and will not be affected if you switch to a TOU rate. You will continue to receive the discount associated with the program(s) you are enrolled in. How can I get information about my current tiered rate pricing and allocation? If you are currently registered for My Account, you have access to a number of tools and services, including a chart that tracks which tier you re currently in (as of the previous day), and the tier you re expected to fall into by the close of the current monthly billing period. The information provided in the chart is customized based on your specific electricity use and is updated daily. The chart also provides current tier pricing, and the amount of electricity allocated to each tier. This can be a valuable resource to help you better understand the rate structure and better manage your monthly bill. To access the chart, log in to My Account, then select the View Recent Usage button, and then How is this calculated? which is located below your Projected Next Bill total. If you don t have My Account, register now at sce.com/myaccount. How can I tell if a TOU rate plan is better for me? TOU rate prices are highest on weekdays June 1 through September 30 between the hours of 2 p.m. and 8 p.m. So, if you re normally out of the house during workday hours, or if you can switch a few tasks (like charging your electric vehicle, doing laundry or running your pool pump) to the off-peak hours before 2 p.m. or after 8 p.m., the TOU-D rate plan may help you reduce your overall annual electricity costs. How long do I have to stay on my new rate after I make a rate change? There is no minimum commitment period, and you can choose to sign up or un-enroll from your new rate plan at any time. Keep in mind that if you switch from your new rate plan to an alternate plan, you will not be able to make another switch for a full 12 months. What is a baseline credit? If your recommended rate is TOU-D-A, a baseline credit of $0.10 per kwh is based on your monthly baseline kilowatt-hour electricity allowance. The baseline allowance is a set amount of kilowatt-hours (kwh) of electricity considered essential to meeting basic heating, lighting, and cooking needs. Your baseline credit is not reflected in the rate table shown but will be applied each month to your bill. Your baseline allowance will change by season, with summer months typically having a larger baseline allowance, thereby providing a greater baseline credit. For example, if your baseline allowance is 165 kwh, a credit of $16.50 would be applied to your monthly electric bill (165 kwh multiplied by $0.10 credit). PERF (Copy below appears on Benefiter and Neutral versions only.) The rate analysis performed on the service account is simply an estimate of costs and savings based on available information and the actual bill may differ from this estimate. You have the option to choose an alternate plan at any time. But, if you switch to an alternate rate plan, you will not be able to make another change for a full 12 months. The service under the new TOU rate plan will typically become effective at the start of the next routine billing cycle date following SCE s processing of a rate change request. This rate change form is a free form version of CSD-179-B. All terms and conditions shall remain consistent and applicable to customers signing any effective variation of Form CSD-179-B. Please return your completed and signed form to SCE at: Southern California Edison Attn: Budget Assistant P.O. Box 800 Rosemead, CA

