Communicating Pricing to Residential and Business Customers 2006 APPA Customer Connections Conference Kevin Martin Key Accounts Manager Danville Utilities.

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Presentation transcript:

Communicating Pricing to Residential and Business Customers 2006 APPA Customer Connections Conference Kevin Martin Key Accounts Manager Danville Utilities November 6 th, 2006

Introducing Danville, Virginia Located in Southside Virginia on the Virginia - North Carolina border 207 miles from Washington, D.C. 150 miles from Richmond, Va. 67 miles from Raleigh, N.C. Web Sites

Introducing Danville, Virginia Population -- City: 46,000 Metropolitan Area: 107,000 Size -- City: 44 sq. mi. Electric Service Area: 500 sq. mi. History -- Founded in 1793 and incorporated in 1830 as a tobacco and textile manufacturing center. Utilities founded in 1880’s. Government Structure -- Council-Manager Municipal Employment -- 1,245 full-time and part-time employees

About Danville Utilities

187 fulltime employee positions $154 million in expenditures in FY 2007 (over ½ of the City's budget!)

About Danville Utilities 500 Square Mile Territory City Served: Danville, VA 3 Counties Served: Pittsylvania, Henry, and Halifax

About Danville Utilities Natural Gas 16,500 Customers 29,000 Decatherms/Day Additional Capacity Available

About Danville Utilities Water and Wastewater 16,500 Customers 18 MGD Water Plant 24 MGD Wastewater Plant Water Source: Dan River

About Danville Utilities Telecommunications nDanville Fiber Optic Network Gigabit Ethernet OC-3 Internet Connection

About Danville Utilities Electric 45,000 Customers Size: 240 MW Generation: 12 MW Hydro, 6 MW Diesel Units

Situational Background RATE INCREASES!!! Fuel Cost Increases Electric Deregulation Dysfunctional Wholesale Electric Markets

Situational Background Residential Rate per kWh: From 5 cents to 7.4 cents Business Rate per kWh: From 3 cents to 6 cents

Situational Background Natural Gas We All Know What Happened There…

Situational Background Water and Wastewater Operations Are Large Power Users Electric Increases = Water Increases

3 M’s of Marketing Market Target Message Mode of Delivery

Market Target Residential Customers Businesses Key Accounts

Message: Residential Customers What’s Happening Why It’s Happening What You Can Do

Message: Businesses What’s Happening Why It’s Happening What You Can Do Technical Information

Message: Key Accounts How It Happened Future Projections Actions To Be Taken Detailed Technical Information

Modes of Delivery: Residential Customers Web Page Information Group Meetings TV, Radio, Newspaper Bill Stuffers

Modes of Delivery: Businesses Web Page Information Chamber of Commerce Business Group Meetings TV, Radio, Newspaper

Modes of Delivery: Key Accounts Personalized Key Account Group Meetings Individual Key Account Meetings

Recommendations Be Honest Be Direct Listen

Recommendations Inform In Advance Give People Time to Prepare Be Cognizant of Budgeting Schedules

Recommendations Educate Internally & Externally Don’t Assume Understanding Anticipate Questions

Recommendations Chase The Media Don’t Let The Media Chase You Tell The Negatives But Keep The Focus On Strengths

Resources We Used US Department of Energy: Energy Saver Books Industrial Technology Classes Industrial Energy Assessments

Resources We Used Energy Consultants: Rate Analysis Energy Audit Seminars Informational Business Meetings

Resources We Used United Way: New Utility Assistance Program Continued Public Education In Energy Conservation & Household Budgeting

Results of our efforts New and Expanded Local Markets For Energy Efficiency Products

Results of our efforts Community Trust & Strengthened Relationships with Businesses and Key Accounts

Results of our efforts Continued Success In Economic Development

Results of our efforts And… I get to keep my job!

Thank you Questions?

Communicating Pricing to Residential and Business Customers Kevin Martin Key Accounts Manager Danville Utilities November 6 th, O: C: