renewable energy studysupport of renewable energy efforts views of fit and impact of efforts...

RENEWABLE ENERGY STUDYKEY FINDINGS REVIEWFebruary 20, 2020

RENEWABLE ENERGY STUDY

MIKE IRWINDirector of Consumer Insights

KIERSTEN MAERTENSDirector of Account Services

WHAT WE’RE COVERING

Familiarity and Support of Renewable

Energy Efforts

Views of Fit and Impact of

Efforts

Interest in Generation

Options

Willingness to Support

NorthWesternEnergy’s Efforts

FAMILIARITY


9% FELT VERY FAMILIAR WITH NORTHWESTERNENERGY’S RENEWABLE EFFORTS

FAMILIARITY OF EFFORTS

10 9 8 7 6 5 4 3 2 1 0 DKNorthWestern Energy's Renewable Energy Efforts 5% 4% 9% 8% 10% 19% 7% 7% 6% 5% 20% 2%Beck Hill Rural Microgrid 2% 2% 2% 2% 2% 4% 1% 4% 5% 7% 62% 8%Bozeman Community Solar Project 6% 1% 5% 5% 4% 7% 3% 6% 6% 6% 47% 6%Hydro-dam Electric Generation Resources 15% 6% 15% 11% 6% 13% 4% 6% 4% 3% 17% 2%Wind-turbine Electric Generation Resources 15% 5% 13% 11% 8% 14% 7% 7% 4% 2% 14% 2%Missoula Schools Solar Project 7% 2% 4% 6% 2% 6% 3% 4% 6% 6% 50% 5%Electric Vehicle Charging Station Installations 6% 2% 5% 7% 3% 10% 5% 8% 8% 7% 36% 4%Environmental Cleanup/Restoration Projects 10% 4% 6% 5% 7% 14% 4% 6% 6% 3% 32% 5%

0%

25%

50%

75%

100%

Extremely Familiar Not Familiar at All


FEWER THAN 1 IN 3 CUSTOMERS CARRY AWARENESS OF EE ADVERTISING

HISTORICAL PERSPECTIVE

46%

31% 35%29% 28% 28% 26% 29% 27%

49%

65%62%

68% 68% 69%65%

68% 69%

5% 4% 3% 3% 4% 4%9%

3% 4%

Fall 2015 Spring 2016 Fall 2016 Spring 2017 Fall 2017 Spring 2018 Fall 2018 Spring 2019 Fall 2019

Aware Unaware Not SureFrom the 2019 Fall Longitudinal Study

SUPPORT OF RENEWABLE ENERGY EFFORTS


CUSTOMERS ARE FAVORABLE TOWARDS EFFORTS AND BELIEVE THE COMPANY SHOULD CONTINUE INVESTING

FAVORABILITY TOWARD EFFORTS NWE SHOULD CONTINUE INVESTING

SUPPORT OF RENEWABLE ENERGY EFFORTS

22%

5%11% 10%

6%

15%

4% 4% 3% 3%6%

11%

10 9 8 7 6 5 4 3 2 1 0 DK

47%

11% 10% 8%4% 6%

1% 2% 1% 2% 4% 4%

10 9 8 7 6 5 4 3 2 1 0 DK

Extremely Favorable Not Favorable at All Strongly Agree Strongly Disagree


WHILE CUSTOMERS SUPPORT CONTINUED INVESTMENT, VIEWS OF FIT AND IMPACT WERE MORE MODERATE, SUGGESTING OPPORTUNITIES TO IMPROVE VIEWS.

VIEWS OF FIT AND IMPACT

10 9 8 7 6 5 4 3 2 1 0 DKRight Fit for Customers 12% 4% 11% 9% 7% 15% 6% 5% 3% 4% 8% 18%Create Significant Savings for Customers' Monthly Bills 9% 4% 8% 8% 5% 16% 9% 5% 6% 5% 11% 16%Create a Positive Impact on Montana's Environment 13% 5% 11% 8% 7% 16% 6% 6% 4% 3% 6% 17%Help Manage Overall Energy Costs 10% 5% 7% 9% 8% 15% 6% 5% 6% 3% 8% 21%

