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    Deloitte reSources 2012 StudyInsights into Emerging Trendso Energy Customers

    Deloitte Center or Energy Solutions

    Second annual study illuminates the mindsets and behaviors o electricitycustomers to help companies make business and investment decisions

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    2

    Deloitte, with strategy and market research rm Harrison

    Group, has completed its second annual nationwide reSources

    Study (the 2012 Study or Study) to provide insights that can

    be useul in helping energy companies and businesses make

    energy-related investment and business decisions. The Study

    uncovers actions that businesses and consumers are taking andexpect to take to manage their energy usage and what motivates

    them to adopt new practices and technologies.

    The reSources 2012 Study was conducted in the February/

    March 2012 timerame, and thus largely refects attitudes

    and practices related to the year 2011. The Study captures

    two views: a consumer perspective and a business perspective.

    The consumer portion o the Study is based on more than2,200 demographically-balanced online interviews with

    household decision makers or utility services. The business

    portion is based on one-on-one, in-depth qualitative interviews

    with senior executives and over 600 online interviews with

    business decision makers across all industries responsible or

    energy management practices at companies with more than

    250 employees.

    A separate report with a more in-depth analysis o the

    attitudes and practices that U.S. businesses have toward energy

    management is available at www.deloitte.com/us/resources.

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    Deloitte reSource 2012 Study

    Over the past year, the U.S. energy marketplace has been inluenced by three macro orces: entrenched resourceulness

    built over the course o the recession, low natural gas prices, and mild weather patterns. This combination has created

    a distinctly unique environment or the business and consumer sectors that is important to understand in order to guide

    uture planning and investment decisions. Businesses have been laser-ocused on cost savings and reductions in energy

    usage, and there is no indication that these goals or practices will be changing any time soon. While energy has been

    a priority among many American businesses or only a short period o time, their successes in energy management

    have been particularly impressive and have only served to strengthen their appetites or uture gains in consumption

    eiciencies and increased control through sel-generation. In addition, businesses continue to view renewable energy as

    a undamental building block in a long-term successul energy management strategy. For businesses, this appears to be

    a pure market change that will not likely be lost with an improving economy, where one might ordinarily expect energy

    demand to return to previous patterns o usage.

    Somewhat surprisingly, consumer perspectives tell a rather d ierent story. While businesses are intensiying their

    energy management eorts, consumers appear to have lost some urgency when it comes to managing their electricity

    consumption, at least in the near-term. On average, consumers believe their monthly electricity bills have gone down

    over the past year, alleviating some o the pressure they were eeling to control their usage. However, consumers could

    be unduly taking credit or the improvements in their bills because it is unclear how much their bills were impacted by

    lower prices, mild weather patterns or their own consumption practices. Regardless, when these temporarily avorable

    conditions (prices and weather) ultimately shit, consumers will either renew their eorts to reduce consumption urther

    or place the blame or higher bills on electricity providers, reinorcing the signiicant risks that utilities ace with respect

    to both corporate image and demand erosion. Also, electricity now has another barometer that is inluencing its value

    perception, and that is the existence o low natural gas prices. Consequently, consumers have also lost a bit o theirappetite or renewable energy. Managing this shit will be important as we wait or the next tide o rising prices.

    In summary, American businesses continue to intensiy and succeed in their eorts to cut energy costs and consumption,

    and are sel-generating more, while consumers seem to have relaxed somewhat in this economic area o their lives. For

    energy providers and other business sectors, better understanding the emerging trends o energy customers (business

    and residential alike) may well be key to meeting uture customer demands and capitalizing on market opportunities.

    Introduction

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    4

    Energy management eorts at U.S. businesses intensiying

    Energy management activities at U.S. companies have intensiied since the 2011 Study, as evidenced by growth in

    ormalized energy goals, greater linkage to staying competitive, and higher-level sophistication o programs being

    implemented. A ull 90% o companies have speciic electricity and energy management goals in place. O these

    companies, nine-in-ten are targeting electricity consumption and cost reductions and 75% have established goals aimed

    at reducing natural resource consumption (including 60% around water) and waste generation. Business eorts also

    include goals to improve the energy eiciency o company buildings where they operate (62%); and to reduce natural

    gas consumption (58%), carbon ootprint (56%) and transport uel consumption (51%).

