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Customer Data Access – Valuing Feedback: A Strategy for Customer Engagement NARUC Webinar March 15, 2012 LBNL Smart Grid Technical Advisory Project March 15, 2012 Chuck Goldman, Staff Scientist Electricity Markets and Policy Group Lawrence Berkeley National Laboratory Roger Levy, Levy Associates Lead Consultant, Smart Grid Technical Advisory Project 4/25/2012 1 Karen Herter Herter Energy Research Solutions

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Customer Data Access – Valuing Feedback: A Strategy for Customer Engagement

NARUC Webinar

March 15, 2012

LBNL Smart Grid Technical Advisory Project

March 15, 2012

Chuck Goldman, Staff Scientist

Electricity Markets and Policy Group

Lawrence Berkeley National Laboratory

Roger Levy, Levy Associates

Lead Consultant,

Smart Grid Technical Advisory Project

4/25/2012 1

Karen Herter

Herter Energy Research Solutions

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� "...the inauguration of smart meters with grudging and involuntary

exposure of millions to billions of human beings to pulsed microwave

radiation should immediately be prohibited..." 18

� “Smart meters have no value to the customer and the customer knows

that”. (19)

� “The general public has no idea how much they pay for electricity or

Is there a customer engagement problem?

LBNL Smart Grid Technical Advisory Project

� “The general public has no idea how much they pay for electricity or

how to use less, undermining the central premise of smart meters and

hindering their adoption”.(20)

� “..most people do not know what devices in the home consume the

most or least energy, and they do not understand their electricity

bill.”(21)

� “…people have absolutely no clue how to go about saving energy as a

result, most of their actions are not geared toward long-term,

sustainable actions to lower their energy footprint.(22)

4/25/2012 2

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1. What is “data access” and how can it be

structured to provide the “feedback” to

support short and long-term changes in

customer energy usage?

2. What guidance does prior research or

Webinar Objectives

LBNL Smart Grid Technical Advisory Project

2. What guidance does prior research or

experience provide in answering this first

question?

4/25/2012 3

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“… feedback is proving a critical first step in

engaging and empowering consumers to

The Purpose of Customer Data Access is to Provide Feedback

What is Customer Data Access ?

LBNL Smart Grid Technical Advisory Project

engaging and empowering consumers to

thoughtfully manage their energy resources.” 1

“Feedback ….making energy more visible and

more amenable to understanding and control.6

4/25/2012 4

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Why is Customer Data Access Important?

Customer education and engagement is critical to achieve

smart grid efficiency, demand response, and renewable

integration benefits.

� Prior research and existing pilots emphasize short-term behavior change by focusing on meter data access and in-

LBNL Smart Grid Technical Advisory Project

behavior change by focusing on meter data access and in-home displays.

� Feedback to address the long-term infrastructure changes and investment necessary to make major, permanent changes in usage is not being addressed.

� The emphasis on short-term feedback creates unreasonable expectations and misdirects policy regarding hardware investment and customer education.

4/25/2012 5

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In home displays (IHD’s) are the most

important vehicle for providing

customers with data access.

Studies show that customers with

IHD’s have been shown to reduce

energy use 5% to 15%.

Myth vs. Fact

LBNL Smart Grid Technical Advisory Project 64/25/2012

energy use 5% to 15%.

Studies have shown that the rate, bill

design, and frequency of billing

influence IHD impacts.

Residential customers with access to

near real-time meter data reduce

usage more than customers with

next day access.

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In home displays (IHD’s) are the most

important vehicle for providing

customers with data access.?

Studies show that customers with

IHD’s have been shown to reduce

energy use 5% to 15%.

We are not aware of any studies that have examined this issue.

Myth vs. Fact

LBNL Smart Grid Technical Advisory Project 74/25/2012

energy use 5% to 15%.

Studies have shown that the rate, bill

design, and frequency of billing

influence IHD impacts.

Residential customers with access to

near real-time meter data reduce

usage more than customers with

next day access.

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In home displays (IHD’s) are the most

important vehicle for providing

customers with data access.?

Studies show that customers with

IHD’s have been shown to reduce

energy use 5% to 15%.

TF

We are not aware of any studies that have examined this issue.

Multiple studies report this finding, however with few exceptions, most research is short-term and anecdotal.

Myth vs. Fact

LBNL Smart Grid Technical Advisory Project 84/25/2012

energy use 5% to 15%.

Studies have shown that the rate, bill

design, and frequency of billing

influence IHD impacts.

Residential customers with access to

near real-time meter data reduce

usage more than customers with

next day access.

research is short-term and anecdotal.

