Gary Evans Office of Energy Options

2 We Energies Service Territory

3 Current Renewable Energy Sources Biomass 26,370 MWH 75% of renewable power supply Wind Turbines 6,000 MWH 18% of renewable power supply Small Hydro 2,800 MWH 7% of renewable power supply

4 Background / History 1996 Formation of EFT Three goals: Demonstrate environmental stewardship Provide experience in “customer choice” Present “green pricing” as a market-based option for customers Customer Enrollment (yearly totals) 1996: :11, : :10, : :10, :11,200today:11,412

5 EFT Program Basics Residential Premium pricing option 2.04 cents / kWh customers choose: 25%, 50% or 100% No fuel cost adjustment Monthly commitment Small Business Same as residential Large Commercial/Industrial Business Block option or percentage Calendar year commitment

6 Residential Research Current Customer Demographics Recently donated to environmental organization Age 55 or older Married / no children Yearly income of $75,000 + Post graduate education Reasons for joining EFT Support the environment Reduce production from standard generation techniques Concern for future generations Keep me informed

7 Residential Research Customer Input Keep it simple! Use the term renewable energy - not “green” energy Reasonable premium - 1 cent / kWh 5% willing to pay average of $5.00 / month Suspected average program participation - 3 years Trust Issues Use CRS accreditation Want increase of wind and solar PV production Like images of wind turbines Suggest charging all We Energies customers $1/month for EFT

8 Business Research Small Business Reasons to participate Want to do something for future generations Owners decision Reasons that hinder participation Economic situation Trust is an issue/ Easy and convenient Have not been asked to participate Environmental: conservation Suggestions Use term renewable energy - not “green” energy Don’t use testimonials Keep information simple

9 Business Research Large Business Reasons to participate To meet environmental requirements The boss likes it Fixed price Positive PR opportunity Reasons that hinder participation Who else is signed up? Economy/price Suggestions Find the right decision maker Develop relationships

10 Residential Marketing Strategy Effective Integrated Marketing Radio spots Bill inserts Multiple touch direct mail Brochures postcards Phone follow-up Non effective Events Noticing decrease in direct mail success

11 Business Marketing Strategy Small Business Multiple touch direct mail Phone follow-up Large Business Large customer interviews One-on-one relationship with account rep. Long term pricing

12 Marketing Challenges Creating awareness / understanding of renewable energy Keeping the offer simple Price Limited resources Economy

13 The Future of EFT Program Growth Increase business participation New partnerships Environmental groups Marketing options Expand to new residential demographic groups Lower price Green Tags / REC’s Wind resources

14 Contact Information Gary Evans Environmental Programs Manager