Thursday, February 23, 2017

Three Things We Learned at 2017 Consumer Symposium

Over 130 attendees gathered last month in advance of DistribuTECH for SGCC's Seventh Annual Consumer Symposium. The event featured the release of the “2017 State of the Consumer Report”, the presentation of the 2017 CLEAR Awards and many engaging sessions on the present and future of consumer engagement in smart energy. In case you couldn’t make it to this year’s Symposium (or if you'd just like to review your favorite sessions), many of the presentation materials are available for download here.

Looking back at the event, here are three key takeaways that we learned in San Diego:

1) Smart grid is foundational to the smart city

Jesse Berst, SGCC's founder and the current president of Smart Cities Council, joined us for the much-anticipated keynote address, and he did not disappoint.

Jesse provided an overview of smart cities and smart city projects that have been completed or are underway across the globe. This transformation in public health, transportation, water, public safety and energy is not a distant pipe dream; this is already well underway in many of the world's cities.

In his overview of the smart city, Jesse identified three key components: collect, communication and compute. Through a citywide network of censors, real-time data is collected that tells us the status of highways, buildings and other city infrastructure. Different parts of the smart city can communicate directly with each other, improving efficiency. And finally, the smart city computes for predictive analytics and real-time optimization.

The goal of the smart city is fairly simple: to make city residents happier, healthier and more productive while using fewer resources.

Jesse then focused on the role that the smart grid plays in the smart city; electricity along with telecommunications is one of the two pillars of a smart city. Smart city projects aim to improve livability, workability and sustainability of our urban areas, but without advancements in smart energy, the objectives of the smart city won’t be fully realized.

2) Customers of all income levels are interested in smart energy programs

Jeff Weiser, PayGo, discussing pre-pay program benefits
One of the most popular panels of the day was “Shattering the Myth of the Digital Divide” led by Georgia Watch’s Liz Coyle and featuring panelists from PayGo, Con Edison, Elevate Energy and Nest Labs. The session focused on how to customize outreach and tailor programs to low-income consumers and how to empower these consumers to engage in smart energy programs.

Low-income consumers are often left out of the conversation around smart energy, but this group of consumers may have the most to gain by participating in these programs. Energy bills are often the third-highest fixed bill each month for low-income Americans. Lowering energy bills can make a big difference in these consumers’ lives, and they are very interested in engaging in smart energy programs if utilities connect with them.

The panelists then provided some examples of engagement with low-income consumers. Chris Raup from Con Edison talked about the utility’s pilot program for making clean, renewable energy available to low-income customers at no cost. Consumers enrolled in the utility’s low-income bill assistance program can access solar energy and can see savings over $60 per year, according to early estimates.

Jeff Gleeson of Nest Labs discussed a program designed to get significantly discounted, refurbished smart thermostats into the homes of lower-income consumers, and Elle Corrado discussed Elevate Energy’s energy efficiency programs and community outreach programs in the Chicago area. Jeffrey Weiser, CEO of PayGo, talked about the company's innovative pre-pay solution that allows consumers to see their energy usage in real time. This economical solution allows consumers to set budgets and view their up-to-the-minute usage on their mobile app or through text or email notifications.

The main takeaway from this panel seemed to be the consensus among all participants that low-income consumers are very interested in participating smart energy programs if they are aware of them and if the outreach focuses on benefits (especially cost savings) they will see.

3) Sharing of consumer usage data is essential for smart grid 2.0

Some of the most vibrant debate of the day was during the “Safely Unlocking the Value of Consumer Data” panel led by Judith Schwarz, president of To the Point, and featuring participants from Illinois Citizens Utility Board, IBM, Opower and Green Button Alliance.

After recent high-profile data breaches in the health care and retail sectors, consumers are rightfully wary about how their energy data is being shared and stored. Protecting consumer data is important, and communicating a commitment to protecting consumer's privacy is critical as smart energy technology proliferates.

Most consumer-facing smart energy programs require either real-time or interval data to get the highest outcome from the program. According to Mission:Data, simply providing consumers with access to their energy data enables household energy savings averaging more than 12 percent.

Much of the discussion in this session focused on the Department of Energy's DataGuard program and how it can be considered a Good Housekeeping-type seal of approval for the energy data – an easy reference point for consumers to know their data is safe. DataGuard is an energy data privacy program that was designed and developed by industry stakeholders to provide consumers assurance that their energy data is being protected and treated responsibly. The voluntary program provides principles around the access, use and sharing of customer data.

Key tenets of the DataGuard program include, for example, customers being given prior notice about privacy-related policies and practices and customers having a degree of control over access to their own data.

In order for smart grid 2.0 to achieve its aims, consumer data will need to play an integral role. And for this to happen, consumers need to feel that their data is being safely handled by industry stakeholders.

