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SmartGrid and the Customer Experience


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SmartGrid and the Customer Experience

  1. 2. The Smart Grid and the Customer Experience Brought to you by
  2. 3. About this Webinar <ul><li>Submit your questions in the Go to Webinar window </li></ul><ul><li>Follow along and share your thoughts on Twitter at #TSCWebcast </li></ul>How you can Share
  3. 4. Agenda <ul><li>Introductions </li></ul><ul><li>Christine Hertzog - Moderator </li></ul><ul><li>Adam Cooper – Net Benefits of Smart Meters: Perspective Matters </li></ul><ul><li>Bob Frazier – Advanced Metering and the Smart Grid </li></ul><ul><li>Chris King – Smart Meters – the Consumer Experience </li></ul><ul><li>Esteban Kolsky – Opportunities for CRM in the Smart Grid </li></ul><ul><li>Q&A </li></ul>
  4. 5. About the Panelists ESTEBAN KOLSKY – PRINCIPAL AND FOUNDER, THINKJAR - Founder of ThinkJar, an advisory and research think-thank focused on Customer Strategies. He has over 22 years of experience in customer service and CRM consulting, research, and advisory services. While at Gartner, he coined the terms for EFM (enterprise feedback management) and CIH (customer interaction hub). BOB FRAZIER - DIRECTOR OF TECHNOLOGY, HOUSTON ELECTRIC/CENTERPOINT ENERGY - At CenterPoint, his focus is utility customer systems.  In addition to the usual strategic planning and tactical execution of electric supporting systems, Bob has spent the past three years supporting Advance Meter Infrastructure (AMI), and Intelligent Smart Grid pilot projects including regulatory filing and settlement negotiations.  CHRIS KING – PRESIDENT, STRATEGIC CONSULTING AND CHIEF REGULATORY OFFICER OF EMETER , a leading provider of Smart Grid Management Software. An internationally recognized expert, author of numerous thought-leading publications, and frequent speaker at industry events, Mr. King founded the Demand Response and Smart Grid Alliance and the European Smart Energy Demand Coalition, and is a Board member of the Department of Energy’s Demand Response Coordinating Committee.  ADAM COOPER – MANAGER, ENERGY EFFICIENCY AT THE EDISON FOUNDATION –Developing a compilation of smart meter deployment efforts by investor-owned utilities and large public power agencies, tracking electric utility regulatory frameworks on a state-by-state basis, assessing the potential energy savings from well enforced and increasingly aggressive building codes and appliance standards, and identifying the total energy savings from rate-payer funded electric efficiency programs administered by utilities and third-party administrators. CHRISTINE HERTZOG - MANAGING DIRECTOR OF THE SMART GRID LIBRARY (MODERATOR) – Consultant, author of Smart Grid Dictionary, and a professional explainer focused on Smart Grid technologies and solutions. Her work involves introductions of visible and disruptive products or services to customers, and the use of management and communications strategies and tactics to enable consumer acceptance of change.
  5. 6. Challenge and Opportunity <ul><li>Smart Grid rollouts – visible and disruptive to consumers? </li></ul><ul><ul><li>Challenge: GE 2010 study: Only 4% of respondents heard of Smart Grid </li></ul></ul><ul><ul><li>Opportunity: But 80% of this group wanted to learn more </li></ul></ul><ul><ul><li>Challenge: Poor execution of Smart Grid projects can result in ratepayer protests </li></ul></ul><ul><ul><li>Opportunity: Communicate and educate about technology and benefits – enlighten and strengthen brand loyalty </li></ul></ul>
  6. 7. Can Utilities Answer These Questions? <ul><li>Which segments of our residential ratepayer base are most likely to participate in Demand Response programs? </li></ul><ul><li>How effective is our website at delivering desired messages? </li></ul><ul><li>How many households in my service territory have electric hot water heaters? </li></ul><ul><li>What are the satisfaction scores of residential ratepayers who have participated in our energy efficiency programs in the past? </li></ul><ul><li>How about a more basic question: Have we effectively communicated the Smart Grid benefits to consumers? </li></ul>
  7. 8. <ul><li>Adam Cooper, Edison Foundation </li></ul><ul><li>Net Benefits of Smart Meters: Perspective Matters </li></ul>
  8. 9. “ Smart” meters or AMI (advanced metering infrastructure) enable multiple operational & customer benefits. This study quantifies “ net benefits ” for a range of utility types.* <ul><li>Smart meter benefit flows to customers include five categories: </li></ul><ul><ul><li>Access to information on energy use; updated daily </li></ul></ul><ul><ul><li>Direct load control 2.0 where shifted load is now measurable and verifiable </li></ul></ul><ul><ul><li>System wide availability of a peak time rebate (customers stay on current rate but receive incentive to shift load during certain hours on very high priced days) </li></ul></ul><ul><ul><li>Ability to opt into a critical peak pricing program </li></ul></ul><ul><ul><li>Ability to charge electric vehicle with a time varying rate </li></ul></ul><ul><li>To illustrate range of benefits, analysis includes 4 “prototype” utilities – South, Central, East and West – with real world load shapes and 1 million customers. </li></ul><ul><ul><li>Differences include generation mix, capacity and T & D costs, current meters, costs </li></ul></ul><ul><li>Benefits and costs of smart meters </li></ul><ul><ul><li>Incremental to programs that can be implemented without AMI </li></ul></ul><ul><ul><li>Developed from a societal perspective, not simply an individual customer’s bill savings </li></ul></ul>* This study was conducted by The Brattle Group . IEE and Brattle thank Cheryl Hindes of BGE and the AEIC load research committee for making real world load shapes available for this study.
