assessing your c&i load-defection risk · 1 on-site wind project 19 energy-storage projects...

www.esource.com

Assessing Your C&I Load-Defection Risk

Web conference

Matthew Burks, Chief Strategy Officer

Chad Garrett, Managing Director,

Consulting & Advisory

Mike Hildebrand, Vice President,

Account Management Solutions

Thursday, March 1, 2018

www.esource.com

© 2018 E Source | www.esource.com 4

Do we fully understand our utility’s large

business customer defection risk?


Utility Challenges

Rapidly changing commercial & industrial (C&I)

customer needs

Multiple utility fronts opening up simultaneously

Limited time and resources

Mostly localized customer data, insights, and intelligence

Traditional key account management structures and inertia


An Unbiased Perspective?

Technological progress and velocity

Social pressure and increasing momentum

Competitive landscape, consolidation, and influence

Corporate interests, networks, and decision processes

Innovation design: tech/integrated solutions, financing, and

customer experience

Shifting regulatory and legislative influence

Internal strategic business exposure


~5% of load

MGM was at the front of

a larger industry wave

Courtesy: iStock


125 companies* are committed to

100% renewable energy

Equal to the load of

* as of February 2018


6 GW

60 GW

0

20

40

60

80

100

All corporate purchases2010 to 2015

Renewable Energy BuyersAlliance (2025 commitment)

Gig

aw

att

s (

GW

) o

f re

ne

wa

ble

en

erg

y

Corporate procurement of renewable energy

© E Source; data from Renewable Center Deal Tracker

Corporate Commitment to Renewables Is Growing Rapidly

At least a

tenfold

increase

from

2015


A Growing Landscape of Collaboration

Utility/Corporate Buyer Collaborative Forum


Cities Are Taking Action*

53 US cities have

committed to 100%

renewable power under

sierraclub.org/ready-for-100/commitments

Five cities have hit their targets:

Aspen, CO

Burlington, VT

Greensburg, KS

Rock Port, MO

Kodiak Island, AK

*as of February 2018


Communities Are Taking Action*Cities:

Atlanta, GA (100% renewable by 2035)

Boulder, CO (100% renewable by 2030)

Cambridge, MA (100% renewable by 2035)

Columbia, SC (100% renewable by 2036)

Madison, WI (100% renewable by Not Specified)

Orlando, FL (100% renewable by 2030)

Salt Lake City, UT (100% renewable by 2032)

San Diego, CA (100% renewable by 2035)

San Francisco, CA (100% renewable by 2030)

San Jose, CA (100% renewable by 2022)

Sarasota, FL (100% renewable by 2045)*as of February 2018

Counties:

Buncombe County, NC (County: 2042)

Multnomah County, OR (County: 2035)

Summit County, UT (County: net-100% by 2032)

Summit County, CO (County: 2035)

Taos County, NM (County: 2030)

Whatcom County, WA (County: No date)


C&I Landscape


Players Targeting C&I


International Interest


International Interest (cont.)

Source: Wall Street Journal


International Interest (cont.)

C&I Division

Behind-the-meter, virtual,

wholesale solution providerLarge multinational energy infrastructure

and services companyRenewable power

purchasing


C&I Words Versus Actions


Advanced sustainability plan with multiple initiatives:

Verified science-based target for emissions-reduction plan

100% renewable goal (currently at 26%)

Reduce energy intensity at Walmart facilities by 20% versus 2010 baseline (currently reduced

by 10%)

364 installed on-site solar projects throughout the US (commitment is to have 480 by 2020)

1 on-site wind project

19 energy-storage projects (Tesla batteries; owned by SolarCity; pay-for-performance model)

Hybrid Electric Buildings’ Project with AMS

60 current fuel cell stations (30 to 40 planned for 2018)

300 electric vehicle chargers (expected to accelerate; 200 to 300 more in the next 18 months)

Investing $300 million to $400 million per year in energy efficiency

Collaborated with WWF, EDF, and other NGOsSource: https://corporate.walmart.com/2016grr/enhancing-sustainability/reducing-energy-intensity-and-emissions


Public commitment:

Exceeded 2015 goals with 30% total reduction in

store energy used (2010 base)

135 megawatts (MW) of energy produced annually

through renewable and alternative energy by 2020

(100 MW from wind/solar; 35 MW from fuel cells)

Supply-chain emissions goal of 20% in-store energy

reduction by 2020

50 known pilots to cut load by up to 35% per store

Testing solar plus Tesla batteries with GE Current

Average store roof: 104,000 ft2 = 1,000 solar

panels


Public commitment:

Carbon neutral and 100% renewable energy by 2020

50% location-based greenhouse gas (GHG) emission reductions

40% location-based energy-use reductions

45% location-based water-use reductions

Plans to continue scaling energy efficiency and conservation, purchase 100%

renewable electricity, and utilize carbon offsets

Reduced GHGs by 37% via energy efficiency from 2010 to 2015

Joined US Department of Energy Workplace Charging Challenge

Known pilots:

$125 billion environmental business initiative

Modernizing data center footprint

Lighting upgrades for 900 financial centers in 2016

Working with RE100, The Climate Group, USGBC, and more


Public commitments:

100% renewable power (date uncertain)

Committed to new long-term renewable electricity tariff in

home state of WA to ensure local facilities are powered by

renewable energy

Green Direct tariff will lead to construction of WA wind farm to

provide electricity to 116 Starbucks stores and roasting facility

in Kent, WA

Known pilots/work completed:

Buying renewable electricity equivalent to 100% of global

operations by 2016

Working with RE100, The Climate Group, CDP, UW

Clean Energy Institute, and others


Web conference goal:

To drive deeper C&I customer and market data,

analysis, and insights to fully understand and

proactively mitigate load-defection risk


Innovation Is Everywhere

Technological innovation

Business model innovation

Product/service innovation

Financing innovation

Customer service/experience innovation

Marketing and brand innovation


Disconnects in Utility C&I Market Intelligence

Visibility into customers’

corporate and sustainability

objectives, pressures, strategies,

commitments, and actions

Analysis of corporate load-

defection potential (international,

national, state, and store)

Data on customer needs,

motivations, decision logic

and processes, and energy-

related technology interests

Insights into latent corporate

wants, needs, and broader

issues from in-depth

customer interviews

Aggregation of customer

data and insights from

across the enterprise

Urgency as a near-term

strategic concern

Strategy for how to

mitigate utility risk


Recommended Next Steps

Extensive key account research

Account manager interviews

In-depth C&I customer interviews

Segment-focused market research expansion

Customer data aggregation, integration, and analysis

Holistic, unbiased analysis and assessment


Fundamental Questions

Do we actually understand our C&I customers, their issues,

and their goals?

Are we helping our C&I customers solve their problems?

If not, can they get a solution from someone else?

If so, what are the implications for our utility?

What are we going do about it?


What Next?

Develop a process to track customer strategies and goals

around distributed energy resources

Assess program, product, and service design capabilities

Assess innovation and partnership proficiency

Assess C&I service, sales, and support structures

Assess team expertise and potential skills gaps

Assess and compare regulatory constraints and gaps

Develop interim and midterm C&I strategies


E Source C&I Load-Defection Model

A comprehensive picture of your largest customers’ load-

defection risk and associated revenue impacts

A targeted list of high-risk customers and business types

In-depth market research data and conclusions that are

specific to your customers and service territory

On-site strategic planning partnership to contextualize and

operationalize findings for the short- and long term


Final Thoughts

This is important.

This is big, but doable.

The time is now.

We’re happy to discuss trends, intelligence, models,

and implications!


Thank You! Questions?

Mike HildebrandVice President,

Account Management Solutions

303-345-9176

[email protected]

Matthew BurksChief Strategy Officer

303-345-9173

[email protected]

Chad GarrettManaging Director,

Consulting & Advisory

303-345-9151

[email protected]

You're free to share this document in its entirety inside your company. If you'd like to quote or use our material outside of your business,

please contact us at [email protected] or 1-800-ESOURCE (1-800-376-8723).

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assessing your c&i load-defection risk · 1 on-site wind project 19 energy-storage projects...

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