BGE EmPOWER Maryland 2014 Q3/Q4 Semi- Annual Report May 2015 Hearings
2014 BGE Demand Side Management Awards Platts Global Energy Award Finalist AESP s Energy Award for Outstanding Achievement in Pricing & Demand Response BGE Smart Energy Rewards Chartwell Best Practices Award for Marketing Cogent Utility Customer Champion ENERGY STAR Certified Homes Market Leader Award Peak Load Management Alliance (PLMA) Pacesetter Award acknowledging BGE s PeakRewards Program ENERGY STAR Partner of the Year Sustained Excellence in Program Delivery MarCom Award BGE Smart Energy Rewards MarCom Award Platinum Award PeakRewards South Eastern Electric Exchange Peak Time Rebates Public Relations Society of America Best in Maryland Award 2 2
Q3/4 2014 BGE EmPOWER Maryland Summary Energy efficiency programs exceeded original Q3/4 2014, 2014 Full Year and Cycle-to-Date forecasts (Gross Wholesale MWh 000s) Original Filing With Additional Approved Reported 1,065 1,331 1,209 192 258 237 345 472 392 Q3/Q4 2014 2014 Full Year Cycle-to-Date 3 3
Residential 4 4
2014 Marketing Results 70% increase in web traffic over 2009-2011 Over 525 million impressions in 2014 2014 Highlights Tax-Free Weekend Highest number of rebates out of all 3-day periods in 2014. Ugly Fridge Contest 26 entries and 323% increase in traffic to Recycling Website Room A/C Recycling Event 205 units/ 29,726 kwh saved Natural Gas Conversion 2% direct mail response rate 5 5
1 out of 3 BGE customers have participated in at least one EE program! 324,629 Number of Unique Residential Participants* 67,041 17,611 4,377 1,354 1 Program 2 Programs 3 Programs 4 Programs 5+ Programs *This excludes lighting program participants where customer information cannot be collected. 6 6
2014 Residential EE Program Highlights BGE s Residential program achieved 130% of its overall portfolio gross wholesale MWh forecast for the second half of 2014 The Lighting Program sold nearly 11 million bulbs Cycle-to-Date and achieved 120% of the originally filed forecast and 117% of its re-filed Cycle-to-Date MWh forecast (gross wholesale) PTD over 20 million bulbs have been sold The Recycling Program achieved 123% of the Cycle-to-Date MWh forecast (gross wholesale) Cycle-to-Date, over 23,000 inefficient appliances have been removed from the grid and recycled 7 7
Add l Residential Highlights PTD nearly 2 million energy efficient measures have been installed through the QHEC and HPwES programs 158,000 QHECs with 98% customer satisfaction BGE s Home Performance with ENERGY STAR Program achieved 145% of its Cycle-to-Date forecasted participants BGE added one LED to QHEC/HPwES Audit Nearly 82,000 energy efficient measures have been installed since 2012 Over 6,000 high-efficiency HVAC units were installed during the second half of 2014 PTD nearly 73,000 high-efficiency HVAC units have been installed saving customers nearly $127 million in lifecycle energy costs 8 8
Natural Gas Connection Program Successful Pilot Results Full rollout of program within 90 days of pilot approval Over 525 enrollments to date - achieved 2014 enrollment goal of 500 in 4 months (vs. 6 months projected) Dedicated website with online enrollment tool Successful direct mail campaign (2.2% response rate) Over 50 Participating Contractors, who have received specialized program training To date 125 customers have new gas service installed The program has saved 406 MWh on an annualized basis - avoiding 114 metric tons of greenhouse gas emissions per year (factoring in therms increase) Modeled TRC results 1.04 9 9
Natural Gas Connection Program Customers are saving 45 inefficient heat pumps retired - 52 high efficiency gas furnaces installed Customers are saving $215 annually 34 customers converted an inefficient electric water heater to highefficiency natural gas water heater Customers are saving $330 annually Source: Energy Information Administration (EIA) Fuel Price Per Fuel Heat Content Per Fuel Price Per Million Btu Fuel Type Fuel Unit Unit (dollars) Unit (Btu) (dollars) Electricity Kilowatt hour $0.134 3,412 $39.18 Natural Gas Therm $0.91 100,000 $9.12 3 rd highest energy saving and 3 rd lowest cost per kwh BGE has provided all data asked for via data requests BGE respectfully requests an expedited decision for full approval 10 10
Industrial & Commercial 11 11
Q3/4 2014 I&C Highlights I&C programs saw strong growth in second half Doubled energy savings from first half yielding 109,000 MWh Prescriptive and Custom grew by 33% and 300% (respectively) Small Business Energy Solutions saw modest increase (9%) Building Tune-Up achieved 106% of its annual goal Growth of CIF Small Business Energy Advance program 323 participants resulting in $850,000 in advancements Completed five CHP installations (25,000 MWh) Upper Chesapeake Medical (2 MW) - 13,000 MWh Johns Hopkins University (75kW) Fullerton and Pine Grove Secondary Schools (225 KW) Horseshoe Casino (1.2 MW) 9,000 MWh 12 12