Thank you to everyone that participated in this year’s Consumer Symposium. We hope you enjoyed this year’s event and discovered new insights and applicable takeaways on today’s smart energy consumers. If you have any feedback on the event, we would love to hear from you.

Finally, we have just announced the dates for our 2017 Members Meeting and Fall Workshop. Thanks to the gracious support of host, Austin Energy, we will be in Austin, Texas on Sept. 13-14. Mark your calendars! More information and registration will be available in the coming weeks at www.smartgridcc.org

Thursday, January 26, 2017

Exploring Consumer Expectations in the World of Amazon, Uber and Apple

Last week, following the Jan. 9 release of the “Customer Experience & Expectations” report, we presented a webinar to delve into some of the key findings of the research. I was joined on the presentation by Bridget Meckley, SGCC's Research Coordinator, and Gomathi Sadhasivan, Lead of Customer Decision Sciences at DNV GL, and SGCC's Research Committee Chair.

Bridget started things off with an overview of the research. SGCC undertook this research as we wanted to truly understand whether experiences with a variety of service providers were affecting how consumers viewed their energy provider. Grid modernization has now been going on for several years, and we sought to understand how the environment is changing.

For this research project, we conducted a survey of 2,000 online respondents and collected information on consumer awareness of smart grid concepts and benefits, interest in six value propositions and experiences and preferences for six typical touchpoints in the consumer-provider relationship.

In all of our research, we try to understand consumer behavior and attitudes, and for the “Customer Experience & Expectations” research, we looked at consumers through three dimensions:
  • SGCC's segmentation framework: Green Champions, Savings Seekers, Status Quo, Movers & Shakers and Technology Cautious
  • Technology use: All tech, leisure tech, transaction and no tech
  • Energy use: Significant use, average use and baseline use

Value propositions

Within this framework of consumer segments, energy user profiles and technology use, we examined consumer propensities for six value propositions and six touchpoints.

For each value proposition presented to consumers, we looked at four elements:

  • Control – the amount of control that the consumers retains
  • Transaction burden – the consumer's investment in money, time and/or effort
  • Information sharing – the level of personal information that the consumer must share   
  • Incentive – the size of any benefit plus any other inducements
While both transaction burden and information sharing do seem to have some impact on consumer interest, we found that control has an enormous effect on consumers' willingness to participate in a program. However, for value proposition six, we took away consumers’ control and still saw a fair level of consumer interest due to a high incentive offered.

Consumers make trade-offs every day in their purchases, and how energy stakeholders mix and match the trade-offs is important in how they structure and communicate offers.

Finally, Bridget closed this section by reviewing key tips for marketing offers for consumers from the updated version of the “Consumer Value Proposition”, which will be released in the coming weeks by SGCC’s Education & Outreach Committee:
  1. Use specific, positive words and phrases
  2. Dependable service, economic benefit and quick power restoration appeal to almost all consumers, but marketers need to focus on the end results not the process.
  3. Use short, direct statements.

Touchpoints

Next, Bridget turned the presentation over to Gomathi, who covered the touchpoints that consumers generally have with their utilities and other service providers.

We looked at the typical things that every consumer does with any service provider – pay a pill, sign up for a service, report a problem, resolve a problem, receive personalized offers and receive general information. We used these touchpoints to help consumers tell us what they liked and who did those things well.

For bill payment, consumers reflect a desire for ease; more than half indicate that they prefer to pay their utility bill online. However, Status Quo and Technology Cautious consumers do still prefer to pay by a check in the mail.

When probing customers on how they would like to receive general information, customers prefer to be able to access that info on their own time for customer-initiated interactions. Across all segments the favored method is a website inquiry, and a phone call with a customer service representative was a distant second for most segments. This touchpoint reveals that autonomy is important to all consumers, as most consumers do not prefer to receive information through push notifications or monthly emails.

When customers are looking for information that may be deemed complex or unusual, however, customers overwhelmingly prefer a high-touch method. When establishing a service, 64 percent prefer a phone call, web chat or in-person contact. When reporting a problem, 77 percent prefer phone, webchat or in-person contact. And finally, when resolving a problem, over 80 percent of consumers prefer a phone call, web chat or in-person contact.

Next, we took a look at personalized product and service offers aimed at consumers and compared utilities against online retailers, banks, telecommunications companies and home security companies, to name a few. The key takeaway from this part of the research is that over half of consumers believe that no service providers do this well. Not a single service provider passes the 20 percent mark, but utilities do come out on top at 17 percent.

This represents a huge opportunity for utilities as they have access to customers’ energy consumption history, and this data can be mined to develop tailored offers customers value and find useful.