    Transport fleet

    Carbon footprint reduction

    Natural gas reduction

    Energy efficiency of buildings

    we operate within

    Natural resource consumptionor waste generation

    Electricity cost/consumptionreduction

    Have set goals

    Q: Has your company set any goals, formal or otherwise, with

    respect to electricity and energy management practices?

    Figure 1. 90% of companies have set goals focusing on electricity, natural gas and natural resources

    Types of goals set

    Q: What types of electricity and energy management goals has your company

    set or is in the process of starting?

    89%

    75%

    62%

    58%

    56%

    51%

    No10%

    Yes,formal49%

    Yes,informal41%

    Deloitte reSources 2012 Study:Businesses

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    Deloitte reSource 2012 Study

    i l i i i i l

    i l ll i l

    i l

    i l

    l i l

    Major progress toward goals despite challenges

    The 2011 Study ound that companies had set ambitious energy-savings goals, working to reduce their energy

    consumption by 25% on average over a three-to-ive-year period and were less than one-third o the way to achieving

    those goals. Remarkable progress has been made over the last year. The 2012 Study ound that companies now report

    they have achieved closer to 60% o their targeted reduction levels. This may be slightly behind their targeted timelines,

    but nonetheless relects major accomplishments over the last year.

    As previously discussed, 2011 was a year o low natural gas prices and generally mild cooling and heating seasons. As a

    result, the potential exists that businesses have overestimated their levels o success in achieving their goals, given these

    unusual conditions and their associated impact on energy costs and consumption levels.

    Electricity Natural gas Transport feet Carbon ootprint

    Targeted % reduction

    Less than 15% 33% 29% 38% 33%

    15-24% 29% 28% 27% 27%

    25% or more 38% 36% 35% 40%

    Average targeted reduction 23% 23% 23% 25%

    Over # o years (average) 3.7 3.8 3.6 4.2

    % o target achieved to date 61% 57% 61% 56%

    % o target timerame used 69% 71% 76% 63%

    Figure 2. Targeting consumption reductions o 23%-25% on average Clear progress toward goals

    Q: For each o the areas below, what is the target level reduction that you are trying to achieve and over what period o time?

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    Using timers/sensors to control whenequipment is powered on

    Replacing out-of-date equipment prior to 'end of life'with more energy efficient equipment

    Installing motion/occupancy sensors

    Changing heating/cooling settings/timers

    Installing LED or compact fluorescent light bulbs (CFLs)when incandescent bulbs burn out

    Figure 3. Top tactics being used to reach goals

    Q. Which of the following has your company employed specifically as part of your energy

    management practices?

    54%

    49%

    44%

    42%

    42%

    Installing smart meters

    Developing a communication and employee engagementprogram to support energy management goals

    Installing energy efficient windows

    Conducting an efficiency audit to identifyreduction opportunities

    Increasing maintenance so equipment isoperating most efficiently

    Establishing operating procedures/set points

    for lighting and HVAC

    Reviewing maintenance practices to identify,fix and monitor energy losses

    36%

    36%

    33%

    31%

    31%

    30%

    30%

    Other tactics also identiied to a lesser degree included the ollowing:

    The tactics or activities most oten cited in the 2012 Study as being used to manage energy consumption and costs

    are set orth below. It is interesting to note that with ew exceptions, most o these tactics require relatively low

    levels o capital investment. This is consistent with the inding (discussed later) that lack o capital is the number one

    challenge noted by businesses.

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    Deloitte reSource 2012 Study

    Energy management eorts essential to staying competitive

    Businesses increasingly view energy management programs as essential to staying competitive. They are also

    increasingly concerned about the image they are conveying to their customers. In act, 85% o companies now believe

    that reducing electricity costs is essential to staying competitive, up rom 76% in the 2011 Study. Similarly, the percent

    o companies agreeing that reducing electricity costs is essential to staying competitive rom an image perspective has

    risen to 81% rom 70% in the 2011 Study. Over six-in-ten report that their customers are demanding that they oer

    more environmentally considerate solutions, and about three-quarters o these companies promote their eorts to

    their clients and customers.