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In home displays (IHD’s) are the most

important vehicle for providing

customers with data access.?

Studies show that customers with

IHD’s have been shown to reduce

energy use 5% to 15%.

TF

We are not aware of any studies that have examined this issue.

Multiple studies report this finding, however with few exceptions, most research is short-term and anecdotal.

Myth vs. Fact

LBNL Smart Grid Technical Advisory Project 94/25/2012

energy use 5% to 15%.

Studies have shown that the rate, bill

design, and frequency of billing

influence IHD impacts.

Residential customers with access to

near real-time meter data reduce

usage more than customers with

next day access.

?Few studies and questionable results.

research is short-term and anecdotal.

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In home displays (IHD’s) are the most

important vehicle for providing

customers with data access.?

Studies show that customers with

IHD’s have been shown to reduce

energy use 5% to 15%.

TF

We are not aware of any studies that have examined this issue.

Multiple studies report this finding, however with few exceptions, most research is short-term and anecdotal.

Myth vs. Fact

LBNL Smart Grid Technical Advisory Project

energy use 5% to 15%.

Studies have shown that the rate, bill

design, and frequency of billing

influence IHD impacts.

F

Residential customers with access to

near real-time meter data reduce

usage more than customers with

next day access.

?

Most studies ignore these variables.

Few studies and questionable results.

research is short-term and anecdotal.

4/25/2012 10

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“The research literature

shows that in-home displays

…achieving savings in the

“The results show that the

initial savings in of 7.8% after 4

months could not be sustained

IHD’s are the Solution

Feedback Expectations

IHD’s are not the Solution

LBNL Smart Grid Technical Advisory Project

…achieving savings in the

range of 5–15%..” 3

“Consumers could cut their

household electricity use as

much as 12 percent …if U.S.

utilities use feedback tools ..4

in the medium- to long-term. “ 5

Real time monitors “ may not

be suitable tools to decrease

consumption unless

homeowners are presented

with more information on how

to conserve or a cost incentive

such as TOU pricing.” 6

4/25/2012 11

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� Data. “A behavior must be measured, captured, and stored. “

� Relevance. “The information must be relayed to the individual,

not in the raw-data form in which it was captured but in a

context that makes it emotionally resonant. “

Feedback: Four Stages3

Customer Data Access - Framework

LBNL Smart Grid Technical Advisory Project

context that makes it emotionally resonant. “

� Consequence. “The information must illuminate one or more

paths ahead. “

� Action. “There must be a clear moment when the individual can

recalibrate a behavior, make a choice, and act. “

Key Question: What approaches provide the content consistent with this framework?

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1. What information influences customer energy usage?

2. What does the research tell us?

a) Research studies

Webinar Agenda

LBNL Smart Grid Technical Advisory Project

a) Research studies

b) Ongoing pilots

4/25/2012 13

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1. What information influences customer energy usage

LBNL Smart Grid Technical Advisory Project4/25/2012 14

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Customer Feedback Policy Objectives

Behavior Change

• Program thermostat

Turn off lights

Adaptation

• Plant shade trees

Weather strip

Infrastructure Change

• High-efficiency

appliances

What are you trying to accomplish?

LBNL Smart Grid Technical Advisory Project

• Turn off lights

• Shorter showers

• Fewer wash loads

• Unplug electronics

• Weather strip

• Install CFL lights

• Install timers

• Programmable

Thermostat options

appliances

• Replace windows

• Insulate walls

• Insulate ceilings

• Install Solar PV

Short –term, low cost,

quick decisions, real-

time feedback.

Near–term, medium

cost, lengthy decisions,

multiple info sources.

Long–term, high cost,

protracted decisions,

multiple info sources.

4/25/2012 15

Price Automation Subsidies, Incentives

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Matching Feedback to Support Customer Infrastructure Decisions

99

Life in Years*

Dishwasher

Dryer, Electric

Freezer

Microwave Oven

10 20

1313

1111

99

??

LBNL Smart Grid Technical Advisory Project

Range, Electric

Refrigerator, Standard

Washer

Water Heater, Electric

Air Conditioner, Room

Air Conditioner, Central

Heat Pump

1313

1313

1010

1111

1010

1515

1616

* Study of Life Expectancy of Home Components, National Association of Home Builders, February 2007, http://www.nahb.org/fileUpload_details.aspx?contentID=99359

?

Source: Opower, http://opower.com/uploads/library/file/15/xrds_opower.pdf

4/25/2012 16

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What are the research options?

