CONNECTING CONSUMERS WITH THE PROMISE OF THE SMART...

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CONSUMERS WITH

THE PROMISE OF

THE SMART GRID

Annual Report 2014

2 | C O N N E C T I N G C O N S U M E R S W I T H T H E P R O M I S E O F T H E S M A R T G R I D

DEAR MEMBERS,It is the very notion of change that is essential to any progression, development and transformation.

Right now, the energy industry is experiencing a lot of disruption. For example, earlier in 2014, New York’s Public Service Commission unveiled its proposal, known as “Reforming the Energy Vision” (REV), to take the first steps in transforming the state’s electric grid and energy markets by revamping the utility business model.

The REV proceeding is arguably the largest consumer-focused energy transition in the industry, because the concepts and process proposed will reshape and transform the utility-customer relationship. The key objectives of REV include increasing reliability, resiliency and energy efficiency by supporting customer empowerment. This paradigm shift in New York’s policy framework places the consumer first and makes the role of the consumer an important participant in the energy market. REV and other industry initiatives underway validates that the work SGCC is doing is crucial to the ever-changing energy landscape.

Through our organization’s core initiatives of research and consumer education, SGCC is creating avenues to help the industry move to a consumer-centric perspective around the smart grid. Overall, our goal is simple: to assist transformational change through a consumer-centric approach.

As we move into 2015, I am optimistic about the opportunities ahead to further our mission, starting with the release of our 2015 State of the Consumer Report at the 2015 Consumer Symposium on February 2. If you are planning to attend this year’s DistribuTECH, I hope you will consider joining us a day early for what is sure to be an information-packed discussion.

Also in 2015, we will launch a national campaign for the Consumer Value Proposition that will convey to consumers the economic, environmental and reliability benefits of a smarter grid. The goal of the campaign is to connect consumers with the promise of the smart grid through a developed set of consumer value proposition statements supported by success story proof points from the SGCC membership base.

While we are pleased with our performance to date, we know that there is much work left to be done. We have embraced the challenge put to us by our members to impact and make a difference around consumer engagement with the smart grid.

As we look back and review all of SGCC’s achievements in this 2014 Annual Report, I hope you will join us on our journey by continuing to support our efforts. Thank you again for your ongoing support, insight and expertise. We could not do it without you.

With warm regards,

SA Anders Portland General Electric – PGN

Smart Grid Strategy and Projects Manager

Randy Berry PSC

Vice President

Mark Brown Fayetteville Public Works Commission Senior Customer Programs Officer

Ward Camp Landis+Gyr

Vice President Regulatory and Governmental Affairs

Jason Cigarran Comverge

Vice President, Corporate Marketing and Communications

Patty Durand Smart Grid Consumer Collaborative

Executive Director

Luisa Freeman DNV GL

Senior Principal Consultant

Brad Gibson Middle Tennessee EMC

Vice President of Communications & Member Services

The Smart Grid Consumer Collaborative Board has 19 directors who represent commercial, utility and advocacy organizations along with SGCC’s Executive Director.

SGCC BOARD OF DIRECTORS

Patty Durand

President and Executive Director at SGCC

@pattydurandsgcc

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DEAR FRIENDS,It is truly an exciting time to be a part of Smart Grid Consumer Collaborative (SGCC) as the

organization continues to grow and reach new heights across the evolving energy landscape. With its mission in clear focus, SGCC is committed to driving consumer engagement and awareness around the smart grid, by providing valuable resources for consumers to be empowered.

To sharpen and align SGCC’s efforts with the current industry demands and consumer needs, SGCC’s board of directors, committee chairs and Atlanta-area members met at the beginning of 2014 to create a new three-year strategic plan. The strategic planning meeting led to organizational efforts that are more nimble, innovative and responsive to the smart grid stakeholder community.

The new five-point strategic plan, designed by members, focuses SGCC’s efforts on:

1. Collecting information that is relevant to consumers and the smart grid, including attitudes, behaviors, experiences and successful approaches for driving consumer awareness and engagement.

2. Making information pertaining to advancing a consumer-friendly and consumer-supported smart grid widely available and provide thought leadership to the industry.

3. Connecting with smart grid industry stakeholders and facilitating dialogue to identify shared objective, shared expertise and overcome obstacles to consumer engagement.

4. Growing consumer awareness about grid modernization and its associated consumer benefits.5. Engaging public policy stakeholders by presenting SGCC information and research findings at

public policy forums and conferences and facilitate dialogue with the goal of increasing support and investment in smart grid technology where beneficial to consumers.

