1. 1 2011 Marketing Executives’ Conference: Clean Conscience Erwin Furukawa Senior Vice President Customer Service Business Unit Southern California Edison

2. 2 Smart Grid Vision Hydro Renewables Nuclear Natural gas Expanded, enhanced transmission Cleaner, more efficient distribution Energy-storage possibilities for communities, homes and intermittent resources Plug-in electric vehicles Edison SmartConnect™ meter © Copyright 2008, Southern California Edison

3. 3 Evolving Technologies Change How We Serve Customers How people use energy is changing Where people get energy is changing How people manage their usage is changing The network is changing

4. 4 Evolving the Customer Relationship to Higher Levels of Engagement Starting with this (Monthly bill arrives after-the-fact) This is where we’re headed (Daily cost/usage updates throughout the month) Establish a Two-Way Continuous Engagement with Customers

5. 5 Trigger Marketing

6. 6 Create a series of targeted, holistic and integrated marketing communications that delivers the right message at the right time to the right customers in a COST EFFECTIVE MANNER Trigger Marketing

7. 7 Handraiser Channels (Triggers) Automated curriculum maintains inertia Leverage momentum of handraisers to send prescribed messages to capitalize on hot leads vs. for a relevant campaign Direct Marketing Cell Center Website Events MyAccount Sign-Up Account Activation Program Participation Strategic Trade Partnerships General advertising High Bill Customers can actively or passively trigger an event that initiates a communication curriculum (not inclusive) Conceptual Solution

8. 8 Trigger Marketing Tracks Welcome Track Establish a new service account Edison SmartConnect™ Track Sign up for Budget Assistant High Bill Track Spike in monthly bill amount

9. 9 HEES High Bill Inquiry or Calculated % Increase Data and analytics drive the content of the curriculum ARP Save Power Day Alerts Budget Assistant A/C Tune Up Energy Upgrade CA Participation My Account TriggerQualifiersPrograms SCE Could Offer Not Taken HEES In COTO’d District Not enrolled in any ESC program No Pool Have AC High Income Area Not Taken HEES In COTO’d District Not enrolled in any ESC program No Pool Have AC High Income Area CSI Initiating An Engagement Track (example)

10. 10 Energy Leaders Partnership Program

11. 11 Local Government Partnerships: Energy Leader Model Reward Level 1Reward Level 2Reward Level 3 Partner receives stepped levels of incremental support Achieving 5% savings in Partner facilities and Community- wide triggers incentive 20% 10% 5% Valued Partner Silver Level Gold Level Platinum Level Cumulative kWh savings from 2003 (Percentage of total city-wide energy use)  Agreement between SCE and individual local governments designed primarily to help cities and counties with a sustainability vision to address demand-side management opportunities in their facilities and communities.  Tiered incentive structure that offers increasing incentives based on performance to the Partner to fund new city/county EE, DR and Solar PV projects.  SCE has 29 Partnerships that assist over 100 cities, counties and state agencies (including Department of Corrections, UC/CSU System, Community Colleges, etc.) to help them and their constituencies save energy and money. Basic EE Incentive

12. 12

13. 13 Thank you!

14. 14 Appendix

15. 15 Customers are exposed to programs they have not participated in yet HEES survey as part of call-to-action (if not yet completed) Responders to any communication would drop out of current track and be placed into appropriate follow-up track ee e Touch 1 +2- 4 weeks Touch 2 +3 weeks Touch 3 +3 weeks e Re-engagement +12 weeks ARP Refrigerator rebate Energy Upgrade CA ARP Refrigerator rebate Energy Upgrade CA Messaging and calls-to-action dependent on user triggers. Customized Messaging Trigger Engagement Curriculum

16. 16 Trigger Engagement Templates Touch 1 Letter Touch 2 Direct Mailer Touch 4 Email Touch 3 Postcard