LBNL Smart Grid Technical Advisory Project4/25/2012 17

* Figure 1. Information Options, DOE Smart Grid Investment Grant, Technical Advisory Group Guidance Document #2, Non-Rate Treatments in Consumer

Behavior Study Designs, August 6, 2010.

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What do customers need?

Customers have to understand how they use energy before they can make rational decisions to improve

efficiency and change their usage patterns.

Customers have to understand how they use energy before they can make rational decisions to improve

efficiency and change their usage patterns.

1. What information do customers need to make rational energy decisions?

What

LBNL Smart Grid Technical Advisory Project

to make rational energy decisions?

2. Which behavioral and infrastructure decisions best support the consumer value function?

3. What is the best form and medium to present the information to support these decisions?

What

Information ?

Which

Decisions ?

Which Delivery

Channel ?

4/25/2012 18

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What to Measure

� What to measure – electricity, gas, water, carbon?

� What level of measurement – whole house or end-use?

� What type of measurement – real-time, near real-time, actual data, historical data, or social normative

LBNL Smart Grid Technical Advisory Project

� What capability – monitoring only or management too?

� What medium – stand alone, web, PC/phone applications?

� What time frame – days, months, years?

� What information – energy, demand, price, cost, technology availability, saving measures, other?

4/25/2012 19

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1

Standard Billing

monthly,

2

Enhanced Billing

Info and advice,

3

Estimated Feedback

Web-based audits,

4

Daily /Weekly Feedback

Usage

5

Real-time Feedback

In home displays,

6

Real-time Plus

HANs, appliance

EPRI Feedback Delivery Mechanism Spectrum 5

EPRI: Customer Information Continuum

LBNL Smart Grid Technical Advisory Project

monthly,

bi-monthlyInfo and advice,

household specific

Web-based audits,

billing analysis,

appliance

disaggregation

Usage

measurements by

mail, email, self-

metered

In home displays,

pricing signal

HANs, appliance

disaggregation,

control

“Indirect” Feedback (provided after usage)“Direct Feedback –

(provided during usage)

Information availability

Cost to implementLow High

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EPRI Feedback Delivery Mechanism Spectrum 5

1

Standard Billing

monthly,

bi-monthly

2

Enhanced Billing

Info and advice,

household specific

3

Estimated Feedback

Web-based audits,

billing analysis,

4

Daily /Weekly Feedback

Usage

measurements by

5

Real-time Feedback

In home displays,

pricing signal

6

Real-time Plus

HANs, appliance

disaggregation,

EPRI: Customer Information Continuum

LBNL Smart Grid Technical Advisory Project

Action Items

Social Media

Goals (Benchmarks)

Control Signals

Price, Event Signals

Scenario Analysis

Rate Options

appliance

disaggregation

mail, email, self-

metered

control

“Indirect” Feedback (provided after usage)“Direct Feedback –

(provided during usage)

Online modeling, Instructional videos, Worksheets Online modeling, Instructional videos, Worksheets Digital Machine-to-MachineDigital Machine-to-Machine

Long-term - historical and comparative short-term - current

4/25/2012 21

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2. What does the research tell us?

� Meta studies

LBNL Smart Grid Technical Advisory Project

� Utility pilots

4/25/2012 22

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� EPRI – Residential Electricity Use Feedback: A Research Synthesis

and Economic Framework (2009).5

� ACEEE – Advanced Metering Initiatives and Residential Feedback

Programs: A Meta-Review for Household Electricity Saving

Opportunities (2010).1 *

� Darby - The Effectiveness of Feedback on Energy Consumption: A

Key Meta Studies

LBNL Smart Grid Technical Advisory Project

� Darby - The Effectiveness of Feedback on Energy Consumption: A

Review for DEFRA of the Literature on Metering, Billing and Direct

Displays (2009).6

� Fischer: Historical Feedback Studies

� VaasaETT [Empower Demand] - The potential of smart meter

enabled programs to increase energy and system efficiency: a

mass pilot comparison (2011)13

� Brattle: Recent Feedback Studies

4/25/2012 23

* See Reference #24 for updated ACEEE review of real-time feedback studies, February 2012.

