Pacific Gas and Electric Company
PDP Semi Annual Report - December 14, 2010
Peak Day Pricing
Semi-Annual Report
December 14, 2010
Topics
Summary
Outreach Objectives, Strategy and Execution
Supporting Initial Roll-Out
Performance Against Key Goals
Key Learnings
Outreach and Education Plans for 2011
PDP Semi Annual Report - December 14, 2010
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Key Takeaways
Feedback from the first wave of customers transitioned
to PDP in 2010:
•
•
•
•
Barriers for participation based on perceptions
Certain key messages motivate participation
Multiple customer touch points are needed
Ongoing outreach is important
PDP Semi Annual Report - December 14, 2010
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Pacific Gas and Electric Company
PDP Semi Annual Report - December 14, 2010
Outreach Objectives,
Strategy and Execution
for LC&I Transition
4
Outreach Objectives
Drive customer awareness of the PDP plan.
Drive customer understanding of the rate and how it
might affect their business.
Drive customer satisfaction with outreach experience.
PDP Semi Annual Report - December 14, 2010
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Outreach Strategy
To meet these objectives, PG&E developed an
integrated, multi-phased outreach strategy and
marketing platform that:
• Focused on key points in time related to the rate
• Provided information through multiple touch points
• Provided ongoing support throughout the first season
PDP Semi Annual Report - December 14, 2010
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Outreach Strategy
Outreach was designed to help customers understand
the critical aspects of PDP for their business:
•
•
•
•
What is it?
Why is it happening?
So what does this mean for each customer?
Now what should each customer do?
PDP Semi Annual Report - December 14, 2010
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LC&I 2010 Outreach Activities
Rate Awareness
Goal
• Inform customers of the rates, when they are coming, and
provides options for beginning their education
Execution
• 11,000+ pieces of direct mail and e-mail were sent, including a
customized letter from PG&E’s President
• Mass Media (Radio)
• Website information/tools and paper-based fact sheets were
provided
PDP Semi Annual Report - December 14, 2010
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LC&I 2010 Outreach Activities
Rate Education
Goal
• Provide education around overall rate components and
individual effect of the rates and options
Execution
• In-Person workshops
• Webinars
• 1:1 presentations with customers, customized bill analysis and
information kit
PDP Semi Annual Report - December 14, 2010
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LC&I 2010 Outreach Activities
Pre/Post Transition Awareness
Goal
• Ensure customers were aware of their transition and knew how
to take action
Execution
• 60-day and 30-day default letters
PDP Semi Annual Report - December 14, 2010
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LC&I 2010 Outreach Activities
Event Notifications
Goal
• Ensure customers were aware of – and
prepared for – PDP Event days
2010 Event Days Called
Date 5 Station Avg.
Max Temp
Execution
• Event Day 24-hour notices sent to
customers
• Alerts posted a day ahead/of to pge.com
• Pre-Event Courtesy Calls, delivered by
Account Representatives
• Implemented a practice Event Day prior to
the first actual Event Day
• Internal corporate communication sent to all
key stakeholders
7/16
98.6°F
8/16
91.0°F
8/23
97.8°F
8/24
105.0°F
8/25
106.4°F
9/1
96.4°F
9/2
99.6°F
9/3
96.6°F
9/28
101.8°F
PDP Semi Annual Report - December 14, 2010
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LC&I 2010 Outreach Activities
Ongoing Support
Goal
• Ensure the official notices were received, and that the customers were
aware of how to best perform on an Event Day
Execution
• Created a new Customer Impact team that was intensively trained on
PDP, and deployed regionally to coordinate local outreach efforts
• Post-Event Day follow-up calls
• Implemented a dedicated PDP information line for customers
• Pre- and Post-Event Bill Explanation
PDP Semi Annual Report - December 14, 2010
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Pacific Gas and Electric Company
PDP Semi Annual Report - December 14, 2010
Performance
Against Key Goals
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Goal: Drive customer awareness of the PDP
plan
Virtually all decision-makers were familiar with
transition to Peak Day Pricing.
