Energy Savings from Business Energy Feedback

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Energy Savings from

Business Energy Feedback

Behavior, Energy, and Climate Change Conference 2015

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Study Background

• Xcel Energy runs the Business Energy Feedback pilot in CO and MN

• Targets small and medium businesses (SMBs)

– SMBs account for about 45% of U.S. commercial

electricity consumption

• Pilot theory

– Many business managers and employees aren’t

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Research Questions

• What are the energy savings from business energy feedback?

• Do savings vary across months of the year? • Do high usage customers save more energy

than low usage customers?

• Do some business segments save more energy than others?

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XCEL ENERGY COLORADO BUSINESS

ENERGY FEEDBACK PROGRAM

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Xcel Energy Colorado BEF Pilot

• Pilot implemented by Opower

• Beginning in summer 2014, Xcel Energy sent business energy reports to about 10,000 SMB customers

• Eligibility requirements

– Receive electric or electric and gas service

– Average daily energy use greater than 1 kWh and less

than 1,000 kWh

– Agriculture, mining, equipment, wholesale segments

excluded

• Pilot implemented as randomized control trial

– Expected to yield unbiased and robust estimates of pilot

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Xcel Energy Colorado BEF Pilot (cont.)

• First report sent on June 24, 2014

• Seven reports sent during 1st program year

• Reports contained normative comparisons, energy use analysis, and savings tips

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15

● ● ● ● ● ● ●

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Participant Business Characteristics

Offices, 40% Retail Trade, 17% Retail Services, 16% Restaurants and Bars, 11% Other, 16%

PILOT BUSINESS SEGMENTS (% OF PARTICIPANTS) 0 50 100 150 200 250 300 Average Daily Consu mpti on Per Busines s (kWh/day)

AVERAGE ENERGY CONSUMPTION PER BUSINESS BY SEGMENT (KWH)

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Savings Estimation

• Collected pre- and post-treatment monthly electricity and gas bills for pilot SMBs

• Verified random assignment resulted in balanced treatment and control groups • Panel regression analysis

• OLS estimation with standard errors clustered on businesses

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First Year BEF Pilot Savings

0.26 0.06 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2 Electricity (daily kWh per customer) Natural gas (daily therms per

customer) Energy savings 0.2% 0.9% -2% -1% 0% 1% 2% 3% 4% 5% 6%

Electricity Natural gas

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Estimates of Monthly BER Electricity

Savings

-1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5%

Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15

Electricit

y Sa

vings

Point estimates of savings increase during winter months

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BEF Electricity Savings by Usage

Quartile

Note: 95% confidence intervals estimated using robust standard errors clustered on businesses. 0.1% -0.4% -0.4% 0.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0%

Quartile 1 Quartile 2 Quartile 3 Quartile 4

Electrici

ty Sa

ving

s

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BEF Electricity Savings by Business

Segment

-0.2% 1.6% -0.3% _-0.4% -4% -3% -2% -1% 0% 1% 2% 3% 4% Electrici ty Sa vings

Only retail trade segment shows positive and statistically significant savings

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Estimates of Monthly BEF Gas Savings

Note: 95% confidence intervals estimated using robust standard errors clustered

-5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15

Gas Sa

vings

Statistically significant savings in two winter months

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BEF Gas Savings by Usage Quartile

-1.8% -0.1% 1.2% _1.0% -7% -5% -3% -1% 1% 3% 5% 7%

Quartile 1 Quartile 2 Quartile 3 Quartile 4

Gas Sa

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BEF Gas Savings by Business Segment

-1.8% 0.0% 0.3% 0.9% -4% -3% -2% -1% 0% 1% 2% 3% 4%

Offices Retail Trade Retail Services Restaurants and Bars

Gas

Sa

vings

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Summary of Key Findings

• BEF pilot did not yield expected savings

– Estimates were positive but not statistically significant

– Savings estimates were imprecise

– Sample sizes relatively small

• Some evidence of savings when savings estimated by month, business segment, and usage quartile

– Point estimates of electricity and gas savings higher

during winter months

– Retail trade customers had statistically significant

electricity savings

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Future Research

• Evaluate program again during second year • Specifically investigate

– Savings persistence of retail trade customers

– Sources of any gas and electric savings during summer

and winter months

– Pilot impacts on efficiency program participation and

customer engagement

• Conduct surveys/focus groups to understand

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Contact

• Jim Stewart, Ph.D., Principal Economist

– _{(503) 467-7184}