Opportunities

For the final section, we reviewed opportunities for utilities that can be taken away from this research. While utilities are doing relatively well overall at providing customer service, they have much to learn about innovation, at least in consumers’ minds. Banks and online retailers, for example, are regarded as much more innovative than utilities.

When asked whether they believe that utilities are “consistent”, “knowledgeable”, “efficient” and “easy to do business with”, the vast majority believe so, with 89 percent of the Green Champions and 93 percent of the Technology Cautious.

However, at the same time, the majority of Movers & Shakers, who can be seen as the early adopters of new technologies and services, see utilities as “costly” and “bureaucratic”. This discerning subset of consumers is looking for innovation, and utilities have an opportunity to improve here.

When customers are looking to resolve a problem, providing excellent customer service is essential to maintaining customers’ satisfaction. We asked consumers to rank a group of service providers from best to worst on how they handle problem resolution. Utilities did very well, finishing second behind, once again, banks. Utilities were ranked higher than communications providers and even online retailers.

Conclusion

A major question that we sought to answer with this research is “Are consumers comparing utilities to service providers from other industries who have done a lot of digitization and modernizing of products and services?” The extent to which consumers have been affected by companies like Uber, Amazon and Netflix varies significantly by segmentation. While many consumers do prefer a high-tech experience, there is also a role for high-touch customer service – even for technologically savvy groups of consumers.


To learn more about the “Customer Experience & Expectations” report, download a free Executive Summary at www.smartgridcc.org.

Tuesday, December 13, 2016

Energy Analytics: Keeping up with Customer Expectations

In November, Smart Grid Consumer Collaborative (SGCC) took a close look at energy data analytics during its Energy Analytics: Keeping up with Customer Expectations webinar. Nathan Shannon, Deputy Director of SGCC, moderated the discussion that featured three energy industry experts: Michael Murray, Chief Technology Strategist, Mission:data Coalition; David Grant, SVP of Sales & Marketing, Tendril; and Cheryl Linder, Global Industry Strategy Leader, IBM.

To begin, Shannon explained the growing importance of data analytics in the energy industry and laid out common challenges with customer engagement. In SGCC's research, consumers say they want to be offered more choices and customized programs, and through the use of analytics, utilities are able to provide the kind of tailored programs that consumers actually want to participate in.

Analytics can help energy providers figure out how to grow with their customers, how to get their customers excited about new offerings and, ultimately, how to create a more personalized experience.

The Millennial generation: greater expectations

Michael Murray, head of technology for the nonprofit Mission:data, began with some key insights on the Millennial generation.

“It's hard to overstate how important the customer experience to Millennials. This is a generation that has, in large part, grown up with computers, and the younger section has grown up with smartphones. And these are consumers for whom your expectations are really, really high,” said Murray.

Murray relayed two striking statistics about Millennials. First, half of Millennials have an interest in installing solar panels on their home within the next five years, and customers interested in residential solar have a proven interest in a more data-driven experience around their energy usage.

Perhaps more remarkable is that nearly all Millennials (95 percent) stated that they would switch to a new energy provider if their current provider cannot provide the personalized experience that they want.

Two standards for data access

Murray switched his focus to some of the mechanics of how data access can be made available to consumers. There are two key methods of accessing energy data. The first is Green Button Connect My Data, an initiative prompted by a White House call-to-action, which typically provides information at 15 or 60-minute intervals to a utility and then, with customer permission, on to a third-party application.

The second method is through the home area network (HAN), which typically relies on a radio transmitter in the meter, providing real-time information to the customer.

The difference in method used determines the character of the analysis that can be done. Green Button data, for example, is normally provided hourly and only available with delay since the information is required to go back to the utility before then going on to a third-party application. Some of the real-time interactions in the home or workplace are not possible with backhaul data.

On the other hand, with real-time HAN data, a customer could, for example, receive an alert to their smartphone about something actively going on in their home. They could also investigate home energy usage by turning on different appliances and then checking a mobile app.

Murray closed with examples of innovation based on the two standards: the Center for Sustainable Energy’s Residential Electric Rate Analysis Tool that utilizes Green Button data and an enterprise-level tool that helps businesses gain understanding of their energy consumption at multiple locations by using both Green Button and real-time data.

Reimagining demand response with data analytics

In the second segment, David Grant, SVP of Sales & Marketing, Tendril, concentrated on the importance of data analytics in demand response and introduced attendees to Orchestrated Energy, cloud-based, consumer-oriented software that enables utilities to optimize system operation and customer comfort.

Grant categorized his work at Tendril into two sides of analytics: using backend analytics to optimize the grid and engaging customers through easy-to-use digital tools. Drawing on lessons learned from outside of the energy sector, Grant looked at the case study of Southwest Airlines and their rise to the top of the commercial airline industry. They accomplished this, Grant argued, due to their committed use of data analytics to improve processes and a persistent focus on the customer.

