Reshaping Utility/ Consumer Relationships MEC October 5, 2010 Pinehurst, NC Penni McLean-Conner
Dec 30, 2015
2
Agenda
1.1. Game ChangersGame Changers
2.2. NSTAR Pilot – Poor Man’s AMINSTAR Pilot – Poor Man’s AMI
3.3. Learnings To DateLearnings To Date
4.4. Going Forward ImplicationsGoing Forward Implications
Customer expectations are evolving, and framed by media experience
Consumer Development
Media World Utility World
Passive Happy with 3 channels (1970’s)
Passive receipt of power
ActiveBroader choices – 100’s of channels
Consumer interest in more choices – DG, energy management,
ParticipatoryConsumer determines content – netflix
Dynamic value-based pricing of power and interactive services
Reality is that this motivates only a small customer segment*
*”Plugging into the Consumer”. IBM Global Business Services, 2007
Smart Grid Tolerators – 25% Smart Grid Enthusiasts – 18%
• Young and old• Lower use of technology• Lower income
• Younger• High use of technology• Higher Income
Smart Grid Resistors – 21% Smart Grid Truth Seekers – 37%
• Older• Middle income
• Younger• Lower use of technology• Lower income
Technology Appeal High
High
Low
Smart Grid
Appeal
6
Agenda
1.1. Game ChangersGame Changers
2.2. NSTAR Pilot – Poor Man’s AMINSTAR Pilot – Poor Man’s AMI
3.3. Learnings To DateLearnings To Date
4.4. Going Forward ImplicationsGoing Forward Implications
Massachusetts's Smart Grid Pilot Project Objectives
• Cover at least 0.25% of customers• Integrated two way communications • Smart meters• Real time measurements and communications• Embedded Automated Load Management• Remote monitoring & operation of distribution
system• Time of Use or Hourly Pricing• Rate treatment of Incremental Program Costs• Minimum 5 % load reduction (Peak and Average)
Massachusetts Utilities Are Piloting Several Smart Grid Approaches
NSTAR Pilot• $1,481 per point• Optional (3190 customers)• Leverages existing
infrastructure• Does not provide
additional AMI benefits (i.e. automatic shut-offs)
National Grid Pilot• $3,796 per point• Negative opt out (15,000
customers)• Mesh communications
infrastructure• AMI benefits
broadband
NSTAR Approach – Poor Man’s AMI
Uses installed AMR meter infrastructure
Uses Customer’s broadband
NSTAR Back Office
MDM
Billing
CIS
Data Collection, Verification
NSTAR Smart Grid Billing Options
Period
Illustrative Supplier Charges($/kWh)
Total Electricity
Price($/kWh)
Ratio to be Applied to
Basic Service rate
Critical Peak $1.35 $1.42 10.62
On-peak $0.28 $0.35 2.23
Off-peak $0.08 $0.15 0.60
•Time of Use – 3 Periods, peak, off-peak and critical peak
•Rebate Option – Requires central air; $5.00 rebate
In-Home Technologies Associated with the Pilot
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All Participant Groups Load Control
In Home
Display
Access to Web Portal
Internet Gateway / HAN
Programmable Thermostat
•Zigbee device
•Real-time power demand
•Billing period electricity consumption & cost
•Price of electricity
•View and manage household energy consumption online
•Receive messages from NSTAR Electric
•Analyze historical usage patterns
•Home Area Network (HAN) to enable two-way communication between the customer and NSTAR
•Up to 4 programmable set points per day
•Controllable over the Internet via the Web Portal
•Critical Event management and control
NSTAR Target Market for Pilot
NSTAR Electric900K
Newton, Hopkinton40,365
A/C30KNon A/C
735 2,135
Pilot2,870
• Need 2% enrollment for non A/C customers • Need 7%enrollment for A/C customers
NSTAR’s Marketing Approach
Digital campaignE-Bill/email/
online outreach
Objectives
• Secure sufficient pilot participants
• Complete non-participant and participant research
• Traditional marketing techniques
• Appeal to mainstream audiences
• Test/monitor receptivity
Phase I: General Marketing Campaign -Newton/Hopkinton
Phase II: Targeted Marketing
• Community Newspapers• Media Placements• Bill Messaging• Direct Mail• Telemarketing
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Agenda
1.1. Game ChangersGame Changers
2.2. NSTAR Pilot – Poor Man’s AMINSTAR Pilot – Poor Man’s AMI
3.3. Learnings To DateLearnings To Date
4.4. Going Forward ImplicationsGoing Forward Implications
Employee Pilot/Soft Launch Preliminary Findings
Employee Pilot• Information Only, interesting
but challenging to sustain interest long term
Soft Launch• Initial response strong/email
campaign• Challenging to convert to
enrollment • Technology/thermostats
installations haven’t proceeded as smoothly as possible
5,603 Emails Sent
527 Enrolled
392 Accepted
248 Sign Agreements
159 successfully
installed
Soft Launch Results
Only 41% of those
accepted had equipment installed.
Reasons for Degradation in Customer Counts
• Never responded to the customer agreement after initially enrolling
• Difficulty scheduling summer installations
• Opted not to enroll after reading the customer agreement
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Agenda
1.1. Game ChangersGame Changers
2.2. NSTAR Pilot – Poor Man’s AMINSTAR Pilot – Poor Man’s AMI
3.3. Learnings To DateLearnings To Date
4.4. Going Forward ImplicationsGoing Forward Implications
Smart Grid Invites New Product And Service Offerings
• Pricing structures • Monitoring and control services• Notification services• Outage management services (distr.
Smart grid)• Distributed generation services
On the Horizon – Processes, Functions, Technology
• Linkage to smart grid (HAN) technology• Linkage to customer billing• Customized customer messaging• Supports comparison to other customers• Community challenges• Transparency with usage• Linkage to behavioral based programs