The California Bill Analysis Pilot: Using Web-Based Bill Analysis as a Tool to Reduce On-Peak Demand

John Elliott, Nexus Energy Software
Mark Martinez, Southern California Edison
Jennifer Mitchell-Jackson, Opinion Dynamics Corporation
Craig Williamson, EPRI Solutions

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Abstract

This paper presents the results of an innovative dynamic pricing educational pilot conducted during summer of 2005 with residential customers in California. The pilot was designed to determine the value of providing customized bill analysis to amplify the price response to critical peak rates. The pilot is part of the California Statewide Pricing Pilot that began in 2003 to broadly evaluate of the potential peak demand reduction benefits of time-based rates within the context of widespread advanced metering infrastructure (AMI) in California.

Over three hundred residential customers on a critical peak rate were selected from which participants were recruited by telephone and a comparable control sample was identified. An automated program website was developed that incorporated a detailed home energy survey available for all participants and processed monthly billing data for each customer. The specialized info provided in-depth, customized information about when energy is most expensive, how the customer uses energy during peak and critical peak periods, and how the customer can most effectively reduce peak energy use. This information is based on the customer's specific household characteristics, and is provided within a broader communication strategy that includes monthly e-mail and direct mail as well as e-mails sent the day prior to a critical peak event.

Telephone surveys and focus groups were used to evaluate the effectiveness and qualitative impacts of the program. A quantitative impact evaluation was also conducted using the difference of differences approach for both critical peak days and non-critical peak days.