FLEXIBLE PATH ENGAGEMENT UPDATE

October 28, 2019

In fo rmat iona l Update

PRESENTED BY :Jonathan Tijerina

Sr. Director, Corporate Communications, Marketing & Smart City Outreach

• PROVIDE UPDATE ON COMMUNITY ENGAGEMENT PROCESS

• PROVIDE OVERVIEW OF ENGAGEMENT EFFORTS & SURVEY RESULTS

• DISCUSS NEXT STEPS

2

OBJECTIVES & TAKEAWAYS

• FLEXPOWER BUNDLE & FLEXSTEPANNOUNCEMENTS

• COMMUNITY ENGAGEMENT UPDATE

• FLEXPOWER BUNDLE & FLEXSTEP SURVEY RESULTS

• ADDITIONAL TYPE OF SURVEYS AND CUSTOMER TOUCHPOINTS

• NEXT STEPS & LOOK AHEAD

3

AGENDA

4

These events allow us to hear from our community & our partners to help us plan for the future.

LISTENING TO OUR COMMUNITYCOMMUNITY INPUT INFORMS OUR PATH

CPS Energy Community Engagement team member speaking to a customer at a May 2019 People FirstCommunity Fair.

CPS Energy President & CEO Paula Gold-Williams speaking with former Department of Energy Secretary, Professor Ernie Moniz, about our Flexible Path.

CPS Energy Board of Trustees at one of our Public Input Sessions.

FLEXPOWER BUNDLE & FLEXSTEP OUTREACH LAUNCHED

5

We offered two short surveys that asked customers to rank security, safety, resiliency, reliability, environmental

responsibility, and affordability in order of importance.

CPS Energy

President & CEO

Launches Community

Input on the New

“Power Bundleflex”

CPS Energy NEWSROOM, July 10, 2019

CPS Energy Announces

A Second Public Input

Period on Next

Generation of Energy

Management – FlexSTEP

CPS Energy NEWSROOM, July 29, 2019

6

WE HAVE A BALANCED APPROACHTHESE CONSIDERATIONS ARE IMPORTANT

As we work through our Flexible Path, we will ensure that we address every strategy through these pillars.

SECURITY

CUSTOMER AFFORDABILITY

RELIABILITY ENVIRONMENTALRESPONSIBILITY

RESILIENCY SAFETY

FLEXPOWER BUNDLE & FLEXSTEPPARTNER ENGAGEMENT OVERVIEW

7

Since August, we have:• Given 24 formal presentations • Hosted 7 People First Community Fairs• Initiated 2 Surveys• Had Over 3,000 people participate

CPS Energy President & CEO Paula Gold-Williams speaking at San Antonio Manufacturers Association (SAMA) membership luncheon.

FLEXPOWER BUNDLE & FLEXSTEP PRESENTATIONS

8

We presented to diverse organizations which include both customers and businesses alike. Presentations have been well-received, with

our environmental stakeholders providing the most feedback.

FLEXPOWER BUNDLE OVERVIEW

9

• 962 Survey Participants answered at least 1 question of the survey

• Energy Considerations Ranked by Importance1. Affordability2. Energy Reliability3. Environmental Responsibility4. Safety 5. Security6. Energy Resilience

FLEXPOWER BUNDLE SURVEY

10

Of the 948 respondents, 52% ranked “Affordability” as their most important energy consideration.

FLEXPOWER BUNDLE SURVEY

11

While customers are overwhelmingly aware of our energy rebates as the #1 program we offer, they did not recognize the name STEP as the broad energy

efficiency & conservation program.

FLEXSTEP SURVEY OVERVIEW

12

• 697 Survey Participants answered at least 1 question of the survey

• Energy Considerations Ranked by Importance 1. Affordability2. Environmental Responsibility3. Energy Reliability4. Energy Efficiency5. Safety 6. Security7. Energy Resilience

• Customers also overwhelmingly acknowledged Energy Rebates from an awareness perspective

Launched in 2009, we have

achieved our goal of saving 771MW,

while being under budget and earlier

than 2020.

FLEXSTEP SURVEY

13

Participant22%

Did not Participate78%

STEP Participation

Participant Did not Participant

While there have been many offerings within STEP, most of the respondents have not participated in the program.

FLEXSTEP SURVEY

14

Of the 600 respondents, 47% ranked “Affordability” as their most important energy consideration.

FLEXSTEP SURVEY

15

26% of customers who identified themselves as STEP program participants, participated in our WiFi thermostat program.

FLEXSTEP SURVEY

16

84% of customers were not aware that they are currently paying for our STEP program.

Yes, I was aware it was part of my monthly energy

bill.16%

No, I was not aware.

84%

Customers Awareness of STEP Funding

Yes, I was aware it was part of my monthly energy bill. No, I was not aware.

FLEXSTEP SURVEY

17

46% of survey participants are willing to pay $1 - $5 more per month for Energy Efficiency & Conservation

programs & services.

This program has to blend in with others to ensure overall long term Customer Affordability.

18

• Close online surveys, analyze & publish to our website

• Continue customer engagement opportunities

• Partner Engagement Speaking Events

• People First Community Fairs

• Focus Groups

• Polling

NEXT STEPS & LOOK AHEAD

Our stakeholders have clearly indicated that we need to continue & explore both the FlexPower Bundle & FlexSTEP

while keeping our community updated on our progress!

Thank You

19