Joint Utility Request for Modifications to I&C LED Measures and Incentives Develop a long term LED strategy that targets deeper energy savings and high quality measures so customers are satisfied with their LED choices for the next decade Provide customers higher incentives for long-term permanent, state-of-the-art solutions (delamping, retrofits and new fixtures) vs. quick fixes (Tubular LEDs TLEDs ) that offer lower savings Address the large influx of TLEDs into the market by establishing appropriate incentive levels (50% installed costs) and establishing proper technical requirements for Type A, B & C TLEDs 13 13
Joint Utility Request for Modifications to I&C LED Measures and Incentives (cont) Reduction in TLED and LED screw-in incentives ($3 -$10/lamp) to reflect the rapid decline in LED prices and over payment of incentives Provide higher incentives for delamping ($50) due to higher lighting levels of LEDs and to encourage proper lighting levels for customers Increase in new interior LED fixtures ($40 -$400) and LED Retrofit kits ($15 - $60) incentives to promote state of the art technology that offers the greatest value and highest energy savings for customers Dimming and daylight capabilities, longer life, highest lumen/watt Restructures exterior LED fixture incentives ($15 -$400) that raise or lowers these levels based on fixture wattage (175 W 1,000W) 14 14
2015-17 New I&C Programs/Changes Automated Benchmarking EPA Portfolio Manager After successful beta test, full launch in March (8 buildings done) Building Analytics Tool 83 Building Reports completed, 47 reports presented to customers Building Operators Certification Training March launch with first applications received Instant Lighting Discounts (Midstream Lighting) April launch with 7 lighting distributors Master Metered QHEC April launch with 2,000 expected to be completed in 2015 Small Business Energy Solutions Four lighting (2 new) and one refrigeration vendor in place 15 15
2014 I&C Marketing Sector-based Continued Sector focused marketing campaign Successful Press Events Towson University Upper Chesapeake Ask The Expert New website Feature launched in July CHP Events Held several events throughout the year with over 200 attendees 16 16
Demand Response 17 17
Marketing and Research: Behavioral and Demand Response Program Behavioral Programs Program awareness campaign in social media and radio (Facebook, Twitter, Pandora radio) Q4 2014 began Winter of 68 o campaign Demand Response Q3/Q4, over 300,000 direct mail pieces Behavioral and Demand Response Programs Conducted customer focus groups to evaluate customer engagement and satisfaction of all behavioral and demand response programs 18 18
Smart Grid Enabled Programs Conservation Focus Behavioral Demand Response 2013 450,000 customers 2013 315,000 customers 2014 730,000 customers 2014 850,000 customers 2015 1 million customers 2015 1.1 million customers Over 1 million AMI Meters Installed to Date 19 19
SEM/SER 2014 Results SER - Energy Savings Days Average participation - 76% for 2014 season 79% across both summers Average rebate for participating customers: $6.55 Behavioral-only participation estimate an average of 209 MW of peak load reducing capability Demand Response (PeakRewards) reduced an average of 23% 79% customer satisfaction SEM* Participation and impacts growing 3.9 million reports ~370,000 customers online Preliminary evaluation shows 1.3%+ reductions Highly recognized in the industry presentations and awards *Home profile information is based on third party data. BGE encourages customers to update their profile information to receive better personalized home energy reports. 20 20
Demand Response (PeakRewards SM ) YE 2014 Peak Load Reduction Capability: A/C devices: 428 MW Water Heater devices: 10 MW A/C devices in 38% of eligible homes 352,000 A/C and 79,000 W/H devices active Two summer demand response events No W/H cycled in Q3-Q4 2014, one event in Q1 2015 Customers enrolled in PeakRewards continue to be more satisfied compared to non-participating customers Highly recognized in the industry presentations and awards 21 21
Pilots: PeakRewards SM Wi-Fi Thermostat Pilot (new) Ecobee Ecobee Smart Si thermostat and App 1,000 upgrades for existing PeakRewards thermostats Activation same as PeakRewards 1-way devices Bring Your Own Thermostat (BYOT) option available Honeywell Honeywell 9000 Wi-Fi thermostat and App Targeting 1,000 new PeakRewards participants and 500 upgrades from the one-way thermostat technology Bring Your Own Thermostat (BYOT) option available 22 22
Pilot: BGE Cool Savings Program The BGE Cool Savings pilot launched in summer 2014 Program designed to help BGE Smart Energy Rewards customers with room air conditioning (RAC) units and dehumidifier customers use less energy on Energy Savings Days with the pilot goals to test the technology and customer satisfaction. Customer in the BGE Cool Savings program receive a SmartAC device to regulate the RAC temperature setting or control their dehumidifier from a smart device. 2015 Goal: up to 1,100 customers 23 23