  9. 10. Study includes 4 “prototype” utilities with varying characteristics. Notes: For utilities East and West , we assume AMR is in place. Customer load shapes vary by utility. Power generation mix varies by utility.
  10. 11. In addition to providing operational benefits to the customer and the grid, smart meters enable new energy management options for customers. AMI No benefit or cost Engaged Yes No AMI Operat’l Benefits No PTR (no technology) CPP (no technology) CPP with enhanced PCT PTR with enhanced PCT DLC with M&V EV TOU CPP Yes Once AMI deployed, all customers have access to web portal information. PTR Information only/no change in rate Info via Web portal Info via IHD
  11. 12. The key question is how many customers will participate in these energy management options/programs! <ul><li>As smart meters are deployed nationwide, utilities are experimenting and making different options available to customers under different time frames. Two scenarios are included to capture a range of options. </li></ul><ul><ul><li>Some customers participate in an information only option and others participate in smart rate options including PTR, CPP, direct load control, and EVs with a time varying rate. </li></ul></ul><ul><ul><li>An “opt out” peak time rebate is available to all customers and some customers “opt in” to other rate based programs including CPP, direct load control, and EVs with a time varying rate. An information only option is not available . </li></ul></ul>
  12. 13. Offering customers options to manage energy create value and produce benefits to customers and society. <ul><li>In this analysis, we purposely examined a range of utilities with different characteristics. </li></ul><ul><ul><li>In all cases, the benefits of smart meters exceeded the costs. </li></ul></ul><ul><ul><li>Overall, the NPV of net benefits of smart meters ranged from $96 (East) to $287 (South) million for the 20 year period. </li></ul></ul><ul><li>Beyond operational benefits, smart meters allow utilities to offer a range of options to engage customers in managing energy. Such programs </li></ul><ul><ul><li>Result in savings to the customer. </li></ul></ul><ul><ul><li>Add significantly to the net benefits of smart meters thereby creating overall economic value for society </li></ul></ul>
  13. 14. <ul><li>Bob Frazier, CenterPoint Energy </li></ul><ul><li>Advanced Metering and the Smart Grid </li></ul>
  14. 15. <ul><li>Chris King, eMeter </li></ul><ul><li>Smart Meters – the Consumer Experience </li></ul>
  15. 16. <ul><li>Esteban Kolsky, ThinkJar </li></ul><ul><li>Opportunities for CRM in the Smart Grid </li></ul>
  16. 17. Three opportunities for CRM in SmartGrid <ul><li>Challenge #1 – education </li></ul><ul><ul><li>Customers want access to information </li></ul></ul><ul><ul><li>Utilities have been notorious for </li></ul></ul><ul><ul><ul><li>Lagging in providing it </li></ul></ul></ul><ul><ul><ul><li>Made it hard to find and understand </li></ul></ul></ul><ul><li>Opportunity #1 – access </li></ul><ul><ul><li>Embrace knowledge management to build </li></ul></ul><ul><ul><li>Embrace self-service to distribute </li></ul></ul><ul><ul><li>Embrace communities to evangelize </li></ul></ul>
  17. 18. Three opportunities for CRM in SmartGrid <ul><li>Challenge #2 – data privacy </li></ul><ul><ul><li>Consumers are finicky when it comes to sharing what they consider private data </li></ul></ul><ul><ul><li>Management, handling, storage could be challenging </li></ul></ul><ul><li>Opportunity #2 – access control </li></ul><ul><ul><li>Personalized and customized access to own data via self-service </li></ul></ul><ul><ul><li>Consumers decide what to do with their data </li></ul></ul>
