communicating pricing to residential and business customers
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Communicating Pricing to Residential and Business Customers. 2006 APPA Customer Connections Conference. Kevin Martin Key Accounts Manager Danville Utilities November 6 th , 2006. Introducing Danville, Virginia. Located in Southside Virginia on the Virginia - North Carolina border - PowerPoint PPT PresentationTRANSCRIPT
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Communicating Pricing toResidential and Business Customers
2006 APPA
Customer Connections Conference
Kevin MartinKey Accounts Manager
Danville Utilities
November 6th, 2006
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Introducing Danville, Virginia
Located in Southside Virginia on the Virginia - North Carolina border
207 miles from Washington, D.C.
150 miles from Richmond, Va.
67 miles from Raleigh, N.C.
Web Siteshttp://www.danville-va.gov
http://www.discoverdanville.com
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Introducing Danville, Virginia
Population -- City: 46,000 Metropolitan Area: 107,000 Size -- City: 44 sq. mi. Electric Service Area: 500 sq. mi. History -- Founded in 1793 and incorporated in 1830 as a tobacco and textile manufacturing center. Utilities founded in 1880’s.
Government Structure -- Council-Manager Municipal Employment -- 1,245 full-time and part-time employees
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About Danville Utilities
D anville U tilities O rganizational C hart
D a n v ille U tility C o m m iss ion
F isca lS e rv ices
P o w er & L ig h t W a te r & G asD is trib u tion
W a terT re a tm e nt
C u s to m erS e rv ice
K e yA ccou n ts
A ss is ta n t C ity M a n a g erfo r U tilit ie s
C ity M an a g er
C ity C o u n c il
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About Danville Utilities
187 fulltime employee positions$154 million in expenditures in FY 2007
(over ½ of the City's budget!)
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About Danville Utilities
500 Square Mile Territory
City Served: Danville, VA
3 Counties Served: Pittsylvania, Henry, and Halifax
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About Danville Utilities
Natural Gas
16,500 Customers
29,000 Decatherms/Day
Additional Capacity Available
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About Danville Utilities
Water and Wastewater
16,500 Customers
18 MGD Water Plant
24 MGD Wastewater Plant
Water Source: Dan River
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About Danville Utilities
Telecommunications
nDanville Fiber Optic Network
Gigabit Ethernet
OC-3 Internet Connection
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About Danville Utilities
Electric
45,000 Customers
Size: 240 MW
Generation: 12 MW Hydro, 6 MW Diesel Units
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Situational Background
RATE INCREASES!!!
Fuel Cost Increases
Electric Deregulation
Dysfunctional Wholesale Electric Markets
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Situational Background
Residential Rate per kWh:
From 5 cents to 7.4 cents
Business Rate per kWh:From 3 cents to 6 cents
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Situational Background
Natural Gas
We All Know What Happened There…
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Situational Background
Water and Wastewater Operations
Are Large Power Users
Electric Increases = Water Increases
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3 M’s of Marketing
Market Target
Message
Mode of Delivery
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Market Target
Residential Customers
Businesses
Key Accounts
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Message: Residential Customers
What’s Happening
Why It’s Happening
What You Can Do
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Message:Businesses
What’s Happening
Why It’s Happening
What You Can Do
Technical Information
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Message:Key Accounts
How It Happened
Future Projections
Actions To Be Taken
Detailed Technical Information
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Modes of Delivery:Residential Customers
Web Page Information
Group Meetings
TV, Radio, Newspaper
Bill Stuffers
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Modes of Delivery:Businesses
Web Page Information
Chamber of Commerce
Business Group Meetings
TV, Radio, Newspaper
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Modes of Delivery:Key Accounts
Personalized E-mail
Key Account Group Meetings
Individual Key Account Meetings
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Recommendations
Be Honest
Be Direct
Listen
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Recommendations
Inform In Advance
Give People Time to Prepare
Be Cognizant of Budgeting Schedules
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Recommendations
Educate Internally & Externally
Don’t Assume Understanding
Anticipate Questions
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Recommendations
Chase The Media
Don’t Let The Media Chase You
Tell The Negatives
But Keep The Focus On Strengths
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Resources We Used
US Department of Energy:
Energy Saver Books
Industrial Technology Classes
Industrial Energy Assessments
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Resources We Used
Energy Consultants:
Rate Analysis
Energy Audit Seminars
Informational Business Meetings
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Resources We Used
United Way:
New Utility Assistance Program
Continued Public Education In
Energy Conservation & Household Budgeting
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Results of our efforts
New and Expanded
Local Markets
For
Energy Efficiency Products
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Results of our efforts
Community Trust
&
Strengthened Relationships with Businesses and Key Accounts
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Results of our efforts
Continued Success
In
Economic Development
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Results of our efforts
And… I get to keep my job!
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Thank you
Questions?
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Communicating Pricing toResidential and Business Customers
Kevin MartinKey Accounts Manager
Danville Utilities
November 6th, 2006
E-mail: [email protected]: 434.799.6474C: 434.548.2537