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10%

15%

20%

Co

nserv

ati

on

Eff

ect

Europe

EPRI: Electricity Use Feedback5

“…one shortcoming of some past research is it does not

impose sufficient structure on the initial sample design

to test for differences in feedback effect among

customers with different housing, demographic, and

electricity pricing circumstances.”5

“…one shortcoming of some past research is it does not

impose sufficient structure on the initial sample design

to test for differences in feedback effect among

customers with different housing, demographic, and

electricity pricing circumstances.”5

LBNL Smart Grid Technical Advisory Project4/25/2012

-10%

-5%

0%

5%

0 500 1000 1500 2000 2500

Co

nserv

ati

on

Eff

ect

Participation Levels

Europe

Japan

North America

Figure 3-1. Range of study participation levels

24

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“..these estimates are

dominated by studies with

small sample sizes and

short duration: further

“..these estimates are

dominated by studies with

small sample sizes and

short duration: further

ACEEE Meta Review

ACEEE: Feedback Effectiveness2

LBNL Smart Grid Technical Advisory Project

studies with large sample

sizes and longer duration

are needed before

conclusions can be

drawn.” 2

studies with large sample

sizes and longer duration

are needed before

conclusions can be

drawn.” 2

4/25/2012 25

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Darby: Behavior Change7

What do we know about measured savings from feedback studies?

Savings

[studies N=]

Direct Feedback Studies

N=21

Indirect Feedback Studies

N=13

Studies 1987-2000

N=21

Studies 1975-2000

N=38

20%+ 3 3 3

LBNL Smart Grid Technical Advisory Project

20% peak 1 3

15-19% 1 1 1 3

10-14% 7 6 5 13

5-9% 8 6 9

0-4% 2 3 4 6

unknown 3 1 3

4/25/2012 26

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Fischer: Historical Feedback Studies9

LBNL Smart Grid Technical Advisory Project 274/25/2012

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VaasaETT : Empower Demand 13

Table 12. Duration of IHD pilots and energy conservation.

8.68%IHD (n=30)

6.00%

5.94%

Other (n=14)

Detailed Invoice (n=23)

LBNL Smart Grid Technical Advisory Project4/25/2012

Figure 4. Overall consumption reduction as per feedback pilot type

5.13%

6%

11%

9%

(n=23)

Webpage (n=7)

1-6 months (n=11) 7-12 months (n=8) >12 months (n=11)

Length of Trial

28

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Brattle: Recent Feedback Studies 12

10%

12%

14%

16%

18%

20%

Co

nse

rva

tio

n I

mpact (%

)

IHD-Only Impacts IHD and Prepayment

Impacts

IHD and Time-Varying Rates

Impacts

LBNL Smart Grid Technical Advisory Project

0%

2%

4%

6%

8%

10%

Co

nse

rva

tio

n I

mpact (%

)

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� Customers who actively used an IHD in the pilots reduced their electricity consumption by about 7%

The Bottom Line

Brattle: Recent Feedback Studies 12

LBNL Smart Grid Technical Advisory Project

� When customers both used an IHD and were on some type of electricity pre-payment system, they reduced their electricity consumption by about 14%

4/25/2012 30

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� ARRA Consumer Behavior Pilots (In process)

� Commonwealth Edison

� Oklahoma Gas & Electric

Key Pilot Research Studies

LBNL Smart Grid Technical Advisory Project

� Oklahoma Gas & Electric

� SMUD Residential Information and Controls

4/25/2012 31

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Sierra

Pacific

Nevada

Power OG&E MMLD CVPS VEC

MN

Power CIC SMUD DECo Total

Rate Treatments

TOU � � � 3

CPP � � � � � � � � 8

DOE-SGIG Consumer Behavior Pilots

150,000 customers are expected to “participate” as treatment or control customers in ~10 DOE SGIG-funded projects involving AMI, dynamic pricing

and consumer behavior studies

150,000 customers are expected to “participate” as treatment or control customers in ~10 DOE SGIG-funded projects involving AMI, dynamic pricing

and consumer behavior studies

LBNL Smart Grid Technical Advisory Project

CPP � � � � � � � � 8

CPR � � 2

VPP � � 2

Non-Rate Treatments

Education � � 2

Cust. Service � 1

IHD � � � � � � � � � 9

PCT � � � 3

DLC � 1

Features

Bill Protection � � � � 4

Experimental Design

Opt In � � � � � � � � � 9

Opt Out � � 2

Within � 1

4/25/2012 32

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Commonwealth Edison – Pilot Results

Numbers Rates

Offer Acquire Implement Acquire Implement

Customers Provided with Free IHD’s

L5. Basic IHD 485 485 163 100% 34%

Table 4-1. Acquisition and Implementation of Free and Purchased Technology4

LBNL Smart Grid Technical Advisory Project

485 485 163 100% 34%

L6. Advanced IHD 205 205 26 100% 13%

Customers Given Option to Purchase IHD’s

L5b. Basic IHD 211 5 4 2% 1%

L6b. Advanced IHD 205 4 4 2% 1%

Notes:

• Basic IHD: linked to meter, continuous usage with historical comparison

• Advanced IHD: combines usage data with access to data via internet, also combined with PCT, not fully described.

