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Communicating Pricing to Residential and Business Customers

Communicating Pricing to Residential and Business Customers. 2006 APPA Customer Connections Conference. Kevin Martin Key Accounts Manager Danville Utilities November 6 th , 2006. Introducing Danville, Virginia. Located in Southside Virginia on the Virginia - North Carolina border

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Communicating Pricing to Residential and Business Customers

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  1. Communicating Pricing toResidential and Business Customers 2006 APPA Customer Connections Conference Kevin Martin Key Accounts Manager Danville Utilities November 6th, 2006

  2. Introducing Danville, Virginia Located in Southside Virginia on the Virginia - North Carolina border 207 miles from Washington, D.C. 150 miles from Richmond, Va. 67 miles from Raleigh, N.C. Web Sites http://www.danville-va.gov http://www.discoverdanville.com

  3. Introducing Danville, Virginia Population -- City: 46,000 Metropolitan Area: 107,000 Size -- City: 44 sq. mi. Electric Service Area: 500 sq. mi. History -- Founded in 1793 and incorporated in 1830 as a tobacco and textile manufacturing center. Utilities founded in 1880’s. Government Structure -- Council-Manager Municipal Employment -- 1,245 full-time and part-time employees

  4. About Danville Utilities

  5. About Danville Utilities 187 fulltime employee positions $154 million in expenditures in FY 2007 (over ½ of the City's budget!)

  6. About Danville Utilities 500 Square Mile Territory City Served: Danville, VA 3 Counties Served: Pittsylvania, Henry, and Halifax

  7. About Danville Utilities Natural Gas 16,500 Customers 29,000 Decatherms/Day Additional Capacity Available

  8. About Danville Utilities Water and Wastewater 16,500 Customers 18 MGD Water Plant 24 MGD Wastewater Plant Water Source: Dan River

  9. About Danville Utilities Telecommunications nDanville Fiber Optic Network Gigabit Ethernet OC-3 Internet Connection

  10. About Danville Utilities Electric 45,000 Customers Size: 240 MW Generation: 12 MW Hydro, 6 MW Diesel Units

  11. Situational Background RATE INCREASES!!! Fuel Cost Increases Electric Deregulation Dysfunctional Wholesale Electric Markets

  12. Situational Background Residential Rateper kWh: From 5 cents to 7.4 cents Business Rateper kWh: From 3 cents to 6 cents

  13. Situational Background Natural Gas We All Know What Happened There…

  14. Situational Background Water and Wastewater Operations Are Large Power Users Electric Increases = Water Increases

  15. 3 M’s of Marketing Market Target Message Mode of Delivery

  16. Market Target Residential Customers Businesses Key Accounts

  17. Message: Residential Customers What’s Happening Why It’s Happening What You Can Do

  18. Message:Businesses What’s Happening Why It’s Happening What You Can Do Technical Information

  19. Message:Key Accounts How It Happened Future Projections Actions To Be Taken Detailed Technical Information

  20. Modes of Delivery:Residential Customers Web Page Information Group Meetings TV, Radio, Newspaper Bill Stuffers

  21. Modes of Delivery:Businesses Web Page Information Chamber of Commerce Business Group Meetings TV, Radio, Newspaper

  22. Modes of Delivery:Key Accounts Personalized E-mail Key Account Group Meetings Individual Key Account Meetings

  23. Recommendations Be Honest Be Direct Listen

  24. Recommendations Inform In Advance Give People Time to Prepare Be Cognizant of Budgeting Schedules

  25. Recommendations Educate Internally & Externally Don’t Assume Understanding Anticipate Questions

  26. Recommendations Chase The Media Don’t Let The Media Chase You Tell The Negatives But Keep The Focus On Strengths

  27. Resources We Used US Department of Energy: Energy Saver Books Industrial Technology Classes Industrial Energy Assessments

  28. Resources We Used Energy Consultants: Rate Analysis Energy Audit Seminars Informational Business Meetings

  29. Resources We Used United Way: New Utility Assistance Program Continued Public Education In Energy Conservation & Household Budgeting

  30. Results of our efforts New and Expanded Local Markets For Energy Efficiency Products

  31. Results of our efforts Community Trust & Strengthened Relationships with Businesses and Key Accounts

  32. Results of our efforts Continued Success In Economic Development

  33. Results of our efforts And… I get to keep my job! 

  34. Thank you Questions?

  35. Communicating Pricing toResidential and Business Customers Kevin Martin Key Accounts Manager Danville Utilities November 6th, 2006 E-mail: martikn@ci.danville.va.us O: 434.799.6474 C: 434.548.2537

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