got grid? making the connection with consumers

Got grid? Making the connection with consumers

Roger WoodworthVP and Chief Strategy Officer

roger.woodworth@avistacorp.com

MEC, Huntington Beach, CA October 2011

- Tammy McLeod, APS

- Greg Dudkin, PPL

- Penny Conner, NStar

The “cold” in your beer

The “hot” in your shower

Light at the flip of a switch

Light at the flip of a switch

Hard to imagine a time when…

Or imagine a time when...

Neolithic people of 5300 years ago

Mastered fire

Developed ways to make, control, transmit, and use

For warmth, cooking, light, farming, security – and survival

“Otzi, the Iceman”

After survival: Relief, then convenience

1800s 1900s 1940s 1950s

After survival: Relief, then convenience

The real power in energy

LIFE Magazine, 1959

• Pencil sharpener• BBQ rotisserie• Egg poacher• Waring blender• Slide projector• UV “Gro-lite”• Electric accordian• Paint sprayer• Ice crusher• Coffee maker• Shoe polisher• Window fan• Ice cream maker• Home tanning light

Powering convenience

Life, 50 years later Powering much more• Game Boys, X-Box

• Cordless, cell phones

• Microwave ovens

• DVD players, TiVO

• Cable set-top boxes

• Plasma TV

• Computers, printers

• Decorative lighting

• Digital cameras, I-Pods

• Garage door openers

• Auto sprinkler

• EVs to come, and more

•U. S. Energy Consumption – up just a bit…

•1959: ~100 trillion watt-hours for ~178 million people

•2009: ~1,400 trillion watt-hours for ~302 million people

•Source: InfoPlease, 2009 and EIA, 2008

Then and now

Then and now

Then and now

Then and now

Then and now

Before Modern Conveniences

“Times were tough before modern conveniences. I’m sure everyone agrees they would never want to go back to life without electricity, indoor plumbing and running water. I’m 80 now and... I love my washer and dryer, I thoroughly enjoy my microwave and don’t know what I would do with out my refrigerator…”

Willowdean in Tennessee

Good ‘Ol Days

“I’m 81 years old.. And have never owned an automatic washing machine. My 1970s washer pushes up to the sink. I do have a portable electric dryer though… Growing up, we washed our clothes in a wringer washer on the back porch…”

Florence in Wisconsin

“Because I spent my childhood without modern conveniences… the luxury I most appreciate is central heat. On extremely cold days, we sat wrapped in quilts and played games like I Spy... Once I leaned against the stove enjoying the heat when my mother suddenly yanked me away. My beautiful new coat had been scorched.”

Joan in Massachusetts

Oh, how times have changed!

Consumers once sought connection to the electric grid for relief from the burdens of work and the better life it enabled.

But appreciation has waned for the fully integrated and reliable service that utilities provide, in the face of ever greater conveniences, entertainment and social engagement that is enabled by this same grid.

Consumers’ perception of utilities’ value is weakest at a time when costs – and rates – are on the rise. The link is weakened further by the new technologies, policies and businesses intending to serve some or all of our customers’ needs – without us…

So, what’s a utility to do?!?