Analytics is a new game for utilities, but a few have made it on base March 5, 2012
Posted by Russ Henderson in Uncategorized.Tags: analytics, Chartwell, Chartwell Blog, Chartwell research, customer communications, customer engagement, customer satisfaction, customer service, mobile communications, outage communications, social media, utilities, utility, utility communications, utility customer engagement, utility customer service
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The best-selling book Moneyball, the basis of last year’s film by the same name starring Brad Pitt, tells the story of how the managers of the Oakland A’s – one of the lowest-paid teams in major-league baseball – successfully used an analytical, evidence-based approach to recruiting and assembling a competitive baseball team.
The book argues that the statistics typically used to gauge players – such as stolen bases, runs batted in, and batting average – are relics of a 19th century view of the game. The team’s front office used more empirical gauges of player performance to predict success, particularly on-base and slugging percentages, to become one of the league’s most successful teams despite its financial problems.
Cable news, major newspapers and business magazines – not just technology blogs – have been devoting time and space to the developing data analytics industry for several years now. But a major motion picture on the subject makes it clear that analytics is truly going mainstream.
When it comes to analytics, utilities are starting from behind, but some are catching up quickly. While a World Series of Utility Analytics may be some time off, the games are well under way.
Many utilities are well behind other industries in marrying their systems to contemporary IT capabilities. Many are just now coming to grips with obtaining information from their operational activities – something that companies in most large-scale industries today take for granted. Heaped on top of the basic challenge of obtaining data is the far more advanced challenge presented by analytics.
“We’ve been doing the things for 30 years that utilities are challenged with now. We usually talk right past those things,” said an account executive with a predictive analytics provider. “With utilities, we have to take a few steps back and start with just getting the AMR data and doing what we’d call a simple analysis. Then we will have earned the right to move on to predictive analytics and the more advanced things we can do.”
Among the utilities to watch in this respect are PECO, We Energies, Florida Power & Light, Oncor and First Choice Power, a retail electricity provider in the deregulated Texas market.
Glenn Pritchard, principal engineer at PECO, said his company is using analytics “across the enterprise” – in distribution and planning operations, revenue protections, meter operations, finance, load research in energy efficiency efforts. The company has found success in these areas while using AMR, and expects even greater results after its AMI deployment begins this year, Pritchard said.
“The new data will supercharge the existing analytics,” Pritchard said.
Lloyd Tokerud, manager of analytics at First Choice Power, notes that his team is already immersed in the regular practice of maximizing data.
“We are real-time analytical capability enablers. What we really believe is speed is where it’s at. We want our organization to be able to make decisions faster than our competition,” Tokerud said during the inaugural Utility Analytics Institute summit in Orlando in February. The company’s analytics group must be able to sit in a meeting with executives and answer their questions and solve their problems – in real time – during the meeting, he said.
Among the tenets of the group’s philosophy are “start big” and “start in the middle,” he said. Another principle is “speed, accuracy and scope – pick two.”
“Start big” means that an organization has to not only start with questions (and not start with data), but start with the most important questions according to the company’s leaders all the way to the executive level, he said.
“Start in the middle” means that the analysts should not get hung up on trying to get 100% of the data to provide answers to questions. Tokerud said his group applies the 80/20 rule – the so-called Pareto principle – that roughly 80% of effects come from 20% of causes. That is, 20% of the data is probably enough to work with at first in order to draw some useful conclusions, he said.
The best idea is to keep it simple, start off with some easy wins and build confidence before moving on to larger challenges, he said.
These matters will be discussed in more depth in Chartwell’s Data Analytics 2012 report to be released early this month.
Similar issues facing utilities today will be explored during Chartwell’s Smart Grid Customer Interaction Summit, April 19-20 in Atlanta. Attendees will learn strategies for engaging their customers on new smart grid technologies, communicating the value of energy management technologies and concepts and ultimately building an interactive relationship that will pay dividends over time.