0%

10%

20%

30%

40%

50%

Strongly Agree Strongly Disagree


FAVORABILITY TOWARD RESOURCES


SOLAR, HYDRO-ELECTRIC AND WIND CARRY THE STRONGEST FAVORABILITY

FAVORABILITY TOWARD RESOURCE TYPES

10 9 8 7 6 5 4 3 2 1 0 DKSolar 52% 8% 10% 8% 3% 6% 2% 4% 2% 2% 4% 2%Wind 43% 9% 14% 8% 6% 7% 3% 1% 3% 2% 4% 2%Coal 13% 4% 14% 7% 8% 15% 5% 6% 6% 5% 17% 2%Natural Gas 24% 9% 19% 11% 8% 13% 4% 4% 4% 1% 4% 2%Nuclear 13% 3% 9% 8% 6% 16% 5% 6% 4% 5% 19% 8%Geothermal 27% 5% 16% 10% 4% 14% 3% 3% 2% 1% 3% 13%Hydroelectric 36% 9% 17% 12% 4% 9% 3% 2% 1% 1% 2% 6%

0%

25%

50%

75%

100%

Extremely Favorable Not Favorable at All


CRITERIA WAS SIGNIFICANTLY RELATED TO FAVORABILITY OF RENEWABLES. CARBON-FREE WAS EVEN MORE CORRELATED THAN BEING RENEWABLE OR LOCATED IN MT.

KEY CRITERIA FOR RESOURCES

10 9 8 7 6 5 4 3 2 1 0 DKRenewable Resource 51% 7% 15% 6% 4% 7% 1% 2% 1% 1% 2% 4%Carbon-free Resource 36% 7% 12% 9% 5% 9% 3% 2% 3% 1% 5% 9%Located within Montana 44% 9% 16% 10% 5% 6% 2% 1% 2% 1% 1% 5%Reliable Resource 46% 10% 16% 7% 5% 9% 2% 1% 1% 1% 1% 5%

0%

25%

50%

75%

100%

Extremely Important Not Important at All


PERCEPTIONS OF LEADERSHIP


40% AGREE THAT NORTHWESTERN ENERGY IS LEADING DEVELOPMENT

LEADING THE DEVELOPMENT OF RENEWABLE RESOURCES

14%

4%

8% 9%

5%

16%

7%5% 5%

3%

8%

17%

10 9 8 7 6 5 4 3 2 1 0 DKStrongly Agree Strongly Disagree


46% AGREE THAT NORTHWESTERN ENERGY USES AN APPROPRIATE MIX

USES AN APPROPRIATE MIX OF ENERGY SOURCES

14%

6%

12%

8%6%

16%

4% 5% 4% 3%5%

20%

10 9 8 7 6 5 4 3 2 1 0 DKStrongly Agree Strongly Disagree


WHILE AGREEMENT WAS WEAKER THAT THE COMPANY KEEPS RATES LOW, BUT MOST AGREE THAT RATES ARE STABLE, MANAGED AND AT A FAIR COST

KEEPS RATES LOW/STABLE, OFFERS A FAIR COST, MANAGES PRICES

10 9 8 7 6 5 4 3 2 1 0 DKKeeps Rates Low 11% 5% 10% 12% 9% 19% 7% 7% 6% 4% 8% 4%Keeps Rates Stable 16% 8% 17% 14% 7% 16% 5% 4% 3% 2% 6% 3%Provides Energy at a Fair Cost 11% 6% 14% 13% 10% 18% 6% 6% 4% 2% 7% 5%Managing the Price You Pay for the Energy You Use 14% 5% 14% 11% 11% 16% 7% 5% 4% 2% 7% 6%

0%

10%

20%

30%

40%

50%

Strongly Agree Strongly Disagree


ATTITUDES TOWARD THESE EFFORTS ARE SIGNIFICANTLY CONNECTEDCONNECTIONS TO FAVORABILITY

• Believes in continued investment

• Is a leader in development

• Uses an appropriate mix

• Keeps rates low

• Keeps rates stable

• Provides energy at a fair cost

• Manages the price you pay

• Satisfaction with NWE

• Advocacy

• Confidence

CONNECTIONS TO CONTINUED INVESTMENT

• Favorable toward efforts

• Is a leader in development

• Uses an appropriate mix

• Keeps rates low

• Keeps rates stable

• Provides energy at a fair cost

• Manages the price you pay

• Satisfaction with NWE

• Advocacy

• Confidence

SIGNIFICANT RELATIONSHIPS

DELIVERING INFO TO CUSTOMERS


CUSTOMERS PREFER RECEIVING INFO ON THE BILL, THROUGH ADS, IN THE NEWSLETTER AND ON THE WEBSITE.