• For row L5 the 34% represents the number of customers provided free IHD’s that actually installed and initialized the device.

For row L5b, only 2% (5/211) of the customers chose to purchase an IHD and then only 80% (4/5) of those were installed. IHD

usage

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25%

30%

35%

40%

45%

50%

Co

nse

rva

tio

n I

mpact (%

)

PCT Only IHD Only Web Only

29.9% 29.2%32.6%

26.2% 25.6%28.3%

PCT, IHD, Web

TOUTOU--CPCP

VPPVPP--CP LowCP Low

VPPVPP--CP MedCP Med

Weekdays

OG&E: 2010 Demand Response Study17

LBNL Smart Grid Technical Advisory Project 344/25/2012

0%

5%

10%

15%

20%

25%

Co

nse

rva

tio

n I

mpact (%

)

11.1%

16.5%

11.1%8.0%

10.6% 10.9%

3.7%

8.3%

11.8% 12.4%

VPPVPP--CP HighCP High

� Pre-assigned cells

� Online self-enrollment

� Best Bill Guarantee

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� Feedback study impacts are oversold, creating unrealistic expectations

� Pilots focus on IHD hardware rather than information

� Rate design and pricing are ignored but essential for creating a customer value function

What are the issues and limitations

LBNL Smart Grid Technical Advisory Project

� Billing information is needed to reinforce the value function

� IHD’s support short-term behavior change, not long-term infrastructure change

� Research is searching for a single solution where the market will probably require a dynamic mix of multiple treatments over extended time frames.

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Behavioral Change

AdaptationInfrastructure

Change

Policy Options

What policies should you consider ?

LBNL Smart Grid Technical Advisory Project

• Data Access

• Understandable

Rates

• Dispatchable Prices

• Clear Bills

------------

• Privacy

• Evaluation Tools

• Rebates

• Open Markets for

Technology

• Standards

• Building Standards

• Appliance Standards

• Financial Incentives

• Rate simplification and

stability

• Billing clarity and

customization

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3. SMUD Residential Information and Controls Study

LBNL Smart Grid Technical Advisory Project4/25/2012 37

Karen Herter, Ph.D.

Project Design

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Research Team and Funding

• Research Team

– Herter Energy Research Solutions

– Sacramento Municipal Utility District (SMUD)

• Funding

– Sacramento Municipal Utility District (SMUD)

LBNL Smart Grid Technical Advisory Project 384/25/2012

– California Energy Commission Public Interest Energy Research via the Demand Response Research Center at Lawrence Berkeley Lab

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Study Goals

� Build on what we already know

� TOU rates are effective for shifting load every day

� Dynamic rates are effective for shedding load during events

� Thermostat automation enhances both of these effects

� Answer some new questions

� Does real-time energy data enhance energy and/or peak savings?

LBNL Smart Grid Technical Advisory Project 394/25/2012

� Is there added value in providing real-time appliance energy data?

� Combine rates, automation, real-time data and enhanced customer

support to…

� capture synergies between program variables

� provide as realistic an experience as possible

� define results that can be translated to the real world

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What we already know

Results of residential pricing studies in Ontario, California, Puget Sound, Florida,

Australia, Illinois, Missouri, New Jersey, Maryland, Connecticut, Washington DC

LBNL Smart Grid Technical Advisory Project 404/25/2012

Q: Might real-time data from new smart meters provide additional value?

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Residential Information & Controls Study

� Phase 1: 2009 Simulation Research

� 450+ SMUD participants

� Simulated home environment w/ TOU-CPP rate

� Findings

� Home data: No savings

LBNL Smart Grid Technical Advisory Project 414/25/2012

� Home data: No savings

� Appliance data: 6% savings

� Phase 2: 2012 Summer Solutions Pilot

� 265 residential SMUD participants

� Equipment installations in Sacramento and Folsom

� Treatments

� Real-time data: Home vs. Appliance

� Incentives: Dynamic rate vs. Load control

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Research Design N=265 residential customers

A. Information Treatments - randomly assigned

A. Baseline (88)A. Baseline (88)

LBNL Smart Grid Technical Advisory Project 424/25/2012

4

Control only (81)Control only (81)

Neither (49)Neither (49)

Rate only (44)Rate only (44)