These strategic objectives drive greater focus in positioning SGCC as an organization bringing all energy stakeholders to the table while working together to accelerate the adoption of the smart grid to consumers nationwide.

SGCC’s annual report is the first-ever in the history of the organization. The report reflects the organization’s continued commitment to the industry by accelerating the adoption of a consumer-friendly, consumer-safe and consumer-approved smart grid. As we move forward into 2015 and beyond, I am proud of what SGCC has accomplished in 2014 and I am excited to see what the future will hold.

Through collaboration, we achieve so much. Thank you for your continued support and membership.

Best regards,

Stacia Harper Ohio Partners for Affordable Energy

Director of Regulatory Affairs and Energy Policy

Dave Kolata Illinois Citizens Utility Board – CUB

Executive Director

Barbara Leary Florida Power & Light Company

Sr. Director, Marketing and Communications

Cheryl Linder IBM

Coalition Program Leader Customer Operations Solution Leader

Lisa Magnuson Silver Spring Networks

Vice President, Global Marketing

Naomi Manley-Casimir Accenture Director

John D. McDonald GE Energy

Director, Technical Strategy & Policy Development

Amanda Stallings Public Utilities Commission of Ohio

Utility Specialist

Roger Stark Stoel Rives LLP

Partner

Ted Thomas Duke Energy

Director, Smart Grid Emerging Technologies

Chris Villarreal California Public Utilities Commission Senior Regulatory Policy Analyst in

the Policy and Planning Division

John D. McDonald

SGCC Board Chair

Director, Technical Strategy and Policy Development at

GE Digital Energy

@johndougmcd


O U R M I S S I O N : Smart Grid Consumer Collaborative is a 501(c)(3) nonprofit organization chartered to be the trusted source representing consumers, advocates, utilities and technology providers in order to advance the adoption of a reliable, efficient and secure smart grid and ensure long-lasting sustainable benefits to consumers.

O U R V I S I O N : SGCC’s vision is that industry stakeholders have a broad understanding of consumers’ views about grid modernization, energy and know how to engage consumers; and consumers have a broad understanding about the benefits of a modern grid.

Our threefold agenda is to:

• Listen to consumers via primary consumer research

• Collaborate with stakeholders via shared best practices

• Educate consumers via events, outreach and messaging toolkits for use by members

WHO WE ARE


R E S E A R C H C O M M I T T E E : Members who are interested in shaping SGCC’s consumer research participate in the Research Committee to set SGCC’s research agenda, review detailed findings, and discuss the implications and presentation of those findings to members.

EDUCAT ION AND OUTREACH COMMITTEE : Members work together to improve consumer awareness and understanding of modernized electrical systems by recognizing smart grid success, expanding available resources to the industry and amplifying the smart grid benefits message to consumers nationwide.

MEMBERSHIP COMMITTEE : Well-connected industry representatives set benchmark goals for membership, establish a list of prospects and make introductions in order to support the continuous, balanced growth of SGCC’s member base.

BEST PRACT ICES AND SUCCESS STORIES COMMITTEE : A member-driven committee with the mission to identify and collect a clearinghouse of best practices and success stories in consumer engagement that are relevant to the consumer smart grid landscape.

CONSUMER STANDARDS COMMITTEE : Members of this committee collaborate to identify consumer standards which are relevant, timely and important to the interoperability of smart grid devices. The Committee is dedicated to educating, encouraging and promoting identified consumer standards to SGCC members and the smart grid stakeholder community.

SMART ENERGY CORPS: Launched in 2014, Smart Energy Corps is a program designed to create and train Smart Grid Ambassadors who can influence and teach learners of all ages about our energy system, new energy technology and plant the seed for students about STEM-related careers and opportunities.

STOP SMART METER RESPONSE CAMPAIGN: SGCC’s Stop Smart Meters Response Campaign is an initiative to address small but vocal opposition to smart meters, refuting misinformed arguments about radio frequency, privacy and security propagated by national anti-smart meter activist groups.

COLLABORATIVE EFFORTS


2014 State of the Consumer Report

A detailed report summarizing SGCC’s priority to increase industry knowledge about how U.S. consumers are thinking about and engaging with grid modernization efforts. In 2013, SGCC expanded its work to help industry stakeholders understand how to apply that knowledge to grow consumer awareness, favorability and earlier engagement with these new technologies. Based on SGCC’s research, the study organizes six themes related to how consumers think about and experience grid modernization.

