SmartRate Best Practices and Lessons Learned Title: Residential Rate Reform: Assisting Customers With Rate Reform Inquiries Audience: CCO & CSO Prerequisite courses: N/A Duration of training: CCO 90 mins, CSO 60 mins Duration of deck: CCO 60 mins, CSO 45mins Duration of mentoring: N/A Knowledge Check (quantity): 8 Hand-on scenario/phone calls (length and quantity): N/A Paper Knowledge Check: N/A Activities: Only for CCO: Slide 48-50. 15 mins total, 5 mins each for Rate Reform, Manage Bill, Value Job Aids: N/A Instructor Demo/Live Account: N/A Tools/Applications: N/A Access for Tools/Applications contacts: N/A Required Resources: N/A CPUC Workshop: Marketing, Education and Outreach Day 2 - Session 1 July 31, 2014

SmartRate - Background SmartRate is PG&E’s opt-in Critical Peak Pricing (CPP) program for residential Customer acquisition marketing began in 2008 and 2009 In 2010 and 2011, due to regulatory uncertainty (PDP conversion), SmartRate messaging was through integrated marketing 2012 and 2013, increased focus on acquisition marketing applying “Test & Learn” results By 2013, overall acquisition goal was 100k participants Exceeded goal: Current enrollment is 130,000 customers

Enrollment Volumes by Year Anticipated PDP Conversion The 2013 enrollments somewhat lower than in 2012. Fewer communications sent in 2013 compared to 2012 *2012 Enrollment include both enrollments from SmartRate acquisition efforts as well as other cross-sell efforts whereas, in 2013, very few enrollments came from outside the acquisition campaign. SmartAC has a similar product adoption pattern based on data available on CAS

“Test and Learn” Strategy Analytical strategy to test ideas on a smaller scale to estimate impact Market messaging Market collateral formats Number of touches Timing of touches Participation incentives Used for both acquisition and retention

2013 Direct Marketing Test Results Audience 2013 Acceptance Rate Gen Population - 2 Letters (Overall) - 1 Letter / 1 Email - 1 Letter - 2 Emails   5% 6% 4% 1% Rate Comparison - Rate Comparison Message - No Rate Comparison Message 4.4% 3.7% SmartAC - 2 Letters 16%

SmartRate ME&O Lessons Learned Direct mail followed by email is most effective Phased multiple touches increase enrollment, but at a diminishing rate Incentives had a large impact on initial enrollments, but to a lesser extent in 2012 and 2013 SmartAC cross-sell has the highest enrollment rate Customized rate comparison resonated with customers Timing of campaigns is important On-line enrollment continues to increase

Customer Perception 83% of customers very satisfied with the program overall 64% of customers reported saving money 79% of customers reported saving energy Most participants aware of program through direct mail Opportunity to save money is the biggest driver Materials sent to participants appear to have worked well with 74% understanding the program extremely well

Thank you! Maril Pitcock Director, Pricing Products mxwl@pge.com