Rate + Control (91)Rate + Control (91)

B. Dynamic Rate and AC Load Control - customer chosen

C. Appliance Data (88)C. Appliance Data (88)B. Home Data (89)B. Home Data (89)

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Research Design N=265 residential customers

A. Information Treatments - randomly assigned

A. Baseline (88)A. Baseline (88)

LBNL Smart Grid Technical Advisory Project 434/25/2012

Control only (81)Control only (81)

Neither (49)Neither (49)

Rate only (44)Rate only (44)

Rate + Control (91)Rate + Control (91)

B. Dynamic Rate and AC Load Control - customer chosen

C. Appliance Data (88)C. Appliance Data (88)B. Home Data (89)B. Home Data (89)

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Information System A - Baseline

Communicating Thermostat

RCSZwave

LBNL Smart Grid Technical Advisory Project 444/25/2012

Gateway provides OpenADR event notification

Zwave

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Information System B – Home data

Communicating Thermostat with Energy Information Display

RCS

Sit

e D

ata D

ata

Sto

rag

e &

Pre

sen

tatio

n

Zwave

Whole-house sub-meter

LBNL Smart Grid Technical Advisory Project 454/25/2012

Gateway with Information Display via Computer

RCS

Da

ta S

tora

ge

& P

rese

nta

tion

Zwave

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Information System C – Appliance data

Communicating Thermostat with Energy Information

Display

RCS

Sit

e D

ata D

ata

Sto

rag

e &

Pre

sen

tatio

n

Zwave

Whole-house sub-meter

LBNL Smart Grid Technical Advisory Project 464/25/2012

110V sub-meter

HVAC sub-meter

Gateway with Information Display via Computer

RCS

Da

ta S

tora

ge

& P

rese

nta

tion

220V sub-meter

Ap

pli

an

ce D

ata

ZwaveZwave

Zwave

Zwave

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User Interface (Appliance data)

LBNL Smart Grid Technical Advisory Project 474/25/2012

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User Interface (Appliance data)

LBNL Smart Grid Technical Advisory Project 484/25/2012

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Research Design N=265 residential customers

A. Information Treatments - randomly assigned

A. Baseline (88)A. Baseline (88)

C. Appliance Data (88)C. Appliance Data (88)B. Home Data (89)B. Home Data (89)

LBNL Smart Grid Technical Advisory Project 494/25/2012

B. Dynamic Rate and AC Load Control - customer chosen

C. Appliance Data (88)C. Appliance Data (88)B. Home Data (89)B. Home Data (89)

Control only (81)Control only (81)

Neither (49)Neither (49)

Rate only (44)Rate only (44)

Rate + Control (91)Rate + Control (91)

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Recruitment – Program Choices

• Rate

– TOU-CPP rate, a.k.a. the “Summer Solutions rate”

– Customer determines response to high-price events

...of customers offered a dynamic Rate and/or AC Control

Rate +

Neither,

13%

Control

only, 13%

LBNL Smart Grid Technical Advisory Project 504/25/2012

events

– 12 events

• Control

– 4°set point raise during events

– One override allowed

– Same 12 events as TOU-CPP rate

All participants receive one of the three randomly assigned equipment configurations, no matter their program choices

N=238

Rate +

Control,

49%

Rate only,

25%

13%

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Optional TOU-CPP Rate

LBNL Smart Grid Technical Advisory Project 514/25/2012

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Hypotheses

• For all participants

� Energy use is lower

� Weekday peak demand is lower

� Peak demand on event days is lower

� Electricity bills are lower

• Savings are better for customers:

LBNL Smart Grid Technical Advisory Project 524/25/2012

� (a) with more information

� (b) who chose more program options

� (c) on the dynamic rate, compared to direct load control

� (d) with higher energy use

� (e) with certain self-reported behaviors

� (f) with certain dwelling characteristics

� (g) with certain demographic characteristics

� (h) with higher satisfaction levels

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LBNL Smart Grid Technical Advisory Project 534/25/2012

Field Test & Findings

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Field Study: Education and Outreach

� Installers assisted with thermostat settings

o Encouraged all participants to automate response to critical

events

� Quick Start Guide and equipment user guides

� Websites with information, tips, discussion board

LBNL Smart Grid Technical Advisory Project 544/25/2012

� Websites with information, tips, discussion board

� On-site energy assessments with personalized recommendations

� Summer Solutions Rate magnet

� SS rate vs. Standard bill comparison

� 24-hour advance notification of events

o via email, thermostats, text message, phone

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Events - Overview

� Twelve events from July to September

� Notify Participants

o Email – including recommendations for participant action

o Thermostat display – blinking light and message

o Computer energy display – ACTIVE event status displayed

LBNL Smart Grid Technical Advisory Project 554/25/2012

o Computer energy display – ACTIVE event status displayed

o Special requests: Phone calls or text message

� Notify Equipment

o OpenADR to gateway

o ZWave from gateway to thermostat

o Thermostat initiates Automatic Temperature Control (4°F) or

customer-programmed response to events

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2011 Temperatures and Events