Improving customer satisfaction can begin by engaging employees February 29, 2012
Posted by Chris Brennaman in Utility Industry News.Tags: Chartwell, contact center, contact center management summit, customer communications, customer engagement, customer satisfaction, employee engagement
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When it comes to employee relations, there is an oft-repeated story about a NASA janitor that, when asked what he did for a living, replied: “helping put a man on the moon.” The man understood his role within the organization – though not the most glamorous – was crucial to the success of its mission. The man did not just work for NASA; he was engaged* with his employer.
* The Merriam-Webster Dictionary defines engagement (in this sense) as “emotional involvement or commitment.”
This lesson can easily be applied to a utility’s contact center, where employees are often faced with the demands and pressure of delivering a satisfactory customer experience. But, because these professionals are generally the first – and sometimes only – point of contact a customer has with their utility, it is important for management to first “win over” this set of employees to reach the ultimate goal of improving customer satisfaction.
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Online apps crucial to energy efficiency awareness February 21, 2012
Posted by Will Adams in Utility Industry News.Tags: billing and payment, Chartwell, customer engagement, energy conservation, mobile communications, online energy information, Web-based customer service
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In a hyper-connected world with disappearing waiting lines, fewer phone calls and less face-to-face meetings, “There’s an app for that,” seems fitting for, well, everything these days. The proliferation of smartphone applications and social media has given the expectation of instant gratification. Why call when you can text? Who needs ‘real’ friends when you can have hundreds of Facebook friends? How many readers are buying hard copy books? Just download some and you won’t even have to leave the house.
Whether these innovations in technology are disconcerting or comforting to you or not, there’s no doubt they have changed the way people communicate and interact. The same is true for utilities. As demand shifts to more automated self-service channels online, web-based solutions are becoming increasingly popular and important for utilities looking to enhance customer communications and promote new products and services. (more…)
Utilities, like other industries, must keep up with changing customer contact needs February 15, 2012
Posted by Sarah McElmurray in Utility Industry News.Tags: call center, Chartwell, contact center, Contact Management, CSRs, customer communications, customer contact management, Customer Service Representative, Energy Advisors, utility communications
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The stereotypical monotony of customer contact centers has now, humorously, found its way into modern pop culture. One TV ad by Discover Financial features Peggy, a CSR struggling to answer simple questions, and captures the position in all of its clichéd ineptitude. State Farm’s ad though, leaves out bulky and boring policy details and has a funny take on its quality of customer contact service, “even at 3am.”
Why are mega-companies like State Farm and Discover spending advertising dollars to promote customer service rather than showcasing a product or service? Perhaps it’s because they realize that a company’s CSRs are its customers’ primary touch-points. While these kinds of ads are both entertaining and humorous, they are also are indicative of the levels of personalized service, knowledge and demand that modern consumers not only expect, but also require. (more…)
California approves smart meter opt-out program for PG&E with one option: the legacy analog meter February 1, 2012
Posted by Russ Henderson in Utility Industry News.Tags: analog meters, California Public Utilities Commission, Central Maine Power, Chartwell, Chartwell research, CPUC, Maine Public Utilities Commission, opt out, Pacific Gas & Electric, PG&E, San Diego Gas & electric, SDG&E, smart grid, smart meter, smart meters, Southern California Edison
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The California Public Utilities Commission (CPUC) ruled unanimously today to require Pacific Gas & Electric to create a smart meter opt-out plan.
Many observers predicted earlier this week that the commission would create a program that included an option for customers to keep their legacy, analog meter, as well as the ability to choose a smart meter with its wireless capability turned off among other options. After all, that’s what the Maine Public Utility Commission did in May – required Central Maine Power to initiate an opt-out program with four options.
But what the California commission did today was initiate an opt-out program with analog as its only option.
Customers electing to retain or return to an analog meter will be assessed an initial fee of $75 and a monthly charge of $10. Customers enrolled in the CPUC’s low income program – California Alternate Rates for Energy (CARE) – electing to opt-out will be assessed an initial fee of $10 and a monthly charge of $5.
The decision ends PG&E’s smart meter installation “delay list.” Customers on that list have about 30 days to ask to participate in the opt-out program or their analog meter will be replaced with a smart meter.
