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What Is The Consumer Value Proposition

There has been plenty written about how grid modernization benefits the utility or industry but little has been written about how a smart grid benefits consumers. Broken down into three simple areas, learn what they are and how to communicate them.

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Transcript of What Is The Consumer Value Proposition

Capabilities such as fault location help repair crews find faults faster, while fault isolation limits the number of customers impacted by any particular service outage. Reliability improvements are quantified at 25 percent or 27.2 reduced outage minutes per year.
What Is The Consumer Value Proposition?
Smart Grid Consumer Collaborative
Three main consumer value propositions:
Environmental benefits
Economic benefits
Reliability benefits
How does a smart
grid create value?

There are THREE ways:
A value proposition is a promise of value to be delivered from investing in or purchasing a specific item and that delivers specific benefits (quantified value). Successful value propositions are quantitative and easy to remember.
SGCC is working to address this lack of knowledge in several ways, including:
Economic benefits for consumers:
There are nine smart grid capabilities that benefit from smart grid technology investments.
Reliability benefits for consumers:

On any given day the equivalent of 500,000 people in the U.S. are without power for 2 hours or more.
Studies have shown that power outages cost the U.S. economy around $80 billion annually.
The Smart Grid offers significant benefits with improved grid reliability and resiliency.

Direct benefits are delivered through four primary mechanisms:

• Increasing distribution efficiency through Integrated Volt/Var Control (IVVC).

• Facilitating changes in customer behavior

• Reducing operating costs from capabilities such
as remote meter reading.

• Improving revenue through improved Smart
Meter accuracy and theft detection.

Indirect benefits are realized through:

• Fault location help repair crews find faults faster

• Fault isolation limits the number of customer
impacted by any particular service outage

Customer action is critical to maximizing the economic value for three types of smart grid capabilities:
Time-varying rates
Customer Energy Management
At SGCC, we know that the vast majority of consumers have either never heard of the terms smart grid or smart meter or have heard of the terms but don’t know what they mean.
Therefore, stakeholders have a heavy lift for advancing a value proposition on a topic that the public does not understand.
As these efforts make their way out to consumers, marketing the consumer value proposition properly requires a separate skill set from what SGCC has in terms of educating consumers.
Creation of CVP statements and development of consumer facing messages
Development of CVP proof points through case studies
Development of media campaign plan
Facilitation of dialogue with all stakeholders
Execution of media campaign
We used a time-based economic tool and calculated the NPV for these investments. Returns are quantified to $713 benefit per customer per year
Reductions of almost 600 pounds of carbon dioxide equivalent emissions per customer per year.
Greater amounts of renewable generation are integrated by addressing intermittency and technical challenges.
Environmental benefits for consumers
The Smart Grid offers both direct benefits & indirect economic benefits to customers (economic productivity increases).
Economic Benefits:
You can save money by controlling your energy usage through new ways of managing your energy online or enrolling in new programs that interest you.

Studies show that consumers can save between $50 & $150 a year or more on their energy bills.
Reliability Benefits
you will experience fewer outages and when they occur you’ll be better informed through smart phone apps or texts.

Studies show that a smart grid reduces severe weather outages in the order of 27 minutes a year.
Environmental Benefits
A smart grid will enable you to enjoy new technologies such as solar, electric vehicles, automated efficiency, and will enable your utility to invest in cleaner energy.

Studies show that a smart grid will reduce CO2 by 600 pounds per year per customer.
A Smart Grid is your utility’s investment in digital technology so that it can provide you with:
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