Valley Clean Energy Board Special Meeting - January 27, 2022 via video/teleconference
Item 21 – 2021 Year in Review: Customer Care and Marketing 1 yvonnehunterphotography.com
2 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
Emailed comments received before the item has concluded will be read into the record.
Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item 21 – 2021 Year in Review: Customer Care and Marketing 3 Item 21 – 2021 Year in Review: Customer Care and Marketing Most photos by Yvonne Hunter:
yvonnehunterphotography.com
3 4
Item 21 – 2021 Year in Review: Customer Care and Marketing Presentation Roadmap:
Strategic Outreach & Marketing Plan: 2021
Implementation
1.Establish VCE as a Trusted Community
Resource
Outreach, website, press releases, social media,
social media and website analytics
2.Increase Customer Satisfaction &
Retention
Responding directly to customer concerns and
feedback, customer care analytics
3.Support VCE’s Programs Plan and
Decarbonization Roadmap
OhmConnect, Opt-up campaigns, collateral and
presentations
Going Forward in 2022
Promotional and outreach efforts included:
• Completed website refresh in Q2
• Opt-up Mini Campaign with Davis Food Co-op; in-store
signage
• 52% increase in opt-ups
• EV program signage (temp/perm)
• Social media: continued efforts to inform and educate • Digital quarterly newsletter: educate and familiarize • Updates to home page headers; Website landing pages
• Digital holiday card
Winters EV
Charging Station
signage
Home page header image
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
Events Included:
• “Make a Plan for a Clean Energy Home” webinar
with Cool Davis
• UC Davis Graduate Seminar by EEI
• Winters Chamber of Commerce in-person event
• Davis Chamber of Commerce Roadshow
• Putah Creek Groundbreaking
• CalCCA Equity Committee on Envtl Justice
• Pioneer Elementary Presentations
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
Design, functionality updates:
• Complete website refresh
• New header photos to inspire and offer a sense of
place (courtesy of our volunteer staff
photographer, Yvonne Hunter)
• New pages for OhmConnect, Financial Resources
• New landing pages
7 Website: a Critical Communication Tool
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community
Resource
Design, functionality updates:
• News carousel additions keep viewers updated on events of interest
• Regularly updated with time-sensitive information
8 Website: a Critical Communication
Tool
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach &
Marketing Plan
Goal 1: Establish VCE as a Trusted
Community Resource
Design, functionality updates:
• Interactive “Understand your Bill” feature
• Navigation improvements/expansion
• Expanded Spanish website sections
• Infographics and program logos to aid understanding
• Search Engine Optimization (SEO) in English and Spanish • NEM page updated for clarity
9 Website: a Critical Communication Tool
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
Strategic Outlook Brochure
• Who we are
• What we’re doing now
• What we’re planning for the near
future
• Why it matters
10 Publicity and Public Outreach
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
11 Op-eds & Press Releases, 2021
Item 21 – 2021 Year in Review: Customer Care and Marketing • 11 press releases
• Focused on procurement, local
renewables, CC Power, programs
• Why VCE matters, organizational
priorities
2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
12 Building Brand Awareness through Social Media
• Regular posts to offer advice or build awareness of
programs and options
• FAQ Fridays to educate and correct misinformation
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
13 2021 Social Media
Analytics
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic
Outreach &
Marketing Plan
Goal 1: Establish
VCE as a Trusted
Community
Resource
14 2021 Website Analytics
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach &
Marketing Plan
Goal 1: Establish VCE as a
Trusted Community
Resource
15 2021 Website Analytics
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
Key Support for Staff:
• Community Advisory Committee
• Evaluation of strategic planning efforts
• Task Groups: Outreach Task Group, Programs Task
Group
• Content review: website, collateral, presentations
16 Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Outreach & Marketing Plan
Goal 1: Establish VCE as a Trusted Community Resource
17 2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Being Responsive to Customer Concerns
Item 21 – 2021 Year in Review: Customer Care and Marketing • Customer NEM billing issue affecting over 200 accounts • Many low-income
• Participated in 2 workshops (1 in Spanish)
• Worked with customers and management to find solutions • Arranged for a call-out campaign to reach all customers (including those not affected by billing issue)
• Provided support and solutions to customers having trouble paying 18 2021 Strategic Marketing Plan
Goal 2: Increase customer
satisfaction and retention
Being Responsive to Customer
Concerns
Item 21 – 2021 Year in Review: Customer Care and Marketing • Responsive to customer feedback: new
content creation
• Provided talking points on trending issues
(NEM, rates, etc.)