These same principles can be carried over to the energy industry to address challenges and opportunities that utilities are seeing today. For example, Orchestrated Energy software can predict how the outside temperature will affect the inside temperature of the home and do an intelligent pre-cooling of the home, shifting that load outside of the afternoon peak.

If the same home also has rooftop solar, then Orchestrated Energy is able to push as much of that load as possible into the solar curve – a major benefit to the grid. And as renewables become more distributed, there may be times when there's too much solar energy being put onto the grid, Grant explained. Tendril's software can use water heaters or electric vehicles as “solar sponges”, soaking up as much energy as possible under the solar curve.

Becoming customer centric through analytics

Cheryl Linder, Global Industry Strategy Leader for IBM's Energy and Utilities Industry, closed the discussion with an in-depth look at what it means to be a customer-centric utility and how this can be achieved through the use of data analytics.

According to Linder, there are several areas of focus required to achieve customer centricity: when customer insight and engagement capabilities allow you to ingest all sources of customer data and develop an in-depth, dynamic customer profile; utilize advanced analytics to predict behaviors; and operationalize actions on customer insights to acquire, grow and retain the best customers and improve services and participation.

"Whatever your customer engagement goals are," Linder stated, "there are key methods in analytics that you can use to guide your focus to becoming a customer-centric utility."

In closing, as utilities and other energy stakeholders seek to increase consumer engagement and develop a smarter, more modernized grid, it’s clear from our three panelists’ presentations that data analytics will play a fundamental role – both through optimization on the backend and via engaging, consumer-facing tools.

For further discussion on the role that analytics play, join us at our 7th annual 2017 Consumer Symposium on January 30 in San Diego. Data analytics will be woven into many sessions and will be a primary focus of the “Safely Unlocking the Value of Consumer Data” session. All attendees will receive a complimentary copy of the 2017 State of the Consumer Report, a new research study released annually at the event.

Thursday, November 3, 2016

What Do Customers Want from Solar and Electric Vehicles? Surprising New Survey Results

By: Ronny Sandoval, Director, Grid Modernization, Environmental Defense Fund


Customer interest and adoption of clean energy technologies, including solar and electric vehicles (EVs), has increased significantly in recent years. People across the country have already taken steps to become more engaged in energy decisions that impact their homes, wallets, and communities. However, questions about the future of these developing technology options still remain. How do we ensure each customer is able to participate and benefit from making clean energy choices? How can this growth be sustained?  What do customers really think about these clean technologies today?

A new report from the Smart Grid Consumer Collaborative (SGCC) attempts to address some of these questions and present a closer view of customer attitudes towards clean energy, electric vehicles, and the electric grid by going straight to the source. SGCC partnered with DNV GL, CenterPoint Energy, and Environmental Defense Fund (EDF) to survey over 1,500 people across the United States to see what customers really think about these technologies. Many of the findings are surprising and suggest that the decreasing costs of home solar and electric vehicles, coupled with consumer interests in clean energy and staying connected to the grid, present business cases for promotional and educational campaigns.


Key takeaways and opportunities for clean energy technology  
We encourage you to take a look at the full set of findings (and the webinar covering them), but the following are a few that stand out:
  1. Promotional and education opportunities: Less than 22 percent of customers believed they had a “fairly complete understanding” of solar and EV technologies. This lack of familiarity with the technologies and the benefits they can provide is one of the most significant barriers to customer adoption. Most customers have to search exhaustively for information and spend time, money, and effort just to engage with these energy options. This finding points to a significant opportunity to address the gap in understanding through greater promotion and customer education efforts. These efforts can and should include publicly-supported programs.

  2. Cost still matters: The upfront costs associated with these technologies continue to be a barrier to customer adoption. Demographic characteristics, such as homeownership and income level, still strongly correlate with whether customers engage with these energy options or not. Fortunately, capital costs associated with solar have significantly decreased over the last decade. What’s more, a broader range of EV options are now available to the mass market. In addition, “sharing economy” options such as community solar (where a community or multiple customers share ownership in the electricity produced from a solar power plant) and green power plans (in which customers buy clean energy from a market) are showing traction. These options allow customers with limited roof space or investment capital, or who rent instead of own their home, to participate in the clean energy economy.