    Aside rom cost savings and inancial/image beneits, companies cite just doing the right thing (49%), the regulatory

    climate (32%) and employee motivations (31%) as other drivers behind their energy management programs.

    Our customers are demanding that we offer them moreenvironmentally considerate solutions

    We actively promote our green/environmental efforts toour clients and customers most would

    know we are doing this

    We view reducing electricity costs as essential to stayingcompetitive from an image perspective

    We view reducing electricity costs as essential to stayingcompetitive from a financial perspective

    Figure 4. Energy responsibility mindset growing

    Q: Please use the scale below to indicate how much you agree or d isagree with the following statements.

    76%

    85%

    70%

    81%

    65%

    76%

    49%

    63%

    20122011

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    More motivated but also more challenged

    Eighty percent o companies report that they have become much more sophisticated in managing their electricity

    costs. Additionally, there is increasing recognition that continuing to cut costs will be increasingly diicult as businesses

    harvest the low hanging ruit.

    As companies move onto the next stages that require larger investments, capital unding is the number one barrier

    to uture progress, ollowed by length o payback period. Other challenges such as unexpected complexity and

    bureaucracy, and lack o dedicated sta also emerged as key obstacles aced by companies.

    2011 2012

    Lack o capital or investment in projects 21% 29%

    Length o time required or investment to pay o 25% 25%

    Unexpected complexity in implementing initiatives 23% 24%

    Bureaucracy 17% 23%

    Lack o dedicated sta to accomplish the goals 21% 23%

    Figure 6. Speciic barriers to achieve goals

    Rolling out new electricity related practices to ourcompany involved lots of 'hiccups' that were not expected

    Cutting electricity costs/usage in the future is going to bemuch harder for our business

    Cutting electricity costs initially is relatively easy there is considerable 'low hanging fruit'

    We have become much more sophisticatedin managing our electricity costs

    Figure 5. Businesses are becoming more motivated, but also more challenged by their goals

    Q: Please use the scale below to indicate how much you agree or disagree with the following statements.

    70%

    80%

    67%

    80%

    56%

    69%

    56%

    65%

    2011 2012

    Q: Which o the ollowing have been primary barriers to achieving the electricity and energymanagement goals set by your company?

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    Deloitte reSource 2012 Study

    On-site generation and renewable energy sources on the rise

    Interestingly, 35% o companies surveyed in the 2012 Study are currently generating some o their own electricity

    supply through renewable sources or cogeneration, up rom 21% in the 2011 Study. Another 17% report that they

    have plans or uture on-site generation, up rom 6% in the 2011 Study. Participation in renewable energy programs

    oered by electric companies also has risen to 37% o companies, up rom 30% in the 2011 Study, as awareness and

    availability o programs have expanded.

    '2012'2011

    Plan to

    17%

    Have on-site electricity generation

    Q: Does your company currently generate any portion of its electricconsumption through on-site cogeneration or renewable sources?

    Figure 7. On-site generation and participation in renewable energy programs are growing

    Participate in renewable energy programs

    Q: Does your company purchase renewable energyfrom your electricity supplier?

    37%

    30%No47%

    Yes35%

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    Cost o carbon taking on greater importance

    Last year we noted a large number o businesses that were unconvinced o the merits o carbon costing. It is a dierent

    story this year. As businesses continue to intensiy their resourceulness eorts, almost 80% now agree that cost o

    carbon should be actored into the use o oil and coal to generate electricity (recognizing that very little oil is actually

    used to generate electricity). Over 70% indicate that their companies are or will be recognizing cost o carbon as an

    important long-term balance sheet item. However, while recognition o cost o carbon as an important metric has

    gained momentum, with it has grown conusion about measurement and accountability. A ull 80% say that the cost o

    carbon is very diicult to measure with any conidence, up rom 71% in the 2011 Study. Almost three-in-ten companies

    are externally reporting results o their carbon management eorts regularly and another 15% report results period ically,

    most oten through sustainability reports and on corporate websites.

    Cost of carbon is very difficult to measure withany confidence

    Our company is or will be recognizing cost of carbon asan important long term balance sheet item

    I believe cost of carbon should be factored into useof traditional electricity sources like oil and coal

    Figure 8. "Cost of carbon" taking on increasing importance but difficult to measure with confidence

    Q: How would you describe your attitudes when you hear 'carbon cost' being discussed?