• The top five sources of awareness were all PG&E’s,
leading with PG&E Account Representatives
• Other key sources included bill analysis, pge.com website
and PG&E workshops
• This was true for all customers, regardless of whether they
enrolled or opted out
PDP Semi Annual Report - December 14, 2010
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Goal: Drive understanding of the rate and
how it would affect customers’ business
PDP participants understood the main reasons behind
the transition: decreasing peak demand, saving energy,
and managing power consumption.
• Customers stated they were provided with information to make an
informed decision (mean rating of 7.7 on a scale of 1 to 10)
• Most (76%) strongly agreed that they would need to manage energy
use differently
• Few (16%) felt their enrollment decision was difficult
PDP Semi Annual Report - December 14, 2010
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Goal: Drive understanding of the rate and
how it would affect customers’ business
A large majority (72%) strongly agreed they knew in
advance when Events were coming, and 82% said
their company took some action on Event Days.
• 59% of participants said they took action to prepare for PDP in
advance of Event days
• Types of actions varied, from indicating specific plans or actions
to more vague responses like “conserved energy”
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Goal: Drive customer satisfaction with
outreach experience
PG&E Account Reps were highly valued for their
assistance.
• 3 in 4 enrollees said their engagement with a Rep was “very
informative”
Interact received very high marks overall and for value
of information.
PG&E information and tools were informative in helping
customers participate in PDP.
• Average rating of 7.0
PDP Semi Annual Report - December 14, 2010
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Pacific Gas and Electric Company
PDP Semi Annual Report - December 14, 2010
Key Learnings
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Rate Complexity
PDP is a complicated rate. Messages need to be
delivered simply and—ideally—in a phased approach to
help customers understand how it will impact them.
• Peak, partial peak and off-peak is familiar to most participants,
presenting PDP components is more challenging
• Customers gave PG&E high marks for “understanding” and
satisfaction measures related to outreach
Implications
• Continue to evolve messaging to make materials simpler and easier
• Add materials to support customers transitioning in the future
PDP Semi Annual Report - December 14, 2010
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Perceived Barriers: Rate Increase
When customers first hear about the rate, many
incorrectly assume it’s an attempt of PG&E to make
more money and/or unfairly target their business.
• Customers assume a new rate plan will result in a rate increase
• Customers do not understand PDP’s relationship to California’s
statewide energy policy
• Customers do not understand that PG&E does not make more money
from the executing this policy, or when customers pay more
Implications
• Counter perceptions by providing reasons for the rate change and an
explanation that the rate change applies to everyone across the state
PDP Semi Annual Report - December 14, 2010
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Perceived Barriers: Unable to Save
When customers first hear about the rate, many feel
their company will be hurt by the rate because they
can’t shift load during peak periods.
• 54% reported opting out because they felt it would be too difficult for
them to shift load during peak times
• 21% said they opted out because rates were too high during peak
times
Implications
•
•
•
•
Help customers understand the critical details of the rate
Articulate how charges and credits are incurred
Reinforce favorable features of the rate
Provide bill analysis coupled with messaging around choice
PDP Semi Annual Report - December 14, 2010
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Bottom Line Is Key
Decision to participate was driven primarily by bottom
line concerns and how this rate will impact their bills.
• 54% of participants expected it would make financial sense to
participate on PDP to reduce their energy bills and save money
• Customers told Account Reps that PDP costs extend beyond rate
components, i.e. operations, labor, etc.
• Customers also reported business concerns regarding cash flow and
monthly bill volatility
Implications
• Reinforce messaging about reducing energy during Event hours
• Reiterate Bill Protection
• Educate customers about credits received for off-peak energy use to
offset month of higher-than-average bills
PDP Semi Annual Report - December 14, 2010
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Rolling Eligibility
Rolling customer eligibility introduces logistical
challenges and makes it harder to deploy messages
that are timely for all customers.