  3. The electric grid still matters: Even though customers demonstrated a willingness to adopt and explore clean energy options, they still value being connected to the electric grid as a “back-up” power source and were willing to pay for it. In addition, some customers were more interested in electric vehicles when coupled with time-of-use electricity rates that are favorable to EV owners. This innovative pricing tool – which changes the price of electricity depending on the time of day and the demand on the electric grid – paired with EVs can help people save money when charging their vehicles and use electricity when it’s less costly or provided by clean, renewable sources.
Just the beginning
Not only can advances in clean energy technologies provide significant benefit for customers that directly adopt them, but they can also contribute to a modernized electric grid that benefits all. A modern grid can make the electric system more efficient, increase the penetration of renewables, reduce greenhouse gas emissions, and provide cleaner air for all.

SGCC’s research goes a long way in providing a closer look into customer views around clean energy technologies. Energy leaders should look to these findings to not only recognize the opportunities to enhance the services they provide, but also to understand customer market trends. Both will help us better plan for a more modern, sustainable energy system.

This guest post is written by Ronny Sandoval, Director of EDF's national grid modernization efforts.




Tuesday, October 11, 2016

AMI Playbook: Continuing to Deliver Customer Value with AMI

As AMI continues to optimize the modern grid, our September 15th webinar shared key takeaways of electric utilities throughout the country. Caitlyn Hewitt, Product Marketing Manager of Oracle-Opower, with Nathan Shannon of SGCC, presented how leading energy providers are leveraging software while connecting smart devices to the grid and the consumers who use it.

As Hewitt explained, the AMI deployments of today have changed significantly from the wave of smart meter deployments kicked off with the ARRA grants in 2009. In the past seven years, the industry has realized several AMI consumer benefits including the ability to offer consumers access to their data online, and better outage notification & communications. As of 2016 more than half of Americans have a smart meter with access to a range of valuable AMI-powered programs and services from demand response to dynamic rates and DERs.

As the smart grid begins to live up to its full potential, utilities can transform their communications by helping connect customers to a broad spectrum of services and capture the full benefit of their AMI investment.

On the webinar we learned six key takeaways to a successful and customer centric AMI rollout:

Takeaway #1: Build Customer Benefits into the Business Case
By focusing 70% of its benefits on the consumer, Baltimore Gas & Electric (BG&E), responding to Regulators in Maryland, revised their AMI rollout to become the first truly customer centric AMI business case. Ultimately, their customers received $2.50 worth of benefits for every dollar invested and BG&E was heralded for its AMI best practices program.

As stated in SGCC’s recent case study, BGE has been focused on customers from the start. The Maryland utility's strategy was to automatically enroll consumers into their Smart Energy Rewards program. Three years in, unsubscribe rates remain low and over one million customers have saved nearly $28 million.

Takeaway #2: Build Customer Buy-In with Early Education
Hewett explained that smart meter education usually begins post installation. But as exemplified by ConEd, you can’t engage customers too early. As part of the NY REV initiative, ConEd filed their AMI customer engagement rollout more than a year before the first smart meters were installed. The campaign familiarized New Yorkers with the benefits of REV: clean, affordable, resilient power.

Shannon shared that ComEd is also doing an excellent job “early educating” its customers. The Chicago based utility goes so far as to hand out information by sending ice cream trucks around its neighborhoods to entice people to enjoy the treats while educating them about their smart meter program.

Takeaway 3: Innovate Faster with Cloud-Based Data Management
As Legacy IT systems weren’t built to handle the amount of data smart meters create, utilities are turning to the cloud just as other industries have. Many utility technologies are taking to the Cloud such as meter data management (MDM), big data analytics, and distribution automation. Nearly 90% of utility executives say they’re using or plan to use the Cloud for MDM within the next three years.

Takeaway #4: Use AMI Data for Targeted Marketing
Hewitt explained that AMI data offers unprecedented visibility into the way people use energy but it takes powerful analytics to understand it. Some of us shut off lights when we leave for the day. Others crank up the AC mid-afternoon. How does a utility uncover energy usage patterns for hundreds of thousands of customers and put them to use for marketing? By combining detailed energy data along multiple dimensions such as time, geography, and weather to tease out key similarities and differences.

Shannon shared how SGCC has created a segmentation framework that takes into account customers’ attitudes about energy. SGCC found that learning customers’ preferences is another step utilities can take to make the most of AMI data.

In the case of ComEd, Oracle/Opower implemented its machine learning algorithms to discover distinct, recurring energy usage patterns identifying five “load curve archetypes for”. ComEd was able to determine which customers were better suited for DR programs. So, by pairing AMI insights with targeted marketing, utilities can drive program participation.

Takeaway #5: Design Rates that Balance Grid and Customer Needs
Once the meter data is flowing, new rate structures can be created that encourages customers to use energy when it’s less expensive and save energy when it’s not.

