A Few Thoughts on Utility Price Increases

Oct 5, 2015Download as PPTX, PDF0 likes127 views

This document summarizes John Egan's presentation on utility price increases. It discusses the large amount of planned capital projects and spending by electric utilities totaling $150 billion. It emphasizes the importance of operational improvements to lower costs before raising prices for customers. It also stresses the need for transparent and easy to understand communications when discussing price increases, focusing on the value provided to customers rather than just costs. The presentation provides tips for successful messaging including keeping it simple, unexpected, concrete, credible and telling stories.

A Few Thoughts on
Utility Price Increases
EUCI 13th Annual Rate
Design Conference
John Egan
September 28, 2015

Roadmap
We’re all in this together
Terrific industry-wide learning opportunity
Do the right thing
Say the right thing
Show the right thing
Rinse, lather, repeat
9/28/2015 2

Electric Utility Capital Projects
Big electric capital spend planned.
1,010 capital projects valued at $150 billion
TX, CA, BC, NY, AZ, NY, ND, IL and NM have
the largest planned spend.
Customers are expected to pay for all of
that, plus riders and ROE (for IOUs).
3
Source: Industrial Info
Resources
9/28/2015

9/28/2015 5
Source: Egan Energy
Communications

Do the Right Things ─ Ops
Fix operational shortfalls.
Continue efforts to lower costs before
asking customers to pay more.
Know your customer.
Understand what they value and where you
fall short.
Practice integrated issues management.
9/28/2015 6

Do the Right Thing ─ Comms
Test all aspects of your communications.
Art, colors, messages, design, channels, etc.
Align words, deeds and art to ensure
transparency.
Use easy-to-understand words and
concepts.
Art is more powerful than words.
9/28/2015 7

Do the Right Thing
9/28/2015 8
Source: Albert Mehrabian

Focus on Value
Numerous examples of utilities with rising
CSAT despite multiple price increases.
If Pepco can do it, so can you!
“If the perceived value of what we provide
is rising faster than the perceived cost,
we’ll be OK.”
9/28/2015 9

Say the Right Thing
You are cursed – with knowledge!
SUCCESful messaging
The danger of detail
Use words an 8th grader can understand
Less effective and more effective words
9/28/2015 10

SUCCESful Messaging
Simple
Unexpected
Concrete
Credible
Emotional
Stories
9/28/2015 11

Show the Right Thing
Create MPG graphics for electric use.
Make employees the face of the utility.
Ask employees to become ambassadors.
Don’t hide, don’t go dark.
9/28/2015 14

Thank You!
For more information:
John Egan
President
Egan Energy Communications, Inc.
720-949-4906
John@EganEnergy.com

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A Few Thoughts on Utility Price Increases

1. A Few Thoughts on Utility Price Increases EUCI 13th Annual Rate Design Conference John Egan September 28, 2015

2. Roadmap We’re all in this together Terrific industry-wide learning opportunity Do the right thing Say the right thing Show the right thing Rinse, lather, repeat 9/28/2015 2

3. Electric Utility Capital Projects Big electric capital spend planned. 1,010 capital projects valued at $150 billion TX, CA, BC, NY, AZ, NY, ND, IL and NM have the largest planned spend. Customers are expected to pay for all of that, plus riders and ROE (for IOUs). 3 Source: Industrial Info Resources 9/28/2015

4. 9/28/2015 4

5. 9/28/2015 5 Source: Egan Energy Communications

6. Do the Right Things ─ Ops Fix operational shortfalls. Continue efforts to lower costs before asking customers to pay more. Know your customer. Understand what they value and where you fall short. Practice integrated issues management. 9/28/2015 6

7. Do the Right Thing ─ Comms Test all aspects of your communications. Art, colors, messages, design, channels, etc. Align words, deeds and art to ensure transparency. Use easy-to-understand words and concepts. Art is more powerful than words. 9/28/2015 7

8. Do the Right Thing 9/28/2015 8 Source: Albert Mehrabian

9. Focus on Value Numerous examples of utilities with rising CSAT despite multiple price increases. If Pepco can do it, so can you! “If the perceived value of what we provide is rising faster than the perceived cost, we’ll be OK.” 9/28/2015 9

10. Say the Right Thing You are cursed – with knowledge! SUCCESful messaging The danger of detail Use words an 8th grader can understand Less effective and more effective words 9/28/2015 10

11. SUCCESful Messaging Simple Unexpected Concrete Credible Emotional Stories 9/28/2015 11

12. The Danger of Detail 9/28/2015 12

13. 9/28/2015 13

14. Show the Right Thing Create MPG graphics for electric use. Make employees the face of the utility. Ask employees to become ambassadors. Don’t hide, don’t go dark. 9/28/2015 14

15. Thank You! For more information: John Egan President Egan Energy Communications, Inc. 720-949-4906 John@EganEnergy.com

Editor's Notes

#4: Biggest states: TX ($18 bil), CA ($11.5 bil), AZ, NY, IL, ND and NM each have about $5 bil planned
#12: “Bin Laden is dead. GM is alive.” “For sale: baby shoes, never worn.”

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A Few Thoughts on Utility Price Increases

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