Segmentation Successes Report

From SGCC’s Consumer Pulse and Market Segmentation study, we know that consumers are not monolithic when it comes to Smart Grid. Instead, there are five distinct segments that hold different interests, priorities and willingness to engage with smart grid-enabled programs and technologies. The Segmentation Successes report examines how some actual utilities have applied attitudinal and behavioral segmentation to their Smart Grid programs to better communicate with customers; what the results were; and what capabilities the utilities developed to do this work.

Spotlight on Low Income Consumers, Part II

This study is the second part of a national study first conducted in 2012 that provides smart grid stakeholders with an in-depth understanding of the needs of the low-income population. The report answered questions such as: Is there a digital divide? Do low-income consumers care about energy? How do low-income consumers prefer to receive information?

WHAT WE ACCOMPLISH THROUGH COLLABORATION

RESEARCH HIGHLIGHTS


Motivations & Emotions of Engaged Consumers

The report indicates that motivations differ significantly between engaged and non-engaged consumers and examines the factors that motivate consumers to engage. For those consumers not engaged, how do we move them along the spectrum of engagement? This report answers that question.

Smart Grid Customer Engagement Stories

A set of six individual case studies that spotlight how smart grid deployments by these utilities have engaged consumers to enable them to match the energy they use with their needs and lifestyles. This year, SGCC added member Florida Power and Light Company’s success story to the case study collection.

Consumer Pulse: Focus on Seniors

This consumer analysis was undertaken to help smart grid stakeholders understand seniors’ awareness, favorability, expectations and preferences as they relate to the smart grid and smart grid-enabled programs/technologies. The analysis was performed on data collected during the four waves (2011–2013) of national Consumer Pulse research to date. In addition, the report puts context around how and why seniors differ from the general population and what smart grid stakeholders should consider when engaging with this demographic group.

RESEARCH HIGHLIGHTS


EDUCATION AND OUTREACH COMMITTEE SUCCESSES

CONSUMER-FACING WEBSITE:

SGCC continues to expand its consumer-facing website (www.WhatIsSmartGrid.org), an interactive website released in 2013 to facilitate consumer understanding and support for smart grid offerings, with new content in order to attract a broader consumer audience. In order to position grid modernization as the next innovation of the 21st century, SGCC created an interactive Next Innovation Timeline for the website. Also added and highlighted on the consumer-facing website, are monthly feature articles that explore timely and fun consumer themes, which are correlated with the smart grid. Additionally, the consumer-facing website added a smart meters 101 web page that features basic information about smart meters for consumers looking for factual answers. Finally, SGCC collected seven consumer submitted testimonials about energy usage and advancements.

CONSUMER INFORMATION KIT FOR THE SMART GRID:

To facilitate consumer understanding and support of the smart grid and reach diverse audiences, SGCC produced a series of videos designed to help customers understand various aspects of what the smart grid is and how it works. The series of fact sheet videos complement SGCC’s already existing fact sheets that address consumer concerns on topics around the smart grid. SGCC released an additional fact sheet covering the topic of power quality, a look into what exactly power quality is and why it is important to show that more reliable and efficient power supply allows appliances to operate at their highest efficiencies.

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CONSUMER VALUE PROPOSITION:

SGCC is taking the lead on delivering a consistent narrative on the promise of the smart grid by developing a set of consumer value proposition statements concerning

environmental, economic and reliability benefits. Supported by success story proof points and consumer-focused narratives, SGCC is working with industry stakeholders on a national media campaign to promote and increase awareness with consumers of the consumer value proposition.

CLEAR AWARDS FOR CONSUMER ENGAGEMENT:

At the 2014 Consumer Symposium, SGCC recognized CenterPoint Energy, Silver Spring Networks and Public Citizen as the 2014 CLEAR Award winners. Recipients of the CLEAR Award demonstrated excellence in customer engagement and outreach in their consumer awareness campaigns.

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RESOURCE LIBRARY:

SGCC continues to maintain and build an indexed, intuitively-searchable online Resource Library, which SGCC members noted from surveys as one of the most valuable educational materials that SGCC offers. The one-stop digital Resource Library provides access to a vast and growing collection of smart grid consumer materials such as smart grid research, white papers, case studies, fact sheets, best practices and much more. In 2014, members visiting the Resource Library increased with over 1,600 visits — more than 2012 and 2013 member visits combined.

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MEMBERSHIP SUCCESS SGCC’s membership base stands at 117 members. In 2014, SGCC saw a 12 percent growth in membership.