In the case of SMUD, Hewitt explained how dynamic rates weren’t just a tool to balance supply and demand. They were also a chance to raise customer satisfaction. Building on a DOE grant, SMUD began the SmartPricing Options Pilot Program during summers of 2012- 2013. Targeting a shift in peak summer demand from 4-7 PM, SMUD offered three separate pricing plans. After the 2-year pilot, SMUD cut peak demand on hot summer days by as much as 25% for the opt-in CPP plan. Overall, more than 95% of its customers were satisfied with their new rates.

Takeaway #6: Create a Better Experience with the New Data About Your Customers
In closing, Hewitt focused on how AMI data improves the customer experience by offering lasting benefits years after its rollout.

Citing Amazon and Uber, she explained how their use of cutting edge software – rather than phone and paper - has delivered deeper, more personalized online experiences.

Like Amazon’s data capabilities, AMI data can provide personalized, meaningful insights that increase customer satisfaction and self-service.

SGCC is here to bring you ideas and information on the latest breakthroughs in modern grid advancements. Please join us for our next event, Beyond the Grid: Connecting Tomorrow’s Consumers, on Monday January 30th 2017, in San Diego.

Friday, August 26, 2016

DOE’s DataGuard: A Way to Manage Consumer Data

If you missed our SGCC Peer Connect Webinar on “DataGuard: Energy Data Privacy and Security” last month, I’d like to update you on what was discussed on the data privacy front.

Data is an ongoing topic in this space and an important one. Smart meters and other digital upgrades to the grid have produced vast amounts of data for utilities to manage. One super important type of data is customer data. Every time a customer gets a digital meter, the amount of data produced goes from one data point a month from their analog meter read to dozens of data points every day. Depending on how often the utility is receiving data from the meter, it could be hundreds every day. If the meter sends one data point per hour, that is a 700-fold amount of data over previously held consumer data of 12 meter data reads per year. That’s if the utility meter transmits data every hour: many meters transmit data in 15 minute intervals, which is a nearly 3000% increase in consumer data information being received by the utility.

Moving on to a bigger picture, according to the Gardner 2016 Big Data report, 90% of the world’s data today has been created in the last two years. This shows the magnitude of the scale of data being created now. It’s not just utilities experiencing a huge increase in data. It’s every single sector of the economy, thanks to the digitization of information. While managing this data often means creating a new data warehouse or data center, it also provides a myriad opportunities for utilizing the data in ways to create value for the customer and for the business. This is as true for utilities as it is for any other sector.

So, the question we wanted to answer from our webinar was how can utilities protect this vast amount of new data to the benefit of consumers and their business interests? Is there a way to protect consumer privacy while realizing and adding value to all of this data? Utilities have always done a great job protecting consumer data – in fact it’s one of the few sectors of the economy that has not experienced a serious data breach. Now that consumer data has increased a thousand-fold as a result of AMI deployment, utilities need a way to address their consumer’s interest in data privacy, while also enabling consumers to access their data and use it for a beneficial purpose. Enter DataGuard.

Guest speaker, Eric Lightner is Director of the Federal Smart Grid Task Force for the U.S. Department of Energy. The webinar began with a poll on whether audience members had heard of DataGuard and found that knowledge was low: 68% of the webinar audience said they had not heard of DataGuard at all while 21% were somewhat familiar with DataGuard.

Eric began the discussion by asking this question: Why did we decide to pursue a program on data privacy?

DataGuard is a framework for the handling, sharing and protecting of customer energy use data. Eric shared with the audience a view that everyone shares: protecting consumer privacy is important. We are all aware of the many breaches and privacy issues with companies that handle consumer data. With major corporations such as Target, Walmart, JP Morgan Chase, eBay and even the Department of Energy and U.S. federal government recent victims, it’s a huge concern for a lot of people.

In fact, SGCC plans to delve into this issue with an upcoming consumer research study, Recognizing and Responding to Consumer Concerns. In doing this research, we’ll explore the concerns consumers have that may inhibit their adoption of smart grid technologies or deter them from participating in energy savings programs offered by their utility. The intent of this research is to shed light on how consumers feel about privacy, cyber security, data ownership and digital safety while examining which of these concerns, if any, are preventing consumers from taking action.

Back to the webinar, the DataGuard program is a voluntary code of conduct and is intended as a way for consumers to know that their utility is helping to secure their personal data by following the guidelines of a certification program. And DataGuard is also a way for utilities to communicate their commitment to consumers in handling their data, which is an extremely credible very important way to build consumer reassurance.

A program such as DataGuard was thought to be more credible than a traditional small pamphlet mailed once a year to consumers assuring them of data privacy in small type - not very informative nor very reassuring. Eric and the stakeholders for DataGuard think that the program is a demonstrable way for utilities to show customers that their privacy is respected and being proactively handled. It’s critical for utilities to be able to communicate their actions regarding consumer data privacy in a simple, easy way. A DataGuard commitment allows the utility to communicate to consumers, “You can trust us with your information and data.” However, Eric made sure to note that DataGuard is not meant to conflict or supersede any laws or regulations. If there is a conflict current laws and regulations take precedence. It is meant only to be complimentary.

