Pent Up Demand: Nevada Power and Sierra Pacific Power 2003 ENERGY STAR® Appliance Rebate Program

John Zugel and Andria Jacob, Ecos Consulting
John Hargrove and Kelly Johnson, Nevada Power/Sierra Pacific Power Company

Keywords

Abstract

How do you design a meaningful program with meager funds? That was the challenge faced by Nevada Power and Sierra Pacific Power (the Utilities) when re-establishing the companies in the energy conservation arena after an approximate 10-year hiatus. In their inaugural year of entering the current field of conservation players, these Utilities crafted a pilot ENERGY STAR® Appliance Rebate Program that was limited in the quantity of available rebates. In a state that has one of the highest penetrations of ENERGY STAR homes in the nation, this constraint posed a real challenge for the Program.

In an effort to capitalize on the positive impact utility-funded incentives would have on the customer base, the Utilities opened their pilot program to any interested retail partner offering qualifying appliances and crafted a branding strategy intended to enhance customer and retailer perceptions. The overwhelming retail and consumer support put the program on a collision course with disaster, opening up the possibility of greater demand than could be supported with rebate funds and risking the very reputation the Utilities were trying to improve!

This paper will explain the history behind the Utilities’ decision to reenter the world of residential conservation programs. It will describe the overwhelming market response and the actions taken to avoid the backlash and negative PR that seemed likely to result if the program terminated before the promised end date. Reasons why the Utilities thought it was important to craft a branding strategy for these programs are also covered. The paper concludes with lessons learned and recommendations on how utilities, with limited resources to invest in conservation measures, can anticipate some of the pitfalls and challenges faced by first-year programs.