June 5, 2008 OPA’s 2007 Summer Savings and 2008 Summer Sweepstakes Conservation Programs
About the Ontario Power Authority • Mandate is to ensure reliable, sustainable electricity supply for Ontario • Functional areas: - system planning - conservation - generation procurement - sector development 2
A simple game 3
A simple program concept Summer Savings 2007: • Use 10% less electricity • Get a 10% credit on your electricity bill 4
Ontario’s Conserver Foursome 5
The Tools – Direct to Customer 6
The Tools - Advertising 7
The Tools - Interactive Every Kilowatt Counts Use Electricity Wisely Wheel 8
Team Players ENERGY STAR can get you there • Get rid of old fridge and buy ENERGY STAR appliances • Buy ENERGY STAR products offered through Every Kilowatt Counts coupon program • Replace central air conditioner with ENERGY STAR qualified models • Link to ENERGY STAR for even more tips 9
Not so simple after all 10
2007 Implementation Challenges • • • 11 80+ potential utility partners Billing system changes Advertise in advance Estimated bill credit (~$17 bi-monthly billed) relatively small vs. consumer’s effort High incentive costs (3. 6 M potential participants) What about free riders? Costly incentives – budgeted $13 M Weatherization algorithm Time-lag to pay out credits How to count MW savings? EM&V lag time for verified results
How I spent my 2007 summer vacation 12
2007 Scorecard Summer Savings results: • $6. 5 M fixed program cost • Paid $15 M in incentives to date • 900, 000+ participants • 54 MW* • 69% awareness at peak (+38% over pre-launch) 13
2008 Every Kilowatt Counts Summer Sweepstakes 14
2008 – Avoiding the “hazards” • Keep it simple • Leverage billing system investment • Participant opt-in • Manage incentive costs with contest format • Local promotion by utility partners • Early Bird draw • Drive to other programs • Meaningful Grand Prizes 15
Featuring ENERGY STAR qualified prizes Laundry Room Package Kitchen Package 16
2008 -- Moving in the right direction • 70 utilities participating • Bill inserts began as of mid. May • Mass advertising launched May 26 • 13, 000 sign-ups to date • 20% awareness 17
Questions? 18
Contact Information Kathryn Quail Manager, Retail Segment Ontario Power Authority Office: 416 -969 -6081 19