  18. 19. Three opportunities for CRM in SmartGrid <ul><li>Challenge #3 – collaboration </li></ul><ul><ul><li>Utilities are not hotbed of innovation, co-creation, collaboration </li></ul></ul><ul><ul><li>Consumers always looking for deeper voice </li></ul></ul><ul><li>Opportunity #3 – better experiences </li></ul><ul><ul><li>Know better what consumers need to do </li></ul></ul><ul><ul><li>Tools complete their jobs to be done </li></ul></ul><ul><ul><li>Co-create better experiences, both benefit </li></ul></ul>
  19. 20. Sounds good? Now the hard work <ul><li>Wouldn’t it be great if it was magic? </li></ul><ul><li>Lessons from CRM for utilities don’t apply </li></ul><ul><ul><li>Already learned most costly, complex lessons </li></ul></ul><ul><ul><li>Consumers and customers are different than they were; more sophisticated </li></ul></ul><ul><li>Focus on integration, compliance, and customer satisfaction </li></ul><ul><ul><li>It is not about more efficient operations, it is about delivering to customer’s expectations </li></ul></ul>
  20. 21. Advanced Metering and Smart Grid at CenterPoint Energy Robert B. Frazier Advanced Meter Systems Future - Smart Grid
  21. 22. <ul><li>Public company traded on the New York Stock Exchange (CNP) </li></ul><ul><li>Headquartered in Houston, TX </li></ul><ul><li>Operating 3 business segments in six states </li></ul><ul><ul><li>Electric transmission and distribution </li></ul></ul><ul><ul><li>Natural gas distribution </li></ul></ul><ul><ul><li>Interstate pipelines and natural gas gathering </li></ul></ul><ul><li>Serving over 5 million electric / gas customers </li></ul><ul><li>$17 billion in assets </li></ul><ul><li>$8.5 billion in revenue </li></ul><ul><li>More than 9,000 employees </li></ul><ul><li>Over 130 years of service to our communities </li></ul>Electric Transmission & Distribution Interstate Gas Pipelines Natural Gas Distribution WHO IS CENTERPOINT ENERGY? “ To be recognized as America’s Leading Energy Delivery Company… and more” Houston • • Little Rock • Minneapolis
  22. 23. <ul><ul><li>5,000 square mile service area </li></ul></ul><ul><ul><li>Approximately 2.2 million electric meters </li></ul></ul><ul><ul><li>Houston Electric </li></ul></ul><ul><ul><ul><li>Delivers 73.6 billion kilowatt hours yearly for about 80 certified Retail Electric Providers </li></ul></ul></ul><ul><ul><ul><li>Transmission and Distribution System </li></ul></ul></ul><ul><ul><ul><ul><li>3,640 miles of transmission lines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>41,913 miles of distribution lines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>225 substations </li></ul></ul></ul></ul>Who is CenterPoint Energy – Electric? Electric Challenge: Effectively monitor and control millions of meters, line devices and miles of delivery wire which, if laid end to end, almost circle the earth twice around the equator CenterPoint Energy (CNP) Houston Electric Division (CEHE) Houston Metro Area (4th largest in US)
  23. 24. See electricity in a whole new light
  24. 25. The Texas Electric Market Deregulated since January 2002 il Assets (Grid) Customer Generator Generator Assets (Plant) QSE Retailer Retailer REP TDSP MC Call Center, @ CC Customer Relationship AMI Technical Communication Smart Meter Appliances REP Retail Electric Provider QSE Qualified Scheduling Entity TDSP Transmission & Distribution Service Provider CC : Customer Communication MC : Market Communication AMI : Advanced Metering Infrastructure ERCOT Contracts Electricity Flow Retail Electric Provider Solar Energy P
  25. 26. Outbound Outage Communication - Proposed Smart Meter Cell Relay Radio “take out points” IG Distr Sensor Radio Freq Radio Freq Radio Freq Fiber or Microwave DCE Systems Grid Sensing Analysis Outage Analysis CIS, TMH, Crit Load Mobile Data Work Mangt Sys PONs, PRNs, Tamper Outbound Outage Communication Cell text, Twitter & Facebook Smart Meter Texas Sends emails and SMS to registered ESIID owners who have requested notification Voice Response Unit Tells callers we are aware of their outage, fix scheduled and any other associated information Outage Tracker Graphical allows user to enter address and see outage status as well as neighbors and grid Customer Interaction Center (CNP) Web registration ties to gas account and electric ESIID for outage notification via phone, email and text Social Comm Types Set up CNP accounts on these sites. Encourage customers to link for important messages. (non-specific one-way) General Storm Information . Not ESIID specific. Outbound only RB Frazier v 5 Retail Electric Providers Web Sites Phone apps Distribution Mangt Sys DMS Specific ESIIDs with outage or power restore notification to the market Customers REPs
