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NSTAR Smart Energy Pilot Update

NSTAR Smart Energy Pilot Update. January 9, 2013. Agenda. 1. Pilot Design. 2. Preliminary Findings. 3. Pilot Evaluation Timeline. 1. Pilot Design. Green Communities Act was the catalyst for our Dynamic Pricing Pilot. Green Communities Act Pilot Requirements:

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NSTAR Smart Energy Pilot Update

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  1. NSTAR Smart Energy Pilot Update January 9, 2013

  2. Agenda 1 Pilot Design 2 Preliminary Findings 3 Pilot Evaluation Timeline 1

  3. Pilot Design Green Communities Act was the catalyst for our Dynamic Pricing Pilot • Green Communities Act Pilot Requirements: • Cover at least 0.25% of the utility’s customers • Integrate two way communications and real time measurement of consumption data. • Utilize Time of Use or Hourly Pricing • Achieve 5% reduction in Peak and Average usage • NSTAR AMR-Based Dynamic Pricing uses existing AMR meter infrastructure in conjunction with Tendril Home Area Network. • Proposals submitted to the MA DPU April 2009; Approved in March 2010 2

  4. Pilot Design Near Real-Time Information for Customers and Utilities • Communication Options • Least Cost Options • Minimize Stranded Costs Mesh AMR over Customer’s Broadband Service Broadband over Power Line Cellular Cellular

  5. NSTAR AMR-Based Dynamic Pricing Pilot Design All participants ERT Portal ERT Display Translate Gateway Zigbee Zigbee Half of the participants Load Control Switch Thermostat

  6. Pilot Design This project will test customer reaction to rates and near real-time information, comparing results from 4 treatment groups. 5

  7. Pilot Design Pricing Structures • NSTAR will call no more than 12 Critical Peak Events during the course of the year, each lasting for up to 5 hours • Peak Time Rebate customers will be eligible to earn a fixed rebate of $5 per event if the customer allows central air conditioning (A/C) load control • TOU-CPP customers will experience steep price differentials, per the table below

  8. Preliminary Findings • Challenging to convert “interest” to “install” and to sustain interest long- term. 53,000 Customer contacts 6.7% Response 3600 Customers Enrolled 25% Dropout prior to Install 2,700Customers Installed 1,864 Currently Enrolled 30% Dropout after install • Common de-enrollment reasons: • Devices off-line • Dislike TOU/CPP rate; Dislike thermostat; Not saving money.

  9. Participants are highly educated and technologically savvy. Preliminary Findings *Based on 64% response rate to pre-pilot survey (2,000 responses) • Most participants make over $100k; • 38% make $150k+ • 20% make less than $75k • Only 5% of participants do not have a college degree. 67% have a post-graduate degree. • Participants are technologically savvy; 44% have 3 or more personal computers. Less than 1% have 0, and 20% have 1 PC. 8

  10. Some customers love the increased information; others expect more. Preliminary Findings “It was very helpful and made me conscious of what I used for electricity and made me think of when to do laundry.” “The In Home Display is useless and the data is not actionable. You need to have a mobile app.” “The thermostat and its connectivity to the web portal were very helpful. While it was neat to have the in-home display to see what is going on, I don’t think it impacted our decisions about energy usage.” “I have found the program both informative and educational from a best practice standpoint as well as helpful from a financial incentive perspective. Thank you all, especially for the responsive customer service.” “All it really told me was that my A/C and electric dryer use a lot of energy, which I already knew.” 9

  11. Evaluation – Three inter-related pieces Impacts Demand reductions (kW) after CPP events and in peak periods Energy savings (kWh) by season and year Customer bill savings ($) Process and Customer Satisfaction Methods: Customer surveys and assessment of program processes Barriers to (and drivers of) participation Customer acceptance & satisfaction Improvements in structure and delivery of offerings Technology Ease of deployment and support Accuracy and reliability for billing and customer information Customer acceptance Preliminary Findings 10 10

  12. Load reductions during summer events vary with the rate and technology Preliminary Findings * Findings based on two events in Summer 2012, with simple baseline load estimation Automated load control via thermostats achieves reductions of 0.7 – 0.8 kW CPP rate without thermostats saves ~0.2 kW Technology group shows savings, but negligible 11 11

  13. Web Portal: Used infrequently by most participants; many want more useful data Preliminary Findings • 75% of participants accessed the Web Portal at least once(based on year-end 2011) • Of those, 52% indicated that they use the Web Portal “rarely”; 15% use it “several times a week.” • Web Portal users rate the site’s attractiveness most highly and the data usefulness most negatively. • Suggested improvements: • Less data lag • iPhone app Percentages are of participants who used the Web Portal at least once (n=252) 12 12

  14. Pilot Evaluation Timeline Technical Performance Report #1 Technical Performance Report #2 Metrics & Benefits Report Metrics & Benefits Report End of PilotOfficial DOE Pilot Kick-offSoft Launch Final Report to DPU Interim Report to DPU 24 months Summer 2010 September 2012 January 2012 Summer 2013 Winter 2013 December 2013 Spring 2014 Pilot StartOfficial DOE • Pilot will run through 12/31/2013 with the final evaluation to US DOE and MA DPU due April 2014. 13 13

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