Presented at 2013 National Town Meeting on Demand Response & Smart Grid July 11, 2013

1. Smart Pricing Options Pilot Pilot Overview and Operational Implementation Presented at 2013 National Town Meeting on Demand Response & Smart Grid July 11, 2013 Lupe Jimenez, Sacramento Municipal Utility District Powering forward. Together.

2. U.S. Department of Energy Disclaimer Acknowledgement: “This material is based upon work supported by the Department of Energy under Award Number OE000214.” Disclaimer: “This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.”

3. Agenda Overview of Offers Key Components Marketing Approach

4. A little about SMUD Sacramento County in Northern California Municipal Electric Utility Governed by a Board of Directors 600,000 Customers 540,000 Residential 60,000 Commercial Summer-Peaking Load (Air Conditioning) Residential Peak: 4-7pm June-September Peak load ~3000 MW, of which 400MW = 40 hours Energy Mix Hydro Natural gas-fired generators Renewables (solar, wind) Wholesale market

5. Study Objectives The Plan describes the two-year application of experimental rate options on a sample population of SMUD customers with the intent of determining: Electricity impacts of each of the treatments Customer characteristics associated with behavior The roles of enabling technology in customers’ daily electricity management Program impacts on customer satisfaction Rate and enabling technology program value to utility Expected market penetration for rate and enabling technology programs Effective educational and marketing strategies for customers

6. Key Features of SPO Pilot Two Recruitment Strategies Three Rate Options Impact of IHDs on Customer Acceptance Total enrollment, including deferred groups = 12,027; Total # of customers receiving offers, including deferred groups = 53,798 Total # of customers in SPO, including controls = 99,661

7. Customer Services Projects • Contact Center • CSR special team • IVR call routing • Toll free number and custom email • Customer Support • Online hourly usage display • HAN support • Event notification • Enabling Technology • Define HAN business requirements • Develop business processes for device support and deployment • Billing • Automated billing • Establish business processes for rate changes and enrollment protocols Pilot Development and Support Technology Projects Pricing SAP Integration Meter and HAN Pricing Integration Customer Service CSR Enrollment, Tracking, and Communications Integration Online Enrollment Data Collection Enrollment Reports Exportable Data Sets Enabling Technology HAN Communication Energy Cost and Energy Use Display Event Notification

8. Pricing Plans n/a n/a

9. Customer Touch Points IHD Support In Home Display Conservation Day Alerts: Text, Call, Email, IHD Special Contact Center Team Social Media Engagement Online Account Portal Hourly Data Welcome Packets Tips, Recipes, Discount Cards Educational Microsites • Marketing Research (pre, interim, post) Recruitment Letter and Outreach Customer Customer education started with recruitment and continues throughout the pilot. We want to give our customers every opportunity to be successful! Customized Bill Summer Peak Campaign

10. Marketing and Communications Recruitment Public Outreach and Education rate process external affairs press releases Recruitment Preparation standard summer peak and energy efficiency campaign Recruitment and Notification pretest recruitment awareness marketing direct marketing via mail, email, door hangers, and phone contact center advocates no fuss - easy to enroll, easy to drop Retention & Education Direct Education welcome packet peak savings tips Educational Web Pages pilot background pricing information educational videos link to enrollment/drop links to SMUD tools Social Media updates tips event notification contests

11. Market Research Marketing Best practices Sample analysis Image and message testing Offer and price positioning Retention & Education Knowledge gap assessment Online social media tracking Click-through analytics Satisfaction Pricing plans HAN devices Educational material Program participation SMUD satisfaction and brand attributes Profiling & Segmenting Demographic, property, and appliance data Marketing channels and frequency analysis Opt-out/drop out analysis Pricing study for future implementation Enrollment, load shed, and satisfaction by customer type

12. New Questions to Consider • Customer Support • Customer support for rate options: currently special CSR team • HAN support: internal/external, which business units, what times of the day, to what extent, installation services • Operational Implementation • Meter reprogramming versus manual interval data extraction and manual bill calculations for mid-cycle moves • Ability to maintain bill presentment and tariff design consistency for special customer groups • Presentation of bill savings and peak consumption • Messaging of events and informational notifications: standards, effectiveness, process • Customer education: what types of education and delivery channels will best promote satisfaction and load reduction • Program Design • Pricing ratios within the structures • How would customers respond to greater risk/reward options? • Which customers would participate? • How would it impact bills and load? • Deploy rates as a standard rate offer at sign up, a program “pricing plan”, or a product bundle with equipment? • Rate calculators: customer benefits and utility drawbacks • Equipment • HAN certification by SMUD • HAN testing and firmware upgrades • Self-provisioning options for customers • Trouble-shooting and support roles • Internal process development, inventory, deployment, tracking • Evaluation and Potential Future Research • Impacts on groups not included in study sample • Net value of impact of special customer groups • How to optimize benefits for both utility and customer value

13. Lupe JimenezSr. Project ManagerSacramento Municipal Utility District(916) 732-5966Lupe.Jimenez@smud.org