overview of arra-funded sgig consumer behavior studies
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Overview of ARRA-Funded SGIG Consumer Behavior Studies. Peter Cappers (LBNL) A National Town Meeting on Demand Response and Smart Grid July 11, 2013. Overview of SGIG Consumer Behavior Studies. - PowerPoint PPT PresentationTRANSCRIPT
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Overview of ARRA-Funded SGIG Consumer Behavior Studies
Peter Cappers (LBNL) A National Town Meeting on Demand Response and Smart GridJuly 11, 2013
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 2
Overview of SGIG Consumer Behavior Studies
• DOE Smart Grid Investment Grant (SGIG) Funding Opportunity Announcement (FOA) was released in June 2009 – Goal: Provide more definitive answers to policymakers responsible for
modernizing the country’s electricity infrastructure, in part by funding studies/pilots
• FOA stated ideal approach for conducting funded consumer behavior studies:– Focus on highly dynamic pricing tariffs (i.e., RTP, CPP)– Random assignment of start date for customers to be exposed mandatorily
to dynamic pricing as default rate design– Customers remain on such rates for at least two (2) years– Requirement to deliver highly granular customer-level data for subsequent
DOE cross-project analysis
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 3
Enrollment Approach Used in Studies
• All 11 utility studies include some form of opt-in enrollment approach
• 3 studies augment this with an opt-out enrollment approach
Opt-In Opt-Out Detroit Edison
Cleveland Electric Illuminating Co.
Green Mountain Power
Lakeland Electric
Marblehead Municipal
Minnesota Power
NV Energy – Nevada Power
NV Energy – Sierra Pacific Power
Oklahoma Gas & Electric
Sacramento Municipal
Vermont Electric Cooperative
TOTAL 11 3
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 4
Rate Treatments Included in Studies (2)
• 8 studies implementing CPP; 6 of them have a CPP overlaid on a TOU
• 1 study looking at both CPP & CPR
• 2 studies using different forms of VPP
CPP TOU VPP CPR Detroit Edison
Cleveland Electric Illuminating Co.
Green Mountain Power
Lakeland Electric
Marblehead Municipal
Minnesota Power
NV Energy – Nevada Power
NV Energy – Sierra Pacific Power
Oklahoma Gas & Electric
Sacramento Municipal
Vermont Electric Cooperative
TOTAL 8 7 2 2
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 5
Non-Rate Treatments Included in Studies
• 3 studies included both In Home Displays (IHDs) and Programmable Communicating Thermostats (PCTs)• 2 studies
developed an education curriculum
IHD PCT Education Web Detroit Edison
Cleveland Electric Illuminating Co.
Green Mountain Power
Lakeland Electric
Marblehead Municipal
Minnesota Power
NV Energy – Nevada Power
NV Energy – Sierra Pacific Power
Oklahoma Gas & Electric
Sacramento Municipal
Vermont Electric Cooperative
TOTAL 5 5 2 1
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 6
SGIG Consumer Behavior Study Schedule
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
Pilot
Evaluation
OG
&E
MM
LDGM
PVE
CM
N Po
wer
CEIC
DEC
oSM
UDLa
kela
nd
NV
Ener
gy -
NVP
NV
Ener
gy -
SPP
RecruitmentStudyInterim EvalFinal Eval
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 7
Overview of Recruitment Effort
• Opt-in recruitment rates 5-28%
• Opt-out recruitment rates 78-87%
• Only able to discern what caused differences in recruitment rates for handful of experimentally controlled offers
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 8
Impact of Different Time-Based Rate Offerings Under Opt-Out and Opt-In
Only a single utility study included more than one opt-out time-based rate program offering to a group of randomly assigned customers
: Recruitment Rate= Recruited customersSoli cited customers
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 9
Lesson Learned: Value of Test Marketing
• Many utilities believed words like “critical”, “emergency”, “auto” and “events” would help to induce participation in these types of rates
• Instead, focus groups and other research efforts showed such terms were construed as reactionary
• Customers were more willing to take up offers that included terms like “control”, “choice” and “sense”
Utilities found focus groups, surveys and other tools to be vital components for test marketing terms and concepts to attract customer interest and engage them to participate in the rate being offered
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 10
Lesson Learned: Everyone’s Job Is Customer Service• Many utilities presumed the internal utility workers and external
contractors used to install and provision equipment at a customer’s home would have no impact on the enrollment process
• Instead, many installers didn’t sufficiently appreciate their public relations role and so negatively impacted customer engagement efforts
Utilities realized the need to ensure that all utility representatives and contractors that interact with customers at any level are informed, committed and enabled to make the experience a positive one for the customer
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 11
Major Deliverables
Policy TopicDOE & LBNL
ReportDOE & LBNL
ReportDOE & LBNL
ReportUtility
ReportsCustomer Response Customer Acceptance Customer Retention Bill Impacts Due Date Q2 2014 &
Q4 2015Q2 2013 Q3 2014 2012-2015
http://www.smartgrid.gov/recovery_act/consumer_behavior_studies
http://emp.lbl.gov/research-areas/demand-response-smart-grid
LBNL – Smart Grid Investment Grant Consumer Behavior Study Analysis 12
Questions/Comments
Peter Cappers(315) [email protected]