Customer Segmentation:

1
Customer SegmentationWhole Neighborhood
Approach

• LIEE/CARE IOU Budget Applications Workshop
• CPUC Energy Division
• July 17, 2008

2
Objective for todays workshop

• Discuss Whole Neighborhood Approach model to
  program delivery
• Based on Commission directives and best
  practices in IOU budget applications
• Pursues more efficient and less expensive ways to
  deliver LIEE program
• Determine what additional categories for customer
  segmentation should be pursued

3
KEMA Needs Assessment

• In the spirit of trying to establish an optimal
  LIEE
• Program design - which presumably would be to
• provide immediate energy savings benefits to as
• many low income households as possible at the
• lowest possible cost - the Commission must
• encourage the utilities to find better, more
  efficient
• and less expensive ways to deliver energy saving
• measures

4
KEMA Needs Assessment

• Only a small portion of low income households
  are in need
• of comprehensive, energy efficiency upgrades and
  most, in
• fact, on average, all low income households have
  an
• immediate need for relatively low-cost (low
  impact
• measures)
• Essentially, the process used to identify
  households who
• only have a need for a few of these low cost
  items is the
• same as that which is used to identify and
  qualify
• households who have much more significant needs.

5
Staff Proposed Delivery ModelALJ Ruling
Requested Comments on September 27, 2007
6
Commission Guidance in Decision 07-12-51

• Directives for LIEE Program
• Emphasize opportunities to save energy
• Customer segmentation by energy usage will be
  included in new model
• Pursue cost-effective means of program delivery
• Take advantage of other resources and programs
• Provide customers with ways to reduce their bills
  and improve their quality of life

7
Strategic Plan for Energy Efficiency (Draft
issued July 14, 2008)

• Goal 1 Improve Customer Outreach
• Strategy Improve Program Delivery
• Near Term Strategy Use information from
  segmentation analysis to achieve efficiencies in
  program delivery
• Goal 2 LIEE is an Energy Resource
• Strategy Increase delivery of efficiency
  programs by identifying segmented concentrations
  of customers
• Near Term Strategy Identify and develop
  segmented approach to deliver services and
  improve use of CBOs in delivering services
• Segmentation approach will improve the
  efficiency of delivery by identifying geographic
  and social concentrations of customers to achieve
  economies in delivery, material purchasing and
  resources.

8
Step 1 Identify Low Income Neighborhood (Locate
concentration of low income customers in
specific geographic area to target)

• Actor Strategy Objective

Locate pockets of low income customers using
demographic information (ex. Zip7)
Low income customers in specific geographic
area identified
Utility
Locate pockets of low income customers using
CARE lists
Locate pockets of low income customers with high
energy usage
Locate neighborhoods in need of revitalization
9
Step 2 Target Low Income Neighborhood(Conduct
outreach to low income customers in specific
geographic area)

• Actor Strategy
  Objective

Utilize CARE outreach and marketing
Utility
Low income customers in urban and rural
neighborhoods targeted
Leverage and partner with local entities
Submit press releases to local media
CBOs
Send email blasts to customers in area
Deploy mobile energy units to area
Low income customers in urban neighborhoods
targeted
Contractors
Door-to-door outreach and canvassing
Outreach at community events
Low income customers in rural neighborhoods
targeted
Direct mailing to customers in area
10
Step 3 Assess Homes in Low Income Neighborhood,
Install Measures and Inspect

• Actor Strategy
  Objective

Assess energy usage
(1) Determine measures to install
Contractors
Assess energy burden
Conduct energy audits in specific geographic
area, household by household
CBOs
(2) Install Measures
Assess climate zone
Assess household type
(3) Conduct Inspections
11
Whole Neighborhood Approach

• Encourages involvement by local organizations and
  entities, in turn promoting leveraging
  opportunities
• Achieves a more cost-effective approach to
  program delivery
• Outreach and marketing
• Assessment, measure installation, and inspections
• Reduces transportation costs, in turn reducing
  carbon footprint of LIEE program
• Maintains programmatic focus on installation of
  measures
• Utilizes social networks and makes program
  delivery a community event

12
Customer Segmentation in Program Delivery

• Energy Usage
• Energy Burden
• Energy Insecurity
• Climate zones
• Housing type
• Renters v. owners
• Master metered
• Head of household disabled/medical baseline
• Late payment history
• Language
• Family size
• Seniors
• Near homeless

13
(No Transcript)