    72%

    58%

    72%

    71%

    80%

    79%

    20122011

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    Deloitte reSource 2012 Study

    Consumer resourceulness now ully entrenched

    The recent recession was pervasive and spanned the entire economic spectrum. It is difcult or consumers to remember

    not being in a recession. Moreover, consumers do not see this new world o uncertainty changing anytime soon. As a

    result, resourceulness in buying goods and services has become ully entrenched, with consumers continuing to examine

    most every spending category or opportunities to cut or save even urther. Much gets publicized about the bad aspects o

    the recession, but there have been substantial positives or many as well. Personal savings have increased, while debt has

    been cut. Just over 60% o consumers surveyed now agree that going through the recession has ultimately been a good

    thing because it made them more efcient and reminded them o what was important. Satisaction and happiness with

    the better choices they are making is likely a major actor in why aggressive consumer spending has not re-emerged

    despite improving economic conditions.

    And, consumer resourceulness extends to electricity, with 83% o consumers reporting that they took steps to reduce

    their electricity consumption over the past year, up rom 68% in the 2011 Study. At the same time, consumers are

    beginning to eel that they have limited tactics available to them to reduce their consumption urther, having already made

    behavioral changes such as turning o the lights (78%), shutting down electronics when not in use (65%), or adjusting

    the thermostat lower in the winter and higher in the summer (61%).

    Almost 60% report changing over to compact lorescent lights (CFLs). But, ar ewer have made the inancial investments

    that will be necessary to achieve urther incremental savings, including energy eicient appliances (39%), energy eicient

    windows and doors (33%), better insulation (32%), motion sensors (26%), and smart power strips (12%).

    Deloitte reSources 2012 Study:Consumers

    I/Our family is already doing everything we can to keepour electric bill down so there isn't really anything

    incremental we can do to cut costs further

    I/Our family took steps to reduce ourelectric bill over the past year

    Figure 10. Resourcefulness extends to electricity

    Q: Please use the scale below to indicate how much you agree or disagree with the following statements.

    % That agree strongly or somewhat

    68%

    67%

    83%

    77%

    20122011

    I believe going through the recession has ultimately been

    good because it makes us more efficient and remindsus what is important

    I am looking closely at every spending categoryto see where we can save

    I have become a more resourceful person

    Even as the economy improves, I will remain cautiousand keep my spending at its current level

    Figure 9. Consumer resourcefulness entrenched

    Q: Please use the scale below to indicate how much you agree or disagree with the following statements.

    % That agree strongly or somewhat

    95%

    94%

    90%

    85%

    85%

    61%

    87%

    47%

    20122011

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    Much less per month

    A little less per month

    About the same amount

    A little more per month

    Much more per month

    Figure 11. More report success in maintaining/reducing their electricity bills

    Q: Please use the scale below to indicate how much you agree or disagree with the following statements.

    Electric bill now vs. 2 years ago

    AverageMonthly Bill $146 $134

    22%

    9% 17%

    2% 3%

    45%

    67%

    14%22%

    34%

    32%

    20122011

    46%

    For consumers managing electricity consumption losing some urgency

    More consumers eel their monthly electric bills are about the same or a little less than a year ago; but, 46% still believe

    their bills increased. Mild weather, low natural gas prices and their own eorts to manage consumption appear to have

    taken some o the pressure o to lower electricity usage urther or some consumers, at least in the near-term. What is

    unclear is the extent last years bills were impacted by lower prices and mild weather, as opposed to actual changes in

    consumption practices. A return to normal in terms o prices and weather may result in higher bills and potentially a

    renewed incentive to reduce consumption.

    Those consumers that experienced an increase in their monthly electricity bills continue to believe this is the result o

    higher rates rom their electricity providers, highlighting the risks that utilities ace when rates begin to rise with respect

    to both corporate image and demand erosion.

