Engaging the Customer: The
Power Behind the Meter
Bobbi Tannenbaum
WPUI – Green Bay
September 28, 2010
[email protected]
Agenda
•  The Virtual Power Plant
•  Getting There from Here
•  Summary
The Virtual Power Plant – the concept
The VPP - Opportunity
•  Utility meets customers’ energy service needs
–  Minimizes investment cost and risk
•  in peak capacity,
•  baseload plants and
•  transmission.
•  Manages transmission and distribution
congestion
•  Reduces carbon emissions
Getting There from Here two sides of the equation
•  Technology
–  AMI
–  Related distribution controls
–  End-use systems (smart vehicle chargers)
–  Smart appliances
•  Customer
Maximizing the benefits of AMI requires
engagement with an informed and
willing customer.
Right value proposition and product
design because . . .
•  Even automatic load response requires
–  equipment purchase
–  installation
–  abide by program rules
•  Dynamic price requires
–  Understanding operating equipment effects
bills under pricing scenarios
•  Everything requires time
Saving money is key driver to
customer value
•  Must be worth the effort
–  Time
–  Inconvenience
•  Despite environmental concern
•  Savings must be well established
–  e.g. ENERGY STAR appliances
Consumer interest in programs or rate
options that require ongoing active
management is low.
•  Direct load control participation 6 to 1 over time
sensitive pricing (where both available)
“set it and forget it”
•  Customer discussing saving ~$10/month on
TOU rates
“I don’t think there would be enough
savings for us to do it.”
Linkage of price signals to control
technology improves effectiveness of
both
Peak Reduction
Peak Reduction
No enabling tech
With enabling tech.
TOU rates
5%
25 %
Critical Peak Pricing
15 %
30 %
Ahmad Faruqui and Sanem Sergici. 2008. “The Power of Experimentation: New evidence on
residential demand response.” San Francisco: The Brattle Group.
•  Bundling technologies with rates increases
participation
. . . insight into customer reactions to
control technologies
•  To a “Smart thermostat”
“I would not want anyone taking control of
my thermostat.”
“It’s like big brother is watching.”
•  To in-home display
–  like colors – simplicity
“If that little thing is flashing red in my house
we are turning everything off.”
–  want to know what individual appliances use
–  seeing is believing/liking
–  hesitant about investing
10
. . . insight into customer reactions to
TOU Rates
•  Aware of rates
•  Challenge attracting interest
and overcoming suspicion
“What are we trying to
accomplish? Is this
for us or is this for
somebody else?”
“I would be willing to try
it . . . but I would need to
be educated on time of
day and things like that.”
•  Need/want to know
–  why rates would vary
–  specifics of rates
–  how much they will save $$$
•  To participate
–  must be “worth it”
11
Residential customers are “sticky”
•  Residential customers unlikely to change
(inertia)
–  They don’t switch providers with retail competition
with a default provider.
•  Use “opt out” approaches to get participation
Summary of Themes - plus
•  Money savings is key driver
•  Programs (rates) that require on-going effort
are a tough sell
•  Linking technology to price signals helps
–  But there are other barriers to overcome
•  Residential customers “sticky” (inertia)
•  Need
–  ongoing education/marketing
–  Opt out programs