Pasadena Water and Power Contract with Opower: Behavioral Energy Efficiency and Customer Engagement Program Services Pasadena City Council June 6, 2016 Item 6

Pasadena Water and Power Recommendation CEQA Exemption - Section (b)(3) Authorize a contract with Opower:  Implement a behavior-based energy efficiency program for PWP that  Saves energy; and  Engages residential customers  $1,909,500 for 5 years 2

Pasadena Water and Power Background June 2011 – Two Year Pilot Began  25,000 customers  Six bi-monthly reports per year July 2013 – One-Year Extension Authorized  Four reports per year June 2014 – New Two-Year Contract Awarded  Expanded to cover all eligible residential customers (approximately 40,000) 3

Pasadena Water and Power HERs Comparisons and Tips 4 Behavioral studies show that human beings are motivated by what they see their neighbors doing. Colorful reports are mailed to demonstrate how each resident is doing with energy usage compared to a like grouping of similar homes.

Pasadena Water and Power HERs Energy Savings 5

Pasadena Water and Power Contract Services Data Analytics via Opower’s Software-as-a-Service (“Saas”) platform:  Paper and Home Energy Reports (HERs)  Customer Website Portal (available to all customers)  Customer service interface  PWP dashboard that reports program results  Customer survey to monitor satisfaction  Data analytics to support targeted marketing 6 6

Pasadena Water and Power RFP Process RFP Released in February Four Respondents Selection Criteria Evaluation 7 Scoring CriteriaMax Points Project Understanding 10 Project Approach & Technology Requirements 15 Staffing of Project 15 Experience 25 Best Value/Cost Effectiveness 25 Local Business Preference 5 Small Business Preference 5 Total Score 100 Vendor/RespondentEvaluated Score Opower, Inc.79 Schneider Electric USA, Inc. 66 Smart Utility Systems (SUS) 69 Simple Energy 61

Pasadena Water and Power Contract Costs 8 Contract Service FY2017FY2018FY2019FY2020FY2021 Total for 5 Years Total$387,500$393,500$374,500$379,500$374,500$1,909,500

Pasadena Water and Power Recommendation CEQA Exemption - Section (b)(3) Authorize a new contract with Opower:  Save energy  Engage residential customers  $1,909,500 for 5 years 9

Pasadena Water and Power Questions 10

Pasadena Water and Power Energy Savings – Monthly 11 Energy Savings (kWh) per month

Pasadena Water and Power PWP Customer Feedback 12 Overall, customer satisfaction with HERs is high. 12

Pasadena Water and Power PWP Customer Feedback 13 High recall and read rates among Pasadena customers.  A majority of customers (81%) recall receiving the HERs.  Of those customers, nearly 100% read in some way. Over 60% report reading the reports thoroughly. Customers are very engaged in the reports.  Over 40% of customers reported talking to another member of the household about the report.  Approximately one-third saved a report for reference. 13

Pasadena Water and Power How Are Savings Calculated? 14