PREFERENCES FOR RECEIVING INFORMATION

28% 28%

55%

14% 15%13% 14%

36%

20%

0%

25%

50%

75%

100%

NWE's Website Stories in EmailNewsletter

Displayed on Bill Posts on NWE SocialMedia

Included inAnnual/Environmental

Report

Attend a NWEPresentation

Watch a Video Advertising In-Person Talk with Rep

INTEREST IN HOME-BASED GENERATION


NEARLY 1 IN 4 WANT TO PRODUCE AND ANOTHER 44% ARE CURIOUS.CLASSIFYING INTEREST MOST LIKELY TO PRODUCE

• Income of More than $75k

• Lives in Bozeman or Helena

• Those on eBill


Want to produce some

or all of my own electricity

22%

Curious, but not ready to invest

44%

Have no interest27%

Opposed5%

Not sure3%


INTEREST WAS STRONGEST FOR INSTALLING SOLAR PANELS AT THE HOME.


10 9 8 7 6 5 4 3 2 1 0 DKSolar Panels 27% 5% 13% 11% 8% 13% 2% 3% 3% 1% 11% 2%Micro Wind Turbine 19% 3% 7% 7% 3% 11% 3% 5% 5% 3% 31% 3%Micro Hydro System 10% 2% 4% 5% 3% 7% 3% 3% 4% 3% 42% 15%

0%

25%

50%

75%

100%

Extremely Interested Not Interested at All

INTEREST IN NORTHWESTERN ENERGY’S RENEWABLE OFFERINGS


EE PROGRAMS AND REBATES CARRIED THE STRONGEST LEVEL OF INTEREST, FOLLOWED BY APPLIANCE RECYCLING.

INTEREST IN NORTHWESTERN ENERGY’S OFFERINGS

Extremely Interested Not Interested at All

10 9 8 7 6 5 4 3 2 1 0 DKHome Energy Generation Products 32% 5% 13% 10% 4% 10% 1% 2% 3% 2% 20% 0%Paying Small Amount to Support Large-Scale Efforts 15% 2% 11% 9% 6% 12% 4% 6% 5% 2% 30% 0%Subscribing to a Community Garden 30% 3% 12% 10% 5% 13% 3% 2% 4% 2% 17% 0%Household EV Charging Station 14% 2% 6% 5% 4% 12% 4% 2% 4% 3% 46% 0%Community EV Charging Stations 18% 3% 8% 5% 3% 13% 4% 5% 5% 4% 33% 0%EE Programs/Rebates 39% 7% 12% 10% 5% 15% 1% 1% 1% 1% 9% 0%Appliance Recycling 38% 6% 15% 9% 5% 11% 2% 3% 1% 2% 11% 0%