37 Residential Rate Comparison Letters TOU-D-B Back Estimated 2017 TOU-D-B Pricing and Time Periods Weekdays Summer Estimated 2017 Tiered Rates Winter Price/kWh Summer 8 a.m. 2 p.m. 8 p.m. 10 p.m. 8 a.m. Weekends % of Baseline 101% 400% of Baseline 401%+ of Baseline Winter a.m. 10 p.m. 8 a.m. Daily Basic Charge: 54 Summer Rates: June through September, 4 months Winter Rates: October through May, 8 months Price/kWh: Super Off-Peak Off-Peak On-Peak Frequently Asked Questions If I am currently enrolled in any programs, can I still keep it with the TOU rate I choose? Do the current programs I m on transfer? Your enrollment in CARE, FERA, and/or Summer Discount Plan is included in both rate calculations and will not be affected if you switch to a TOU rate. You will continue to receive the discount associated with the program(s) you are enrolled in. How can I get information about my current tiered rate pricing and allocation? If you are currently registered for My Account, you have access to a number of tools and services, including a chart that tracks which tier you re currently in (as of the previous day), and the tier you re expected to fall into by the close of the current monthly billing period. The information provided in the chart is customized based on your specific electricity use and is updated daily. The chart also provides current tier pricing, and the amount of electricity allocated to each tier. This can be a valuable resource to help you better understand the rate structure and better manage your monthly bill. To access the chart, log in to My Account, then select the View Recent Usage button, and then How is this calculated? which is located below your Projected Next Bill total. If you don t have My Account, register now at sce.com/myaccount. How can I tell if a TOU rate plan is better for me? TOU rate prices are highest on weekdays June 1 through September 30 between the hours of 2 p.m. and 8 p.m. So, if you re normally out of the house during workday hours, or if you can switch a few tasks (like charging your electric vehicle, doing laundry or running your pool pump) to the off-peak hours before 2 p.m. or after 8 p.m., the TOU-D rate plan may help you reduce your overall annual electricity costs. How long do I have to stay on my new rate after I make a rate change? There is no minimum commitment period, and you can choose to sign up or un-enroll from your new rate plan at any time. Keep in mind that if you switch from your new rate plan to an alternate plan, you will not be able to make another switch for a full 12 months. What is a baseline credit? If your recommended rate is TOU-D-A, a baseline credit of $0.10 per kwh is based on your monthly baseline kilowatt-hour electricity allowance. The baseline allowance is a set amount of kilowatt-hours (kwh) of electricity considered essential to meeting basic heating, lighting, and cooking needs. Your baseline credit is not reflected in the rate table shown but will be applied each month to your bill. Your baseline allowance will change by season, with summer months typically having a larger baseline allowance, thereby providing a greater baseline credit. For example, if your baseline allowance is 165 kwh, a credit of $16.50 would be applied to your monthly electric bill (165 kwh multiplied by $0.10 credit). PERF (Copy below appears on Benefiter and Neutral versions only.) The rate analysis performed on the service account is simply an estimate of costs and savings based on available information and the actual bill may differ from this estimate. You have the option to choose an alternate plan at any time. But, if you switch to an alternate rate plan, you will not be able to make another change for a full 12 months. The service under the new TOU rate plan will typically become effective at the start of the next routine billing cycle date following SCE s processing of a rate change request. This rate change form is a free form version of CSD-179-B. All terms and conditions shall remain consistent and applicable to customers signing any effective variation of Form CSD-179-B. Please return your completed and signed form to SCE at: Southern California Edison Attn: Budget Assistant P.O. Box 800 Rosemead, CA

38 Residential Rate Comparison Letters TOU-D-T Back Estimated 2017 TOU-D-T Pricing and Time Periods Weekdays Summer Level 1 Estimated 2017 Tiered Rates Winter Level 2 Level 1 Price/kWh a.m p.m p.m. 22 Level 2 6 a.m. Weekends 0 100% of Baseline 101% 400% of Baseline 401%+ of Baseline Summer Winter Level 1 Level 2 Level 1 Level a.m. 6 a.m. Daily Basic Charge: 3 Level 1: up to 130% of Baseline Level 2: more than 130% of Baseline Summer Rates: June through September, 4 months Winter Rates: October through May, 8 months Price/kWh: Off-Peak Level 1 On-Peak Level 1 Off-Peak Level 2 On-Peak Level 2 Frequently Asked Questions If I am currently enrolled in any programs, can I still keep it with the TOU rate I choose? Do the current programs I m on transfer? Your enrollment in CARE, FERA, and/or Summer Discount Plan is included in both rate calculations and will not be affected if you switch to a TOU rate. You will continue to receive the discount associated with the program(s) you are enrolled in. How can I get information about my current tiered rate pricing and allocation? If you are currently registered for My Account, you have access to a number of tools and services, including a chart that tracks which tier you re currently in (as of the previous day), and the tier you re expected to fall into by the close of the current monthly billing period. The information provided in the chart is customized based on your specific electricity use and is updated daily. The chart also provides current tier pricing, and the amount of electricity allocated to each tier. This can be a valuable resource to help you better understand the rate structure and better manage your monthly bill. To access the chart, log in to My Account, then select the View Recent Usage button, and then How is this calculated? which is located below your Projected Next Bill total. If you don t have My Account, register now at sce.com/myaccount. How can I tell if a TOU rate plan is better for me? TOU rate prices are highest on weekdays June 1 through September 30 between the hours of 2 p.m. and 8 p.m. So, if you re normally out of the house during workday hours, or if you can switch a few tasks (like charging your electric vehicle, doing laundry or running your pool pump) to the off-peak hours before 2 p.m. or after 8 p.m., the TOU-D rate plan may help you reduce your overall annual electricity costs. How long do I have to stay on my new rate after I make a rate change? There is no minimum commitment period, and you can choose to sign up or un-enroll from your new rate plan at any time. Keep in mind that if you switch from your new rate plan to an alternate plan, you will not be able to make another switch for a full 12 months. What is a baseline credit? If your recommended rate is TOU-D-A, a baseline credit of $0.10 per kwh is based on your monthly baseline kilowatt-hour electricity allowance. The baseline allowance is a set amount of kilowatt-hours (kwh) of electricity considered essential to meeting basic heating, lighting, and cooking needs. Your baseline credit is not reflected in the rate table shown but will be applied each month to your bill. Your baseline allowance will change by season, with summer months typically having a larger baseline allowance, thereby providing a greater baseline credit. For example, if your baseline allowance is 165 kwh, a credit of $16.50 would be applied to your monthly electric bill (165 kwh multiplied by $0.10 credit). PERF (Copy below appears on Benefiter and Neutral versions only.) The rate analysis performed on the service account is simply an estimate of costs and savings based on available information and the actual bill may differ from this estimate. You have the option to choose an alternate plan at any time. But, if you switch to an alternate rate plan, you will not be able to make another change for a full 12 months. The service under the new TOU rate plan will typically become effective at the start of the next routine billing cycle date following SCE s processing of a rate change request. This rate change form is a free form version of CSD-179-B. All terms and conditions shall remain consistent and applicable to customers signing any effective variation of Form CSD-179-B. Please return your completed and signed form to SCE at: Southern California Edison Attn: Budget Assistant P.O. Box 800 Rosemead, CA

