Welcome to the 21st Century, Gas Gets Smart Leveraging “Big Data” to Transform our Customer Experience

Nancy Carrell Lawrence

Southern California Gas Company OCTOBER 22, 2014

Topics

Ø  Background re: Southern California Gas Company and our Advanced Meter Project

Ø  Transforming hourly and daily gas usage data into Actionable Insights •  for our customers •  to enhance our operations, programs and service delivery

Ø  Potential Future Use Cases

Ø  Where do we go from here?

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Company Overview

Ø  Southern California Gas Company (SoCalGas®) §  20.9 million consumers connected through 5.8 million gas meters in

more than 500 communities

§  20,000 square miles territory throughout Central and Southern California

§  Nation’s largest natural gas distribution utility

Ø  Sempra Energy §  Fortune 500 energy services company

§  Parent company of SoCalGas and San Diego Gas & Electric Company (SDG&E®)

§  2013 revenues of approx. $10.5 billion

§  Unregulated businesses develop and operate energy infrastructure and provide gas and electricity services in North America and South America

§  17,000 employees worldwide 3

What is the Advanced Meter Project?

Ø  SoCalGas is upgrading existing natural gas meters with a communication device – the Advanced Meter

Ø  Gas usage is recorded in the traditional way, but a new communication device transmits the information electronically

Ø  Automatically reads and transmits hourly gas usage information on a “next day” basis

Ø  Provides more frequent and detailed natural gas use information to help customers better control costs and manage gas use

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Project Highlights

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$1.05 billion Approved Project Budget

from the California Public Utilities Commission (CPUC) in April 2010

~6 million Meter Transmission Unit

(Module) 95% residential 5% commercial

~4,000 Data Collection Unit (DCU)

throughout service territory 1,500 MTU : 1 DCU

2017 The year when SoCalGas is scheduled to complete all module installations.

A seven-year project.

Automatically reads and securely transmits hourly gas usage information on a “next day” basis

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Bringing new insights to our customers…

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SoCalGas Advanced Meter Vision & Benefits

Transforming the way SoCalGas provides service through technology innovations and empowering customers with

more choice, control, and convenience so they can better manage their energy use and costs.

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i Get Information Help the Environment Save Money

All this data… what are we using it for?

Ø  Generating Actionable Insights for our Customers

Ø  Generating Actionable Insights to Enhance our Operations, Programs and Safe & Reliable Service Delivery

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Actionable Insights! Company customer & operational data

50,000,000,000 hourly reads annually and then some…

Customer-provided data

Third Party and/or Publicly available data

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Advanced Meter “Behavior Change” Conservation Outreach

SoCalGas conducted its first Advanced Meter “Test and Learn” conservation campaign from October 2013 through March 2014 to drive behavior change aimed at demonstrating how to best reach the project’s 1% conservation goal.* Leveraging the Advanced Meter system, the campaign featured: •  Bill Tracker Alerts – provide customers weekly updates via email or SMS text messages

•  Home Energy Reports - compare an individual’s gas usage to a group of customers who are similarly situated, and provide personalized and timely savings tips

•  SoCalGas’ My Account website and Mobile App - new online energy analysis tools

Thus far, residential “auto-enrolled” treatments produced an average of 1.3 percent usage reduction for the campaign period (November 2013 – March 2014).

* This energy savings goal specifically refers to 1% of total residential gas usage.

New My Account “Ways to Save” - Online Customer Tools

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Ways to Save “Analyze Usage” tool for Advanced Meter customers

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Once their advanced meter is activated, customers can monitor their daily and hourly gas usage and costs.

Export features include CSV/Excel download and “Green Button”

Areas of exploration and/or prototype analysis:

Ø  Energy efficiency analysis leveraging weather information, account types and usage to target inefficient heaters

Ø  Consumption monitoring on vacant/closed accounts

Ø  Load disaggregation to allow better targeting and individualized promotion of customer programs

Ø  Emergency Response

Ø  Gas Acquisition and Forecasting

Ø  Revenue Protection

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Potential Hourly Data Analytics Use Cases – Operational and Program/Service Delivery

Energy Efficiency Analysis

Hourly usage data enabled SoCalGas to prototype an approach to identify users with inefficient heating appliances and thereby better target and individualize promotion of customer programs

Correlating weather changes with hourly consumption data allowed us to compare consumption between similar homes and identify those with higher consumption than their neighbors due to inefficient heating furnaces, appliances, etc.

0.4 CCF 0.5 CCF 2.0 CCF 0.3 CCF 0.7 CCF

Consumption on Closed Accounts

When a facility is vacant and gas is left on, hourly usage data can now be used to send a service person when a potential safety condition is found, or to send welcome letters to new customers.

Vacant Occupied Vacant Unusual

Ø  2014/2015 and beyond Conservation “Test & Learn” Campaigns

§  Incorporation of results/learnings from 2013/14 conservation campaign

§  Continued refinement of program segmentation and design to maximize cost-effectiveness, including potential multi-year approaches

§  Potential evaluation of SMB industry-targeted behavior change programs

Ø  More Advanced Meter penetration into medium to large Commercial and Industrial customers as the project progresses

Ø  More gas and water utilities leveraging hourly/daily data

§  Stimulating further 3rd party products, services and applications (e.g., “Apps” that can consume gas Green Button data)

Ø  New and enhanced proactive alert offerings leveraging AM data

Ø  Development of other new information feedback options for gas usage data…

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What’s on the Horizon for Smarter Gas?

Contact Information/Questions?

Ø  Contact Information:

§  Nancy Carrell Lawrence, Customer Experience and Energy Presentment Manager, Southern California Gas Company

§  nlawrence@semprautilities.com

Ø  Questions?

Ø  Further information: •  http://www.socalgas.com/innovation/advanced-meter/

•  http://www.socalgas.com/regulatory/A0809023.shtml

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APPENDIX

Bill Tracker Alerts via text or e-mail

•  Helps customers monitor and control their gas costs throughout the billing cycle

Bill Tracker Information:

•  Bill-to-Date amount ($)

•  Projected Next Bill amount ($)

•  Last year, same month bill amount ($)

•  Days remaining in the current billing cycle (#)

•  Last month’s bill amount ($) [email only]

•  Days elapsed in the current billing cycle [email only]

Sample Text Alert Message:

“SoCalGas Bill Tracker Update. Bill-to-Date: $47. Projected Next Bill: $98. Last Year Same Month Bill: $83. Days left in bill cycle: 17. socalgas.com”

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Weekly Bill Tracker Alerts

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DAILY HOURLY

ANALYZE USAGE

Click on any bars on the graph to

view hourly usage

SoCalGas Mobile App “Analyze Usage” tool

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A. Identifies the current billing cycle of the account

B. Displays the dollar amount

C. Displays 3 values: Beginning of Current Cycle, Bill to Date, End Date of Current Cycle

Bill to Date and Projected Next Bill dollar amount figures are displayed on the top of the page

SoCalGas Mobile App “Bill-to-Date” tool

Ø  Over two million Advanced Meter modules installed (approximately 1/3 complete)

Ø  Over 2,500 Data Collection Units (DCUs) were constructed or ready to construct (approximately 67% of the Advanced Meter network)

Ø  About 455 SoCalGas employees are installing modules

Ø  Over 13 million bills based on automated reads have been provided to customers

Ø  Over 99% of automated reads for billing were actual, accurate reads

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Project Overview (as of June 30, 2014)