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Residential Electric Rate SummitResidential Rate Reform update

Presentation @ CPUC OfficesDecember 4, 2017

Presentation Overview

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Bill Impact Comparison

High Usage Charge Campaign

Hot Zone Campaign

GRC II Campaign

Time of Use: Hour X

Rates & Reform – Residential TimelineQ4 2017 Activities

High Usage ChargeLaunched November 1

GRC II Changes Peak moves to 4p-9p

Launched December 1

Opt-In TOU PilotConcludes December 31

Default TOU Pilot PD60 Pricing Plans Communication

Launches January 3

NOV

DEC JAN

2017 2018

SEPT

Hot Zone CampaignLaunched September 11

Changes bringing customers more choice & control

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Bill Impact ComparisonSummer 2016 vs Summer 2017

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Usage Level (KWh)

Number of Customers

Percent of Non-CARE Customers

Original Average Summer

Monthly Bill

New Average Summer

Monthly Bill$ Change % Change

100% BL 144,723 23% 29$ 35$ 5$ 18%101-130% BL 73,217 12% 54$ 68$ 14$ 27%131-400% BL 347,080 56% 136$ 152$ 17$ 12%>400% BL 54,467 9% 451$ 472$ 22$ 5%

Usage Level (KWh)

Number of Customers

Percent of CARE

Customers

Original Average Summer

Monthly Bill

New Average Summer

Monthly Bill$ Change % Change

100% BL 55,790 30% 20$ 25$ 4$ 18%101-130% BL 30,322 16% 33$ 43$ 10$ 23%131-400% BL 95,859 52% 75$ 87$ 12$ 14%>400% BL 2,063 1% 256$ 273$ 17$ 6%

*Summer includes months May-October

Non-CARE

CARE

• Residential customers on DR or DRLI• Dollar amounts only include electric portion of the bill

Non

-CAR

ECA

RE

Population

Summer season includes May - October

High Usage Charge (HUC)Campaign elements

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General Awareness

• Pocket Card• Website

www.sdge.com/highusage

• Social Media• Community

Partner Briefings• Bill Insert• Bill Onsert

Targeted Communications

• Direct Mail & Email

• High usage chart by month

• At-risk customers versus high risk

• Bill Presentment

Alerts & Presentment

• HUC Alerts (350% and 400%) in My Account

• Early enrollment for alerts on HUC website

• Weekly Alert Email (WAE)

• Bill Ready Notification (BRNE)

• Customer Bill

Targeted Engagement

• Live Call Campaign

• Highest impacted CARE customers by month

• Energy Savings Assistance (ESA) Program offering

High Usage ChargeCampaign Results – To-date

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37,500 paper and 600 electronic alerts

Customers reaching 350% and/or 400% of baseline

250 customer callsProviding assistance on solutions

7 customer lettersExpressing concerns on new charge

24 live callsTo highest impacted CARE customers

5,200 on-line subscriptionsAlerts for 350% and 400%

9,200 page viewsOn High Usage web page at sdge.com

Note: Numbers above are rounded up; reported as of 11/27/2017

Customer EngagementThrough November 2017

Total impacted customers = ~146,000 (350% of baseline or more, past 12 months usage)

• High-risk customers = ~94,000 (400% of baseline or more, past 12 months)

• CARE/FERA = ~3,500• Medical Baseline = ~1,500

Customer Population At-A-GlanceHistorical

Hot Zone CampaignCampaign elements

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• Customer calls made in Hot Zone zip codes to enroll in eligible programs

Live Call Outreach

• Direct Mail• Promoting CARE, FERA and Medical

Baseline programs• Distributed to more than 12,500

customers in Hot Zone zip codes

Targeted Communication

• Community Partner briefings & program enrollment events

• Monthly CARE mailing to prospect list in Hot Zone zips

Targeted Engagement

Hot Zone is defined as customers who are in Mountain or Desert climate zones.

Hot Zone CampaignCampaign Results – To-date

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Customer Overview

• Live calls made to nearly 2,400 customers in Hot Zone zip codes• 32% of customers were successfully reached• Resulted in 70 program enrollments• Over 500 customers stated that they didn’t qualify for CARE/FERA/MBL

Customer Engagement – Live Call Campaign

August 2017 November 2017 Change

Number of Hot Zone Zip Codes 26 26 --

Hot Zone Zip Code Customer Population 17,346 17,670 324

Customers enrolled in CARE 2,614 3,084 434

Customers enrolled in FERA 97 91 6

Customers enrolled in Medical Baseline 998 1,122 124

General Rate Case (GRC) IICustomer Impacts

GRC II – Release 1 ImplementationDecember 1, 2017

ChangesOn-peak hours shift to 4pm to 9pm for

most TOU residential & business pricing plans

March & April will have a mid-day super off-peak from 10a to 2p

May becomes a winter monthReduce Your Use (RYU) event hours

shorten to 2p to 6p

Key MessagesSupports statewide commitment to clean,

reliable electricity

Plans encourage people to save electricity when it matters most

Increasing use from renewable resources is changing the on-peak time to 4 to 9 pmKnow your options – visit My Account to “Compare Your Pricing Plan” options and

make a choice

~ 100,000 residential customer communications distributed9

Questions?

