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HomeMy WebLinkAboutMemo - Mail Packet - 04/29/2025 - Memorandum from Mariel Miller re Utilities Behavioral Energy and Water Efficiency Strategies OverviewUtilities 222 Laporte Ave PO Box 580, Fort Collins, CO 80522 mamiller@fcgov.com MEMORANDUM Date: April 14, 2025 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Gretchen Stanford, Utilities Deputy Director From: Mariel Miller, Water Conservation Manager Subject: Utilities Behavioral Energy and Water Efficiency Strategies Overview This memo provides an update on Fort Collins Utilities’ customer behavior programs. This was prompted by discussion during the Water Efficiency Plan update presented at the City Council Work Session on Feb. 25, 2025, but includes information on energy reports as well as the larger CIS system, which will integrate both reports, as well as other customer engagement services, and is planned for launch in late 2025. BOTTOM LINE Utilities’ behavioral programs for conservation are a common, cost-effective strategy that advance the community toward local policy goals. Behavioral programs include messages that give customers personalized insights, such as how much water and energy they use, how that amount compares to similar households based on certain determinants like occupancy and displays their unique trends. These programs are aligned with Council priorities #6 – Reduce climate pollution and air pollution through best practices and #7 – Protect community water systems in an integrated way to ensure resilient water resources and healthy watersheds. Utilities’ energy and water behavioral programs also demonstrate our commitment to enhancing our customers’ digital experience. BACKGROUND Utilities began implementation of behavioral programs in 2009 for both energy and water use. The user interface included the “smiley” or “frowny” face icons indicating a residential customers’ efficiency (example water report shown on the following page), beginning with a Docusign Envelope ID: 48A06554-5A3A-4D35-B1C1-C008D878C350 CC: Travis Walker, Jill Oropeza, Nicole Poncelet-Johnson, Brian Tholl, Lori Clements simple printed and mailed report. As implementation evolved, so has Utilities’ strategy for delivery, including email delivery (unless no email address is provided or a customer elects to receive a printed copy) and supporting an online customer portal. The portal will soon combine three different offerings (billing, water, and energy) into one as a result of Utilities' new Customer Information System (CIS). Utilities sends behavioral reports to most residential electric (52,000) and water (29,000) customers (these numbers differ due to a smaller water service area). The reports are educational in nature and intend to provide a benchmark for customer water and energy use. These reports catch people’s attention and can lead to conversations about better understanding their use through the portals or to prompt participation in an energy or water program to reduce their use. Communicating household use comparisons, with imagery like the water score shown above, can be described as using injunctive norms to motivate behavior, a type of social norming. Social norms are the unwritten rules of beliefs, attitudes, and behaviors that are considered acceptable in a particular social group or culture. Social norms impact individual behavior and decision-making, from everyday interactions to significant life choices. Humans are social beings that sometimes look to groups to how to act and can be motivated to conform if they perceive themselves as not aligning to the norm(s). Many utilities that provide water or energy reports to their customers use social norming to influence conservation behaviors and have found they reduce consumption for those who use more than the average customer in their Docusign Envelope ID: 48A06554-5A3A-4D35-B1C1-C008D878C350 CC: Travis Walker, Jill Oropeza, Nicole Poncelet-Johnson, Brian Tholl, Lori Clements same cohort (i.e. similar household). These analyses have been confirmed through rigorous local household analysis and various third-party impact evaluation studies across the industry. One study1 from 2021 used the same water reports Utilities sends to measure conservation behaviors in water customers in California. The study states, “Findings affirm the ability of injunctive norms messaging to encourage conservation behavior in particular and support the use of such messaging in ‘nudge’-style campaigns moving forward.” The outcome of this practice at Utilities has resulted in a cumulative 2-2.5% less energy and water use each month, which means significant overall savings. For residential water reports, the annual average savings for Utilities is 53 million gallons, making up over 50% of Water Conservation’s annual residential programs’ total water savings. Using less energy and water also reduces customer bills. RESPONSES TO FREQUENTLY ASKED QUESTIONS 