Accenture

ACEEE

Allconnect

Alliance to Save Energy

Ameren Illinois

Arizona Public Service Company

Association for Demand Response & Smart Grid

Baltimore Gas and Electric Company

Bonneville Power Administration

Brookhaven National Laboratory

California Center for Sustainable Energy

California Public Utilities Commission

CenterPoint Energy

Climate + Energy Project

CLP Power Hong Kong Limited

Colorado Public Utilities Commission

ComEd

Commonwealth of Massachusetts DPU

Comverge

Con Edison

Consumers Energy

DNV GL

DTE Energy

Duke Energy

Duquesne Light Company

Earth Networks

Electric Power Research Institute

Elevate Energy

Energy Providers Coalition for Education

Environmental Defense Fund

FirstEnergy

Florida Power & Light

Future of Privacy Forum

Galvin Electricity Initiative

GE Energy

Georgia Institute for Technology

Georgia Watch

Great Plains Institute

The Greenlining Institute

GridWise Alliance

IBM

Illinois Citizens Utility Board

Institute for Energy & Environment at Vermont Law

Itron

Landis+Gyr

Lawrence Berkeley National Laboratory

Market Strategies International

MeterGenius

Michigan Public Service Commission

Montana State University

National Institute of Standards and Technology

National Renewable Energy Laboratory

Natural Resources Defense Council

NC Department of Commerce – Energy Office

NETL – Smart Grid Implementation Task Force

New Brunswick Power Corporation

New Hampshire Office of the Consumer Advocate

North Carolina State University

North Carolina Sustainable Energy Association

North Carolina Utilities Commission Public Staff

Office of People’s Counsel DC

Office of the Ohio Consumers’ Counsel

Ohio Partners for Affordable Energy

Oklahoma Gas & Electric

Opower

Oregon Citizens Utility Board

Pacific Northwest National Laboratory

PayGo

Peak Load Management Alliance

Pecan Street Project

Pepco Holdings, Inc.

Portland General Electric

Power Systems Consultants, Inc.

Public Utilities Commission of Ohio

Public Utility Commission of Texas

Purdue University

Research Triangle Cleantech Cluster

Silver Spring Networks

Simple Energy

Smart Grid Northwest

Southeast Energy Efficiency Alliance

Southern California Edison

Southern Company

Southface Energy Institute

Southwest Research Institute

Stoel Rives LLP

TechAmerica

Tendril

Texas Office of Public Utility Counsel

TopTenUSA

University of Southern California

Utility Consumers’ Action Network

Vermont Energy Investment Corporation

Westar

MUNICIPALS/CO-OPS

Alameda Municipal Power

Benton PUD

Central Lincoln PUD

Choptank Electric Coop

City of Port Angeles

City of Fort Collins

Columbia Water and Light Department

CPS Energy

Electric Power Board of Chattanooga

Eugene Water & Electric Board

Fayetteville Public Works Commission

Gainesville Regional Utilities

Huntsville Utilities

Idaho Falls Power

Memphis Light, Gas and Water

Middle Tennessee EMC

Riverside Public Utilities

Sacramento Municipal Utility District

Seattle City Light

Snohomish PUD

Southern Maryland Electric Cooperative

Tri-County Electric Cooperative

TVPPA

SMART ENERGY CORPS

SGCC made a strategic decision to put its research “feet on the street” this year with the formation of Smart Energy Corps, a pilot, national energy literacy initiative focused on creating a league of Smart Energy Ambassadors out of everyday people who can go into communities and teach others about two main topics: 1) Why the lights turn on in the first place, and 2) What are the benefits a more advanced system can deliver (and what does that “smart meter thing” do)?

Smart Energy Corps, a branded certification and training program, with an accompanying curriculum and educational information clearinghouse, which provides the necessary information and training to encourage educators, industry and consumer groups to teach basic electricity and smart grid literacy.

Since the launch of the program in January 2014, the team has trained more than 125 Ambassadors of all ages in the Midwest, South and Southeast, and has generated nearly $100,000 in funding. With support from Platinum-Level Sponsors Deloitte, ComEd and CPS Energy and Silver-Level Sponsor Advanced Energy, SGCC is able to continue its mission of increasing consumer awareness of the smart grid and its benefits.

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AUDIENCE PROFILE FOR SGCC EVENTS

Over 100+ key decision makers in attendance

Unique industry reach: utilities, consumer advocates, industry media, technology providers and research groups

60 percent of attendees are director level and above

CONFERENCE APPEARANCES

To continue to build awareness and momentum around SGCC’s consumer research, educate attendees on the latest consumer findings and to make contacts with membership prospects, in 2014, SGCC attended 25 conferences and presented at 18 nationally.