• When customers become eligible for PDP, they are automatically
enrolled onto the rate, regardless of time of year
• The base of eligible customers has grown 20% since June. Most were
added during “Event Season” (prior to Nov. 1)
Implications
• Ensure outreach provides upcoming affected customers with the
same access to information as those affected this summer
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Web and Phone Support
Web and contact center support are critical channels
for our customers, particularly on/around Event Days.
• 8 of the largest 9 traffic days to PDP web pages occurred during
Event Days
• PDP call line traffic jumped by 350% on the first Event Day (vast
majority calling to revise notification information or channels)
Implications
• Continue to promote online resources and dedicated lines as Event
Day sources of information
• Enhance web content to provide more segment-specific information,
simplify messages, and expand on the features/benefits of the plan
PDP Semi Annual Report - December 14, 2010
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LC&I Affirm/Opt-Out Statistics
4,316 customers were eligible for default as of 6/25.
• 37% are participating on the rate
• 63% are not participating, by either opting-out (prior to default) or
unenrolling (after default)
• 234 Opted out into another Demand Response program
Large C&I PDP Participation Statistics as of 11/15
Total Eligible Service Agreements (SA’s)
4,316
100%
Participating
1,594
36.9%
SA's Enrolled on Own Prior to Default
193
4.5%
SA's Who Affirmed Scheduled Default
213
4.9%
Total Defaulting (no active choice) 1,188
27.5%
Not Participating
2,722
63.1%
SA's Opted Out 2,071
48.0%
SA's Unenrolled
618
14.3%
SA's Disqualified
33
0.8%
PDP Semi Annual Report - December 14, 2010
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Context For Opt-Outs
Decision makers were well informed about the
transition to time varying rates and about Peak Day
Pricing when they made the decision to opt out.
• Average rating of 7.7 (on a scale of 1 to 10)
A majority who opted out because they felt they could
not shift load for peak events.
Others were concerned about bill volatility vis a vis their
cash flow abilities, and felt they couldn't afford the risk.
PDP Semi Annual Report - December 14, 2010
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Pacific Gas and Electric Company
PDP Semi Annual Report - December 14, 2010
2011 Outreach and
Education Plans
27
Messaging
Continue to refine and simplify language and
components of the rate.
• Temperature Triggers
• Bill Protection/Variability/Cost
• Reservation Capacity
PDP Semi Annual Report - December 14, 2010
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Web Content
Continue to evolve website content and flow to create a
more informative and intuitive user experience for
customers.
• Incorporate messaging learnings, add customer-specific content,
increase content for topics of customer interest
• Provide and enhance Event Day notification and information when
needed
PDP Semi Annual Report - December 14, 2010
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LC&I 2011
Continue to communicate with customers about the rate
and how to succeed.
• Collect case studies and best practices to share with customers to
illustrate opportunities for customers to participate and save
• Explore opportunities to move Monday Event notifications to Friday
PDP Semi Annual Report - December 14, 2010
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Large Agriculture 2011
Employ same approach as LC&I while applying key
learnings.
Planned and in-progress activities include:
• 1:1 eligible customer contact prior to default with ongoing
communication leading up to and through Event season
• Build awareness and education through multiple touchpoints
• Deepen engagement through community outreach
PDP Semi Annual Report - December 14, 2010
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Small and Medium Business (SMB) 2011
Tell comprehensive Time Varying Pricing story, in
addition to PDP details, to emphasize energy-saving
behaviors as new concepts to this audience.
Mass Media
Direct and Endorsements
Grass Roots
Direct
PDP Semi Annual Report - December 14, 2010
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Small Agriculture 2011
Recalibrating timing of marketing and education plans
due to revised TOU transition timing of February
2012; will report to CPUC as plan evolves.
Mass Media
Direct and Endorsements
Grass Roots
Direct
PDP Semi Annual Report - December 14, 2010
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Pacific Gas and Electric Company
PDP Semi Annual Report - December 14, 2010
Questions?
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