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SCE – Lessons Learned from Pricing Experiences

July 31, 2014

• Tiered TOU rate– 2014 participation level is 15,100 customers

• Conducted targeted marketing campaign in 2011 and 2012 to generate enrollments

• Target Audiences - Likely Benefiters – Tier 5 (6 out of 12 months)– NEM Accounts– Did not conduct customer specific rate

analysis

• Solicitation Tactics– Direct Mail – Email– Follow-up Outbound Telemarketing

• Summer Retention– Bill Onsert (summer season & price change

reminders)

Off-Peak Savings Plan

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2011 Results 2012 Results

81,000 targets6,300 enrollments7.8% adoption rate

• Two touch direct mail solicitation to 81K service accounts in Q4

Enrollment Rates:

• Tier 5 Response = 6.9% (5,300)• NEM Response = 20.5% (1,000)

• One touch direct mail solicitation to 91K service accounts in April

Enrollment Rates:

• Tier 5 Response = 4.6% (3,700)• NEM Response = 6.4% (700)

91,566 targets4,400 enrollments4.8% adoption rate

Off-Peak Savings Plan Campaign Results

Other Results:• Incoming Calls – 3,400 calls into dedicated 800 number (from Oct 2011 to Sep 2012)• Approximately 600 requests received requesting rate analysis• Enrollment Channel Analysis (2012):

• Business Reply Card – 86%• Outbound Calling – 12%• Customer Contact Center – 2%

• Attrition – By the end of 2012, our attrition was at 6%. • 95% of attrition was related to customers wanting to get off the program.

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Observations and Lessons Learned

• Effective targeting / Messaging:• Targeting right customers is critical to achieving desired adoption rates• Creating compelling, easy to understand marketing materials / talking points to drive

enrollments is key• Conversion rates from 2011/2012 experiences suggest we did this well

• Attrition:• However, escalated calls and attrition was higher than expected. • Suggests the need to revisit messaging.

• While messaging stressed that summer bills may be higher, as customers experienced TOU, we did see customers wanting to opt off as opposed to waiting for winter months

• Enrollment Channels:• Majority of customers preferred the postcard enrollment.• Customer self-service options may be more convenient for customers and cost-

effective and we would like to pursue those channels

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Non-Residential – Mandatory Time-of-Use Transition

2014

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High-Level ME&O Efforts

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High-Level ME&O Efforts

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Observations and Lessons Learned

• Conducted message testing with customers to develop a message platform that would best resonate with customers, informed directly by customers.

• Multi-touch, multi-channel effort worked well in driving awareness• Increased customer awareness of the TOU transition from 9% in Wave 1 (July 2013)

to 47% in Wave 2 (December 2013)

• Social media efforts received minimal customer response.• Will be looking at different social media platforms for Wave 2

• Critical to ensure preparedness of customer facing personnel with appropriate training and resources so they can effectively handle customer inquiries

• Throughout transition, incoming call volumes were fairly minimal. We are now seeing a slight uptick in calls due to summer bills.

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Residential Peak Time Rebate • To date, PTR is the only default residential program we have implemented

• Brief Background:– As customers received their smart meter, they were automatically placed on SCE’s Save Power Day (or

PTR) program. – Significant marketing effort accompanied smart meter rollout. – Marketing focused on program education and encouraged customers to opt-in to event notification

services.– In addition, customers were automatically enrolled to receive event notifications if they had an SCE

MyAccount– By late 2012, had achieved 20% enrollment (800K customers) on event notification (73% automatically

enrolled)– Event awareness was driven by event notifications. Planned use of broadcast media channels to

generate awareness did not occur.• Key Findings:

– Load impact studies showed: • Opt-in customers driving load reduction• Load impacts from defaulted customers were not statistically different from zero

• Current Status:– In accordance with Commission directive, program was transitioned to opt-in program in early 2014. – Currently have 370K customers enrolled in program