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Want to create excitement with customers about energy efficiency? Start with your employees January 24, 2012

Posted by Allison Herdic in Utility Industry News.
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While organizations across the industry have provided numerous reasons why becoming more energy efficient can be beneficial to utilities and customers alike, customer adoption is still a work-in-progress. Rather than taking an outside look to bolster adoption of energy efficiency programs, a number of utilities are finding success in first engaging employees. After all, knowledgeable employees can easily inform their families, friends, neighbors, fellow association members and others of various energy efficiency initiatives while ‘off the clock.’

During Chartwell’s Webinar last week on Transforming Employees into Energy Efficiency Advocates, Gulf Power and New Jersey Natural Gas (NJNG) provided a more in-depth look at how internal support and communications have increased their respective utilities’ energy efficiency program visibility, as well as employee buy-in.

Gulf Power is working with employees to take ownership in its energy efficiency programs, encouraging them to sign up for various offerings. Through this ‘seeing is believing’ approach, Gulf Power is providing employees with rebates or programs for appliances such as heat pump water heaters, air conditioners and refrigerators. The utility has also launched a comprehensive educational campaign that uses internal media channels to create champions of Gulf Power’s energy efficiency messaging.

NJNG has been able to successfully involve its customer service representatives (CSRs) in spreading the utility’s Conserve to Preserve® (CTP) messaging. When appropriate, CSRs are encouraged to pass along CTP energy and cost-savings tips. By offering incentives and friendly competition, NJNG has considerably increased the number of tips provided during customer calls. The utility’s reach also expands across many other departments, through efforts such as a monthly E-tips email and company-wide events featuring energy efficiency information through games and contests.

Energy efficiency isn’t the only facet of the industry that is requiring a change from the inside out. As smart grid data becomes increasingly available, customer-facing employees are going to be tasked with speaking this new language. This will require a culture-change for many organizations on at least a micro-level in the years ahead. We’ll discuss these issues in more detail next month (Feb. 23-24) at our Customer Contact Management Summit in Atlanta.

When looking to create ambassadors, sometimes it takes the ‘been there, done that, got the t-shirt’ approach. Creating energy efficiency advocates from within can generate an excitement that can be conveyed externally, one customer interaction at a time.

California delays decision on smart meter opt-out, may include analog option January 17, 2012

Posted by Russ Henderson in Utility Industry News.
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The California Public Utilities Commission (CPUC) postponed its vote on a smart meter opt-out plan for Pacific Gas & Electric – originally planned for last Thursday – to Feb. 1.

California may add analog to opt-out plan

The delay leaves customers on PG&E’s smart meter installation “delay list” in a prolonged holding pattern. But the nearly month-long stay may result in an opt-out plan that is more effective in the long run. The standard analog meter – regarded by most die-hard opponents as the only valid alternative to smart meters – now appears to be on the table as an option.

Analog meters were not part of the opt-out program originally proposed in March by PG&E. Nor were they included in the CPUC’s proposed decision issued in November.

Then, in a filing made with the commission Dec. 19, PG&E announced that it now “supports approval of an analog meter option, in addition to the non-communicating radio-off option, in response to customers’ and parties’ continued requests for an analog meter alternative.”

The apparent general consensus among California utilities is that whatever opt-out program the PUC ultimately approves for PG&E will provide a model for other utilities, including San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE). At different times last year, the Commission ordered both utilities to submit proposals to the commission outlining the costs and other requirements of initiating opt-out programs including payment plans for four options: analog meter, digital meter with no radio installed, smart meter with radio transmission turned off and a wired smart meter.

Attorneys for SDG&E have expressed the utility’s opposition to the analog option. In fact, on the same day the PG&E filed its comments in favor of an analog option, SDG&E made its own filing in the case opposing an analog meter offering.

“Multiple parties recommend that the Commission authorize an analog meter opt-out option to alleviate concerns about health impacts. This recommendation is inappropriate because the commission has already ruled that health issues are not within the scope of this proceeding,” according to the SDG&E filing.

