Privileged and Confidential

Residential Rate Reform

Residential Electric Rates Summit

February 20, 2019

Maril WrightDirector, Pricing Products

Time-of-Use Default Pilot Highlights

Background:

• Initial population of ~160k customers to default to the new TOU Rate (Everyday, 4-9pm)• Customers received a combination of 90, 60 and 30 Day communications• In April 2018, PG&E transitioned ~114k customers

Highlights:

• Customer retention has been high

through 9 months (over 101,223customers remain on rate)

• Based on qualitative and quantitative

studies, customer awareness has been

high (68% aware they were part of a

transition)

• Self-serve rate change selection was high

(60% on-line/web)

• Preliminary Load Impacts show an overall

reduction of 4.2% of total peak load per

customer per hour

• To date, bundled customers have been

paid ~$440K in bill protection. Estimated

bill protection remaining to be paid to

default pilot customers is ~$2.33M

Customer awareness and retention remains high

3

Time-of-Use Default Pilot Highlights

5

Pre-Transition Post-Transition

60%

24%16%

Online IVR CSR

Rate Change Channel

65%

2%

33%

Online IVR CSR

Rate Change Channel

Remain on Default Rate 88%

Switched to Tiered 1.4%

Switched to Another TOU 1.3%

Stopped Service 8.5%

%

Voluntary Sign-Up for Default Rate (Since Transition)

12,364

4

Summary Survey Results

5

Continued high levels of awareness, despite some small drops

Pre-pilotBaseline Goal Target

Part of Transition 68% 62%

Aware…

TOU rate plans 84% 81% 68.8%60%

On a TOU rate plan 59% 56%10%

Rate choices 59% 52% 47.5%35%

Wave 1Post transition

Wave 2Post summer

5

Load Impacts

5

Day TypeDef Pilot Peak-period

Load Impact (kWh/hour/customer)

% Load Impact

Weekday 0.048 4.4%Weekend/Holiday 0.043 3.8%

All 0.046 4.2%All impacts reported above are load reductions and statistically significant at 99% level

Average peak period reduction for a customer who transitioned is 0.046kWh per customer per hour. This translates to 4.2% reduction of total peak load per

customer per hour

Customers are taking action to shift and reduce

Privileged and Confidential

Appendix

January Dashboard

8

Sample Time-of-Use Default Communications

90/30 Day Notification60 Day Rate Comparison Welcome Letter

TOU Acquisition

5

2018 2019

• Rate Options messaging included in digital newsletter deployed to 2.1M customers

• Rate options included in October Home Energy Report

• Outer envelope bill messaging in March and October

• Digital Campaign – Digital video to educate customers on rate options and encourage a rate comparison

• Summer Campaign to promote rate options

• Acquisition campaign

Integrated Marketing Efforts

Residential Digital Newsletter (April/May/June):

PG&E’s digital newsletter provided its 1.9 million recipients with information about electric rate plan choices, ways to reduce energy usage and bill forecast alerts. Customers were driven to pge.com to learn more/engage with the solutions

Integrated Evergreen Collateral (April):

The multipaneled brochure provides information on online account features, rate plan options, Medical Baseline, Home Energy Checkup, Bill Forecast Alert & energy savings tips. Customers were driven to pge.com page for more details. The brochure is available in 6 languages & will be used by PG&E employees/3rd party partners at events.

SmartRate Welcome Kits (May/June):

PG&E sent welcome kits via direct and email to welcome SmartRate customers to the 2018 season. The communication provided program details, tips to prepare for SmartDays, info on how to sign up for SmartDay notifications, and ways to shift or avoid high usage appliances.

CARE and ESA Web Updates (June): The CARE and ESA webpages on pge.com featured an easy link to the Summer Tips page to help reinforce summer savings opportunities through the end of September. The webpages were promoted in the CARE and ESA outreach in June/July.

CARE Direct Mail Insert (June): As part of the CARE acquisition communication a summer seasonal insert was included. It told customers about ways to save during the summer and highlighted Bill Forecast Alerts and Home Energy Checkup. Customers were encouraged to visit pge.com/savetoday for more information.

High Usage Surcharge (HUS) Quarterly Awareness Outreach (June):

In June, PG&E sent notifications to customers “at risk” of incurring the High Usage Surcharge (HUS), who had not received previous information on the surcharge. The letter/emails provided details about the HUS and featured ways to manage energy use like High Usage Alerts (HUA), Home Energy Checkup, Medical Baseline and the Residential Energy Fitness Program. Customers were driven to pge.com for more details.

Electronic Home Energy Report –eHER (February/March):

PG&E sent eHERs to approximately 342,000 customers in February and March. The content encouraged customers to explore their electric rate plan options and included a link Electric Rate Plan Comparison Tool.