A few of the top-tier energy conferences where SGCC was represented were:

IEE Powering the People Conference

The Energy Thought Summit

Smart Grid Consumer Education Symposium

New York State PSC Smart Grid Symposium

2014 National Town Meeting on Demand Response and Smart Grid

2014 NASUCA Mid-Year Meeting

Municipal Smart Grid Summit

NARUC Summer Committee Meetings

Smart Grid Exchange Forum

The Soft Grid 2014: Greentech Media

Smart Cities

2014 Annual Meeting NASUCA/NARUC

2014 CONSUMER SYMPOSIUMWith over 106 attendees present for the 4th annual event, members participated in interactive breakout sessions, engaged with thought leaders and industry experts and shared insights with peers at power networking opportunities.

2014 MEMBERS MEETINGThe annual two-day meeting was hosted by Duke Energy and presented by Tendril, with over 75 members in attendance. A highlight of the event included an opportunity for members to tour Duke Energy’s Envision Center. The meeting focused on gaining alignment around the consumer value proposition for the smart grid.

SGCC EVENTS2014JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

Other16%

Manager19%

Analyst7%

CxO16%

VP25%

Director18%

October 2–3, Raleigh, North CarolinaHosted by Duke Energy


Durand: NY ‘reformed energy vision’ likely to recast utility, customer roles

Can smart meters really help us get smarter about our energy use?

Gauging senior attitudes toward the smart grid

New tools you can use for smart grid consumer education

New report: 2014 could be a good year for improving consumer awareness

SGCC survey reveals tips on engaging customers

Why Google, Comcast, and AT&T are Making Power Utilities Nervous

What motivates consumers to manage their energy use? (It’s not just saving money)

ELECTRIC UTILITIES: New class of utility executive puts focus on customer

Trees lead to power outages in ice storm

Opportunities abound for smart grid stakeholders to meet consumer demand

Two drivers for the utility future

Igniting consumer engagement

COMMUNICATIONS UPDATE There were 60 news stories in respected trade, regional and national media outlets in 2014, doubling the media coverage in 2013. Here is a sampling of the publications SGCC was represented in.


A DIGITAL OUTLOOK

WEBSITE GROWTH

SOCIAL MEDIA GROWTH

SGCC’s social media presence has expanded significantly, with growth across all platforms and increased engagement with consumers. Each social channel supports SGCC’s promotion of smart grid consumer research and educational materials.

SMARTGRIDCC.ORG INDUSTRY CHANNELS

PEER CONNECT, THOUGHT LEADERSHIP, AND RESEARCH BRIEF WEBINARS

SGCC continued its national footprint of thought leadership through webinars to provide a friendly forum to hold discourse around topics selected by members. In 2014, SGCC covered a total of 10 webinar topics reaching over 300 industry stakeholders in the smart grid consumer space.

WHATISSMARTGRID.ORG CONSUMER CHANNELS

WHATISSMARTGRID.ORG

In 10 years, the goal is to reach 1 million consumer visitors.

Currently 30,950 visitors

Released August 2013

5,900 visitors at the end of 2013


At SGCC’s 2014 strategic planning meeting, members identified a need for organizational efforts to engage with public policy stakeholders. Since this is new territory for SGCC, a developed set of policy guidelines were created to assist in providing direction and ensure that SGCC approaches Public Services Commission proceedings in the best possible way to meet the goal.

The objective calls for SGCC to engage public policy stakeholders by presenting SGCC information and research findings at public policy forums and conferences and facilitate dialogue with the goal of increasing support and investment in smart grid technology where beneficial to consumers:

1. Get materials (e.g., SGCC research or white papers or thought leadership materials prepared by members) into the hands of policy-makers and their staff or influential stakeholders.

2. Regularly conduct or attend meetings with policy-makers regarding key policy issues in order to develop intentional engagement with a clear purpose in mind.

3. Facilitate strategic dialogues among stakeholders on policy issues.

It is important to note that SGCC will not engage in advocacy of any kind. Rather, efforts are meant to ensure that SGCC research informs policy-makers and regulators at the most helpful possible point in decision-making affecting consumers.

OUR POLICY WORK

BY THE NUMBERS

How Are The Program Expenses Allocated?

Where Does Your Money Go?

Fundraising Expenses

8%Administrative

Expenses12%

Program Expenses80%

Collaboration22%

Education34%

Research44%

The SGCC is a consumer-focused nonprofit organization aiming to promote the understanding and benefits of modernized electrical systems among all stakeholders in the United States. Membership is open to all consumer and environmental advocates, technology vendors, research scientists and electric utilities for sharing in research, best practices and collaborative efforts of the group. Learn more at smartgridcc.org.

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