the extra benefits of energy efficiency for utilities …...3 how energy efficiency impacts customer...
TRANSCRIPT
The Extra Benefits of Energy Efficiency for Utilities and
Customers
Presentation at the International Energy Agency Roundtable on Capturing the Multiple Benefits of Energy Efficiency
October 15, 2013
Vicki Campbell, Director of Energy Efficiency
DTE Energy
• Use energy efficiency to drive customer satisfaction
• Target our marketing to increase awareness/satisfaction and decrease costs
• More satisfied customers lead to lower service costs and better regulatory outcomes
DTE Energy Approach
2
Who We Are
DTE Electric
• Tenth largest US electric utility with 2.1 million
customers
• 7,600 square mile service territory centered around
Detroit
• Approx. $5 billion in revenue, $16 billion in assets
• Regulated by the Michigan Public Service Commission
(MPSC)
DTE Gas
• Eleventh largest US natural gas utility with 1.2 million customers
• 14,700 square mile service territory throughout Michigan
• Significant state regulated gas storage capacity benefits customers (~132 Bcf)
• Approx. $2 billion in revenue, $4 billion in assets
• Regulated by the Michigan Public Service Commission
(MPSC)
Detroit
DTE Electric & Gas Service Territory
DTE Gas
DTE Electric
3
How Energy Efficiency Impacts
Customer Satisfaction
Energy Programs
M Electric Delivery
N Gas Delivery*
O Electric Pricing
P Gas Pricing
Q Service Reputation
R Corporate Image
78
89
64
67
71
76
27%
4%
18%
18%
29%
4%
Customer Satisfaction Key Drivers
SAVENRGY Helping customers save money on bills
53%
11%
Customers Believe metric impacts customer satisfaction
primarily via Pricing and Corporate Image
4
Budget Spend
Customer Touches
Increased Awareness
Customers Believe
Residential Awareness - Before
5
2011 Target
65%
July, 2011 Target
65%
July, 2011 Status
64%
July, 2011 Gap
(1%)
Budget Spend
Customer Touches
Increased Awareness
Customers Believe
53%
58% 57%
52% 52%
64%
62% 61%
63%
58%
63%
56%
62%
64%
50%
55%
60%
65%
70%
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Awareness Historical Trend Target = 65%
Residential Customers Believe - Before
6
2011 Target
68%
July, 2011 Target
68%
July, 2011 Status
62%
July, 2011 Gap
(6)%
Budget Spend
Customer Touches
Increased Awareness
Customers Believe
60% 59%
60% 59%
64% 65%
66%
61%
65% 64%
65%
63%
60% 59%
61%
59%
56%
60%
62%
50%
53%
56%
59%
62%
65%
68%
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Help Save Energy Historical Trend Target = 68%
7
59%
54%
61%
45%
49%
55% 54%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July
Detroit
Overall Detroit Target
Gap from target as high
as 23% in April
67%
56% 56%
61%
54%
59%
54%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July
Oakland
Overall Oakland Target
Gap from target as high as 14% in July
Identify Target
Customers
Review Data by Region
8
Review Data by Segment
61% 57%
54% 55%
49%
56% 53%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July
Cash Flow
Overall Cash Target
63%
59% 59%
55%
49%
61%
45%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July
Affluent Greens
Overall AG Target
Gap from target as high as 15% in July
Gap from target as
high as 23% in July
Identify Target
Customers
9
Targeted Print Media
Oakland County Affluent Greens Detroit Cash Flows
10
Targeted E-Mail Blasts
Affluent Greens Cash Flows
Targeted Events & Sponsorships
11
Results - Awareness
12
2011 Target
65%
YTD Target
65%
YTD Status
67%
YTD Gap
2%
Budget Spend
Customer Touches
Increased Awareness
Customer’s Believe
67%
50%
55%
60%
65%
70%
Awareness Trend
Target = 65%
Results – Customers Believe
13
2011 Target
68%
YTD Target
68%
YTD Status
69%
YTD Gap
1%
Budget Spend
Customer Touches
Increased Awareness
Customers Believe
62%
69%
50%
53%
56%
59%
62%
65%
68%
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
De
c-1
0
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Help Save Energy Trend
Improvement of 7 points from July
Target = 68%
14
Detroit numbers improved by 14
points
Oakland County saw an improvement of 5
points
59%
54%
61%
45%
49%
55% 54%
59%
58%
46%
68%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July Aug Sept Oct Nov
Detroit
Overall Detroit Target
67%
56% 56%
61%
54%
59%
54% 53% 54% 56%
59%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July Aug Sept Oct Nov
Oakland
Overall Oakland Target
Results: By Region
15
Cash Flow segment numbers
improved by 18 points
Affluent Greens segment numbers
improved by 23 points
61%
57% 54% 55%
49%
56% 53%
65%
59% 58%
71%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July Aug Sept Oct Nov
Cash Flow
Overall Cash Target
63%
59% 59%
55%
49%
61%
45%
57%
37%
59%
68%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan Feb Mar Apr May June July Aug Sept Oct Nov
Affluent Greens
Overall AG Target
Results: By Segment
Business - Before
16
57%
30%
40%
50%
60%
70%
80%
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Customers Believe
2012 Target = 59%
47%
30%
40%
50%
60%
70%
80%
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Awareness
2012 Target = 54%
16
Survey Results
17
Identifying Target Business Customers
Segments Energy Efficiency Interest
Energy Efficiency Knowledge
Industry Focus
EE Advocates High High Institutions
Tech Leaders High High Institutions, warehousing, food service
Help me Learn Medium – High
Medium Heavy Industry, food services, light mfg.
Budget Focused
Medium – High
Low Food services, warehousing
Leave me alone
Low Low Heavy Industry, Light Manufacturing
Overall Recommendation: • By Segment
Help me Learn Budget Focused Tech Leaders (added in 2013)
• By Industry
Food Services Heavy Industry Light Manufacturing Warehousing Institutions (added in 2013)
Business Customer Targeting
Business - After
18
72%
30%
40%
50%
60%
70%
80%
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Customers Believe
2012 Target = 59%
2013 Target = 70%
63%
30%
40%
50%
60%
70%
80%
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Awareness
2012 Target = 54%
2013 Target = 63%
Survey Results