Innovative Pricing Paradigms and Customer Service Impacts. Presented by Ruth Kiselewich Director DSM Programs April 22,2014
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1 Innovative Pricing Paradigms and Customer Service Impacts Presented by Ruth Kiselewich Director DSM Programs April 22,2014
2 Baltimore Gas and Electric Company Maryland s largest utility 200 years 1 st gas utility 1.2 million electric 650,000 gas 31 million MWh 7,200 MW 3,400 Employees Exelon 2
3 BGE Smart Energy Savers Program Programs are focused on delivering customer value, energy and demand savings using smart meters as an enabler PeakRewards SM ; Energy Efficiency Established in 2008 PR: residential customers with central A/C, electric Heat Pump and/or electric water heater. Full portfolio of EE programs available. Smart Grid Deployment Smart Meter installations began April 2012 for all residential customers Smart Energy Manager Launched October 2012 Customers with Certified AMI meters can view energy consumption on BGE.com and learn more ways to save. Smart Energy Rewards Launched July 2013 Peak Time Rebate program, available to all customers who have a Smart Meter installed. 3
4 Residential Direct Load Control 440,000 devices installed, 434 MW demand reduction High rate of customer participation Program Design Choice of switch or smart thermostat Choice of 3 cycling/reward levels A/C and water heater cycling Monetized in PJM capacity & energy markets ~ 90% market awareness Feeder level or system wide direct load control 4
5 BGE Smart Energy Rewards based on 4 Years of Pilot Customer Friendly Peak Time Rebate Reduction = Critical Peak Pricing Reduction 0% Average Customer % Change in Critical Peak Demand -5% -10% -15% -20% -25% -30% -35% CPP -25.4% Orb & Switch PTR- Low -22.3% Orb Orb Only & Switch -26.9% Orb & Switch No Tech -31.9% PTR- High Orb Only -26.0% Orb Orb & Only Orb Switch & Switch -31.2% CPP Rate $1.30 / kwh Low Rebate $1.16 / kwh High Rebate $1.75 / kwh -40% -36.5% -36.8% Program Type 5
6 Voluntary program: Residential customers with smart meters automatically eligible BGE Smart Energy Rewards - SER BGE s A/C Cycling Program (PeakRewards ) integrated so eligible customers would cycle during these events Summer bill credits earned when customers reduce their electric use below normal during Energy Savings Days Typically notify the evening before via phone, and SMS $1.25 per kwh for reducing electricity on ESD 6
7 Multi-Phase Customer Education Create Awareness Phase 1: Q High level program messaging to reinforce Smart Meter communications Generate Engagement Phase 2: Q Opportunity for customers to learn about SER, ask questions Outbound Telemarketing Campaign Phase 3: Q Encourage Action Welcome Kit Direct Mail, Event notifications 7
8 The Launch of BGE Smart Energy Rewards Savings Tips TV Spot & Web Video Segmented/Multi-Phased Customer Education 8
9 Personalized Customer Notifications To Preferred Channel 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. Phone SMS Paper 9
10 Results: Summer 2013 ~315,000 eligible customers 82% average participation (range 75%-93%) Over $9 average rebate over 4 Energy Savings Days Over $7 million in credits paid ~5% average peak reduction for behavior only and 23% for those with PeakRewards A/C devices High customer satisfaction 10
11 SER Results Lower Than Projected Call Volumes 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% Actual Call Back Rate Projected Call Back Rate 0.50% 0.00% 7/10/2013 7/17/2013 7/18/2013 9/11/
12 The Majority of Customers Are Positive About SER Almost 3/4 are positive about overall program experience Some express improved opinion of engagement with BGE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Positive 74% Neutral 17% Negative 9% % Rating This was one of the best communications I ve ever received from BGE in that it was clear, concise I liked that it was highly customized BGE is a bill, faceless, nameless. But with this, I feel like they are trying to do something for [the customers]. I ll see your $13.25 and raise you $12.75 we saved $26.00 yesterday! Pretty good deal! Q.30: Please rate your overall experience with the energy savings day program 12
13 Customers are Motivated and See the Value 13
14 Integration with BGE s Existing Demand Response Program was Successful In addition to high satisfaction with BGE Smart Energy Rewards, customer enrolled in PeakRewards are more satisfied compared to customers not enrolled Satisfaction Indexes by Enrollment PR Enrolled PR Not Enrolled Overall Satisfaction Favorability Value 14
15 Residential customers with certified smart meters Track/analyze usage and cost data by hour, day and month Personalized usage and savings tips Bill forecast Compare to neighbors Unusual usage alerts 450,000 customers enrolled as of Dec million Home Energy Reports sent in ,000 customers using web-based energy management tool 15
16 Additional Information: 16
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