11 Selling Natural Gas On Advantages Other Than Price Connecticut Natural Gas and The Southern Connecticut Gas Company Northeast Gas Association Sales & Marketing Summer Seminar August 27, 2015

2 Why is this important?

3 What Can We Do About It? Redirect focus toward value of natural gas. Educate prospects. Very low awareness. Focus prospects on the long term. Take a targeted approach to prospecting.

4 Value Proposition 1: Price Stability Ask your prospect how easy it is to budget for heating oil? Focus on price stability of natural gas. As regulated utilities our prices are reviewed and approved by regulatory authorities. Ask, how does your oil dealer maintain price stability? There is a price for those fixed price contracts.

5 Value Proposition 2: Less hassle! No more shopping for best price No more scheduling deliveries No more clearing a path for deliveries

6 Value Proposition 2: Less Hassle Natural gas appliances are easier to maintain, and they are quieter and cleaner. No soot or smell. Maintenance costs are high with oil systems. With Natural gas appliances a maintenance contract isn’t generally needed. No risk of a potential puff back if your system hasn’t been properly maintained. No soot from vented furnaces on siding.

7 Value Proposition 2: Less Hassle What if you run out of oil?

8 Value Proposition 2: Less Hassle How would you like to spend your next power outage? Natural Gas Generator

9 Value Proposition 3: Lifestyle Benefits

10 Value Proposition 3: Lifestyle Benefits

11 Value Proposition 4: Go Green Natural Gas is the cleanest burning fossil fuel. Produces less air pollution and particulates. No soot or fumes. 28% less carbon dioxide than fuel oil.

12 Value Proposition 4: Go Green Not only is this not good for the environment, you may need to hire a licensed environmental contractor if fuel oil has soaked into the soil or gotten into groundwater, costing you potentially thousands of dollars not to mention the cost of replacing your tank.

13 Commercial Value Proposition Helps to meet corporate Sustainability goals. Budgeting stability Lower overall maintenance & extended life of equipment Resale value of property is increased Landlords say all the time, its easier to attract tenants (Commercial and Residential) to buildings with natural gas. Natural gas opens the door for Distributed Generation, Micro turbines and fuel cells, etc. Provides more equipment choices, higher efficiency units, Roof top units, gas driven chillers etc.

14 Long Term View Increase Resale Potential and Resale Value of Home

15 Long Term View Sussex Advisors research indicated that over 60% of people surveyed felt oil will go up. Close to 80% of those surveyed said they viewed oil prices over the long term. Questions we should be asking our prospects: What do you think will happen to oil prices over the next few years? What has been your experience with oil prices? Educate your customers as to why oil prices are currently low. Ask if they think that is sustainable.

16 Take a targeted approach to prospecting Target end of life systems. Are you capturing age of equipment on leads? If not, start today. Target customers who value the lifestyle benefits of natural gas and view conversion as a home improvement. Identify homes undergoing renovations or home improvements. Network with remodelers. Identify your ideal prospects. Propensity scoring. Where are there less costly conversion burner opportunities?

17 What we are hearing Focus group comments “ I love my gas stove. I hated cooking on electric. Gas is so much better.” “ We are thinking of selling our house in a few years and our realtor said gas is a huge selling point for buyers.” “With oil I always had to be so mindful to make sure we weren’t going to run out. I like the fact I don’t have to do that anymore. I don’t even have to think about it.” “ I always felt like my oil company was ripping me off. I spent so much time calling around and checking prices.” “So Much easier to budget now.”

18 What we are hearing Your prospects want to be educated. Hand hold them through the process. Help them with the conversion process. Low awareness of benefits.

19 Questions