Smart meter business case assessment: Customer engagement

Louisville Gas & Electric and Kentucky Utilities

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LG&E and KU engaged DNV to develop an overall AMI/Smart Grid strategy. During this project, DNV developed an interactive alignment analysis that identified the intersection of technology enablers, customer acceptance and organizational objectives. One of the anticipated benefits of smart meter deployment related to increased Demand Response capability. As part of the study, DNV conducted an innovative analysis of customer awareness, likely consumer acceptance of and response to a range of rate options associated with smart meters and demand response. LG&E and KU had conducted a small pilot test for system functionality and potential consumer response in a limited area of the service territory.

DNV’s data mining analysis stitched together the results of this pilot, system-wide customer appliance saturation and attitudinal surveys, and Census data. While this effort examined the total market, our “broad data” analysis also incorporated information such as arrearages/delinquencies, enrollment in the utility’s weatherization assistance program to factor in usage and behavior patterns of low-income segments in the market. The objective of this analysis was to examine the variation in observed outcomes such as enrollment in opt-out programs, opt-in programs, and likelihood of participation in rate plans by potential explanatory factors such as demographics, attitudes, and other customer data such as energy usage and technology adoption. A unique GIS analysis improved actionability of results identifying neighborhoods with high potential for engagement.