Awareness of Energize Connecticut and Other energy efficiency resources and brands

1. Awareness of Energize Connecticut and Other energy efficiency resources and brands Tami Buhr, Director of Survey Research January 2014

2. About the Surveys • The purpose of the surveys was to measure change in awareness of and interest in the various energy efficiency brands following the launch of Energize Connecticut. • The data were weighted by phone type to account for overlap of landline and cell phone samples, and to match the sample phone type to that of the population. • Both surveys have a margin of error of plus or minus 5%, with a 95% confidence interval.

3. Awareness of Programs and Brands Presentation Name

4. Are you aware of any programs in Connecticut that help people (save energy by making their homes more energy efficient/make use of renewable energy sources to meet their home energy needs)? Q1A & Q5A

5. (Ask if aware of programs)How familiar are you with these programs? * Statistically different from 2012 at .05 level Q1B & Q5B

6. Compared to three months ago, are you more aware today about resources to save energy or use renewable energy, or not?(If more aware) Would you say you are much more aware or somewhat more aware? Q12A & Q12B

7. How familiar are you with Energize Connecticut? Q17A

8. Awareness of Energy Connecticut Efficiency Brands Presentation Name

9. Awareness of Energy Efficiency Brands Across the Country Presentation Name

10. Depth of Knowledge Presentation Name

11. (Ask if aware of programs) Can you describe the type of help these programs offer to people who want to save energy by making their homes more energy efficient? (Multiple responses accepted) * * Q2 * Statistically different from 2012 at .05 level

12. (Ask if aware of programs) Can you describe the type of help these programs offer to people who want to make use of renewable energy sources? (Multiple responses accepted) Q6

13. (Ask if aware of programs) Can you name organizations that might offer programs to help people (save energy by making their homes more energy efficient/make use of renewable energy sources)? Q3

14. (Results shown for those who can name organizations)Can you name organizations that might offer programs to help people save energy by making their homes more energy efficient?(Multiple responses accepted) Q3

15. (Results shown for those who can name organizations)Can you name organizations that might offer programs to help people make use of renewable energy sources?(Multiple responses accepted) Q7

16. Interest in Energy Efficiency and Renewables Programs and Barriers Presentation Name

17. How interested are you in learning more about programs that could help you (save energy by making your home more energy efficient/make use of renewable energy sources)? Q4A

18. (Ask if very/somewhat interested)Why would you say YOU are interested in making your home more efficient?(Multiple responses accepted) Q4B

19. (Ask if not very/somewhat interested)Why would you say YOU are interested in using renewable energy? (Multiple responses accepted) Q8B

20. (Ask if not very/not at all interested)Why would you say YOU are NOT interested in learning about programs that could help you save energy in your home? (Multiple responses accepted) Q4B

21. (Ask if not very/not at all interested)Why would you say YOU are NOT interested in learning more about programs that could help you make use of renewable energy? (Multiple responses accepted) Q8B

22. Exposure to Energy Efficiency Information and Information Seeking Presentation Name

23. Resources to help you save energy in your home and make use of renewable energy Q9A & Q9B

24. (Ask if looked for information in the past month)Where did you go for information? (Multiple responses accepted) Q9C

25. If you wanted to learn what resources are available to help you save energy in your home or make use of renewable energy, where would you go for TRUSTWORTHY information? (Multiple responses accepted) Q10

26. Have you ever…(Based on all respondents, including those who are unaware) Q17B, Q21B & Q22B

27. In the past month, have you read or heard anything about the resources that are available to help you save energy in your home or make use of renewable energy? Q11A

28. Program Participation Presentation Name

29. Have you ever participated in a program to save energy at your home or one that helps you make use of renewable energy? QD1

30. (Ask if participated in a program)In which program did you participate? QD2

31. Where Does Connecticut Go from Here? Presentation Name

32. The Challenges • Moderate to low awareness of programs in general • Depth of knowledge is low • Awareness of EE brands is low • Barriers to program participation include: • Belief that have already done all that can be done to save • Split incentive problem • Lack of interest • Lack of efficacy • Cost of improvements/ROI Presentation Name

33. Strengths and Opportunities • Desire and political will to make CT #1 in energy efficiency • CT already has award-winning HES program. Future program focus includes: • Low-cost financing partnerships • Deeper savings • Improved program marketing through segmentation and microtargeting Presentation Name