39 Find out if a different rate plan option makes sense for you. View online. Did You Know You Have Rate Plan Options? Explore Your Options Learn More Dear Casey, We are continuing to design rate plans to meet our customers needs and want to let you know you have electricity rate plan options. Currently, your tiered rate plan is a good fit for your household; however, we offer Time-Of-Use (TOU) rate plans that may be beneficial for you in the future, as your household and lifestyle may change. A TOU rate plan provides more control over your monthly electricity bill. You decide which rate you pay for electricity based on when and how much energy you use. By reducing your electricity usage during on-peak hours, you ll be able to take advantage of alternative rate plans that may save you money throughout the year. In addition to saving money by avoiding higher-energy cost periods, reducing electricity use during peak times may help to reduce greenhouse gas (GHG) emissions and may defer the construction of additional power plants. Your Custom Rate Plan Comparison Based on your annual historical usage, the rate plan comparison below indicates you currently would not benefit by switching to another rate plan. However, if you have some flexibility with when your household uses energy, our Time-Of-Use rate plan TOU-D-T may be an opportunity for you to lower your electricity costs. Get more information on your customized analysis and other TOU rate plans. Your Current Plan Standard Tiered Residential Rate $ /yr Best TOU Rate Plan Option TOU-D-T 10 p.m. - 8 a.m. Super Off-Peak $ /yr

40 The above cost estimates are based your annual historical usage from August 2015 July 2016 and assume estimated 2017 rates. If you are enrolled in rate discount programs, including CARE, FERA, Summer Discount Plan, and employee discounts, they are also factored into the Time-Of-Use calculations you see. Changes to your future usage amounts and usage pattern and changes in our rates will affect these estimates, so your actual costs may vary. If Your Needs Change, It s Easy to Find a New Rate Plan If you discover that most of your electricity usage is on weekends, mornings, or late weeknights, TOU may be right for you in the future. By using our Residential Rate Comparison tool, you can view and compare costs based on your historical energy usage with our TOU rate options. We have made it simple for you to find the right plan for your home, lifestyle, and energy usage. If you have any questions, you can find answers about TOU rate plans online.

41 Take Control of Your Household Energy Use Everyone likes to be energy efficient and save money. Here are a few simple tips to help you reduce your energy use: Shift the time you do laundry to late evenings or weekends when rates are lowest During cold days and nights, set your heating thermostat to 68 degrees Use energy-efficient LED light bulbs and turn off unneeded lights Run full dishwasher loads and delay start time until late at night and use the no-heat air-dry feature If you have a pool, set your pool pump to run in the late evening hours

42 Privacy Notice Terms and Conditions Contact Us The rate analysis performed on the service account is simply an estimate of costs and savings based on available information and the actual bill may differ from this estimate. You have the option to choose an alternate plan at any time. But, if you switch to an alternate rate plan, you will not be able to make another change for a full 12 months. The service under the new TOU rate plan will typically become effective at the start of the next routine billing cycle date following SCE s processing of a rate change request. This rate change form is a free form version of CSD-179-B. All terms and conditions shall remain consistent and applicable to customers signing any effective variation of Form CSD-179-B. This contains a marketing message from Southern California Edison. Please do not reply to this ; this is not a monitored address. Facebook is a trademark of Facebook, Inc. Twitter is a trademark of Twitter, Inc. Instagram is a trademark of Instagram, LLC. To opt-out of receiving SCE marketing messages, unsubscribe. Your removal request will be honored within 10 business days Southern California Edison, 2244 Walnut Grove Ave., Rosemead, CA 91770