  26. 27. Inbound Outage Communication - Proposed Smart Meter Cell Relay Radio “take out points” IG Distr Sensor Radio Freq Radio Freq Radio Freq Systems Field Outage Analysis CIS Inbound Outage <ul><li>Voice Response Unit </li></ul><ul><li>Customer self identification </li></ul><ul><li>Inform customer if known outage </li></ul><ul><li>Check for Power quality to meter from VRU </li></ul><ul><li>If not known, enter trouble tickets as they do today </li></ul>Customer Interaction Center (CNP) Provide preregistered customer easy ability to enter outage ticket using similar functionality as Street Light Trouble. Allow unregistered customers ability to register and enter ticket RB Frazier v 6 REP’s Web Sites mashup CNP via links to enter outages CNP builds a iPhone and BB downloadable free app to enter Trouble 21 st Century Phone Center Enter trouble tickets as they do today. Goal is less calls. Is Outage Known?? Yes No – Create case Mobile Data Dispatch Repair Crew & add ESIID(s) to Outbound Comm Outsourced Call Center Enter trouble tickets as they do today Multiple Typed Chat Sessions Ability to initiate chat session or call from the CNP customer Delight web site to Support Center DRAFT DRAFT RB Frazier v 7 Analysis
  27. 28. Thank you for allowing me to share the CenterPoint Energy Smart Grid story CenterPoint Energy Technology Center QUESTIONS?
  29. 30. Worse Situation
  30. 31. Smart Meters: the Consumer Experience Applications and Use Cases Copyright © 2011 eMeter Corp. All rights reserved.
  31. 32. The Consumer’s Perspective <ul><li>“ All the pieces are needed to make the smart grid work” </li></ul><ul><li>Segments </li></ul><ul><ul><li>Savers </li></ul></ul><ul><ul><li>Sustainers </li></ul></ul><ul><ul><li>Technophiles </li></ul></ul><ul><ul><li>Ignorers </li></ul></ul><ul><li>Applications </li></ul><ul><ul><li>Energy information </li></ul></ul><ul><ul><li>Pricing choices </li></ul></ul><ul><ul><li>Convenience of automation </li></ul></ul><ul><li>Technologies </li></ul><ul><ul><li>Smart meters and other utility devices </li></ul></ul><ul><ul><li>Software </li></ul></ul><ul><ul><li>Smart thermostats, lighting, appliances, equipment </li></ul></ul>Slide Copyright © 2011 eMeter Corp. All rights reserved.
  32. 33. Do consumers want information and pricing choices? Slide Source: PSE, Accenture Power Perceptions, Genesis Copyright © 2011 eMeter Corp. All rights reserved.
  33. 34. Consumer Engagement Model Slide Awareness Influence <ul><li>Usage </li></ul><ul><li>Cost </li></ul><ul><li>CO 2 </li></ul><ul><li>Alerts </li></ul><ul><li>Notifications </li></ul><ul><li>Comparisons </li></ul><ul><li>Facts & Tips </li></ul><ul><li>What If’s </li></ul><ul><li>Community </li></ul><ul><li>Pricing plans </li></ul><ul><li>Load control </li></ul>Core Elements Persistent Behavior Change <ul><li>Real-time, best price sourcing </li></ul>Intelligent Energy Sourcing Demand Response Push Services Consumer Analytics & Content Energy Info & Analytics
  34. 35. Information Empowers Choice <ul><li>Enhanced information has been shown to help customers manage energy with knowledge of the cost implications of their choices. </li></ul>Slide Copyright © 2011 eMeter Corp. All rights reserved. Relation of Value to Cost Benchmarks Control/ Options
  35. 36. Washington DC Smart Grid Pilot Survey Slide Source: Smart Meter Pilot Program, Inc. Copyright © 2011 eMeter Corp. All rights reserved.