Today’s decision came during a somewhat verbally quarrelsome meeting this morning which started with a public comment period of about 90 minutes, during which 60 or so smart meter opponents voiced their disapproval of the devices. The proceedings were broadcast live on the internet here.
CPUC President Michael R. Peevey then began to speak about the benefits of smart meters, including their vital role in creating a nation of “fully empowered energy consumers.” As he spoke, many in the crowd erupted with shouts such as “Lies! Lies!” Peevy repeatedly asked the attendees to show the commission the same respect they had shown by quietly allowing complainants to speak about smart meters.
Peevey spoke about the study by California Council on Science and Technology (CCST) released early last year, which reported that smart meters “result in much smaller levels of radio frequency exposure than many common household electronic devices including cell phones and microwave ovens.”
“Wrong!” came the yells. “Why are you reading it to us? It’s wrong!”
Peevey said that the CPUC is “not a public health agency” and that it must rely on the judgment of agencies such as the CCST and the FCC. The commission in July adopted privacy and security rules regarding smart meters in response to customer concerns.
“And yet after all of this, some customers called for an opt-out program,” Peevey said. He then explained the fees that the program would entail and asked his fellow commissioners to vote on the issue. After long discussion, the commission voted in favor of the opt-out program.
Afterward, there were shouts of protests against the fees.
“This is a crime against humanity!” one person yelled.
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. In a November preliminary ruling, the commission proposed that regular customers should be charged an initial fee of $90 and a monthly charge of $15. Meanwhile, customers enrolled in 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.
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 in recent months has been that whatever opt-out program the PUC ultimately approved for PG&E would provide a model for other utilities, including San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE).
Among the aspects of the motion approved today, the commission ordered PG&E to:
- Establish procedures to inform customers that a smart meter opt-out option is available. A customer currently on the delay list will be informed that the customer will be scheduled to receive a wireless smart meter unless the customer elects to exercise the opt-out option.
- Establish new two-way electric and gas “modified smart meter memorandum accounts” to track revenues and costs associated with providing the opt-out program until a final decision on costs and cost allocation issues associated with providing an analog meter opt-out proposal is issued.
According to the decision, “residential customers may begin signing up to participate in the opt-out option 20 days after the effective date of this decision. PG&E shall have a dedicated phone number for customers to call and sign up for the opt-out option. This number shall be staffed by customer service representatives trained to explain the opt-out option and fees.”
Because customers may “opt-out for any reason, or no reason, PG&E may not require a customer to explain or state why they wish to participate in the opt-out program,” according to the decision. The commission is expected to revisit the issue and adjust fees after the true costs of the program become apparent.
The industry keeps getting smarter and smarter: Hot topics at DistribuTECH January 31, 2012
Posted by Chartwell Inc. in Utility Industry News.Tags: Chartwell, Chartwell Blog, customer engagement, Customer service automation, demand response, DistribuTECH, electric vehicle, electric vehicles, energy conservation, energy usage, meter data, mobile apps, online energy information, plug-in electric vehicle, smart grid, smart meter, smart meters, utilities, utility, utility communications
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Analytics, metrics, meters, home automation gadgets, bucket trucks, plug-in electric cars, dog bite repellent and some remote control vehicle that looked like the Mars lander. Even Hooter’s girls. Yes, the 2012 DistribuTECH had something for just about everyone last week in San Antonio.
Once again, the exhibit hall was extensive, or, as one attendee quipped, “big enough to land a [Boeing] 747 on.” We at Chartwell couldn’t cover it all. So we stayed focused. What was there to improve the utility customer experience? And the answer: still plenty. Here’s a recap (more…)
Want to create excitement with customers about energy efficiency? Start with your employees January 24, 2012
Posted by Allison Herdic in Utility Industry News.Tags: Chartwell, customer contact management, customer interaction, educational campaign, energy efficiency, engaging employees, media channels, smart grid data
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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.Tags: analog meters, Central Maine Power, Chartwell, Chartwell research, opt out, San Diego Gas & electric, SDG&E, smart grid, smart meters, Southern California Edison
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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.Tags: Chartwell, customer satisfaction, customer service, J.D. Power and Associates, pricing, reliability, utility
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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…)