    Probably both about equally

    Primarily because your

    rates have gone up

    Primarily because you have

    increased your electric usage

    Figure 12. Rate increases are still cited as the primary source of increased electric bills

    Q: Is the increase in your bill [due to those reasons listed above]

    Reasons for bill increase*

    *Among those who are spending at least a little more per month

    4%

    9%

    75%

    74%

    21%

    16%

    20122011

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    Deloitte reSource 2012 Study

    Continue to want choice believe electric utilities not doing their part

    While awareness o provider choice in deregulated markets has increased somewhat (rom 17% to 22% in the 2012

    Study), more than three-quarters o consumers agree with the statement it is not right that I dont have a choice in who

    I can buy electricity rom. In todays climate o resourceulness, there is a general predisposition to eeling that utilities

    are not on the side o consumers. Perceptions that consumers did their part to cut back in the recession but their utilities

    did not went up rom 67% to 74% in the 2012 Study. The number o consumers who believe that even i they use less

    their bills will not go down because their utilities will simply raise rates also increased, moving rom 64% to 73%. At the

    same time, low natural gas prices appear to be putting pressure on the relative perceived value o electricity.

    Natural gas represents a much better value

    than electricity

    Even if I reduce my electricity usage, my bill does notgo down because the utility then increases the rates

    I feel like we cut back in the recession, but our electricutility did not do its part to cut back

    It's not right that I don't have a choice in whoI can buy electricity from

    Figure 13. Continue to want choice, electric utilities not necessarily doing their part

    Q: Please use the scale below to indicate how much you agree or disagree with the following statements about your electricity consumption.

    % That agree strongly or somewhat

    74%

    74%

    67%

    64%

    57%

    69%

    73%

    77%

    20122011

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    Word o mouth most infuential source or inormation about choice

    Despite eorts made by electricity providers to educate and inorm customers, over hal o those surveyed listed word o

    mouth sources such as amily and riends as extremely or very trustworthy when it comes to obtaining inormation about

    their choices with respect to their electricity providers. The level o trust declines signifcantly rom there, with the next

    most trusted source, non-governmental organization websites (29%), cited by less than one-third o respondents.

    Social media

    Television advertisements

    Electric supplier representatives

    Electricity supplier websites

    Energy industry websites

    Websites of alternative electricity providers

    News stories

    Analyst/investor reports

    Annual reports

    Government websites

    Info included with your monthly electricity bill

    Non-governmental organization websites

    Word of mouth

    Figure 14. Information sources

    Q: How trustworthy do you believe each of the following sources to be for information about your choiceswith respect to your electricity provider (rates, services, programs, etc.)? If you had a choice in the companythat provides your electricity, which of the following sources, if any, would you turn to before deciding if youwant to change your electricity provider?

    35%

    17%

    12%

    18%

    21%

    22%

    52%

    50%

    29%

    20%

    26%

    26%

    26%

    23%

    21%

    20%

    19%

    18%

    15%

    11%

    11%

    5%

    4%

    13%

    31%

    24%

    % That would actually use source

    % That are extremely or very trustworthy

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    Deloitte reSource 2012 Study

    Environmental concerns declining

    Contrary to what businesses said, concern about the environment appears to be weakening among individuals.

    Consumers also remain substantially uninormed about their electric utilities, with over 60% indicating they do not have

    an understanding o the resources used to generate their electricity. As importantly, their perceptions o the resources

    used to generate their electricity simply do not mirror reality, with the possible exception o coal.

    At the same time, 86% say it is at least somewhat important that some o their electricity comes rom renewables.

    However, when uel sources are ranked, there has been some loss o enthusiasm or supporting solar and wind, with

    natural gas gaining avor. When it comes to the actual choice to purchase renewable energy, just 16% are aware o

    opportunities to purchase green energy as part o their electricity supply, and only 3% percent have participated in these

    kinds o programs.

    I think environmental concernshave been overblown

    I am very active in efforts to follow more

    environmentally sustainable practices

    Figure 15. Environmental concerns trend downward

    Q: Please use the scale below to indicate how much you agree or disagree with the following statements.