0%

25%

50%

75%

100%


Installing Solar Installing wind-turbines

Installing micro-hydro system

Home energyproducts

Pay smallamount to

support large-scale projects

Subscribe tocommunity

garden

Household EVrecharging

system

Community EVrecharging

system

EE programs/rebates

Appliancerecycling

Age 18-34 6.90 4.78 4.00 7.01 5.43 6.70 3.51 4.57 7.62 7.32Age 35-54 6.32 4.32 3.27 6.81 4.46 6.35 3.32 4.14 7.46 7.06Age 55+ 6.46 4.53 2.50 5.62 4.27 5.76 3.58 4.25 7.10 6.98Gender Male 6.29 4.15 3.12 6.12 4.26 5.67 3.46 4.16 6.98 6.67Gender Female 6.75 4.92 3.05 6.24 4.79 6.48 3.54 4.39 7.57 7.43Tenure Less than 2 years 6.71 5.33 5.50 5.75 4.33 6.67 4.00 4.25 6.08 6.92Tenure 2-5 years 6.00 3.62 3.16 5.53 4.97 5.06 2.74 4.00 7.44 6.47Tenure 6-10 years 6.96 3.44 3.46 6.95 6.15 7.53 4.53 5.28 8.15 8.08Tenure 11-20 years 6.79 4.69 2.74 7.05 4.65 6.02 3.39 4.05 7.50 7.50Tenure More than 20 years 6.47 4.71 2.94 5.94 4.16 5.96 3.41 4.19 7.11 6.85Home Ownership Own 6.35 4.24 2.69 6.03 4.33 5.71 3.24 4.00 7.25 7.02Home Ownership Rent 7.11 5.47 4.36 6.75 5.19 7.18 4.29 5.16 7.35 7.12HH Income Less than $45,000 6.59 4.53 2.97 6.37 4.41 6.58 3.77 4.66 7.40 7.33HH Income $45,000 to $75,000 6.55 4.34 3.00 6.08 5.28 6.13 3.21 4.04 7.55 7.07HH Income More than $75,000 6.48 4.54 3.26 6.31 4.12 5.65 3.40 3.96 6.80 6.83Education No college 6.14 4.42 3.31 6.15 4.21 6.20 3.29 3.99 7.18 6.78Education College degree 7.00 5.06 3.08 6.49 4.79 6.21 3.72 4.70 7.59 7.44Education Advanced degree 6.76 3.58 2.47 5.76 5.02 5.63 3.69 4.13 6.85 7.00Home-Production Attitude Want to produce 7.91 5.77 4.05 8.39 5.47 7.35 5.43 5.75 8.55 7.67Home-Production Attitude Curious, but not ready to invest 5.82 3.89 2.61 6.94 5.28 6.45 3.41 4.59 7.65 7.81Home-Production Attitude No interest 3.55 2.98 4.58 2.20 2.74 5.80 5.45Home-Production Attitude Opposed 4.37 2.47 4.32 2.42 2.58 5.53 5.89Home-Production Attitude Not sure 5.45 3.73 7.64 3.91 5.45 8.82 7.73

0

2

4

6

8

10

WILLINGNESS TO SUPPORT EFFORTS


NEARLY HALF OF CUSTOMERS REPORTED A WILLINGNESS TO PAY EXTRA TO SUPPORT RENEWABLE RESOURCES.

WILLINGNESS TO SUPPORT RENEWABLE EFFORTS

31%

10% 10%12%

9%

2%5%

21%

0%

25%

50%

75%

100%

No Additional $5 or Less $6 to $10 $11 to $20 $21 to $30 $31 to $40 $41 to $50 Not Sure


$11.48

$12.53

$10.55

$16.90

$12.40

$9.21

$10.48

$12.51

$12.70

$13.36

$16.41

$14.67

$9.75

$10.15

$16.21

$11.73

$14.35

$9.77

$11.21

$10.75

$15.19

$11.49

$15.21

$7.17

$4.07

$2.50

Among All

Combo

Electric-Only

18-34

35-54

55+

Male

Female

Less than 2 years

2-5 years

6-10 years

11-20 years

More than 20 years

Own

Rent

Less than $45,000

$45,000 to $75,000

More than $75,000

No college

College degree

Advanced degree

Want to produce

Curious, but not ready to invest

No interest

Opposed

Not sure

Serv

ice

Age

Gen

der

Tenu

re

Hom

eO

wne

rshi

pH

H In

com

eEd

ucat

ion

Hom

e-Pr

oduc

tion

Attit

ude


SIGNIFICANT RELATIONSHIPS WERE FOUND WITH THE WILLINGNESS TO PAY EXTRA.

• Significant correlation with overall satisfaction with NWE

• Significant correlation with support of NWE continuing to invest in renewable energy development

CORRELATIONS

TAKE-AWAYS


KEY FINDINGS• Opportunity to Improve Familiarity with Efforts: Overall, approximately 9 percent of electric/combo customers

reported a strong level of familiarity with NorthWestern Energy’s renewable efforts (9 and 10 ratings). Another 17 percent reported being somewhat familiar with the company’s renewable efforts (7 and 8 ratings).

• 1 in 3 See NWE as a Leader: Approximately one out of three electric/combo customers strongly or moderately agreed that NorthWestern Energy is leading the development of renewable resources.

• Most Support Investments: The majority of electric/combo customers agreed that NorthWestern Energy should continue to invest in renewable energy development.

• Nearly Half are Favorable: Approximately 27 percent of electric/combo customers reported being very favorable toward the company’s efforts (9 and 10 ratings) and another 21 percent reported being somewhat favorable (7 and 8 scores).

• Considerations for Messaging: Right fit, savings and environmental impact are significantly correlated to favorability of NorthWestern Energy’s renewable development efforts and support of NorthWestern Energy’s continued development.

TAKE-AWAYS

renewable energy studysupport of renewable energy efforts views of fit and impact of efforts...

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