BGE regularly conducts pilots, reviews technologies, evaluates program designs Small Business Behavioral Pilot Cool Savings Pilot 2-way Communications Thermostat Pilot Mobile QHEC Pilot Seasonal Bonuses Dreamstreet Appliance Website Research Tool Residential Behavioral Pilot Web enabled Residential water heater technology leveraging demand, energy and behavior Offer testing to maximize participation Weather Bug Earth Networks Program design enhancements to drive additional value Contractor phone app 24 24
Key Elements of BGE s Refiled ES Tables Impacts of Order #86785 (December 23, 2014) BGE refiled 2015-2017 Energy Savings (ES) Tables Key Order impacts included adding one LED bulb to QHEC/HPwES Audit Maintaining 2014 HVAC rebate levels Maintaining 2014 HPwES Program SIR requirements 25 25
BGE Request Summary Request approval of refiled 2015-2017 ES Tables Request expedited Order of full program approval of successful Gas Connection Program Joint Utility Request for approval of revised LED measures and incentive levels Request approval of BGE Cool Savings Program pilot extension in 2015 26 26
2015 Technical Conference: Behavior-Based Programs Background and Recommendations America Lesh Manager, Energy Efficient Programs
BGE Smart Energy Savers Program and Smart Grid Programs are focused on delivering customer value, energy and demand savings using smart meters as an enabler PeakRewards SM Established in 2008 Available to residential customers with central A/C, electric Heat Pump and/or electric water heater. Smart Grid Deployment 2010-2015 Smart Meter installations began April 2012 for all residential customers. BGE Smart Energy Manager Launched October 2012 Customers with Certified AMI meters can view energy consumption on BGE.com and learn more ways to save. BGE Smart Energy Rewards Launched July 2013 Peak Time Rebate program, available to all customers who have a Smart Meter installed. 2
What is BGE Smart Energy Manager? Residential customers with certified Smart Meters have personalized tools for managing their energy: Home Energy Reports Online Tools Neighbor Comparisons My Usage - energy use and energy costs View how weather affects energy use Bill forecasts Customize a plan to better control energy use Tailored savings tips Paper-Less Alerts Unusual Usage Alerts Weekly Energy Report Launched October 2012 2015 BGE Smart Energy Manager 3
BGE Smart Energy Manager Program Metrics Program-to-date Home Energy Reports sent 4,564,590 Number of households receiving Home Energy Reports (HERs) Unsubscribe rate from paper reports Email Home Energy Reports (ehers) sent Weekly (AMI) Reports sent (launched May 2014) Programs promoted on Home Energy Reports 754,756 0.74% 4,835,769 162,000 Over 180 savings tips that promote various residential energy efficiency programs Marketing Modules that sporadically highlight one program 4
BGE Smart Energy Rewards (SER) Overview SER is a voluntary program that offers customers the opportunity to earn bill credits in return for reducing their electricity use below their normal use during critical peak times. Customers with a certified smart meter are automatically eligible to participate. BGE Smart Energy Rewards participants will earn $1.25 per kwh for reducing their energy use below their normal usage during Energy Savings Day. Energy Savings Days will typically occur between 1 7 pm Estimate between 5-10 Energy Savings Days June - Sept. each year. 2015 BGE Smart Energy Rewards 5
Typical Energy Savings Day Customer Notifications In 2014 BGE sent over: 600,000 phone calls 500,000 emails 16,000 SMS/text messages 6
Contact Info Critical to Success of AMI Programs Campaign goals Confirm and update contact information. Increase program awareness and engagement. Initiative Progress Customer Data on file Before campaign YTD 2015 Email 26% 50% Primary Phone 0% 83% 7
Peak Time Rebate: Personalized Notifications to Preferred Channel Provide relevant and timely customer communications Pre-Notifications Post Notifications This is a message from BGE. During the Wednesday, July 10th Energy Savings Day, you earned $9.75 for reducing your energy use. Email Phone Print SMS 8
Recommendations based on BGE Successes Maintain up-to-date customer contact information to ensure relevant communications are sent to the right customer Encourage customers to designate how BGE communicates with them Continuously modify program by listening to customers and incorporating feedback into each program Training of customer service representatives, all employees, and educating customers ensured program engagement and success Provide customers specific and actionable recommendations in order to continuously engage and increase program participation 9