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Utilities try to get smarter about selling smart grid

28 june 2010 - It's probably not news to their customers, but utility company executives are now realizing that they're not great at marketing ( source: http://news.cnet.com )

For years, the smart grid has been touted by policymakers, tech companies, and utilities as a way to make the grid more reliable, efficient, and cleaner. But for the most part, surveys show that consumers are still struggling to understand how a digital grid and two-way smart meters matter to them.
Having seen the backlash from smart meter installations in California, utilities are now acutely aware of how important it is to convey the benefits of new grid technologies, according to executives at the Kema Utility of the Future conference here on Thursday.
In many discussions, speakers said consumers need to come along for the years-long ride of adding new technology to the grid. To get consumers involved, utilities need to shift from treating them like a monolithic block of ratepayers to customers they want to retain.
"The relationship with homeowners is just beginning," Michael Morris, the CEO of utility AEP, said during a panel discussion. "There is no sex appeal to (playing) around with an electricity meter as there is streaming a baseball game on their iPhone or iPad, so we need to be a bit respectful of what that relationship is."
Utility customers in the U.S. expect reliable service and power when needed. But going forward, consumers will want better ways to manage and reduce their energy use for economic reasons, said Duke Energy CEO Jim Rogers.
Although electricity prices have dropped significantly in the past two years because of the recession, the pressure on prices is upward given the worldwide demand on energy resources and growing electricity use in general. Helping consumers manage those price increases with efficiency measures is in the interest of utilities, too, since customers will feel more in control, Rogers said.
But just installing smart meters without a good informational and marketing campaign is a mistake, particularly if it's seen as taking choice away from consumers, he said.
"To make smart meters work, you have to follow up quickly with an audit and provide a suite of products that provide some benefit and make clear this isn't a 'Mother knows best' world. You can choose," Rogers said. "That reduces the chance of blowback."
Not about technology
Many of the features promised by smart-grid advocates can be done with existing technologies, but they do require participation from customers, as well as customer education. So rather than rush headlong into the smart grid, some companies are treading lightly and slowing.
Michigan utility Consumers Energy this month will roll out two programs geared at cutting back electricity usage in homes and in both cases, it's using relatively old technology to get it done.
"The intent is not to figure out if the technology works, it's more about the customer marketing message," said Stephen Hirsch, the manager of demand response programs at Consumers Energy. "The biggest barrier was the suspicion on the part of the customer as to why we are doing this. There seems to be a problem with the consumer understanding our business model."