2016 Benchmarking Insights Conference Boulder, CO Energy Efficiency 2016 Benchmarking Insights Conference Boulder, CO This material has been optimized for the Insights Conference audience. To get the most of this material and hear a recording of this presentation go to our http://1stquartileconsulting.com/benchmarking/customer_service_b/csdocs.html.

Agenda Overview Coverage of the Study for Energy Efficiency 2016 Key Findings/ Points of Emphasis 2016 Benchmarking Results Utility Energy Efficiency/ DE/ Load Management Programs Staffing, Organization and Spending Incentive, Innovation, Growth Areas of Focus and Opportunity

Energy Efficiency…New Survey Area this year 2016 is the first year of Energy Efficiency as a survey area. We sought to get basic benchmarking information this year in the following areas. Subsequent benchmarking will be driven by interest and focus on specific Energy Efficiency topics Utility Energy Efficiency/ DE/ Load Management Programs Staffing, Organization and Spending Programs for Incentive, Innovation Areas of growth

Coverage of the 2016 Customer Service Benchmark Study Field Service Change of Account Billing Field Orders (meter investigations) Credit Field Orders Order Management Customer Contact Contact Center Local Office Self Service Contractors Credit Inbound calls Revenue Management Credit Office and Outbound calls Credit Field and Inbound Contact Policies Revenue Protection: Office and Field Back Office Billing Billing Field Policies Payment Processing Meter Reading Manual Mobile AMR Fixed Network AMI CS Support and CS IT Employees: Safety, Staffing Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management, Energy Efficiency , Outage Communications Areas excluded: Meter Change-out

Benchmarking Results

ENERGY EFFICIENCY PROGRAMS Nearly all companies reported Energy Efficiency Programs; 42% have some type of DE (Distributed Energy) Program Total Respondents 24 Load management Demand Response 71% Distributed Energy 42% Utility Energy Efficiency Programs 92% State sponsored Energy Efficiency Programs 38% Legends 21 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 49 50 Load management Demand Response ♦ Distributed Energy Utility Energy Efficiency Programs State sponsored Energy Efficiency Programs EE Page 2 – EE5

RESIDENTIAL ENERGY EFFICIENCY PROGRAM AREAS - # OF PROGRAMS Companies offered programs across the entire spectrum of energy efficiency. Most number of programs were from utilities in Michigan and Texas Legends 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 49 50 Lighting 1 2 Air Conditioning 3 Appliance Plug Load Single Family Comprehensive Multi Family Comprehensive Other 4 5 Residential Audits and or Information New Construction Information and Incentives Mass Market Advertising Total Residential Programs 8 11 10 6 7 15 16 EE Page 3– EE10

Largest Residential Incentive Programs Each utility identified its largest Residential Incentive Programs, with Residential Lighting and Low Income/ Multi-family the most frequently identified Programs Company Lighting 22, 29, 34, 30, 41 Home Energy 33, 21 Low Income 47, 48, 49 Efficient Product 44, 39 Multi-Family 42, 47 Appliance Recycling 50, 28, HVAC 23 EE Page 21– EE45

NON-RESIDENTIAL ENERGY EFFICIENCY PROGRAM AREAS - # OF PROGRAMS Companies offered programs targeted to business’. Most number of programs were from utilities in Texas and Pennsylvania Legends 21 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 50 Lighting 1 2 3 HVAC Refrigeration Motors Compressed Air Process Small Business Comprehensive Large Business Comprehensive Other (includes Cogen etc) 5 Information and Training: EndUser Information and Training: Trade or Business Alliance New Construction Information and Incentives Mass Market Advertising Total Non-Residential Programs 7 4 9 13 11 24 10 EE Page 4– EE15

Largest Non-Residential Incentive Programs Each utility identified its largest Non-Residential Incentive Programs, with Residential Lighting and Direct Install (audit, review, upgrades) the most frequently identified Programs Company Lighting 29, 23, 42, 32, 48 Direct Install 22, 21, 41, 50, 28 Standard Offer 33 Commercial Efficiency; Efficient Buildings 44, 26, 46, 38, 25 EE Page 21– EE45

ENERGY EFFICIENCY PROGRAM AREAS - % OUTSOURCED With the exception of End-User Information and Training and Mass Marketing Advertising, nearly all programs are outsourced Legends 21 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 48 50 Lighting 95 100 13 HVAC Refrigeration Motors Compressed Air Process Small Business Comprehensive Large Business Comprehensive Other (includes Cogen etc) 60 Information and Training: EndUser 20 Information and Training: Trade or Business Alliance New Construction Information and Incentives Mass Market Advertising EE Page 4– EE15