17. 17 Re-engagement outreach Direct Mail / Email Automated outreach Direct Mail / Email Automated outreach Direct Mail / Email Automated outreach Direct Mail / Email Filter (priority) Trigger Establish new service account Have pool (2) P: Pool pump S: My acct P: Pool pump S: HEES P: Online bill pay S: Pool pump P: HEES S: Pool pump No filter (5) P: Online bill pay S: HEES P: HEES S: My acct P: Online bill pay S: HEES P: HEES S: My acct HEER recipient (1) P: ARP S: My acct P: HEES S: ARP P: ARP S: Online bill pay P: HEES S: ARP SFDU < 1987 (4) P: Energy upgrade CA S: My acct P: A/C tune-up S: HEES P: Energy upgrade CA S: Online bill pay P: HEES P: Energy upgrade CA A/C and hot climate zone (3) P: A/C tune-up S: HEES P: Evap cooler S: HEES P: HEES S: My acct P: A/C tune-up S: Evap cooler Welcome Track P: primary messageS: secondary message

18. 18 Re-engagement outreach Direct Mail / Email Automated outreach Direct Mail / Email Automated outreach Direct Mail / Email Automated outreach Direct Mail / Email Filter (priority) Trigger Sign up for Budget Assistant Income Eligible (1) P: Pool pump S: HEES P: HEES S: Pool pump P: Pool pump S:Online bill pay P: HEES S: Pool pump Have a Pool (2) P: HEER S: My acct P: HEES S: Online bill pay P: My Acct S: HEES P: Energy upgrade CA S: Online bill pay HEER recipient (3) P: HEES S: Online bill pay P: HEER S: Online bill pay P: ARP S: HEES P: HEES S: Online bill pay ARP participants (4) P: ARP S: HEES P: HEES S: ARP P: ARP S: HEES P: Energy upgrade CA S: ARP A/C and hot climate zones (5) P: Energy upgrade CA S: A/C tune-up P: HEES S: A/C tune-up P: A/C tune-up S: Energy upgrade CA P: CSI S: Energy upgrade CA SFDUs (6) P: A/C tune-up S: Evap cooler P: HEES S: Evap cooler P: A/C tune-up S: HEES P: Energy upgrade CA S: A/C tune-up No Filter (7) P: CARE S: EMA P: HEES S: CARE P: EMA S: CARE P: HEES S: CARE P: primary messageS: secondary message SmartConnect Track

19. 19 Selection criteria— Spike in monthly bill amount (% change in kWh) to same month prior year +70% change in kWh - all accounts +35% change in kWh - account with 600+ kWh usage per month Re-engagement outreach Direct Mail / Email Automated outreach Direct Mail / Email Automated outreach Direct Mail / Email Automated outreach Direct Mail / Email Filter (priority) Trigger Spike in monthly bill amount Have pool (2) P: Pool pump S: HEES P: HEES S: Pool pump P: Pool pump S: My acct P: HEES S: Pool pump ARP participants (4) P: HEER S: My acct P: HEES S: Online bill pay P: ARP S: HEES P: Energy upgrade CA S: Online bill pay No filter (7) P: ARP S: HEES P: HEES S: Online bill pay P: ARP S: HEES P: Energy upgrade CA S: My Acct HEER recipient (3) P: ARP S: HEES P: HEES S: ARP P: ARP S: HEES P: Energy upgrade CA S: ARP SFDUs (6) P: Energy upgrade CA S: A/C tune-up P: HEES S: A/C tune-up P: A/C tune-up S: Energy upgrade CA P: CSI S: Energy upgrade CA A/C and hot climate zone (5) P: A/C tune-up S: Evap cooler P: HEES S: Evap cooler P: A/C tune-up S: HEES P: Energy upgrade CA S: A/C tune-up Income Eligible (1) P: CARE S: EMA P: HEES S: CARE P: EMA S: CARE P: HEES S: CARE High Bill Track P: primary messageS: secondary message