1. How are household comparisons generated and how can customers make them more accurate? The home water reports are based on comparing usage to similar households in Fort Collins, not nearby neighbors. Several parameters are used to determine comparisons, including, but not limited to, grouping households by size of home and type of heat for energy reports, and estimated number of occupants in the home and estimated yard size for water reports. Utilities uses publicly available information to initially estimate these data points. Customers can update home characteristics, including occupancy, to improve the accuracy of their household comparisons (e.g. a duplex with one water account, might need to update the occupancy to include the number of people in each household, in order to be compared more accurately) within MyEnergy and MyWater portals at fcgov.com/utilities/portals. 1 https://www.sciencedirect.com/science/article/abs/pii/S0749597818305636 Docusign Envelope ID: 48A06554-5A3A-4D35-B1C1-C008D878C350 CC: Travis Walker, Jill Oropeza, Nicole Poncelet-Johnson, Brian Tholl, Lori Clements 2. How can customers stop receiving reports? To opt-out of receiving energy reports, customers can call Customer Service at 970-212-2900 or email myenergy@fcgov.com. For water reports, customers can call Customer Service, email savewater@fcgov.com, or unsubscribe from the link within the emailed report itself or in the MyWater customer portal. 3. How can customers receive an alternative report – one that doesn’t compare to similar households? To change from a similar household comparison to a self- comparison (an alternative option that allows customers to track energy use against past consumption rather than to similar households), customers can email myenergy@fcgov.com or savewater@fcgov.com. Often, households with electric heat will opt-in to receiving a self-comparison due to unique heating equipment and conditions. 4. How can customers change their portal login? To change the portal login email, customers can call Customer Service and request to change the verified email on file for the MyEnergy portal or email savewater@fcgov.com for the MyWater portal. Following the launch of the new CIS, customer self-service and communications to staff will be centralized on one customer portal and all changes and requests for billing, service, energy and water use will happen there. This will streamline the customer process for much of the communication described above. PARTICIPANT ENGAGEMENT Recently completed program evaluations related to home reports provide the following insight:  88% of community members who received an energy report indicated they read the information “every time” or “most of the time”  81% of recipients of water reports indicated they look at “most or all of the water reports”  62% indicate the reports “prompt them to be more efficient” Docusign Envelope ID: 48A06554-5A3A-4D35-B1C1-C008D878C350 CC: Travis Walker, Jill Oropeza, Nicole Poncelet-Johnson, Brian Tholl, Lori Clements Within the last 12 months, the water reports have had an average open rate of 63%, which is considered very high compared to other promotional/informational email campaigns. These results support using behavioral reports as an effective way to distribute information related to energy and water use, as well as other relevant Utilities information and news. DIGITAL TRANSFORMATION Utilities will continue rolling out behavioral engagement programs through our forthcoming customer portal platform, VXengage, provided by VertexOne. The transition to the VertexOne CIS platform will significantly enhance customer experience by introducing a streamlined single sign-on feature. This functionality will enable Utilities customers to access three distinct usage and cost-related platforms through one unified login. Through VXengage, customers will be empowered to manage their services independently, with convenient self-service capabilities that include the ability to start, stop, and transfer service, as well as view and pay bills and monitor their account status with greater ease and efficiency. Moreover, the platform delivers energy and water usage insights which can help spur action by equipping customers with the information they need to make informed decisions, reduce consumption, and connect with available support resources to better manage their utility usage. NEXT STEPS Behavioral programs, including water and energy reports, will continue as a relevant strategy for efficiency-focused efforts. Staff recommends continuing the use of injunctive norms (i.e. smiley and frowny faces) in reports, with customers having the option to request a self-comparison report, if preferred, or to opt-out of receiving reports altogether. A discussion regarding the reports and alternatives, as well as the CIS system launch, will be scheduled for a future Council Work Session later in 2025. Docusign Envelope ID: 48A06554-5A3A-4D35-B1C1-C008D878C350