As a parent, May does not typically rank as my favorite month of the year. With two school-aged kids, it feels like a real-life version of “The Amazing Race” where – instead of exotic locales – I race between soccer practice, science fairs, and finding the oh-so-urgent costume for the school play (because apparently, every mom should know how to make a knight’s armor from aluminum foil). This year also has the added bonus of preparing for a continuation ceremony since my eldest will be going to middle school next year (!!!). While the miniature graduation gowns have my full attention, the less exciting part is deciding (for the first time in his academic career) what classes he wants to take – including whether to take “advanced” reading and math. Opting for advanced placement entails coaxing an apprehensive soon-to-be sixth grader to complete applications and commit to consistent effort and homework – a task I can empathize with, considering I, a somewhat more established adult, often find comfort in sticking to the status quo. Without proper incentive, the most attractive option is often going with the flow.
In middle school, the incentive for enrolling in advanced classes lies in the promise of accumulating more credit hours, which theoretically translates into a lighter course load in high school. I explained to my son how great the potential benefits of having “extra” time would be for pursuits like sports, socializing with friends, or, let’s be honest, catching up on sleep. He shrugged in apathetic agreement and reluctantly completed the application. As a parent, I couldn’t help but feel that the prospect of being in advanced placement classes should serve as sufficient motivation. My ego anticipated his excitement, only to find his indifference surprising (and a wee bit disappointing). Drawing a parallel to the world of utilities, I couldn’t help but think this was awfully similar to the challenges utilities face when trying to get customers to participate in opt-in time-of-use (TOU) rates.
Opting into TOU rates provides customers with the option to pay variable rates for electricity usage contingent upon the time of day. Under TOU rates, electricity costs fluctuate based on usage timing, typically resulting in higher rates during peak demand intervals and lower rates during off-peak periods. This pricing strategy aims to encourage energy conservation and alleviate grid strain by rewarding customers who shift their energy consumption to off-peak times with lower charges. Just like advanced placement classes offer my son the chance to get “extra” time off in high school, TOU rates offer customers the chance to save money by shifting their energy usage. But, just as my son wanted to know exactly how much time he would get off in high school prior to filling out an application, so too do customers want to know exactly how much they will save prior to going through the hassle of changing rates.
My son’s elementary school did what they could to entice enrollment – they gave away candy and offered extended recess to fill out applications. In the utility world, however, recognizing the right incentives and rate structures to optimize TOU enrollment can be tricky. Fortunately, GridX is well-positioned to help utilities identify what rate structure and incentive package will work for their desired outcome even before TOU rollout begins. GridX provides customers with the highly accurate cost impact of their clean energy decisions – and can tell customers exactly how a new rate or clean energy product will impact them financially. GridX can also help market and increase enrollment in new rates and programs by quickly and accurately addressing important bill and cost questions. With the right incentives, everyone wins, whether the result is a utility customer spending less money per month on electricity or a teenager getting more sleep on Fridays.