That very argument was dismissed by the Maine Public Utilities Commission in May, when it ruled that Central Maine Power (CMP) must provide an opt-out program to customers that included an analog option. Commissioner Vendean Vafiades wrote after the ruling that it had been a matter of “sound public policy.” Opt-out programs “shift the focus” of the conversation from the criticisms against smart meters to the economic and environmental benefits of the meters, he wrote.

A seemingly similar sentiment was stated in PG&E’s Dec. 19 filing, which states that the utility “firmly believes that ‘choice’ is both important and necessary, and that the choice that this commission authorizes should be a meaningful one for all customers.”

PG&E spokesman Greg Snapper said last week that “it’s important that our customers have a choice when it comes to the meter on their home.”

The cost that customers will have to pay for the analog option hasn’t been determined. The California commission has expressed its opinion that “it is appropriate that all ratepayers share in a portion” of the costs of an opt-out program rather than structuring fees in a way that would make the opt-out program revenue-neutral.

In March, PG&E proposed an initial fee of $128 and a monthly charge of $10.69 for the “non-wireless” option, but the PUC rejected those figures. Instead, regular customers will be charged an initial fee of $90 and a monthly charge of $15, according to the November preliminary ruling. Meanwhile, customers enrolled in the state’s low-income program – California Alternate Rates for Energy, or CARE – would pay only a $5 monthly charge, with no initial fee.

While some utilities estimate that only about 1% of customers are likely to take advantage of an opt-out program, others – such as Southern California Edison – have said that fees must be set high in order to discourage participation.

The fate of opt-out rates in California remains to be seen. These discussions will undoubtedly be central as the commission prepares for its decision next month. More information on related developments may be found in Chartwell’s recent report Smart Meter Opt-Out Programs 2012.

It’s tough to please everyone … but you have to try January 12, 2012

Posted by Chris Brennaman in Utility Industry News.
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Now that the BCS National Championship is in the books, the “powers that be” are gathering to discuss the future of the Bowl Championship Series. For years, advocates of the BCS have claimed the system puts the two best teams on the field against each other at the end of the year, while opponents argue the system is not fair for all teams in the NCAA.

Regardless of the decisions made over the next few months, when the new contract goes into place prior to the 2014 season one thing will be certain: there will be some people that are happy … and some that are not. The truth of the matter – in sports or in any other facet of life – is that you can’t please all the people all the time. (more…)

Top 10 Chartwell Blog Posts of 2011 December 29, 2011

Posted by Vanessa Edmonds in Uncategorized.
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In the spirit of closing out the year with a Top 10 list, these posts were authored by Chartwell researchers and business professionals, and highlight issues that most resonated with the utility industry in 2011.

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Happy New Year!

(more…)

The Top 10 Chartwell member requests of 2011; and other stuff to look back upon December 28, 2011

Posted by Dennis Smith in Utility Industry News.
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It has been an interesting year to say the least. 2011 was a year of more positives for Apple and Google and negatives for BlackBerry and Netflix (remember its Qwikster fiasco). It’s been a year marked by the deaths of Osama bin Laden, Muammar Gaddafi and Kim Jong Il, a devastating tsunami and accompanying earthquake, political protests at home and abroad, and Republican presidential hopefuls rising and falling faster than a roller coaster at Six Flags. And in keeping with year’s past, Congress failed once again … and again (You can’t even cut spending when you’re this deep in debt?!), and another NFL team made a run at undefeated glory only to stumble toward the finish line. Maybe the Green Bay Packers will still repeat with another Super Bowl win – 2012 will tell that tale.

Oh, and the financial struggles of recent years continued.

The year is also one that’s been big for the utility industry. It’s been marked by several high-profile merger proposals, continued smart meter protests and the mass market introduction of the plug-in electric vehicle (EV). It will be interesting in the coming year to see (more…)

Opportunities for next-gen thermostats could bloom this spring December 22, 2011

Posted by Russ Henderson in Utility Industry News.
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A new image of the smart thermostat was planted in the popular imagination in November.

