choose when you use how to think about utility customers the nevada dynamic pricing trial (ndpt)...
TRANSCRIPT
Choose When You
Use
How to Think About Utility Customers
The Nevada Dynamic Pricing Trial (NDPT)
Craig Boice, Director
ADS Town Meeting Washington, D.C. July 11, 2013
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Official Disclaimer“This presentation was prepared and delivered by Craig Boice of the Boice Dunham Group, Inc., and represents only his opinion. This presentation in whole or in part has neither been endorsed, nor reviewed, nor authorized by the U.S. Department of Energy, Lawrence Berkeley National Laboratories, or NV Energy.”
However, if you have questions:
Craig Boice 212-924-2200
• A Smart Grid AMI project to benefit 2.4 MM Nevadans• 1.3 MM electric meters, 150k
gas modules over 46k square miles• Nevada PUC approved July 30,
2010• Sensus, Itron, Alstom
technologies• $35MM in annual operating
benefits • $303 MM in total project costs• $139 MM of federal SGIG
funding
• NDPT to test dynamic rates, education & technology
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NV Energize is a SGIG Project
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• NDPT Data spans usage, surveys, and interviews:• Meter, HVAC, education, and customer service data
collected, analyzed
• Surveys for demographics, premise, & customer attitudes/acceptance – baseline and completion conducted, analyzed
• On-premises interviews, longitudinal focus groups conducted, analyzed
• EPP, low-income attitudes and price response effects documented
• The NDPT Design spans Nevada:• Randomly-assigned treatments from a stratified sample
with opt-in acceptance
• Two separate trials (North & South) across a two-year span (3/1/2013- 2/28/2015)
• May opt-out after year one: best-bill guarantee for the first year only
• TOU/CPP rates, EcoFactor technology and Vergence Entertainment education treatments
The NDPT is Statewide
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The NDPT Design is Formal
Treatment Cell Participants: North(#)
Participants: South (#)
Total Participants
(#)
Education Only* --- 248 248
Rate Only (TOU-E)
248 248 496
Rate Only (CPP) 248 496 744
TOU-E + Education
248 248 496
CPP + Education
248 496 744
TOU-E + Education + Technology
248 248 496
CPP + Education + Technology
248 496 744
Total 1,488 2,480 3,968
*Education-Only treatment cell a special case
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NDPT Rates Are Complex
Rate Flat Core Summer
CPP
Shoulder
Summer CPP
Core Summer On-Peak
Core Summer Off-Peak
Shoulder Summer On-Peak
ShoulderSumme
r Off-Peak
Winter Off-Peak
TOU-E .11442
NA NA .44896 .07243 .14267 .07243 .07243
CPP .11442
.75830 .43872 .37991 .07243 .12580 .07243 .07243
Rate Flat Summer CPP
Summer On-Peak
Summer Mid-Peak
Summer Off-Peak
Winter On-Peak
Winter Off-Peak
TOU-E .09964
NA .39602 .21242 .06831 .10152 .06831
CPP .09964
.58026 .34368 .21242 .06831 .10152 .06831
NDPT Rates – North (Schedule D-1 Total Rate, $/kWh)
NDPT Rates – South (Schedule RS Total Rate, $/kWh)
Source: Statement of Rates, effective 04-01-2013 (10J & 63K(1))
Summer Peak Period: June-September, 2-7 PMSummer Shoulder Months: June and SeptemberSummer Core Months: July and AugustOff-Peak Period: all other June-September hours, October-May all hoursCPP an overlay to TOU-E, with 18 3-7 pm non-holiday weekday events (14 Core, 4 Shoulder)
Summer On-Peak Period: July-September, 1-6 PM weekdaysSummer Mid-Peak Period: July-September, 10 am-1 PM and 6-9 pm weekdaysSummer Off-Peak Period: July-September, all other hoursWinter On-Peak Period: October-June, 5-9 pm, all daysWinter Off-Peak Period: October-June, 9 pm – 5 am, all daysCPP an overlay to TOU-E, with 16 2-6 pm non-holiday weekday events (14 July-August, 2 September)
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The NDPT Targeted Single-Family HouseholdsSingle-family households screened for
eligibilitySmart meter installation dateService classMedical codes, employee/contractor, 12 other
criteria
Pools were randomly ordered, and then randomly assigned
Control group, or one of the six treatment pools by energy use strata
‘noncompliers’
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The NDPT Solicitation was Classic Direct Marketing• Heads-up postcard sent to eligible customers
that an important offer was on the way
• Two days later, customers received a recruitment packet:• Personalized letter• Treatment ‘Savings Guide for Applicants”
brochure• Return postcard and envelope• Rate information card• Disclosure agreement
• Reminder letter sent six weeks later followed by outbound calling to non-respondents in open cells
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Recruitment Was A Success• Despite research constraints, recruited and
installed 5,279 Nevada households as NDPT participants
• From a single staged mailing of postcards and recruitment packets:
• Immediately filled more than half of all cells, with overenrollment due to simultaneous submissions
• Later in the first month, had to turn away hundreds of customers due to cells being filled prior to their responses
• 5% overall enrollment (3.7 - 7.9% across cells) achieved before brakes applied
• BUT large-usage, multi-treatment strata below statistical preferences, despite more mailings and calls
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NDPT Current Enrollment
Treatment Cell Participants: North(#)
Participants: South (#)
Total Participants
(#)
Education Only* --- 26 26
Rate Only (TOU-E)
435 430 865
Rate Only (CPP) 334 917 1,251
TOU-E + Education
299 323 622
CPP + Education
304 734 1,038
TOU-E + Education + Technology
151 315 466
CPP + Education + Technology
323 714 1,037
Total 1,846 3,433 5,305
*Education-Only treatment cell a special case
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NDPT Enrollment Was Easy, But Not for Everyone• Customers could enroll via telephone,
dedicated website, return mail
• Automatic phone and web confirmation/denial provided
• letters sent to all those who tried to enroll via mail
• Education and technology treatments required installs
• Education recipients had welcome emails, mail packets, and instructions (80% installed application, 65% the game)
• Technology recipients had installation scheduling invitations (many didn’t respond or changed their minds)
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Early NDPT Lessons1. Customers are key components of the
Smart Grid, whose role is to own their energy usage
2. Customers come preconfigured (e.g., many believe they are already on time-based rates, or find them obvious)
3. Almost all customer engagement is casual and fast (not decisive and analytic)
4. Technology installation is a bigger job than many customers want to do, or even understand
5. Marketing works: motivation and trial guided by light, enjoyable, repetitive, and continual reinforcement