Top Energy Efficiency Activities Outsourced Company Top Outsourced 2nd Outsourced 3rd Outsourced 22 Residential Lighting Small Bus. Direct Install Incentive and Custom Program 23 Single Family Comprehensive LI/ weatherization—assessment, installations, inspections Contract refrigerator recycle - 25, 26, 38, 39, 46 Outreach Marketing Invoice Processing Application processing & savings calculations 44 Implementation—all programs 28, 50 Refrigerator Recycle- implementation and processing Small Bus. Direct Install- lighting audits and upgrades Multi-Family Program: implementation, audits and equipment installation 30, 41 Residential Quick Home Energy Checkup Program- audits and direct installs Small Bus. Direct Install- App processing, engineer review Other Programs- application processing/engineering review 34 BEA –dashboard management 47 Installation/ services implementation QA and QC 32 Implementation Contractors (IC) for administering all of the programs; CustomerLink as EO Call Center handles questions and schedules appointments All of residential and business programs and identify program administration Call Center - residential program scheduling and Q&A support 33 Health Care Program implementation IT program database Small Bus Direct Install Impl. 42 EE retail discounts Demand response curtailment settlements Commercial energy audit on-line tools

Total Programs by Company

COMPANY STAFFING FOR ENERGY EFFICIENCY PROGRAMS An average of 15 FTEs per 100K Customers Given the level of outsourcing of programs, benchmarking staffing levels is difficult. Mean 15.23 Quartile 1 4.75 Quartile 2: 8.50 Quartile 3: 28.00 EE Page 8– EE20

Total Spending Most of the money is from internal sources for energy efficiency programs. Spending by Program Group Spending by Cost Type Mean 39.46 Median: 28.54 EE30.1,2,3

ORGANIZATION WHERE ENERGY EFFICIENCY PROGAMS ARE LOCATED 50% of the organizations are separate Energy Efficiency, 37% are in Customer Service Total Respondents 24 Customer Service 38% Separate EE organization 50% Marketing 8% Other Legends 21 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 49 50 Customer Service ♦ Separate EE organization Marketing Other EE Page 17– EE35

AVERAGE TOTAL NUMBER OF ENROLLED CUSTOMERS LAST YEAR FOR THE INCENTIVE PROGRAMS - RESIDENTIAL Residential Incentive enrollment averaged 37K per company reporting, with a median of 21K Enrollment in New Jersey, Michigan, Pennsylvania, Maryland/DC is highest Mean 37,681 Median: 21,587 EE Page 20– EE40.1

7 companies have over 2,000 Non-Residential Customers Enrolled AVERAGE TOTAL NUMBER OF ENROLLED CUSTOMERS LAST YEAR FOR THE INCENTIVE PROGRAMS - NON- RESIDENTIAL 7 companies have over 2,000 Non-Residential Customers Enrolled Michigan, Maryland/DC, Pennsylvania have highest enrollment Mean 1,890 Median 2,603 EE Page 19– EE40.2

ESTIMATING ENERGY AND DEMAND SAVINGS FROM TWO LARGEST INCENTIVE PROGRAMS - RESIDENTIAL Companies tend to use a combination of Deemed and Measured approaches to estimating savings from Residential Programs Total Respondents 23 Deemed 30% Measured 4% Both 61% Neither Legends 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 49 50 Deemed ♦ Measured Both Neither EE Page 29– EE55.1

ESTIMATING ENERGY AND DEMAND SAVINGS FROM TWO LARGEST INCENTIVE PROGRAMS - NON-RESIDENTIAL 62% of companies are measuring both deemed and measured savings for non-residential Total Respondents 21 Deemed 33% Measured 0% Both 62% Neither 5% Legends 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 48 50 Deemed ♦ Measured Both Neither EE Page 30– EE55.2

MEASURES USED FOR EE PROGRAMS Primarily Cost Effectiveness and Participation Rates are used. Sustainability is measured by only 1 in 6 companies Total Respondents 24 Cost effectiveness 91.67% Sustainability 16.67% Participation or adoption rates Market effects 25% Other 12.5% Legends 21 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 49 50 Cost effectiveness ♦ Sustainability Participation or adoption rates Market effects Other EE Page 32– EE60

LARGEST AREA OF GROWTH IN TERMS OF PROGRAMS OFFERED Energy Efficiency was identified as the largest area of growth, with Load Management/ DR second Total Respondents 23 Load management Demand Response 21.74% Distributed Energy 13.04% Utility Energy Efficiency Programs 60.87% States ponsored Energy Efficiency Programs 4.35% Legends 22 23 25 26 27 28 29 30 32 33 34 37 38 39 41 42 44 45 46 47 48 49 50 Load management Demand Response ♦ Distributed Energy Utility Energy Efficiency Programs States ponsored Energy Efficiency Programs EE Page 33– EE65

Thank You for Your Input and Participation! Your Presenters Ken Buckstaff Ken.Buckstaff@1QConsulting.com 310-922-0783 Debi Cook Debi.Cook@1QConsulting.com 760-272-7277 Gene Dimitrov Gene.Dimitrov@1QConsulting.com 301-535-0590 Rob Earle Rob.Earle@1QConsulting.com 315-944-7610 About 1QC First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs. Visit us at www.1stquartileconsulting.com | Follow our updates on LinkedIn