Another driver besides communicating privacy protections for consumers is that DataGuard can help facilitate and grow innovation. By helping companies handle, but more importantly, safely share consumer data, they help spur on the creation of new products and services while protecting consumer privacy. Right now, it’s difficult for 3rd parties to access consumer data. So, the vast amount of it being collected about consumer energy usage is locked up and not shared - either with the consumer or with 3rd parties that might be able to create new programs or services or technologies that could benefit consumers.

Eric shared that the creation of DataGuard’s principles was a two year-long process. The process was open and transparent and involved a variety of stakeholders. DOE made a call out to industry for anyone interested to participate and DOE staff were gratified that so many industry stakeholders responded. Indeed – as meetings commenced it became challenging to balance all of the goals with all of the views about privacy, access, innovation, etc. when developing the code. The goal was to create a principled approach that doesn’t tell industry how to do things, but helps them reach their desired outcome. In the end, everyone involved was pleased with the results.

In terms of history, the idea of needing something like Data Guard began in 2012, a year of widespread consumer data breaches. The White House released a consumer bill of rights for data and challenged each industry to make them relevant for each industry. For the utility industry, the framework was initially developed under the name, Voluntary Code of Conduct for Smart Grid Data Privacy, which was a little long and cumbersome, and not too descriptive. So, the DataGuard working group, formed after the White House announcement, gave it a more consumer-friendly name. DataGuard. One important note is that DataGuard, while facilitated by the DOE, was completely industry-led and industry-written.

The principles and concepts resulting from DataGuard provide a framework for companies to develop their own privacy policies and act as a type of best practices. This framework allows maximum flexibility in implementation - as the stakeholders wanted. Not only is the program voluntary but it is an industry, self-certifying program - DOE does not certify a company’s compliance.

To view the concepts and principles of DataGuard and learn more about the stakeholder process to develop the code visit www.smartgrid.gov/privacy. To learn about the DataGuard program, visit www.dataguardprivacyprogram.org.

Eric went on to share the key tenets of the DataGuard Energy Data Privacy Program as follows:
  • Consumer Notice and Awareness: Customers should be given prior notice about privacy-related policies and practices by service providers.
  • Customer Choice and Consent: Customers should have a degree of control over access to their own Customer Data.
  • Customer Data Access and Participation: Customers should have access to their own Customer Data and should have the ability to participate in its maintenance.
  • Integrity and Security: Customer data should be as accurate as reasonably possible and secured against unauthorized access.
  • Self-Enforcement Management and Redress: Enforcement mechanisms should be in place to ensure compliance with the foregoing principles.
  • Privacy program for utilities and third parties: Challenge to strike balance for how to create something applicable to both regulated and non-regulated entities.

Each of these key tenets is fully described on the DataGuard website. Adopting companies are expected to publicly commit to the DataGuard tenets and are expected to adopt each key tenant. For more information, please attend our 2017 Consumer Symposium on January 30th in San Diego, CA where there will be a panel of stakeholders discussing the DataGuard program and where Eric will be in attendance to provide more information.


Friday, June 17, 2016

Bringing the IoT to Life

On Wednesday June 15, 2016 the Smart Grid Consumer Collaborative (SGCC) hosted our “Bringing the Internet of Things (IoT) to Life” webinar. We had the pleasure of being joined by Robby Simpson, System Architect at GE Grid Solutions, Dave Oberholzer, VP of Business and Partnership Development at WeatherBug Home, and Michel Losier, Director of Customer and Community Engagement, at NB Power. This webinar helped spark the conversation as to how increased engagement with energy usage is empowering consumers through interconnected smart home devices.

Kicking off the webinar, Robby from GE provided attendees with a high-level overview of what the “Internet of Things” really encompasses. Robby explained that as the IoT industry is still evolving, there exists differing opinions as to what qualifies as a “connected device.” Casting a wide net, the IoT has generally come to mean machine-to-machine communication and devices that use the Internet Protocol (IP) to communicate with either a connected system or a human.

Building off of his explanation of the IoT, Robby provided an analogy to help attendees further understand what the future of the “connected consumer” will really mean. Through his Analogy, Robby compared home energy usage to filling your car with fuel at a gas station. When you go to the gas station, you know the exact price of the gasoline you’re purchasing, the amount you’re putting in your vehicle, and how far you can expect to drive with that gasoline. Inversely, most consumers don’t know how much their energy really costs (until they get a bill), how much energy their home is using, and what they can do with that energy, which leads to poor energy management and un-educated usage. As IoT technologies progress, energy usage may start to look more like putting fuel in a car, where the consumer is more aware of the cost and the implication of their actions.