LBNL Smart Grid Technical Advisory Project 564/25/2012

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2.5

3.0

pa

nt 2010 Weekday (weather-corrected baseline)

2011 Non-Event Weekday

Load Impacts - 100° day

Daily

weekday

impactBaseline

LBNL Smart Grid Technical Advisory Project

0.0

0.5

1.0

1.5

2.0

2.5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Av

g.

kW

pe

r p

ar

cip

Hour

2011 Non-Event Weekday

2011 Event

574/25/2012

Event impact

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Information Effects

LBNL Smart Grid Technical Advisory Project 584/25/2012

Values in bold indicate a statistically significant difference from “Baseline information”

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Rate and Control Effects

LBNL Smart Grid Technical Advisory Project 594/25/2012

Values in bold indicate a statistically significant difference from “Neither option”

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Billing Impacts

LBNL Smart Grid Technical Advisory Project 604/25/2012

Note: These bill savings are in addition to those associated with energy savings

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Customer Satisfaction

� 86% = Excellent or Good

o All groups were equally satisfied

� 90% signed up again for Summer Solutions 2012

o 5% dropped out, 5% unreachable

LBNL Smart Grid Technical Advisory Project 614/25/2012

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Hypotheses

• For all participants

� Energy use is lower: YES

� Weekday peak demand is lower: YES

� Peak demand on event days is lower: YES

� Electricity bills are lower: YES

• Savings are better for customers:

LBNL Smart Grid Technical Advisory Project 624/25/2012

� (a) with more information: MIXED

� (b) who chose more program options: YES

� (c) on the dynamic rate, compared to direct load control: YES

� (d) with higher energy use: YES

� (e) with certain self-reported behaviors: YES (pre-cooling, peak offset)

� (f) with certain dwelling characteristics: YES (swimming pools)

� (g) with certain demographic characteristics: NO (age, education, income)

� (h) with higher satisfaction levels: MIXED (no savings for dropouts)

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Recommendations

1) Dynamic Rate + Advanced Thermostat

� Offer at least one dynamic rate option, e.g. TOU-CPP

� Display rate and event status on thermostat

� Allow customers to automate precooling + peak offsets

� Real-time energy data nice, but not necessary

LBNL Smart Grid Technical Advisory Project 634/25/2012

� Real-time energy data nice, but not necessary

2) Enhanced Customer Service

� Educated customer support staff

� Free home energy assessments for participants

� Rate calculator with scenario testing

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References - 1

Title Link

1

Advanced Metering Initiatives and Residential Feedback Programs: A Meta-

Review for Household Electricity-Saving Opportunities, ACEEE, Martinez,

Donnelly, Laitner, June 2010

https://www.burlingtonelectric.com/ELBO/assets/smartgrid/ACEEE%20report%20on%20smart%20grid.pdf

2The Persistence of Feedback-Induced Energy Savings in the Residential

Sector: Evidence from a Meta-Review

http://www.stanford.edu/group/peec/cgi-bin/docs/events/2010/becc/presentations/3D_KarenEhrhardt-Martinez.pdf

3 Harnessing the Power of Feedback Loops, Wired, TGoetz, June 19, 2011.http://www.wired.com/magazine/2011/06/ff_feedbackloop/

LBNL Smart Grid Technical Advisory Project

3

4The Effect on Electricity Consumption of the Commonwealth Edison

Customer Application Program Pilot: Phase 1, April 2011.http://www.smartgridinformation.info/pdf/3273_doc_1.pdf

5Residential Electricity Use Feedback: A Research Synthesis and Economic

Framework, EPRI, Neenan, Figure 2-2, February 2009.

http://opower.com/uploads/library/file/4/residential_electricity_use_feedback.pdf

6Exploring consumer preferences for home energy display functionality,

August 2009.http://www.cse.org.uk/pdf/consumer_preferences_for_home_energy_display.pdf

4/25/2012 64

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Title Link

7 Making it obvious: designing feedback into energy consumption, http://www.bluelineinnovations.com/documents/makingitobvious.pdf

