The Future of Residential Demand Response: BGE’s Integration of Demand Response and Behavioral

Ruth Kiselewich Director DSM Programs

E Source Forum 2014 September 29–October 2, 2014

Baltimore Gas and Electric

Maryland’s largest utility 200 years 1st gas utility 1.2 million electric 650,000 gas 31 million MWh 7,200 MW 3,400 Employees Exelon

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PeakRewardsSM

Established in 2008 Currently available to residential customers with central A/C, electric Heat Pump and/or electric water heater.

Smart Grid Deployment

2010-2014 Meter installations began April 2012 All residential customers will receive an AMI Meter

Smart Energy Manager®

Launched October 2012 Customers with Certified AMI meters can view energy consumption on BGE.com and learn more ways to save.

Smart Energy Rewards®

Launched July 8, 2013 Peak Time Rebate program, available to all customers who have a Smart Meter installed.

BGE’s Demand Response Programs

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PeakRewards Direct Load Control

Smart cycling of air conditioning (A/C) and water heaters (W/H) for bill credits

A/C Program Switch or thermostat option Three levels of cycling: 50%, 75% or 100% 317,000 customers (38% of eligible) 350,000 devices 416 MW demand reduction

W/H Program 100% cycling 79,000 devices 10 MW demand reduction

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BGE Smart Energy Rewards® Overview

BGE’s Peak Time Rebate Program launched July 8, 2013 Based on four summers of pilots

– Customers reduced peak demand 15-25% and saved over $100 each year on average

Behavioral demand response program Default tariff that is applicable to all residential customers with

a smart meter Customers earn bill credits for reducing electric consumption

on approximately 5-10 peak event days each summer called Energy Savings Days

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The Launch of BGE Smart Energy Rewards

Savings Tips Segmented/Multi-Phased Customer Education

TV Spot & Web Video

How it Works: 3 Simple Steps

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Passive Participation and Behavioral

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Customer Notifications Delivered to Customer’s Preferred Channel and Customized by Customer Segment

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Email Phone SMS Paper

Immediate Customer Feedback with Personalized Post Event Notifications

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“This is a message from BGE. During

the Wednesday, July 10th Energy Savings

Day, you earned $9.75 for reducing your energy use.”

2013 BGE Smart Energy Rewards Results

Four Energy Savings Days on 7/10, 7/17, 7/18 and 9/11 Customer rebates ranged from $8.00 to $11.00 per event Percentage of customers who earned a rebate ranged from

75% to 93%. Open rates on event e-mails were 57-65% - 3 to 4 times higher

than industry standard and other BGE emails at 20% SER event call back rates of .5% - 1% were less than the 3%

modeled High customer satisfaction with the program

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Negative 9%

Neutral 17%

Positive 74%

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% Rating

Some express improved opinion of engagement with BGE

• “This was one of the best communications I’ve ever received from BGE in that it was clear, concise”

• “I liked that it was highly customized”

• “BGE is a bill, faceless, nameless. But with this, I feel like they are trying to do something for [the customers].”

• “I’ll see your $13.25 and raise you $12.75…we saved $26.00 yesterday! Pretty good deal!”

Almost 3/4 are positive about overall program experience

Q.30: Please rate your overall experience with the energy savings day program

The Majority of Customers Are Positive About SER

Customers Are Motivated and See the Value

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Positive Customer Feedback on

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2014: A Frustratingly Cool Summer: 2 Events

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• $6.55 average credit (SER and PR) • 76% average participation • $ 5 million in credits paid to customers

BGE Smart Energy Manager® (SEM) launched October 2012

Customer access to SEM once meter is certified Customers welcomed with brochure and first home

energy report Alerts enabled for those who opt in

Each household receives at least 1 paper report Control group to measure impacts Summer 2014:

700,000 customers 3 million paper reports

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SEM: Behavioral With Conservation Focus

Track, analyze usage and cost data Estimate bills Unusual usage alerts Compare to “like” customers Personalized usage and savings tips Printed and electronic home energy reports Access to interval usage data

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Linkages Between SER and SEM

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What is Next?

PeakRewards two-way thermostat pilot in 2015 – Bring Your Own Thermostat – Linkage to behavioral – Also testing adding energy efficiency to demand response program

Reinforce and grow BGE Smart Energy Rewards SER and SEM: 1 million participants in summer 2015 Questions

18 Ruth.C.Kiselewich@bge.com