43 SCE S FIFTH QUARTERLY PRRR REPORT Appendix B Summer Opt-in Pilot Outreach News Letters

44 P.O. Box 800 Rosemead, CA PRESORTED STANDARD U.S. POSTAGE PAID SOUTHERN CALIFORNIA EDISON Time-of-Use Study Update Issue 2, October 2016 HEATER FIREPLACE PENGUIN MITTENS SWEATER WEATHERSTRIPPING Game Time Answers Winter Rates Are Here You ve made it through the first summer season of the Time-of-Use (TOU) rate plan study! We are grateful for your participation and appreciate those of you who have shared your experiences and feedback. By now, you should have received your first participation incentive, applied as a credit to your monthly bill. The Latest Winter Rates Now in Effect! In This Issue Winter Rates Are Here The Latest It s Still About When and How Much Let s Hear It The upcoming rate study schedule and timing of key events/milestones. Get to know the price and time periods associated with winter season TOU rates. Your story could be in the next issue! Remember, October is the beginning of the TOU winter season and new rates went into effect October 1, Winter rates are generally lower than the summer season rates, and you get to enjoy them for a full eight months! Please visit on.sce.com/ tousave to view the current rates for all seasons. In early October, you should have received the first survey to complete. In order to receive your next participation incentive, please complete the survey at your earliest convenience. You will see this bill credit as Misc. Adjust. on your bill statement within 1-2 billing cycles after completing the survey. Starting October 1 through May, Winter TOU Rates are in effect. See details in the rate table below. Upcoming October First survey (must complete to receive second participation incentive) November Daylight Savings Time ends. Turn clocks back one hour at 2 a.m. on Sunday, November 6th. March Update Newsletter Issue 3 In Case You Missed It Understanding your monthly baseline credit. Inside the Box Using the materials from your Welcome Kit during winter months. Winter Rates Are Still About When and How Much You Use Your TOU Rate Study Plan features new daily time periods and pricing for the winter season. You ll find more information at on.sce.com/tousave. Customer Feedback Forum Take Note 2016 Southern California Edison. All rights reserved. E-AA-C-1016 TOU study participants share their story. It happens annually. Winter Winter 8 a.m. 8 a.m p.m p.m Weekdays Weekends 8 a.m. 8 a.m. Price/kilowatt-hour (kwh): Super Off-Peak On-Peak Winter Rates: October through May, 8 months Pricing subject to change, current pricing effective as of June Price/kilowatthour is rounded to nearest cent. CARE/ FERA customers will continue to receive their discount, which is not reflected in the rate chart. FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.