8Direct Energy Feedback Technology Assessment for Southern California Edison

Company, March 2006http://sedc-coalition.eu/wp-content/uploads/2011/05/Stein-In-Home-Displays-March-2006.pdf

9Feedback on household electricity consumption: a tool for saving energy, Energy

Efficiency, Corinna Fischer, 2008.http://www.mendeley.com/research/feedback-household-electricity-consumption-tool-saving-energy/

References - 2

LBNL Smart Grid Technical Advisory Project

10Some consideration on the (in)effectiveness of residential energy feedback

systems, Carnegie Mellon University, August 2010http://www.paulos.net/papers/2010/ineffective_energy.pdf

11U.S.Department of Energy Smart Grid Investment Grant Technical Advisory

Group Guidance Document #2, Non-Rate Treatments in Consumer Behavior

Study Designs, August 6, 2010.

http://www.smartgrid.gov/sites/default/files/pdfs/cbs-guidance-doc2-cbsp-outline.pdf

12The Impact of Informational Feedback on Energy Consumption – A Survey of the

Experimental Evidence, The Brattle Group, May 20, 2009http://www.brattle.com/_documents/uploadlibrary/upload772.pdf

4/25/2012 65

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Title Link

13The potential of smart meter enabled programs to increase enerty and system

efficiency: a mass pilot comparison, vaasa ett, October 2011http://www.esmig.eu/press/filestor/empower-demand-report/

14Energy Conservation and Carbon Reduction, Energywatch Smart Metering

Seminar, S.Darby, September 2005

http://www.powershow.com/view/fdc0b-YTM4Z/Energy_conservation_and_carbon_reduction_flash_ppt_presentation

15The Impact of In-Home Displays on Energy Consumption, Colorado Public

Service Commission, A. Faruqui, S.Serguci, June 7, 2010

http://www.dora.state.co.us/puc/presentations/InformationMeetings/SmartGrid/06-07-10CIM_Smart-Grid_ImpactIn-homeDisplays(Brattle%20Group).pdf

References - 3

LBNL Smart Grid Technical Advisory Project

16A Policy Framework for the 21st Century Grid: Enabling Our Secure Energy

Future, Executive Office of the President of the United States, June 2011, p.45.

http://www.whitehouse.gov/sites/default/files/microsites/ostp/nstc-smart-grid-june2011.pdf

17Oklahoma Gas & Electric 2010 Demand Response Study , Interim Results &

Lessons Learned, M.Farrell, March 30, 2011.

http://www.linkedin.com/news?viewArticle=&articleID=879569178&gid=2610610&type=member&item=78093355&articleURL=http%3A%2F%2Fwww%2Eraabassociates%2Eorg%2Fmain%2Froundtable%2Easp%3Fsel%3D109&urlhash=IlpS&goback=%2Egde_2610610_member_78093355

18Olle Johansson, PhD, Department of Neuroscience, Karolinska Institute

(Sweden)

http://www.facebook.com/SmartMeterRevolt#!/SmartM

eterRevolt?v=info#info_edit_sections

19Customer ‘education’ draws fire, Intelligent Utility Magazine, P.Carson,

September 1, 2011

http://www.intelligentutility.com/article/11/09/consumer

-education-draws-fire

4/25/2012 66

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References - 4

Title Link

20A Problem for Smart Meters: People Don’t Understand Electricity, Fast

Company, A. Schwartz, August 29, 2011. http://www.fastcompany.com/1776357/a-problem-for-smart-meter-projects-people-dont-understand-electricity-pricing

22Energy Conservation and the Consumer Dilemma, SPARK E-

Newsletter, K.Ashton, January 10, 2011. http://www.fortnightly.com/exclusive.cfm?o_id=513

23Americans are Clueless on Saving Energy, Study Finds,

greentechenterprise, K.Tweed, August 19, 2010. http://www.greentechmedia.com/articles/read/americans-are-cluless-on-saving-energy-study-finds/

LBNL Smart Grid Technical Advisory Project

24Results from Recent Real-Time Feedback Studies, Report Number

B122, ACEEE, B.Foster, S.Mazur-Stommen, Feburary 2012

5

6

4/25/2012 67

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Contact Information

� Chuck Goldman

Lawrence Berkeley National Laboratory

[email protected]

510 486-4637

� Roger Levy

Smart Grid Technical Advisory Project

[email protected]

LBNL Smart Grid Technical Advisory Project68

[email protected]

916 487-0227

� Karen Herter

Herter Energy Research Solutions

www.HerterEnergy.com

916-397-0101