Gary Evans Office of Energy Options

1. Gary Evans Office of Energy Options

2. We Energies Service Territory

3. Current Renewable Energy Sources Wind Turbines • 6,000 MWH • 18% of renewable power supply Small Hydro • 2,800 MWH • 7% of renewable power supply Biomass • 26,370 MWH • 75% of renewable power supply

4. Background / History 1996 Formation of EFT • Three goals: • Demonstrate environmental stewardship • Provide experience in “customer choice” • Present “green pricing” as a market-based option for customers • Customer Enrollment (yearly totals) 1996: 1500 2000: 11,098 1997: 7200 2001: 10,686 1998: 8500 2002: 10,872 1999: 11,200 today: 11,412

5. EFT Program Basics Residential • Premium pricing option • 2.04 cents / kWh • customers choose: 25%, 50% or 100% • No fuel cost adjustment • Monthly commitment Small Business • Same as residential Large Commercial/Industrial Business • Block option or percentage • Calendar year commitment

6. Residential Research Current Customer Demographics • Recently donated to environmental organization • Age 55 or older • Married / no children • Yearly income of $75,000 + • Post graduate education Reasons for joining EFT • Support the environment • Reduce production from standard generation techniques • Concern for future generations Keep me informed

7. Residential Research Customer Input • Keep it simple! • Use the term renewable energy - not “green” energy • Reasonable premium - 1 cent / kWh • 5% willing to pay average of $5.00 / month • Suspected average program participation - 3 years • Trust Issues • Use CRS accreditation • Want increase of wind and solar PV production • Like images of wind turbines • Suggest charging all We Energies customers $1/month for EFT

8. Business Research Small Business • Reasons to participate • Want to do something for future generations • Owners decision • Reasons that hinder participation • Economic situation • Trust is an issue/ Easy and convenient • Have not been asked to participate • Environmental: conservation • Suggestions • Use term renewable energy - not “green” energy • Don’t use testimonials • Keep information simple

9. Business Research Large Business • Reasons to participate • To meet environmental requirements • The boss likes it • Fixed price • Positive PR opportunity • Reasons that hinder participation • Who else is signed up? • Economy/price • Suggestions • Find the right decision maker • Develop relationships

10. Residential Marketing Strategy Effective • Integrated Marketing • Radio spots • Bill inserts • Multiple touch direct mail • Brochures • postcards • Phone follow-up Non effective • Events • Noticing decrease in direct mail success

11. Business Marketing Strategy Small Business • Multiple touch direct mail • Phone follow-up Large Business • Large customer interviews • One-on-one relationship with account rep. • Long term pricing

12. Marketing Challenges • Creating awareness / understanding of renewable energy • Keeping the offer simple • Price • Limited resources • Economy

13. The Future of EFT Program Growth • Increase business participation • New partnerships • Environmental groups • Marketing options • Expand to new residential demographic groups Lower price • Green Tags / REC’s • Wind resources

14. Contact Information Gary Evans Environmental Programs Manager 414-221-3553 gary.evans@we-energies.com www.we-energyfortomorrow.com