This document summarizes John Egan's presentation on utility price increases. It discusses the large amount of planned capital projects and spending by electric utilities totaling $150 billion. It emphasizes the importance of operational improvements to lower costs before raising prices for customers. It also stresses the need for transparent and easy to understand communications when discussing price increases, focusing on the value provided to customers rather than just costs. The presentation provides tips for successful messaging including keeping it simple, unexpected, concrete, credible and telling stories.

1. A Few Thoughts on
Utility Price Increases
EUCI 13th Annual Rate
Design Conference
John Egan
September 28, 2015

2. Roadmap
We’re all in this together
Terrific industry-wide learning opportunity
Do the right thing
Say the right thing
Show the right thing
Rinse, lather, repeat
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3. Electric Utility Capital Projects
Big electric capital spend planned.
1,010 capital projects valued at $150 billion
TX, CA, BC, NY, AZ, NY, ND, IL and NM have
the largest planned spend.
Customers are expected to pay for all of
that, plus riders and ROE (for IOUs).
3
Source: Industrial Info
Resources
9/28/2015

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5. 9/28/2015 5
Source: Egan Energy
Communications

6. Do the Right Things ─ Ops
Fix operational shortfalls.
Continue efforts to lower costs before
asking customers to pay more.
Know your customer.
Understand what they value and where you
fall short.
Practice integrated issues management.
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7. Do the Right Thing ─ Comms
Test all aspects of your communications.
Art, colors, messages, design, channels, etc.
Align words, deeds and art to ensure
transparency.
Use easy-to-understand words and
concepts.
Art is more powerful than words.
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8. Do the Right Thing
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Source: Albert Mehrabian

9. Focus on Value
Numerous examples of utilities with rising
CSAT despite multiple price increases.
If Pepco can do it, so can you!
“If the perceived value of what we provide
is rising faster than the perceived cost,
we’ll be OK.”
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10. Say the Right Thing
You are cursed – with knowledge!
SUCCESful messaging
The danger of detail
Use words an 8th grader can understand
Less effective and more effective words
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11. SUCCESful Messaging
Simple
Unexpected
Concrete
Credible
Emotional
Stories
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12. The Danger of Detail
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14. Show the Right Thing
Create MPG graphics for electric use.
Make employees the face of the utility.
Ask employees to become ambassadors.
Don’t hide, don’t go dark.
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15. Thank You!
For more information:
John Egan
President
Egan Energy Communications, Inc.
720-949-4906
John@EganEnergy.com