The introduction of the Nest – a sleek, circular wall-mounted unit designed by former Apple designer Tony Fadell – was one of many notable stories this year in the field of home energy management, including the launch of EnergyHub’s Mercury thermostat and a new partnership between Honeywell and Opower to produce similar products. All this excitement could yield utility investment, especially if the EPA revives Energy Star certification for these devices in the spring.

Even the massive hype surrounding the Nest’s launch and the thousands of homeowners who flocked to buy them didn’t revive the faith of many utility executives. They asked: Where is the field test data?

The reason for the question is this. In 2009, the EPA stopped granting Energy Star certification for programmable thermostats because field tests by utilities – most notably Florida Power & Light – showed that the homeowners who used them actually burned through about 12% more electricity than folks without the supposedly cost-saving thermostats. As it turned out, users generally programmed the thermostats to perform in very energy-inefficient ways.

Whether the new generation of thermostats – or their users – will perform better remains unclear.

For one, EnergyHub claims that its Mercury thermostat platform has solved the usability problem. David Wechsler, vice president for business development, says that in field tests conducted last year by the company, 85% of users picked comfort settings that met or exceeded Energy Star efficiency recommendations. This compares to 71% of users in the Florida Power & Light study who either didn’t program their thermostats at all or created settings that were so slight their effect was negligible.

Nest, meanwhile, only started field testing in the second half of 2011, so the data is not yet available.  Instead, the company uses computer models to demonstrate its cost savings.

Utility company executives say that, in the way that doctors should not prescribe untested medications or therapies to their patients, they are themselves unwilling to prescribe thermostats as a cure for high bills without some sort of official endorsement of their effectiveness.

Such endorsements may be coming soon. This spring, the EPA is expected to begin issuing Energy Star certifications for “climate controls” – a category of products distinct from “programmable thermostats” whose criteria were set in 2004.

The criteria that this new generation of thermostats must meet are at least as concerned with ease-of-use and intuitive programmability as they are with energy efficiency, says Abigail Daken, an environmental engineer with EPA’s Energy Star program.

What does all of this about thermostats – consumer products that anyone can buy over the Internet or from a home improvement store – have to do with utility companies? In my opinion, a great deal.

Of the articles and blogs I have seen on the subject so far, none has remarked on the family resemblance in system architecture between the new thermostats and advanced metering systems.

In the place of a smart meter is a smart thermostat that tracks energy usage. In place of a meter data management system is a cloud computing system that records and analyzes that data. And instead of communicating on the Zigbee protocol that most utilities have chosen – and is used by EnergyHub’s own HAN offering – the Mercury uses WiFi to interface directly with the customer’s home wireless router.

Of course, a smart meter tracks an entire home’s usage while a smart home thermostat only tracks the power used by the heating and air conditioning system. But climate control represents about 44 percent of the average home’s energy usage, according to the Energy Information Administration.

“It can be thought of as ‘load control as a service,’” says Wechsler of EnergyHub.

This service can be provided to customers with or without utility partnerships. Wechsler’s company has partnered with several utilities because the same system, with permissions from the customers, can be used for demand response.

That is, if customers agree, utilities themselves can reduce peak demand by turning down or switching off thousands of residential and customer heating and air conditioning units at critical times of day. And all of this is possible with or without installing smart meters, which utilities themselves usually pay for.

Of the 128 utilities contacted for Chartwell’s 2010 Smart Grid Survey, 38% of respondents reported that they were not considering investments to manage and store data related to customer end-use devices such as smart thermostats. About 17% said they were considering such investment, and 3 percent said they were in the process of taking such action. Times may be changing, though. Chartwell’s 2012 Smart Grid Survey will provide new findings early in the year.

It seems likely that more utilities will enter into partnerships with companies in the crowded home energy management market, but they may watch for a while to see which companies thrive and grow and which get trampled. Chartwell certainly will be watching that process in 2012.

Mobile Websites: What’s Your Strategy? December 20, 2011

Posted by Allison Herdic in Uncategorized.
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As new smartphones are released on a regular basis, more and more customers are using these devices to access websites. But to launch a mobile site, many factors have to be considered, such as design, services offered, the user experience and much more.