    64%

    58%

    39%

    46%

    20122011

    % That agree strongly or somewhat

    Nuclear

    Oil

    Coal

    Natural gas

    Renewable*

    Primary Secondary

    * Includes Solar, Wind, Hydroelectric, Geothermal and Agricultural Biomass** Respondents selected one answer for each energy resource primary, secondary, not a source or don't know*** Source: U.S. Energy Information Administration, Annual Energy Review 2010

    Understand electricity sources

    Figure 16. Uninformed about electricity sources used

    Q: Do you have an understanding of the resources yourelectricity company uses to generate your electricity?

    Sources used** EIA Actual***

    Yes39%

    10%

    19%

    48%

    1%

    21%No34%

    Not sure27%

    28%

    24%

    27% 23%

    18%

    16% 20% 36%

    24% 42%

    50%

    27% 51%

    29% 57%

    Q: Which do you believe or would expect are sources used by yourelectric company to produce electricity?

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    With slippage in environmental concerns, willingness to pay a small surcharge on their monthly electricity bills to subsidize

    investments in alternative and renewable energy sources has dropped o slightly as well. However, there continues to be

    a large number o consumers willing to pay another 2 to 4% on their monthly bills, i the money went exclusively toward

    renewable energy development that is intended to reduce pollution and add local American jobs.

    None, use currentsources

    Oil

    Coal

    Agricultural biomass

    Natural gas

    Nuclear

    Hydroelectric

    Geothermal

    Wind

    Solar

    Figure 17. Interest in renewable energy sources continues but loses ground

    to natural gas

    Q: Which, if any, of these resources would you most like to see your electricityprovider invest in to produce electricity keeping in mind that some may be more orless viable in your part of the country?

    65%

    64%

    56%

    55%31%

    26%

    25%25%

    22%17%

    20%26%

    14%12%

    7%8%

    4%6%

    7%10%

    20122011

    Figure 18. Consumers remain willing to pay some premium to support

    investment in renewable energy

    Q: If your average monthly bills were to increase by ($xx) to accomplish this effort,how likely would you be to support it?

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    14%12%10%8%6%4%2%

    Note: Incremental charges were expressed as actual dollars during the concept exposure based on a

    multiplier of their average monthly bills

    20122011

    65%

    49%

    34%

    25%

    19%

    14%

    11%15%18%

    23%

    31%

    46%

    62%

    Percent definitely/probably would support

    Percent surcharge

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    Deloitte reSource 2012 Study

    Interest in energy technologies is generationally driven and continues to grow

    Smart phone and tablet technology will continue to advance in the coming years driving increased transparency in

    customer relationships and shiting more control to consumers. Smart energy systems give homeowners the inormation

    and control they need to become more environmentally aware, reduce their carbon ootprints and save electricity

    usage. The number o those interested in smart energy applications or meters that can help control electricity usage is

    trending higher, at a time when overall app usage is surpassing internet usage. This is particularly the case or younger

    generations who represent the energy consumers o the uture. In act, the energy saving tactics consumers view as most

    important at helping them save energy in the uture controlling heating and cooling, i.e., thermostats (21%), lighting

    (16%) and appliances (12%) all can be bundled in home automation or metering/control applications.

    Interest in electric vehicles on the rise and also generationally drivenAnd, while interest in electric vehicles is relatively low, it is on the rise. One-in-fve are now extremely or very interested

    in purchasing an electric car; and as is the case with smart energy technology, this increased interest is being driven by

    Generation Y. Cost remains the primary barrier along with mileage range and availability o charging stations. As these

    technologies continue to improve and the primary barriers lessen, demand may possibly increase.

    Figure 19. Interest in smart home energy technology generationally driven

    Likelihood to purchase smart energy application defnitely/probably

    Q: Please read the description below and then indicate how likely you would be to purchase such an application or your household (starting at $250)

    Likelihood to pay a small amount or a meter/timer control system defnitely/probably

    Q: How likely would you be to pay a small amount to have a meter and control (or timer) system or at least some o your major household devicesthat use electricity, to better manage their use and cost?

    Total Gen Y Gen X Baby Boomers Matures

    2011 18% 28 19 16 13

    2012 22% 35 23 14 17

    Total Gen Y Gen X Baby Boomers Matures

    2011 25% 33 27 22 16

    2012 27% 36 28 23 27

    Figure 20. Gen Y shows highest levels o interest in purchasing an electric vehicle

    Interest in electric vehicle extremely/very

    Q: How much interest do you have in purchasing an electric car? Electric car means one that you recharge through an electric socket at your homeor ofce and does not use gasoline.