Additionally, IoT devices will enable the integration of energy usage information into our daily lives, whether it’s via an in home display, smart phone, or online portal. Further, these IoT devices are making it possible to design, implement, and manage next-generation demand response programs, increasing the overall health of the grid. Lastly, in the near-term, these IoT devices will enable the mass integration of distributed energy resources (renewable generation) and electric vehicle charging stations without interrupting grid operations.

While Robby explained that consumers can / will further be able to connect their devices to the grid via a smart meter, internet hubs, or third party aggregators, this successful orchestration of data is reliant upon standards. As all of the IoT devices must communicate together using a common language, it is essential that all devices adhere to the industry developed / accepted standards. While these standards are still developing, current protocols that have been widely adopted include the IEEE 2030.5 Smart Energy Profile, the Green Button, OpenADR, and Walled Gardens.

Transitioning, Dave from WeatherBug Home took the reins to explain how his company’s internet connected smart thermostats are using real-time weather data to improve home energy management. Earth Networks, the parent company of WeatherBug Home, is one of the largest collectors of weather data across the globe and for years has provided real-time weather monitoring to private companies, the federal government, schools, airports, and even major league sporting events. Understanding that 50% of home energy usage is driven by weather, WeatherBug Home is helping individuals integrate this weather data into their home energy management plan.

WeatherBug offers consumers essentially two services for free. The first service allows a homeowner to connect their smart thermostat (Honeywell, Ecobee, Nest, Emerson, etc.) to the WeatherBug Home network, giving WeatherBug Home the ability to adjust their usage based on real-time changes in the weather. For example, if you want your home to stay at 77 degrees throughout the day, your connected smart thermostat will become aware of clouds, rain, winds, and sunshine that have an impact on how hard your HVAC system must work to maintain your specified ambient temperature. The second service is a Home Energy Scorecard / mobile app that allows consumers to see their energy usage in real time, and make adjustments to decrease their bill and carbon footprint.

WeatherBug Home’s IoT service benefits the grid as it has been shown to reduce household HVAC energy usage by as much as 8%. When comparing a WeatherBug Home connected smart thermostat to the operations of a normal smart thermostat, Dave explained that integrating weather data lead to an 11.4% increase in efficiency. Furthermore, this benefits the grid by reducing peak usage throughout the summer. Additionally, WeatherBug Home is able to sell this reduction in energy usage back to the local grid–in the form of demand response–reducing the amount of costly, environmentally unfriendly energy that must be produced during hours of peak demand. WeatherBug Home is already selling demand response capacity in Texas through successful partnerships with National Grid and CenterPoint Energy.

As the last presenter, Michel from NB Power took control of the webinar to talk about the expected growth of the IoT industry, and how connected consumers are catalyzing this growth. Michel set the stage by explaining that there are roughly 25 billion connected devices currently in use. While this is a huge number–more than three times the population of the earth–the number is expected grow to 50 billion by 2020. All of these new devices will create billons of new customized data points, giving energy providers the opportunity to truly customize a consumer’s digital experience. Digitally engaged consumers offer more business value to energy providers, and energy providers have much to gain by converting and retaining digital consumers explained Michel.

Research indicates that all of these new data points are increasing energy providers’ abilities to utilize a consumer segmentation. The consumer segmentation allows for more personalized marketing based on attributes that specific subsets of the population hold as valuable. Moving on, special attention was called to the data from SGCC’s recently released The Empowered Consumer Report, which found that consumers are especially interested in adopting IoT device and enabled services such as smart appliances, usage alerts, and time varying rate plans. While Michel analyzed a variety of connected technologies, he explained that energy providers will be best served using the previously discussed consumer segmentation to engage consumers with these new products. Knowing that there is a subset of the population eager to become first adopters will help reduce barriers to adoption and develop real-world case studies and examples. Consumers’ likelihood of purchasing a smart home device increases by 90% when they know someone who has one.

Taking a look at the more immediate future, a new report released by iControl found that 50% of consumers plan to buy at least one smart home (IoT) product within the next year. Michel explained that these consumers are the most likely to buy a smart thermostat, a remote control management system, or a home audio / video security device. Lastly, looking at what is motivating people to purchase these IoT devices, Michel explained that individual security, energy efficiency, entertainment, and “keeping up with the Jones,” are the top motivating factors.

Following the presentations, all of the presenters and attendees engaged in a Question and Answer session, which can be viewed by watching the recording of this webinar. To learn more about the Smart Grid Consumer Collaborative, register for our “DataGuard – Energy Data Privacy and Security” webinar on July 20th, or to learn more about our recent research, please visit www.SmartGridCC.org.