Power Forward Data Access - March 5, 2019 - PUCO
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Power Forward Data Access March 5, 2019 Proprietary - Use pursuant to company policy ®Direct Energy Marketing Limited, used under license.
About Direct Energy • What it means to work for Direct Energy WE: Give our customers choice, WE: Make energy work harder for our nearly simplicity and innovation where five million home and business customers energy, data and technology meet. across North America. WE: Compete to earn their business WE: Empower our customers with simple every day. solutions to track, understand and control the electricity and natural gas they use. WE: Provide the insights our WE: Will continue to lead energy innovation customers need to make smarter through connected experiences that make a decisions, be more efficient, reduce difference in people’s lives. their energy use and save money. 2
Who is Direct Energy? • One of North America’s largest retail A sample of our external providers of electricity, natural gas, and brands: home and business energy-related services. We give customers choice, simplicity, and innovation where energy, data, and technology meet. • We provide our residential and business customers with innovative tools, technology, and insights to manage their energy use. 3
Parent Company Facts • Centrica is an energy and services company. Everything we do is focused on satisfying the changing needs of our customers. Operates in 7 Countries with 27.5 36,494 Employees World-wide Million Customer Relationships $ Revenues of US $33.9 Billion One of the UK’s best brands – British Gas Top 40 FTSE 100 company Over 500,000 Hive Hubs Installed 4
History of Ohio Data Discussion Versus Texas Success 12-2050-EDL-ORD: Electric Rulemaking 477,773 12-3151-EL-COI: Retail Market COI 408,561 11-3549-EL-SSO: Duke ESP 331,138 321,504 11-277-GE-UNC: Consumer 289,848 16-395-EL-SSO: DP&L ESP Protection/Data Access Review 16-481-EL-UNC: FE Grid Mod 10-2326-EL-RDR: Duke SmartGrid rider 135,318 14-2209-EL-ATA: Duke Data Case 09-1820-EL-ATA 13-1141 17-1263-EL-SSO: Duke ESP 08-920-EL-SSO: Duke ESP 13-1939-EL-RDR: AEP Grid Smart 17-32-EL-AIR: Duke Rate Case 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cases in which we requested data access Meanwhile, ERCOT TOU Enrollments
Barred Products: 10 years of products and customer control • Pre-paid • Time of Use – Pay as you go – Free hours, days, etc. – Deposit forgiveness – On/off peak - discretion – Bill control – Pick your time products *The only open Ohio products today for • Direct Market Pricing CRES are a few restricted and – Straight wholesale passthrough antiquated products without data access – Direct Load Control – bring your tech behind AEP. • Demand Response – PLC control – Bill credit for shifting
Our ethnographic research reveals customers’ need for security • The world is unstable; daily life feels less safe, more on edge, tense • Uncertainty leads to lowered expectations • Customers are looking for order & control • Customers want to be heard; empathy matters • Trust is a scarce commodity – and easily broken • In an uncertain world, the emotional bond with home is strengthened Proprietary - Use pursuant to company policy ®Direct Energy Marketing Limited, used under license. 7
Managing financial constraints with prepaid electricity
Giving customers control … across their budget • I like the weekly notifications about my usage, and I literally couldn't find a single complaint if I tried. • Sending weekly emails about how much electricity I’ve used so I can monitor my usage is very appreciated • Consistent electric bills, able to keep track of my energy usage weekly and customer service has always delivered. • Enjoy your communicating with weekly usage and comparing with past usage. • Love the weekly emails with the usage information on it. It lets me know where I stand in usage. • Friendly customer service Easy web interface for bill payment Minimum hassles I LOVE THE WEEKLY UPDATE WITH USAGE AND PREDICTED BILL • I like receiving weekly updates about my usage, so that I can try to adjust it and keep my bill lower. • Direct Energy give great weekly views so I know what my usage is and I’m able to budget better • I love the online services and getting emails about my weekly usage. • I like the cost and the fact that I am alerted to the amount I spend weekly. • Great pricing available, weekly view of estimated costs, and when I have had to talk to a representative it was quick and friendly resolution.
Actionable insight has led to energy efficiency • Study led by NERA Economic Consulting found that, among Texas customers in 2014-2016, a customer on Power-to-Go would use on average 9.6% less electricity than a similar customer on a postpaid product.1 • This effect controls for any effect of disconnections or subsidies, and considers both low income and non-low-income. • Previous studies had found a similar effect with utility prepay programs, with impacts ranging from 5.5% to 14%.2 1. Dr. Derya Eryilmaz (NERA Economic Consulting) and Sam Gafford (Direct Energy), “Can a Daily Electricity Bill Unlock Energy Efficiency? Evidence from Texas.” The Electricity Journal, Volume 31, Issue 3 (April 2018). 2. Qiu, Yueming, Bo Xing, and Yi David Wang, 2016. Prepaid Electricity Plan and Electricity Consumption Behavior. Contemporary Economic Policy, 35(1) 125-142. Ozog, Michael and Integral Analytics, Inc., March 2013. “The Effect of Prepayment on Energy Use.” Report for the Distributed Energy Financial Group (DEFG) Prepay Energy Working Group. Distributed Energy Financial Group (DEFG) and Integral Analytics Inc., January 23, 2014. “Prepay Energy Conservation Impact Study.” Report for Northwest Energy Efficiency Alliance (NEEA).
Data: A Historical Usage Web Portal Doesn’t Bring Products What Why • 15 min intervals – no greater than • Granular data provides greater hourly customer insight, control, and • EDI transfer one time a month reaction. interval data for purposes of supply • EDI is standard system design for scheduling, billing and settlement. supply, billing and settlement • Billing data and settlement for PJM • Next day or daily receipt of non-bill should match. quality for purposes of load • Engagement and response control. information. • Historical Interval Usage can be a • Tailor products to a customer where web portal/API the greatest benefit can be achieved Proprietary - Use pursuant to company policy ®Direct Energy Marketing Limited, used under license. 11
Lets Build For the Future Not Just Today • PLC Calculations based • Allows customers to on individual peaks impact their capacity • Standard meter data costs • 100% deployment AMI would be standard to create an educated customer
Proprietary - Use pursuant to company policy ®Direct Energy Marketing Limited, used under license.
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