HOME ENERGY USAGE REPORTS: DOES INCREASED FEEDBACK LEAD TO SIGNIFICANT ENERGY REDUCTIONS AND REDUCED COSTS? NASUCA MID YEAR MEETING JUNE 25, 2012 Ricky Gratz, Assistant People’s Counsel Maryland Office of People’s Counsel 6 St. Paul Street, Suite 2102 Baltimore, MD

OPOWER OPOWER is an energy efficiency and smart grid software company that partners with utilities OPOWER sends Home Energy Usage Reports that compares customers energy usage with their “neighbors” 2

BGE’s OPOWER Pilot  On May 21, 2010, the Baltimore Gas and Electric Company (BGE) filed with the Maryland Public Service Commission a request for approval of a Pilot Program featuring an innovative direct mail campaign (BGE Home Energy Report) designed to:  Better inform participants about their existing energy consumption  Encourage customers to use less energy  Increase participation in the energy efficiency components of BGE's Smart Energy Savers Program® 3

BGE’s OPOWER Pilot  BGE tested a targeted direct mailing to 25,000 BGE residential customers using energy reports based on a program developed by OPOWER  BGE sent seven test mailings every other month from October 2010 to September 2011 to 25,000 customers  The pilot customers were randomly drawn from BGE’s entire residential customer base and included both electric only and gas and electric customers  To fully test the campaign’s effectiveness, a control group of 25,000 customers was also selected  These customers did not receive the direct mailings 4

BGE’s OPOWER Pilot - Sample direct mail letter 5

BGE’s OPOWER Pilot – Results Cost: $323,000 Total Home Energy Report pilot participants saved about 1.2% on average when compared to the non-participants or control group Limited income customers saved a cumulative 1.9%, which was more than non-limited income customers Total savings – 3,478 MWH Total cost per kWh – $0.09 Pilot TRC – 1.08 (does not include incremental savings from additional participants) Users reported taking over 500 tip actions 6

Cost-effectiveness Recommendation: Apply the same cost-effectiveness standard to a Home Energy Usage Report Program as you would any other EE Program 7

Cost Recovery Recommendation: Apply the same standard to a Home Energy Usage Report Program as you would any other EE Program 8

Opt-in vs. Opt-out Recommendation: It is reasonable to allow the default option for Home Energy Usage Report Programs to be Opt-out 9

Increasing Participation in Utility Energy Efficiency (EE) Programs Recommendation: Consider adding a cost-effective Home Energy Usage Report Programs to a portfolio of utility EE programs to increase participation 10

EE Programs vs. Advanced Meter Infrastructure (AMI) Programs Home Energy Usage Report Programs are feasible without any AMI data Some Home Energy Usage Report Programs provide additional information based upon AMI data 11

New Developments Green Button Apps for Energy 12

THANK YOU! 13