  36. 37. Information Feedback Results Slide Results from 42 programs of different mechanisms, including in-home displays, websites, bill inserts, and mailed reports. Source: eMeter Strategic Consulting Copyright © 2011 eMeter Corp. All rights reserved. Direct Feedback Programs Indirect Feedback Programs Total Programs Savings 3 3 20% 1 1 20% of peak, weekdays 2 1 3 15-19%, Mon-Sat 8 6 14 10-14% 11 3 14 5-9% 4 3 7 0-4% Weighted average savings 9.4%
  37. 38. Comparing Rate Types <ul><li>Standard rate </li></ul><ul><ul><li>Two tiers </li></ul></ul><ul><ul><li>Higher price for more usage </li></ul></ul><ul><li>Critical peak price/peak day pricing </li></ul><ul><ul><li>Slight discount during most hours </li></ul></ul><ul><ul><li>Much higher price during 60 critical peak hours per year </li></ul></ul><ul><ul><li>15 events, 4 hours each </li></ul></ul><ul><ul><li>Day-ahead notification </li></ul></ul><ul><li>Peak time rebate/critical peak rebate </li></ul><ul><ul><li>Stay on standard rate </li></ul></ul><ul><ul><li>Rebate for reductions during critical peak hours </li></ul></ul>Slide Price Comparison on Critical Peak Days $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 -$0.20 -$0.40 -$0.60 -$0.80 -$1.00 Copyright © 2011 eMeter Corp. All rights reserved.
  38. 39. Hourly Pricing <ul><li>Real-time pricing </li></ul><ul><ul><li>Varies hourly according to wholesale market price </li></ul></ul><ul><ul><li>Chart shows hourly prices in PJM in 2008 & 2009 </li></ul></ul><ul><ul><li>Bill = Σ n=1 to 720 (Price n ) x (Usage n ) </li></ul></ul>Slide <ul><li>Notifications provided prior to high-price days </li></ul><ul><ul><li>Target of 15 days per year </li></ul></ul>PJM market in 2008 and 2009 had prices mostly below the utility’s standard offer service. Source: PJM Copyright © 2011 eMeter Corp. All rights reserved. $0.39 $0.30 $0.22 $0.17 $0.11 $0.01 $0.00 7/22/08 7/28/08 1/10/09 7/17/09 10/31/09 Lehman Bros. Bankruptcy and Credit Crunch Standard Offer Service Price August 2009 Heat Wave
  39. 40. Pricing Program Results Slide Weighted average reduction of 14.3% in 70 programs. Source: Brattle Group Copyright © 2011 eMeter Corp. All rights reserved.
  40. 41. Parsing the results Slide Source: UtiliPoint, Inc. Significant peak load reductions occur even for different usage and income levels, appliance holdings and housing ownership. Copyright © 2011 eMeter Corp. All rights reserved.
  41. 42. Enabling Technology: OpenADE & HAN Interfaces Slide HAN Radio HAN Device Smart Meter Communications Network AMI Radio Utility Data Center Communication Network Head End Smart Network Application Platform Meter Data Mgmt Utility Billing & CIS Open ADE Internet Authorized Third Party Open ADE Energy Information Application Internet Next day data Real-time data Utility Web Site Copyright © 2011 eMeter Corp. All rights reserved.
  42. 43. Bringing it all together: ev charging <ul><li>Price and/or control signals sent from EVM application </li></ul><ul><li>EV owner sets charging parameters on home computer </li></ul><ul><li>EVSE manages charger based on signals and parameters </li></ul><ul><li>EVM also disconnects power at meter in outage to allow use of PEV as backup power! </li></ul>HAN Radio Smart Meter Communications Network AMI Radio Utility Data Center Communication Network Head End Smart Network Application Platform Meter Data Mgmt Utility Billing & CIS EV Mgmt HAN Radio Wi Fi Radio Home Router HAN Radio Electric Vehicle Supply Equipment Slide Copyright © 2011 eMeter Corp. All rights reserved.
  43. 44. Question #1 <ul><li>What are some of the impacts that Smart Grid technologies and services have on utility contact centers? </li></ul>
  44. 45. Question #2 <ul><li>What are the most important lessons learned for utilities to successfully leverage CRM solutions in support of any Smart Grid initiatives? </li></ul>
  45. 46. Audience Questions <ul><li>Please write your questions in the chat box and we will try to answer as many as possible </li></ul>
  46. 47. Contact Info <ul><li>Christine Hertzog: [email_address] </li></ul><ul><li>Adam Cooper: [email_address] </li></ul><ul><li>Bob Frazier: [email_address] </li></ul><ul><li>Chris King: [email_address] </li></ul><ul><li>Esteban Kolsky: [email_address] </li></ul>
  47. 48. Thanks for Joining Us <ul><li>This webinar will be available on-demand at Stop by to learn more and share your comments! </li></ul><ul><li>Connect with our panelists on The Social Customer using the search function: </li></ul>