2014 Smart Grid Customer Education Symposium:

Evolving from AMI to Dynamic Pricing Programs: How to Take the Customer with You on the Smart Grid Journey

America LeshProduct Manager, BGE Smart Energy Rewards®

Welcome to Baltimore!

BGE Quick Facts:

North America’s first utility --origins date back to 1816

Maryland’s largest utility

– 1.25 million electric, 650,000 gas customers

– 31 million MWh, 7,200 MW

– 3,400 employees

One of 3 utilities within the Exelon family

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

Smart Meter installations began April 2012 for all residential customers.

BGE Smart Energy Manager®

Launched October 2012

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

BGE Smart Energy Rewards®

Launched July 2013

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

Programs are focused on delivering customer value, energy and demand savings using smart meters as an enabler

98

BGE Smart Energy Savers Program® and Smart Grid

Territory-Wide AMI Enabled Programs

99

Over 1 million AMI Meters Installed to Date

2013

• 450,000 customers

• 1.4 million reports

• 200,000 customers online

2014

• ~ 1 million customers

• 3 million reports

• Web portal, paper reports, texts, email, mobile

2013

•315,000 customers

•82% participation /$9 rebate

2014•750,000 customers

2015•1.1 million customers

Conservation Focus Behavioral Demand Response

Multi-Phase Customer Education

100

Phase 1:

Q1 2013

• Create Awareness

• High level program messaging to reinforce Smart Meter communications

Phase 2:

Q2 2013

• Generate Engagement

• Opportunity for customers to learn about SER, ask questions

• Outbound Calling Campaign

Phase 3:

Q3 2013

• Encourage Action

• Welcome Kit Direct Mail, Event notifications

Segmented Welcome Kit

TV Spot & Web Video

Savings Tips

Contact Info Critical to Success of AMI Programs

Campaign goals

• Confirm and update contact information.

• Increase program awareness and engagement.

Accomplishments

101

Customer Data on file Before campaign

YTD 2014

Email 26% 46%

Primary Phone 0% 99%

Verified Customers 0% 49%

Personalized Notifications to Preferred Channel

102

Email Phone SMS

“This is a message from BGE. During the

Wednesday, July 10th Energy Savings Day, you

earned $9.75 for reducing your energy use.”

Pre-Notifications Post Notifications

Print

Meaningful Peak Reduction Achieved in Year 1

103

Time of day

KWh Peak

Baseline

Actual

5% average reduction at peak

High Customer Engagement and Satisfaction

104

Negative

9%

Neutral

17%

Positive

74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Rating

Majority are positive about

overall program experience

10-point scale;

Positive: 7-10, Neutral: 4-6, Negative:0-3

Some expressed 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!”

105

BGE.com/SmartEnergyRewards

America V. Lesh

Product Manager, BGE Smart Energy Rewards®

Demand Response Residential

Phone 410.470.5454

Cell 301.706.6495

bge.com