After years of experiments with dynamic pricing and various enabling technologies, utilities are rolling out these demand-response tools on a mass scale. This new generation of programs combines behavioral demand response, smart thermostats, dynamic pricing, and customer choice into models that are compelling for customers and utilities alike. Modern residential demand-response programs also offer greater opportunities for customer engagement, energy savings, and peak reductions.

1. The Future of Residential Demand Response: BGE’s Integration of Demand Response and Behavioral
Ruth Kiselewich
Director DSM Programs
E Source Forum 2014
September 29–October 2, 2014

2. Baltimore Gas and Electric

Maryland’s largest utility

200 years

1st gas utility

1.2 million electric

650,000 gas

31 million MWh

7,200 MW

3,400 Employees

Exelon
2

3. PeakRewardsSM
Established in 2008
Currently available to residential customers with central A/C, electric Heat Pump and/or electric water heater.
Smart Grid Deployment
2010-2014
Meter installations began April 2012
All residential customers will receive an AMI Meter
Smart Energy Manager®
Launched October 2012
Customers with Certified AMI meters can view energy consumption on BGE.com and learn more ways to save.
Smart Energy Rewards®
Launched July 8, 2013
Peak Time Rebate program, available to all customers who have a Smart Meter installed.
BGE’s Demand Response Programs 3

4. PeakRewards Direct Load Control

Smart cycling of air conditioning (A/C) and water heaters (W/H) for bill credits

A/C Program

Switch or thermostat option

Three levels of cycling: 50%, 75% or 100%

317,000 customers (38% of eligible)

350,000 devices

416 MW demand reduction

W/H Program

100% cycling

79,000 devices

10 MW demand reduction 4

5. BGE Smart Energy Rewards® Overview

BGE’s Peak Time Rebate Program launched July 8, 2013

Based on four summers of pilots
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Customers reduced peak demand 15-25% and saved over $100 each year on average

Behavioral demand response program

Default tariff that is applicable to all residential customers with a smart meter

Customers earn bill credits for reducing electric consumption on approximately 5-10 peak event days each summer called Energy Savings Days
5

6. The Launch of BGE Smart Energy Rewards
Savings Tips
Segmented/Multi-Phased Customer Education
TV Spot & Web Video
How it Works: 3 Simple Steps 6

7. Passive Participation and Behavioral 7

8. Customer Notifications Delivered to Customer’s Preferred Channel and Customized by Customer Segment 8
Email
Phone
SMS
Paper

9. Immediate Customer Feedback with Personalized Post Event Notifications 9
“This is a message from BGE. During the Wednesday, July 10th Energy Savings Day, you earned $9.75 for reducing your energy use.”

10. 2013 BGE Smart Energy Rewards Results

Four Energy Savings Days on 7/10, 7/17, 7/18 and 9/11

Customer rebates ranged from $8.00 to $11.00 per event

Percentage of customers who earned a rebate ranged from 75% to 93%.

Open rates on event e-mails were 57-65% - 3 to 4 times higher than industry standard and other BGE emails at 20%

SER event call back rates of .5% - 1% were less than the 3% modeled

High customer satisfaction with the program 10

11. 11
Negative 9%
Neutral 17%
Positive 74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Rating
Some express improved opinion of engagement with BGE
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“This was one of the best communications I’ve ever received from BGE in that it was clear, concise”
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“I liked that it was highly customized”
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“BGE is a bill, faceless, nameless. But with this, I feel like they are trying to do something for [the customers].”
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“I’ll see your $13.25 and raise you $12.75…we saved $26.00 yesterday! Pretty good deal!”
Almost 3/4 are positive about overall program experience
Q.30: Please rate your overall experience with the energy savings day program
The Majority of Customers Are Positive About SER

12. Customers Are Motivated and See the Value 12

13. Positive Customer Feedback on 13

14. 2014: A Frustratingly Cool Summer: 2 Events 14
•
$6.55 average credit (SER and PR)
•
76% average participation
•
$ 5 million in credits paid to customers

15. BGE Smart Energy Manager® (SEM) launched October 2012

Customer access to SEM once meter is certified
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Customers welcomed with brochure and first home energy report
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Alerts enabled for those who opt in

Each household receives at least 1 paper report
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Control group to measure impacts
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Summer 2014:

700,000 customers

3 million paper reports 15

16. SEM: Behavioral With Conservation Focus

Track, analyze usage and cost data
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Estimate bills
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Unusual usage alerts
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Compare to “like” customers
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Personalized usage and savings tips
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Printed and electronic home energy reports

Access to interval usage data
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17. Linkages Between SER and SEM
17

18. What is Next?

PeakRewards two-way thermostat pilot in 2015
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Bring Your Own Thermostat
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Linkage to behavioral
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Also testing adding energy efficiency to demand response program

Reinforce and grow BGE Smart Energy Rewards

SER and SEM: 1 million participants in summer 2015
Questions
18
Ruth.C.Kiselewich@bge.com