1. 14 March 2016 1 Austin’s Energy Leadership Clean, Sustainable Energy: A Neighborhood Approach Karl R. Rábago Distributed Energy Services Austin Energy 19 March 2012

2. 14 March 2016 2 Society Economy Environment Austin Energy’s Mission Statement

3. 14 March 2016 3 Clean Energy for Everyone, Today and Tomorrow.

4. 14 March 2016 44 Overview Austin Energy Overview Energy Efficiency Awareness Local Context Importance of Local Research Case Studies Community Engagement Conclusions / Q&A

5. 14 March 2016 55 Austin Energy Overview Nation’s 9 th largest community-owned electric utility Generation portfolio of just over 2,600 MW – Coal (600) – Nuclear (400) – Natural Gas (1400) – Renewables (Wind, Solar, Landfill Gas, Small Hydro) Nation’s first and largest Green Building program GreenChoice ® # 1 nine years running (kWh sales) Serve population of roughly 1 million

6. 14 March 2016 66 Energy Efficiency Awareness Recent Survey: 61% Unaware of Incentives Disconnect between Usage (kWh) & Cost ($) Multiple, Mixed Messages Hassle Factor / Transaction Costs Lack of Trust in the Utility Need to align measures with programs Fixation on “Mass Market”

7. 14 March 2016 77 All Politics are Local… …as is energy usage behavior Mass Market is Dead Word of Mouth Paramount in Awareness: – Neighbors – Contractors – Community Organizations – Direct message where customers congregate Partner with Organizations customers trust

8. 14 March 2016 88 Research/Segmentation Understanding Customer Segments Critical Primary Value: Saving Money ($) Secondary Values: – Support environmental initiatives – Increase property value – Make process seamless / EE coach Research MUST inform marketing Continuous monitoring/market research

9. 14 March 2016 99 Case Study: ARRA Weatherization Only municipality in the US to deploy funds Understand areas of most need / Census Data Outreach is critical – Partnership with community leaders – Recognize potential for pockets of poverty Reduce complexity for customers Results: – Average of $4,900 in free improvements – Twice received additional funding

10. 14 March 2016 10 14 March 2016 Case Study: Small Business Lighting Assist in upgrading inefficient lighting systems Summer peak of 100 kW or less Partnership with multiple local contractors Sales are split geographically Cold call & direct engagement with customers Process to identify leads based on high bills Multiple marketing channels utilized

11. 14 March 2016 11 14 March 2016 Case Study: Electric Vehicle Infrastructure National leadership through Plug-In Partners™ Federal support for charging stations Incentives for charging stations and 2-wheel electric vehicles Less than 5 miles from a charging station $25 = 6 months unlimited public charging

12. 14 March 2016 12 Energy Savings from Going Electric Gasoline ICEElectric drive

13. 14 March 2016 13 14 March 2016 Transportation Fuel Costs and Emissions

14. 14 March 2016 14 Demand/Wind Supply Mismatch Electricity Demand West TX Wind Coastal Wind

15. 14 March 2016 15 14 March 2016 “Dumb Charging” at Home kW Hour The T & D Utility is the Entity with Responsibility for Safety, Reliability, Operational Security, and Fair Allocation of Infrastructure Costs

16. 14 March 2016 16 14 March 2016 Which Tool to Become EV-Ready? (Hint: No One is Sufficient) Pricing (e.g., time-of-use, demand charge) Stationary Storage Charge Control Solar Electricity Technological Improvements – HyperCars – Power Density Work-place Charging Plus: Smart Grid, Green Building, Energy Efficiency, etc.

17. 14 March 2016 17 Workplace Charging Opportunity: Range of a Chevy Volt on Electricity ONLY Inner Circle – No Charging Outer Circle – Workplace Charging

18. 14 March 2016 18 14 March 2016 Case Study: Distributed Solar Municipal, Commercial, Residential $20 million capital program for Municipal – 35 installations to date Residential – 1,500 systems in 7 years – Value of Solar Rate Commercial rebates: Production-Based Incentive Community Solar Solar Hot Water 34 installer companies, 300 jobs

19. 14 March 2016 19 14 March 2016 Case Study: Pecan Street Inc. Unique collaboration / UT, Utility, and Industry Consumer System Deployment – 102 Chevy Volts – Home Services Systems & Smart Appliances – Residential PV "The Pecan Street Consortium's smart grid research is generating incredibly valuable information on how, when and on what customers use energy. It will end up as the single greatest collection of consumer energy data that has been developed in the United States.” Dr. Michael Webber, University of Texas researcher

20. 14 March 2016 20 14 March 2016 Pecan Street Inc. Core Principles:Environmental Protection Replicable Efforts Economic Development Economic Feasibility EE / Renewable Energy Community Integration Collaborative Process Transformation from Inception to Current Status Dec 2008: Pecan Street Project Phase I Nov 2009: Awarded DOE Smart Grid Demonstration Project Spring 2011: Industry Advisory Consortium Formed

21. 14 March 2016 21 14 March 2016 Mueller Neighborhood, Central Austin Solar Panels EVs Consumers

22. 14 March 2016 22 14 March 2016 Pecan Street Consortium Understand marketing synergy between retail distributors and utility Collaborative effort provides test bed for evaluation and innovation Recognize residents as ultimate stakeholders in product development

23. 14 March 2016 23 14 March 2016 Case Study: Webberville Solar Project

24. 14 March 2016 24 14 March 2016 Webberville Solar Project Activated December 2011 Largest solar facility in Texas and among largest in nation (380 acres) 30 MW capacity (been producing 27-28 MW during optimal weather conditions) 127,728 ground-mounted panels that rotate with sun to optimize energy production Powers 5,000 average-size homes annually Will offset 1.6 billion pounds of carbon dioxide over 25 years PPA arrangement at set price

25. 14 March 2016 25 14 March 2016 Community Engagement Build relationships with contractor community Canvassing provides engagement opportunity Leverage community groups / interest Engage/Educate key community leaders Identify/align media with customer segments Focus on strengthening local economy

26. 14 March 2016 26 14 March 2016 Conclusions Research, Research, Research Segmentation is Critical; Systems Solutions are Best Focus marketing efforts on customer values Data Driven Policy Formation Continuous evaluation / feedback loops Challenge assumptions constantly 26

27. 14 March 2016 27 14 March 2016 Questions & Discussion Contact Karl R. Rábago karl.rabago@austinenergy.com