34. Customer Segmentation and Microtargeting What it is and what can be achieved Presentation Name

35. Three-Layer Approach to Microtargeting and Segmentation • Consider three layers of engagement for each customer Propensity to Act Likely Adoption (function of attitudes/beliefs, trust in utility, perceived opportunity, perceived ability to act) Propensity models based on past participation incorporate adoption decision (explicit) and perceived opportunity (implicit). Energy Savings Potential E.g., “Mass customization” of building energy savings models frame specific opportunities for customers. Energy Opportunities (function of home, equipment, load shapes) Customer Segmentation Relevant Messaging (function of barriers, motivations, attitudes/beliefs; related to sociodemographics) Energy-specific segmentation informs positioning and messaging

36. Segmentation and microtargeting go hand-in-hand Segmentation Propensity to Act Highest • Segmentation defines and divides a large population into identifiable groups based on similar characteristics • Customers within each segment share similar barriers and drivers, and may be interested in similar types of offerings • Microtargeting scores individual customers on their likelihood to take a specific action The best “targets” from microtargeting may belong to different segments • Microtargeting ≠ Targeting: Traditional “targeting” may identify one segment (e.g., homeowners, “leaning green”), and market to all of them. Within the target segment, individual customers may be more or less likely to participate because of unique barriers or traits. High Ability Past Participation Medium Complacent Consumers Lowest Use segment insights for positioning High score: Best target for program Impact Seekers Rebate Oppor-tunists Renters Not Motivated Very Motivated Resigned Retirees Simple Savers Low Ability

37. Microtargeting Scores can be used “vertically” and “horizontally” • Score for each customer, for each product/offering • Portfolio management: Prioritize what to market to each customer based on relative scores • Ready-made target list for each product/offering: Go “as far down” as goals and budget require Customer segment informs positioning High score; best target for offering Low score; poor target for offering

38. Solar PV / Solar H2O Audits / Diagnostics Envelope Measures Case Study: Arizona Public Service • Assigned propensity scores to all 990,000 residential customers of a US utility • Propensity to adopt existing EE and DR programs, and pricing products • Propensity to adopt new programs/products (e.g., planning phase) • Developed customer segmentation around ability & motivation to save energy Low-income and “equal payment” rate plans Electric Vehicles DR and Critical Peak Pricing

39. Increased response rates with “microtargeting” propensity scores and tailored messaging 1% Typical response rate beforepropensity scores This is without customized energy opportunities – Can we improve further? 4% New typical response rate using propensity scores (typically 80+) 5.7% Response rate using propensity scores and tailored messaging

40. Profile High-Propensity Customers Home Energy Audit (HPwES) APS Engagement Registered Opted In Spanish Preference ■HP ■ Others ■HP ■ Others

41. Age Home Energy Audit (HPwES) Demographics and Psychographics Top Barriers Segments Top PRIZM Codes Children under 18 Marital Status ■HP■Others Highest level of Education Occupation ■HP■ Others

42. Multiple stages from awareness to participation, and different characteristics/factors may affect conversion at each stage Metrics Measurement Opportunities Awareness / Knowledge • General population and non-part surveys • Inquiries, leads, incomplete applications that link to customer database by account # Intention • Ex ante: Filter database by qualifying criteria • Ex post: Program qualification rates Qualification • Program participation rates • Portfolio-level participation: What % of all segment members have participated in any EE? Participation • Online/device tracking; equipment monitoring • Participant surveys Engagement • Realization rates by segment • Savings “depth” by segment (% savings) • Measure mix by segment Impacts

43. Community Targeting An alternative approach for hard-to-reach communities

44. Case Study: Massachusetts Efficient Neighborhoods+ Initiative • Increase participation in Mass Save® Home Energy Services (HES) program among lower to moderate income customers • Design a program that effectively targets these customers and addresses their unique barriers to participation Staying on Target

45. Barriers to Participation No point ofcontact 41% of Massachusetts housing stock is multi-unit structures Split Incentives Income verification screening Pre-Weatherization Barriers Higher Job Costs Staying on Target

46. Initiative Design • Based on existing HES program • To address barriers, provided increased incentives and other support (landlord, pre-weatherization, etc.) • Target communities/neighborhoods based on population: • High concentration of target customers • 60% - 120% of state median income • 1-4 unit buildings • No income pre-qualification -- open to nearly all members of the community • Low-income customers and customers in 5+ unit structures do not qualify and are referred to other programs Staying on Target

47. Step 1: Initial Analysis to Narrow Target Communities • Qualifying communities: • 30% of households or more have incomes between 61% and 100% of the state median income • No more than 30% of households are in 5+ unit structures • Qualifying communities: • 311 census block groups • 112 towns with at least one qualifying census block group • 43,253 households Staying on Target

48. Step 2: In-Depth Community Analysis Staying on Target

49. Step 3: Development Customer Targeting Lists Staying on Target

50. Achieving Deep Savings Looking Beyond Equipment Staying on Target