SCE – Lessons Learned from Pricing Experiences

1. SCE – Lessons Learned from Pricing Experiences July 31, 2014

2. Off-Peak Savings Plan • Tiered TOU rate • 2014 participation level is 15,100 customers • Conducted targeted marketing campaign in 2011 and 2012 to generate enrollments • Target Audiences - Likely Benefiters • Tier 5 (6 out of 12 months) • NEM Accounts • Did not conduct customer specific rate analysis • Solicitation Tactics • Direct Mail • Email • Follow-up Outbound Telemarketing • Summer Retention • Bill Onsert(summer season & price change reminders)

3. Off-Peak Savings Plan Campaign Results 2011 Results 2012 Results 81,000 targets 6,300 enrollments 7.8% adoption rate 91,566 targets 4,400 enrollments 4.8% adoption rate • One touch direct mail solicitation to 91K service accounts in April • Enrollment Rates: • Tier 5 Response = 4.6% (3,700) • NEM Response = 6.4% (700) • Two touch direct mail solicitation to 81K service accounts in Q4 • Enrollment Rates: • Tier 5 Response = 6.9% (5,300) • NEM Response = 20.5% (1,000) Other Results: • Incoming Calls – 3,400 calls into dedicated 800 number (from Oct 2011 to Sep 2012) • Approximately 600 requests received requesting rate analysis • Enrollment Channel Analysis (2012): • Business Reply Card – 86% • Outbound Calling – 12% • Customer Contact Center – 2% • Attrition – By the end of 2012, our attrition was at 6%. • 95% of attrition was related to customers wanting to get off the program.

4. Observations and Lessons Learned • Effective targeting / Messaging: • Targeting right customers is critical to achieving desired adoption rates • Creating compelling, easy to understand marketing materials / talking points to drive enrollments is key • Conversion rates from 2011/2012 experiences suggest we did this well • Attrition: • However, escalated calls and attrition was higher than expected. • Suggests the need to revisit messaging. • While messaging stressed that summer bills may be higher, as customers experienced TOU, we did see customers wanting to opt off as opposed to waiting for winter months • Enrollment Channels: • Majority of customers preferred the postcard enrollment. • Customer self-service options may be more convenient for customers and cost-effective and we would like to pursue those channels

5. Non-Residential – Mandatory Time-of-Use Transition 2014

6. High-Level ME&O Efforts

7. High-Level ME&O Efforts

8. Observations and Lessons Learned • Conducted message testing with customers to develop a message platform that would best resonate with customers, informed directly by customers. • Multi-touch, multi-channel effort worked well in driving awareness • Increased customer awareness of the TOU transition from 9% in Wave 1 (July 2013) to 47% in Wave 2 (December 2013) • Social media efforts received minimal customer response. • Will be looking at different social media platforms for Wave 2 • Critical to ensure preparedness of customer facing personnel with appropriate training and resources so they can effectively handle customer inquiries • Throughout transition, incoming call volumes were fairly minimal. We are now seeing a slight uptick in calls due to summer bills.

9. Residential Peak Time Rebate • To date, PTR is the only default residential program we have implemented • Brief Background: • As customers received their smart meter, they were automatically placed on SCE’s Save Power Day (or PTR) program. • Significant marketing effort accompanied smart meter rollout. • Marketing focused on program education and encouraged customers to opt-in to event notification services. • In addition, customers were automatically enrolled to receive event notifications if they had an SCE MyAccount • By late 2012, had achieved 20% enrollment (800K customers) on event notification (73% automatically enrolled) • Event awareness was driven by event notifications. Planned use of broadcast media channels to generate awareness did not occur. • Key Findings: • Load impact studies showed: • Opt-in customers driving load reduction • Load impacts from defaulted customers were not statistically different from zero • Current Status: • In accordance with Commission directive, program was transitioned to opt-in program in early 2014. • Currently have 370K customers enrolled in program