Engaging Consumers. Terri Flora, Director - Communications AEP Ohio October 19, 2010

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1 Engaging Consumers in Today s Smart Grid Terri Flora, Director - Communications AEP Ohio October 19, 2010 This material is based upon work supported by the Department of Energy under Award Number DE-OE

2 AEP Ohio gridsmart Vision Smart Meters through wireless communications network Distribution Automation Integrated Volt Var Control Enabling Technologies (IHD, DLC, PCT, Water Heater LCS, HEM) Customer Web Portal Differentiated Pricing Models Smart Appliances Community Energy Storage PEVs Cyber Security Operations Center

3 AEP Ohio gridsmart Vision THE PROJECT AREA NE Central Ohio

4 Project success depends upon: AEP Ohio gridsmart Project Increased customer knowledge and understanding of gridsmart and associated consumer programs Customer acceptance and willingness to participate in the consumer programs Informed customers making informed decisions How we began: Market research to identify key benefits messages and preferred communication methods Market segmentation to target messaging and to target marketing channels for each segment Proactive and ongoing communications to educate the consumer, create awareness and drive program participation

5 AEP Ohio gridsmart Project Specific Research Initiatives: Focus Groups Awareness Study Energy Efficiency Awareness User Experience IHD Preference Enrollment Questionnaires Exit Questionnaires Participant Studies Non- Participant Studies

6 Understanding the Consumer 70 Clusters 6 Manageable Clusters AXCIOM Clusters Drivers, Behaviors and Messaging Behavior Environmental Friendly Tech Savvy Risk Taker Budget conscious What s in it for me? Followers Refuse change Customer acceptance of energy efficiency and willingness to participate (change behavior) Customer overall knowledge and understanding of energy efficiency What type of incentives do customers expect or want? Demonstration Strata 1 Overall Control Group No Contact Representative Cross Section Standard Rate OPower, No Program Marketing 3 Standard Rate In-Home Device No OPower, No Program Marketing 2 4 Direct Load Control or/and Time Of Day 2 Tier Program Marketing, No OPower PCT 5 Direct Load Control or/and Time Of Day 2 Tier Program Marketing, OPower PCT 6 Direct Load Control or/and Time Of Day 2 Tier Program Marketing, OPower PCT, IHD NO PROGRAM OFFERINGS TOD & DLC Drivers values needs attitudinal generational channel attitudes behavioral demographic 7 3 Tier with CPP no OPower, Program Marketing, and IHD 8 3 Tier with CPP OPower Program Marketing, and IHD 9 3 Tier with CPP w / IHD, PCT, WH Controller Program Marketing, 3 TIER WITH CPP Key Benefit Messaging Financial Savings 10 3 Tier with CPP w / retention incentives Program Marketing, and IHD Community/Testimonial Environmental In/More Control 11 RTP Program Marketing and IHD 12 RTP Plus incentives Program Marketing and IHD RTP DA

7 Communicating to the Consumer All Customers Thought Leaders Teachers/ Students Employees Media Web Initiatives Collaborative Teams Ohio Energy Project Event Strategy and Displays Media Outreach Employee Communications Support Materials Measurement and Evaluation Providing up-to-date and accurate gridsmart SM information AEP Ohio s gridsmart outreach approach is designed to make an informed customer a gridsmart customer. SGrid-11

8 Communicating to the Consumer Welcome letter sent to customers in mid-december and phone blast sent to ALL customers getting meter replaced Door hanger after SMART meter was installed. Learn How Your New SMART Meter can benefit you sent early June On-going communication will be needed Direct mail, phone blasts, WEB, Call Centers, , etc. Time of Day / Time of Use SMART Shift (test different formats) Direct Load Control SMART Cooling (test different formats) Home Energy Reports

9 gridsmart Consumer Engagement Stakeholder Engagement AEP Ohio gridsmart Advisory Collaborative Project-specific representation of civic leaders, thought leaders, customers, neighborhood associations Townhall Meetings Brown Bag Lunches Monthly Electronic Newsletter Customer Engagement Townhall Meetings Community Events Mobile Demonstration gridsmartohio.com Direct mail and support materials

10 AEP Ohio gridsmart Mobile

11 gridsmartohio.com

12 gridsmart Consumer Engagement Educator Engagement Partnership with Ohio Energy Project Two-year program with school systems located within project area School Kits Teacher Development In-class computer program Take-home opportunity Media Engagement Working with media in the area on specific story development, including partnerships on technology focus and consumer engagement.

13 AEP Ohio gridsmart Project Making an informed customer a gridsmart customer: Achieve participation goal: 10,000 customers engaged in differentiated pricing options Maintain customer awareness and retention Build strong awareness of gridsmart brand Develop continued acceptance of smart grid technology and benefits Establish the Me Next movement AEP Ohio customers in other parts of service territory requesting technology.

14 AEP Ohio gridsmart Project Thank you! This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.