45 Tip Let s Hear It Customer Feedback Forum Take Note Set your dishwasher to run during nighttime hours to take advantage of lowest rate period. Tip Take advantage of the heat created from meals that require roasting or baking in the oven. Winter Reminder Set your heat to 68 while at home. Turn off when you leave. 68 We d like to hear about your experiences, observations, questions, and tips during this TOU Rate Plan Study. Share your stories at SCEtoupilot@sce.com. Your feedback may be featured in an upcoming issue of Update! Please include and describe how you ve changed your energy use since the new rate plan took effect. What changes have you made with household activities based on the timeof-use periods? Are you using any reminders to reduce energy use during on-peak periods? Are the welcome kit materials helpful to remember the best times to use energy? In Case You Missed It You have been receiving a baseline credit of $0.10 per kwh for your monthly baseline kilowatt-hour electricity allowance. The baseline allowance is a set amount of kilowatt-hours (kwh) of electricity considered essential to meeting basic heating, lighting, and cooking needs. Your baseline credit is not reflected in the rate table shown on page 1, but will be applied each month to your bill. Your baseline allowance changes with the season. For example, if your winter baseline allowance is 165 kwh, a credit of $16.50 would be applied to your monthly electric bill (165 kwh multiplied by $0.10 credit). Think Inside the Box Weekdays The Welcome Kit you received in late May included lots of details about your new TOU rate, along with materials to help you manage your energy use and bills. If you were using the summer thermostat door hanger to remind you to adjust your temperature setting, flip it over and you will find a reminder to use during cooler winter months. Set the thermostat to 68 while at home. Turn it off when you leave. I just wanted to share my story of how my family has changed its habits with the new TOU pilot program. We have all taken it on as a personal challenge to try and use major appliances and air conditioning during off-peak hours. My wife would regularly do laundry during the afternoon but has since shifted to doing the laundry until after 8 p.m. In addition, we bought a clothes hanging rack that we now use to dry almost all of our laundry! One of the things I have also noticed is that we have learned to modify our behavior when it comes to running the air conditioner. We used to always run it in the late afternoon but now we just wait until 8 p.m. We have ceiling fans in every room of the house and we find that they do a pretty good job of keeping the temperature in the house fairly comfortable. What s funny is that we find that it is actually preferable to run our air after 8 p.m. because it makes it much easier for us to go to sleep at night. We used to hardly ever run the air past 8 p.m. before and the new pilot program has shown us that it may actually be a benefit to run the air during off-peak hours. I actually had to laugh the other day because my 15-year-old daughter woke up super early last Saturday to do her laundry. She was determined to get the lowest off-peak rate for doing her laundry. Also, I wanted to say that I have been reading and enjoying all the s and mail that we have received regarding the TOU pilot program. We are taking this challenge very seriously because we know that by changing our habits we can not only save money but also do our part to save energy. If we all do our part, it adds up to huge savings. Paul J. Reiter TOU Pilot Program If at any time you have a question or comment, we invite you to us at SCEtoupilot@sce.com Thanks for your questions about household energy use during the pilot study. Keep in mind the four months of higher summer rates are generally offset by lower rates the rest of the year. The combination of averaged TOU seasonal rates with smart energy use can yield lower annual electricity costs. Your participation in the pilot includes Risk-Free Bill Protection. After 12 months on your TOU Pilot Rate, we will compare your total costs to what you would have paid on your previous rate plan. If you would have paid less on the previous rate plan, we will credit you the difference. Game Time Unscramble these five Word Jumbles, one letter to each square, to form five ordinary wintertime words. E E A T H R E P E C A F I R L N E N I P U G M N S T T I E R E A E T W S Now unscramble the circled letters from above to form the answer to this question: What can you use to seal air leaks around windows and doors in your home? See back page for answers. E-DH-0616

46 SCE S FIFTH QUARTERLY PRRR REPORT Appendix C Sample of Summer Postcard for Enhanced ME&O Treatment Group

47 Summer Savings Can Be a Breeze &

48 Here are some simple, no-cost tips to help you save energy and lower your summer bills. P.O. Box 800 Rosemead, CA PRESORTED STANDARD U.S. POSTAGE PAID SOUTHERN CALIFORNIA EDISON As a participant in the TOU Pilot Rate Study, we d like to provide you with a few tips on how to save this summer. Let Nature Help Air-dry dishes and hang laundry outdoors to dry. Cooking Use the microwave, or better yet, grill outdoors to save energy and avoid generating heat from the oven or stovetop cooking. Outdoor Heat Close curtains, shades, and shutters to block heat from the sun. Reminder: Summer Rates Are in Effect Save during off-peak periods. Remember, TOU rate plans are about when and how much energy you use. While we encourage you to shift energy use to off-peak periods, using less energy during on-peak periods can also make a difference. us at SCEtoupilot@sce.com to share your conservation tips or ask questions. FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.

49 Get Fired Up About Saving Energy This Summer &

50 When it comes to preserving our natural resources, we want to do our best to conserve energy. P.O. Box 800 Rosemead, CA PRESORTED STANDARD U.S. POSTAGE PAID SOUTHERN CALIFORNIA EDISON It can be tempting to crank up the A/C, but you can lower your energy bills, reduce greenhouse gases, and help prevent power outages by being conscious of our energy use and making smart choices. As a participant in the TOU Pilot Rate Study, we d like to provide you with a few tips on how to save this summer. Fire up the outdoor grill instead of heating up the house with oven or stovetop cooking. Pre-cool your home early in the day and use ceiling and room fans to circulate the cool air to reduce the use of your A/C. Purchase a Wi-Fi connected thermostat to control your A/C when you are away from home. Reminder: Summer Rates Are in Effect Save during off-peak periods. Remember, TOU rate plans are about when and how much energy you use. While we encourage you to shift energy use to off-peak periods, using less energy during on-peak periods can also make a difference. us at SCEtoupilot@sce.com to share your conservation tips or ask questions. FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.

51 Saving Energy is Cool and Easy &