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SDG&E’s HOUR XDynamic Rate Pilot

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Hour X – Overview

Fixed

Dynamic

Pricing Components

• Lower prices than other rates for most of the year (during non-event)

• Bill protection (12 months)

• Surplus energy credit if actual price is less than forecasted price

• Hourly pricing varies based on forecasted energy demand

• Day-ahead pricing forecasts

• Surcharges applied during high demand hours of up to 350 hours per year (day-ahead notice)

Encourages reduction of electricity use during specific hours when energy demand is highest

Key Features

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Hour X – Communications

Daily pricing forecasts via email

Ongoing communications

• Recurring notifications and customized communications continued throughout the year

• Recent Hour X communication campaigns, such as the High-Demand Surcharge reminder, have engaged and informed customers on the Hour X rate

Hour X – Event Summary & Examples

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• Circuits are local to the customer - adder is lower.• Benchmark is calling 200 events per year.• Events are based on the equipment necessary to bring

power from the substation to the customer.

• Apply to the entire system - adder is higher.• Benchmark is calling 150 events per year. • May or may not coincide with any circuit

events.

10 System Events were called 28 Circuit Events were called

Example A

Example B

• Relatively short event duration (3 hours, between 5pm & 8pm) enables customer to prepare and recover

• Distinct load reduction prior to event (hour 16)

• “Recovery” period after event occurs

• Day of system peak (4,544 MW at 4pm on 09/01/17)

• Long event duration (11 hours, between 11am and 10pm), making it harder to maintain reduced/shifted load.

• Customer managed to reduce relative to baseline

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8 in 10 participants said they are satisfied with both SDG&E and the TOU pricing plan• Hour X pilot participants are slightly more satisfied with the plan than those on plans 1 and 2, although not a statistically significant difference• EV owners are also more satisfied with the pricing plan (84% are satisfied vs. 68% of non-owners)

Area % Satisfied Hour X Avg Rate 1 Avg * Rate 2 Avg * Control Avg *

Overall Satisfaction with Rate Plan 78% 6.3 6.1 6.1 6.0

Overall Satisfaction with SDG&E 81% 7.3 6.7 6.7 6.8

Saving money on the electric bill is the top reason for enrolling in Hour X• Customers on Hour X were very engaged, providing feedback• Bill protection was also a primary motivator to participate

Reduce Electric Bill

41%

Bill Protection

16%

First to try new rate

16%

Give SDGE feedback on

rate 16%

Good for environment

7%

Other 5%

The Daily Pricing information appeared to be both helpful and used most frequently, followed by the Weekly Alert EmailWhen asked what kind of information they feel they need to be successful on the rate, many commented that they would like:• More advanced notice or the ability to forecast what the rates might be• Alerts or analytical tools, and • Rates to be easy to obtain and understand in general.

* Non-CARE, Moderate region

Customers have positively responded to the Hour X rate and survey responses reflected customer satisfaction and savings

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Hour X – Participant Survey Results

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Save money on electric bill

Bill protection

First to try new rate

Give SDG&E feedback on rate

Good for environment

Other

Motivations for participating

41.4

15.5

15.5

15.5

6.9

5.2

Sheet1

Motivations for participating

Save money on electric bill41.4

Bill protection15.5

First to try new rate15.5

Give SDG&E feedback on rate15.5

Good for environment6.9

Other5.2

Questions?

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Slide Number 1Presentation OverviewRates & Reform – Residential Timeline�Q4 2017 ActivitiesBill Impact Comparison�Summer 2016 vs Summer 2017High Usage Charge (HUC)�Campaign elementsHigh Usage Charge�Campaign Results – To-dateHot Zone Campaign�Campaign elementsHot Zone Campaign�Campaign Results – To-dateGeneral Rate Case (GRC) II�Customer ImpactsSlide Number 10Slide Number 11Hour X – OverviewHour X – CommunicationsHour X – Event Summary & ExamplesHour X – Participant Survey ResultsSlide Number 16