19 2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Customer Care
Analytics
20 2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Customer Care
Analytics
20 Item 9 - Enrollment Update
21 * These numbers
represent all opt up
actions ever taken
regardless of current
customer enrollment
status.
2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Customer Care
Analytics
2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Item 21 – 2021 Year in Review: Customer Care and Marketing IVR
Change
2021 Customer Care
Analytics
22 2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Customer Care
Analytics
23 Monthly CSR Interaction Type VCEA
2021 Strategic Marketing Plan
Goal 2: Increase customer satisfaction and retention
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Customer Care
Analytics
24 25
2021 Strategic Marketing Plan
Goal 3: Support VCE’s Programs Plan and Decarbonization Roadmap Item 21 – 2021 Year in Review: Customer Care and Marketing OhmConnect Program and Marketing Campaign
Updated map and contract
links for use on the website, in
presentations and marketing
collateral
26 Local Power Contracts
Publicized
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Marketing Plan
Goal 3: Support VCE’s Programs Plan and Decarbonization Roadmap • Ongoing work with member jurisdictions
on UltraGreen
• Opt-up mini-campaign with Davis Food
Co-op
• Included developing and deploying new opt-up form and process without need for account number
• Average of opt-ups/month increased by 52%
from Sept-Dec 2021
27 Opt-up campaigns and outreach
Item 21 – 2021 Year in Review: Customer Care and Marketing 2021 Strategic Marketing Plan
Goal 3: Support VCE’s Programs Plan and Decarbonization Roadmap UltraGreen ad in Davis Food Co-op
28 Compliance Mailers: Adding Communication Value
Design constraints for the
Power Content Label
postcard required
messaging ingenuity.
Updated new move-in cards
Item 21 – 2021 Year in Review: Customer Care and Marketing Going Forward in 2022:
• Emphasis on Program Support
• Bus ads, joint press releases
• Deepen Partnerships in Member Jurisdictions
for Greater Impact
• Continued Support for Decarbonization Efforts
• Opt-up and building decarbonization
• Improved Dashboards and Analytics
• Better information -> better decisions on how to
use resources wisely
29 Item 21 – 2021 Year in Review: Customer Care and Marketing 29 Valley Clean Energy Board Special Meeting – January 27, 2022 via video/teleconference
Item 22 – 2022 Customer Rates & Budget Overview 30
yvonnehunterphotography.com
Public Comments
31 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
Emailed comments received before the item has concluded will be read into the record.
Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 32 Item 22 – 2022 Customer Rates & Budget Overview
Overview
• Background
• 2022 Customer Rate & Budget Scenarios
• Next Steps & Discussion
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 33 Item 22 – 2022 Customer Rates & Budget Overview
Background
• November 8th PG&E filed a November update for its 2022 Power Charge Indifference Adjustment (PCIA) and Generation Rates
• November 10th VCE Board adopted cost-based rate policy and deferred consideration of an expanded customer rate structure
• The cost-based rate setting approach is designed to meet VCE’s annual expenditures and build long-term fiscal stability through the establishment and maintenance of reserves. • November 18th & January 20, 2022 CAC Recommended Rates and Implementing Procedure • According to the CPUC proposed decision filed January 24, 2022. • 2022 PCIA set to decrease 57%
• 2022 PG&E’s average generation rates set to increase by 33% • All rate changes are inclusive of PG&E December actuals Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 34 Item 22 – 2022 Customer Rates & Budget Overview
CPUC Amended Proceeding Schedule (PG&E 2022 Rates):
EVENT ORIGINAL SCHEDULE NEW SCHEDULE
Matter Submitted Friday, January 7, 2022 no change
PD mailed Friday, January 14, 2022 Monday, January 24, 2022 Comments Due Thursday, January 20, 2022 Monday, January 31, 2022 Reply Comments Due N/A Thursday, February 3, 2022
Commission Meeting Thursday, January 27, 2022 Thursday, February 10, 2022 Note: At this time, the CPUC updates schedule is not forecasted to cause a delay in the March 1, 2022, implementation of Power Charge Indifference Adjustment (PCIA) and Generation Rates.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 35 Item 22 – 2022 Customer Rates & Budget Overview
2022 Customer Rate & Budget Scenarios
Using the information from CPUC proposed decision on January 24, 2022, staff conducted a financial analysis that included three rate scenarios:
1. Base Case: no modifications; all revenues directed to reserves.
2. Low Income/At-Risk* Credit: 2.5% rate credit for CARE/FERA customers; all other revenues directed to reserves.
3. Low Income/At-Risk* + Credit: 3.5% rate credit for CARE/FERA customers plus 1% rate credit for other customers; all other revenues directed to reserves. • Each scenario holds the PCIA reduction at the December filing level (57% reduction) and PG&E Rates increase 33% for 12 months ending March 1, 2023.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 36 Item 22 – 2022 Customer Rates & Budget Overview
Updated Customer Rate & Budget Scenarios - Staff’s prelim recommendation – Scenario 2 Scenario 1 FY2019 FY2020 FY2021 FY2022 CY2022 CY2023 CY2024 CY2025 Revenue 51,035 55,249 54,657 29,136 90,500 70,250 71,500 71,800 Power Cost 38,540 41,538 54,234 29,746 66,990 52,400 47,100 48,400 Other Expenses 3,850 4,346 4,267 2,350 5,105 5,140 5,269 5,400 Net Income 8,646 9,365 (3,844) (2,961) 18,405 12,710 19,132 18,000 Scenario 2 FY2019 FY2020 FY2021 FY2022 CY2022 CY2023 CY2024 CY2025 Revenue 51,035 55,249 54,657 29,136 89,750 69,500 70,750 71,050 Power Cost 38,540 41,538 54,234 29,746 66,990 52,400 47,100 48,400 Other Expenses 3,850 4,346 4,267 2,350 5,105 5,140 5,269 5,400 Net Income 8,646 9,365 (3,844) (2,961) 17,655 11,960 18,382 17,250 Scenario 3 FY2019 FY2020 FY2021 FY2022 CY2022 CY2023 CY2024 CY2025 Revenue 51,035 55,249 54,657 29,136 89,000 68,750 70,000 70,300 Power Cost 38,540 41,538 54,234 29,746 66,990 52,400 47,100 48,400 Other Expenses 3,850 4,346 4,267 2,350 5,105 5,140 5,269 5,400 Net Income 8,646 9,365 (3,844) (2,961) 16,905 11,210 17,632 16,500 * Revenues are highly subject to PG&E filings that impact generation rates and PCIA. Power costs are based of current forward market pricing that impact PPA values (cost reductions) and unhedged load costs.
Actual YTD
Oct. 31 (4 MO)
+ Forecast (2
Budget
Actuals Scenarios Preliminary Forecast*
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 37 Item 22 – 2022 Customer Rates & Budget Overview
Updated Financial Forecast and Reserves Target
Staff is seeking feedback on VCE setting rates for 2022 at a level that will fully fund the 2022 budget and build back reserves that have been used over the past 18 months to stabilize customer rates
• Staff’ preliminary recommendation that VCE establish a minimum target of 80-90 days cash reserve by the end of 2022 which would provide two key benefits:
(1) increased financial stability while taking a significant step toward establishing an investment grade credit rating
(2) preparing for future PCIA and power market volatility Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 38 Item 22 – 2022 Customer Rates & Budget Overview
Updated CAC Recommendation – Jan 20th
(Consistent with preliminary staff recommendation)
1. Adopt customer rates for 2022 to match PG&E 2022 generation rates for all customer classes to cover VCE’s FY 2022 budget expenditures and to achieve between 80-90 days cash reserves by the end of 2022;
2. Provide a 2.5% rate credit for CARE and FERA customers in 2022;
3. Conduct a mid-year rates review in Q2 2022 to assess rates forecast and determine the feasibility of:
a) allocating additional funds for 2022 clean energy content procurement b) allocating additional funds to program implementation c) providing additional rate credits for all customer classes during peak summer months in 2022.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 39 Item 22 – 2022 Customer Rates & Budget Overview
Next Steps
• Final Staff review of budget based on proposed decision • February 2022 – Board consideration of VCE 2022 rates • February 2022 – Board consideration of VCE 2022 Budget • Q2 2022 Mid-year rates and budget review
Discussion