Now, many utilities are working to act quickly as customer expectations of mobile options continue to increase. According to presentation delivered by Eric Davis, User Experience Supervisor for AEP during Chartwell’s Dec. 7 Webinar on Mobile Websites (an event also featuring Flint Energies and Seattle City Light), 13% of the utility’s website traffic came from mobile devices during times of major storms – before the utility even launched its mobile site https://www.aep.com/mobile/.

While many smartphone users continue to show their interest in accessing information via mobile apps, mobile websites can offer a widespread presence for users browsing or seeking information directly via mobile device. Warner Robbins, Ga.-based Flint Energies offers its members the opportunity to report an outage, pay a bill, monitor the cooperative’s Twitter feed and receive other relevant information via www.flintenergies.com/mobi.

Seattle City Light, in collaboration with developers, quickly rolled out its mobile website http://www.seattle.gov/light/mobile/ (in just three weeks!), and followed up with bill inserts, information on its traditional website homepage, social media notifications as well as a news release that prompted local attention.

While getting user feedback and buy-in the design phase can offer valuable insight, keeping up with what customers want on an ongoing basis can provide an opportunity for continuous improvement. AEP asks one out of 10 of its mobile website visitors the reason for their interaction, using this channel as a way to keep its finger on the pulse of the customer.

When it comes to best practices and lessons learned, utilities can leverage the content already featured on their primary websites, given the years developing and cultivating this online content. “Those are the same key pieces that the customers are looking for in a mobile site,” explains Scott Thomsen, Senior Strategic Advisor in Communications and Public Affairs for Seattle City Light. He adds another critical piece: keep the mobile site simple and easy to use. Sites shouldn’t be cluttered with graphics and other content that could slow down access to the site for the user.

So, whether a utility is looking to launch a mobile website or add enhanced functionality, it is likely – as with other technological advances – that the game will keep changing. However, it can be beneficial to have a strategy in place to evaluate the business case for utilities while keeping close tabs on customers’ need and expectations.

In April 2012, we will convene with utilities across North America to look at some of the best strategies and features offered via mobile device during Chartwell’s Web and Mobile Interaction Summit in Atlanta. We would love for you to join this ongoing discussion.

Forceful 2011 hurricane season packs an unusual punch for Northeastern utilities December 7, 2011

Posted by Chris Brennaman in Uncategorized.
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With the calendar flipping to December, two things come to mind: the holiday season is now in full swing and hurricane season is officially over. Having lived in the Southeast most of my life, I can appreciate the day the sun comes out after the last hurricane of the year. While this year was tied (with 1887,1995 and 2010) for the third-most active season in history with 19 named storms – only 2005 (28, including 15 hurricanes) and 1933 (21) had more – it remained relatively calm in much of the Southeast with only two storms making landfall in the Gulf of Mexico: (more…)

Twitter provided a beacon of light in an otherwise dark San Diego November 22, 2011

Posted by Chris Brennaman in Utility Industry News.
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With a background deeply rooted in the written or spoken word, communicating in 140 characters or less can be quite the challenge for me at times. (Case in point, that first sentence is 146 characters including spaces … Yes, in the world of Twitter spaces count!) That being said, I have grown to love Twitter and its oddities.

As the average attention span of Americans continues to dwindle – oh, look a bird! – Twitter offers a quick burst of information that can be quickly digested by followers.  While there are certainly times when Twitter can be a very effective form of communication, allow me to give you a somewhat scary question to think about: What if Twitter was your only way to communicate with customers?

(more…)

Customers rise up against banks; Should utilities care? November 16, 2011

Posted by Dennis Smith in Utility Industry News.
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It was interesting to watch last month as Bank of America (BOA), SunTrust and the other major banking institutions that sought to impose debit card fees had to retreat from their high ground and reverse course after customers finally rose up in revolt.

Despite this consumer victory, these are still tough times for customers. (more…)

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