Power Forward Data Access - March 5, 2019 - PUCO

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Power Forward Data Access - March 5, 2019 - PUCO
Power Forward Data Access
             March 5, 2019

            Proprietary - Use pursuant to company policy
        ®Direct Energy Marketing Limited, used under license.
Power Forward Data Access - March 5, 2019 - PUCO
About Direct Energy
• What it means to work for Direct Energy
      WE: Give our customers choice,             WE: Make energy work harder for our nearly
      simplicity and innovation where            five million home and business customers
      energy, data and technology meet.          across North America.

      WE: Compete to earn their business         WE: Empower our customers with simple
      every day.                                 solutions to track, understand and control the
                                                 electricity and natural gas they use.

      WE: Provide the insights our               WE: Will continue to lead energy innovation
      customers need to make smarter             through connected experiences that make a
      decisions, be more efficient, reduce       difference in people’s lives.
      their energy use and save money.
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Power Forward Data Access - March 5, 2019 - PUCO
Who is Direct Energy?
• One of North America’s largest retail          A sample of our external
  providers of electricity, natural gas, and     brands:
  home and business energy-related services.
  We give customers choice, simplicity, and
  innovation where energy, data, and
  technology meet.

• We provide our residential and business
  customers with innovative tools, technology,
  and insights to manage their energy use.

3
Parent Company Facts
• Centrica is an energy and services company. Everything we do is focused on
  satisfying the changing needs of our customers.

        Operates in 7 Countries with 27.5            36,494 Employees World-wide
        Million Customer Relationships

    $   Revenues of US $33.9 Billion                 One of the UK’s best brands – British Gas

        Top 40 FTSE 100 company                      Over 500,000 Hive Hubs Installed

4
History of Ohio Data Discussion Versus Texas Success

                                                      12-2050-EDL-ORD: Electric Rulemaking                       477,773

                                                      12-3151-EL-COI: Retail Market COI                408,561

                                            11-3549-EL-SSO: Duke ESP                         331,138
                                                                                  321,504
                                            11-277-GE-UNC: Consumer 289,848                   16-395-EL-SSO: DP&L ESP
                                            Protection/Data Access Review
                                                                                              16-481-EL-UNC: FE Grid Mod
                                10-2326-EL-RDR: Duke
                                SmartGrid rider           135,318         14-2209-EL-ATA: Duke Data Case
                      09-1820-EL-ATA                              13-1141                                17-1263-EL-SSO: Duke ESP
             08-920-EL-SSO: Duke ESP                              13-1939-EL-RDR: AEP Grid Smart            17-32-EL-AIR: Duke Rate Case

      2008        2009       2010       2011       2012       2013       2014      2015      2016      2017         2018

                               Cases in which we requested data access           Meanwhile, ERCOT TOU Enrollments
Barred Products: 10 years of products and customer control

                                               •   Pre-paid
•   Time of Use
                                                    – Pay as you go
     – Free hours, days, etc.
                                                    – Deposit forgiveness
     – On/off peak - discretion
                                                    – Bill control
     – Pick your time products
                                                   *The only open Ohio products today for
•   Direct Market Pricing
                                                   CRES are a few restricted and
     – Straight wholesale passthrough              antiquated products without data access
     – Direct Load Control – bring your tech       behind AEP.
•   Demand Response
     – PLC control
     – Bill credit for shifting
Our ethnographic research reveals customers’ need for security

•   The world is unstable; daily life feels less safe, more on edge, tense
•   Uncertainty leads to lowered expectations
•   Customers are looking for order & control
•   Customers want to be heard; empathy matters
•   Trust is a scarce commodity – and easily broken
•   In an uncertain world, the emotional bond with home is strengthened

                                             Proprietary - Use pursuant to company policy
                                         ®Direct Energy Marketing Limited, used under license.   7
Managing financial constraints with prepaid electricity
Giving customers control … across their budget
                        •   I like the weekly notifications about my usage, and I literally couldn't find a
                            single complaint if I tried.
                        •   Sending weekly emails about how much electricity I’ve used so I can monitor
                            my usage is very appreciated
                        •   Consistent electric bills, able to keep track of my energy usage weekly and
                            customer service has always delivered.
                        •   Enjoy your communicating with weekly usage and comparing with past usage.
                        •   Love the weekly emails with the usage information on it. It lets me know where
                            I stand in usage.
                        •   Friendly customer service Easy web interface for bill payment Minimum hassles I
                            LOVE THE WEEKLY UPDATE WITH USAGE AND PREDICTED BILL
                        •   I like receiving weekly updates about my usage, so that I can try to adjust it
                            and keep my bill lower.
                        •   Direct Energy give great weekly views so I know what my usage is and I’m
                            able to budget better
                        •   I love the online services and getting emails about my weekly usage.
                        •   I like the cost and the fact that I am alerted to the amount I spend weekly.
                        •   Great pricing available, weekly view of estimated costs, and when I have had to
                            talk to a representative it was quick and friendly resolution.
Actionable insight has led to energy efficiency

•     Study led by NERA Economic Consulting found that, among Texas customers in 2014-2016, a
      customer on Power-to-Go would use on average 9.6% less electricity than a similar customer on
      a postpaid product.1
•     This effect controls for any effect of disconnections or subsidies, and considers both low income
      and non-low-income.
•     Previous studies had found a similar effect with utility prepay programs, with impacts ranging
      from 5.5% to 14%.2

    1. Dr. Derya Eryilmaz (NERA Economic Consulting) and Sam Gafford (Direct Energy), “Can a Daily Electricity Bill Unlock Energy Efficiency? Evidence from Texas.” The Electricity
       Journal, Volume 31, Issue 3 (April 2018).
    2. Qiu, Yueming, Bo Xing, and Yi David Wang, 2016. Prepaid Electricity Plan and Electricity Consumption Behavior. Contemporary Economic Policy, 35(1) 125-142. Ozog, Michael and
       Integral Analytics, Inc., March 2013. “The Effect of Prepayment on Energy Use.” Report for the Distributed Energy Financial Group (DEFG) Prepay Energy Working Group.
       Distributed Energy Financial Group (DEFG) and Integral Analytics Inc., January 23, 2014. “Prepay Energy Conservation Impact Study.” Report for Northwest Energy Efficiency
       Alliance (NEEA).
Data: A Historical Usage Web Portal Doesn’t Bring Products

              What                                                                          Why
• 15 min intervals – no greater than                                   • Granular data provides greater
  hourly
                                                                         customer insight, control, and
• EDI transfer one time a month                                          reaction.
  interval data for purposes of supply                                 • EDI is standard system design for
  scheduling, billing and settlement.
                                                                         supply, billing and settlement
                                                                       • Billing data and settlement for PJM
• Next day or daily receipt of non-bill                                  should match.
  quality for purposes of load                                         • Engagement and response
  control.                                                               information.
• Historical Interval Usage can be a                                   • Tailor products to a customer where
  web portal/API                                                         the greatest benefit can be achieved

                                        Proprietary - Use pursuant to company policy
                                    ®Direct Energy Marketing Limited, used under license.                   11
Lets Build For the Future Not Just Today

• PLC Calculations based               • Allows customers to
  on individual peaks                    impact their capacity
• Standard meter data                    costs
                                       • 100% deployment AMI
                                         would be standard to
                                         create an educated
                                         customer
Proprietary - Use pursuant to company policy
®Direct Energy Marketing Limited, used under license.
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