Jeff Okrucky Director Distribution Marketing

Putting Customer Data to Work: Low Income Targeting

CEE INDUSRY PARTNERS MEETING, Atlanta, Sept. 19, 2013

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Union Gas

• Major Canadian natural gas storage, transmission and distribution company based in Ontario

• Over 100 years of experience and safe service to customers

• Dawn Storage facility – largest underground storage facility in Canada

• Dawn Hub, one of the top-5 physically traded hubs in North America

• Assets of $5.8 billion, ~1.4 million customers, ~2,200 employees

• One of Canada's Top 100 Employers for 2011, 2012, 2013

• A Spectra Energy (NYSE: SE) company

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Retail Customers 1.4 million 2012 Pipeline Throughput 1.295 Bcf Distribution Pipe 63,200 km / 39,000 mi Storage Capacity 155 Bcf Transmission Pipe 4,750 km / 3,000 mi

Union Gas |

Spectra Energy’s Diverse Portfolio of Assets

Gas storage facility Gas processing plant Propane terminal NGL storage Shale gas formations Crude storage Major oil pipeline terminal

Connecting the largest diverse markets with growing supply

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• “Helping Homes Conserve”: Energy Audits, Insulation, Air Sealing, Programmable T’stats, Hot Water Conservation Measures – Customer must qualify based on income – Customer’s home must qualify based on insulation upgrade

requirements – Initially delivered 2008, quantity building to 450 homes in 2011 – Focussed on social housing and non-profit low income rental sectors

• New DSM Framework negotiated for 2012 resulted in incremental budget and targets: 1,100 homes

Low Income Weatherization Program

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Approach

• Dramatically extend program reach: – Number of communities – Delivery agent capacity – Customer segments

• Use relevant data to accurately target privately owned homes – Critical for target achievement and to manage demand

• Customer research: focus groups to define and leverage value proposition

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Data Sources

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Account Number

Name

Address

Meter Number

Dwelling Type

Annual Consumption

Building Size

Year Constructed

Postal Code Average Income

Address

% Below Income

Threshold

Address

Internal Data: Customer Billing and DSM Tracking Systems

Demographic Data: Canadian Census; Manifold Data Mining

Housing Stock Data: Municipal Property Assessment Corporation (Province of Ontario)

C0NSOLIDATOR DMTI Spatial Inc

Address Dwelling

Type

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• Weighted Scoring Matrix:

• Tool: Web based portal with target mapping and mailing list export function

• Initial target: homes with overall score > 3.0; ~70,000 home universe

Converting Data to Knowledge

Score

Consumption/Building Size

Year Constructed

% < Income Threshold

Weight 50% 30% 20%

1 0-1.52 >1995 30-39%

2 1.53-1.95 1976-1995 40-49%

3 1.96-2.25 1961-1975 50-59%

4 2.26-2.69 1951-1960 60-79%

5 >2.69 <1951 80-100%

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HHC Portal

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Promotional Tactics

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Direct Mail, Post Cards, Door Hangers, Signage

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Outcomes

•Private market offering commenced mid year •1,757 homes completed: overachieved 1,100 home target – 16% of homes from private market, contributing 30% of

lifetime savings; increasing in 2013 – Confidence in 1,800 home target for 2013

•Typical direct mail response rate of 1% increased to 5-8% range for initial mailings

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Lessons

•“Marketing-Speak” vs “IT-Speak”: It’s all in the translation

•Addressing is the key challenge •The data and knowledge are more important than the visuals

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