    Total Gen Y Gen X Baby Boomers Matures

    2011 14% 20 16 13 10

    2012 18% 30 14 13 7

    75%

    Certified "made in America"

    More charging stations

    Tax credits that reduce the cost

    Increased mileage range

    Lower price

    Figure 21. What would most increase interest in electric vehicles

    14% 21%

    62%21% 23%

    54%

    49%23% 16%

    25%9% 7%

    % Ranked 1st % Ranked 2nd % Ranked 3rd

    21%22%

    11% responded that nothing would make them interested in buying an electric vehicle

    Q: How would you rank the following in terms of how much each would increase your interest in buying an electric vehicle?

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    18

    The reSources 2012 Study represents an insightul and undamentally new way o considering energy consumption in

    the U.S. As such, it provides an important lens into the uture through the eyes o U.S. businesses and consumers.

    While the Study reveals a number o insights, several clear messages collectively suggest emerging trends that challenge

    conventional wisdom as it relates to uture energy demand:

    ThevastmajorityofU.S.businesseshaveestablishedenergyconsumption(andcost)goalsandtheirplannedreductions

    are substantial.

    Forbusinesses,itisallaboutstayingcompetitiveandenhancingthebottom-line.

    ResourcefulnessisnowfullyentrenchedintheAmericanconsumerandthisextendstothecostandusageofelectricity.

    Consumerswantchoiceintheirelectricityprovider.Thequestionremainsastowhatwillactuallymotivatethemtoswitch. Consumersarelargelyuninformedaboutelectricity,particularlywhenitcomestochoiceandsourceofelectricity

    generation. What they do understand is dollars and jobs; thus, green (dollars) trumps clean (energy) in terms o

    messaging.

    Whenitcomestoenergyconsumerbehavior,demographicsindeedmatter.Andtechnologyisdrivingthebehavior

    and decision-making o the younger generation o consumers.

    Businessesandconsumersalikethinktheyarestartingtohitawall.Theeasy,lessexpensivetactics(i.e.,thelow

    hanging ruit) appear to be exhausted to many. The next steps to reducing energy consumption are believed to be

    more difcult and more expensive.

    What does this all mean

    It may be time to revisit the undamental question: How well do I really know my customers value propositions related

    to energy? This question would appear to be relevant to both energy providers and to businesses whose products andservices enable energy customers to make inormed decisions about how to actively manage their energy consumption.

    Whether we are witnessing the dawn o the new energy customer remains to be seen. Future studies will shed additional

    light on this question. However, i the ace o the collective U.S. energy customer is changing in the ways this Study

    suggests, the implications to the greater U.S. energy marketplace portend to be proound.

    How you can leverage the Deloitte reSources 2012 study

    We have designed this Study to be a living tool to assist companies with their business decision-making. The expansive

    database developed through the Study allows Deloitte to assist companies in examining the Studys fndings in much

    greater depth and rom many vantage points. The Study can be used to support the business case needed to gain support

    or initiatives being pursued or can provide solid data or new directions that could be taken.

    The Study clearly reveals that, at best, the relationship between energy providers and their customers is uninormed, and

    at worst, it is adversarial. It also oers some possible language and potential solutions that can be used to help improvethe dialog between suppliers and customers and can be used as a roadmap or uture planning.

    For more inormation on obtaining the Study results or a deeper dive into the data and analytics, or a

    meeting to discuss the more detailed fndings, please visit www.deloitte.com/us/resources.

    Concluding thoughts

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    Deloitte reSource 2012 Study

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    This paper contains general inormation only and Deloitte is not, by means o this paper, rendering

    accounting, business, fnancial, investment, legal, tax, or other proessional advice or services. This paper is

    not a substitute or such proessional advice or services, nor should it be used as a basis or any decision or

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    not be responsible or any loss sustained by any person who relies on this paper.

    About the Deloitte Center or Energy Solutions

    The Deloitte Center or Energy Solutions provides a orum or innovation, thought leadership, groundbreaking

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    www.deloitte.com/energysolutions

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