New Products and Services PoV Accenture

NEW PRODUCTS AND
SERVICES FOR THE

UTILITY OF THE FUTURE
March, 2017
PIVOT TO
THE NEW
Copyright © 2017 Accenture. All rights reserved. 1
Copyright © 2017 Accenture All rights reserved. 1
AGENDA
THE CHANGING UTILITY MARKETPLACE
UTILITY CASE STUDIES
Copyright © 2017 Accenture. All rights reserved. 2

Copyright © 2017 Accenture All rights reserved. 2
THE CHANGING UTILITY
MARKETPLACE
Copyright © 2016
2017 Accenture All rights reserved. 3
KEY THEMES ARE EMERGING FOR UTILITIES LOOKING TO
OFFER NEW PRODUCTS AND SERVICES
1. DECREASE IN 2. INDUSTRY 3. VOLATILE 4. INCREASE IN 5. EXPANDING

DER ASSETS AND CONVERGENCE OF DEMAND CUSTOMER ROLE OF THIRD
TECHNOLOGY BEYOND ENERGY DISRUPTION AND EXPECTATIONS PARTIES AND
COSTS SOLUTIONS NEED TO OPTIMIZE PARTNERSHIPS
Copyright © 2016
1. PLUMMETING TECHNOLOGY COSTS ARE
ACCELERATING NEW PRODUCT ADOPTION
DER REVOLUTION IOT DEVICE PROLIFERATION
Cost of Cost of Cost of

Sensors Bandwidth Processing
~65% cost decline in resident
solar costs by 2020
0.5x 40x 60x

~85% expected battery
costs decline in US
212B 4.9B
16EB
58% of light vehicles sensors & 50B people on 4G-
mobile data
projected to be EVs by devices by LTE networks
traffic per
2030 2020 by 2020
month by 2018
Copyright © 2016
2. CROSS INDUSTRY CONVERGENCE WILL BE THE NEW
PARADIGM FOR BEYOND ENERGY SERVICES
Energy Specialized
Providers energy
services
Start-ups
companies
and disruptive
Energy business
Providers models
Energy
providers Online
providers Online
providers
Telecom Traditional
providers Utility
Traditional Telecom
Utility providers
Traditional
Utility Home
monitoring Consumer
Digital Consumer Digital
companies electronics
retailers electronics retailers
companies companies
Competition within The new era of industry Asymmetric

energy industry convergence competition
2010 2015 2020
Copyright © 2016
3. GREATER SYSTEM VOLATILITY REQUIRES SUPPLY
AND DEMAND OPTIMIZATION
of utility executives expect the
84% of utility executives expect

distribution network to evolve towards
61% active monitoring and optimization
of network assets competition to increase in beyond-the-meter
solutions in the next five years
66% of utility executives expect

competition to increase in embedded
(distribution) energy storage in the next five
years
that integrates distributed energy
70% resources (DER) and facilitates the

market for DER services— a
65% of utility executives expect the
development of microgrids in the next five years
distribution platform optimizer
Source: Accenture Digitally Enabled Grid 2016
Copyright © 2016
4. NEW ENERGY CONSUMER EXPECTATIONS
Instant Everything want a customer
Digital expectation, 92%

experience that is the
same whatever channel
68% 83%
seamless digital experience, they use
set-and-forget mentality more likely to be discouraged to sign up for additional
products and services if their provider was not able to
provide a seamless experience
Hyper-relevant of consumers are
Insight-driven experiences, 45% planning to buy or lease
products, services
rooftop solar panels in
the next five years
28% 56%
more likely to sign up for solar panels in the next 5
Meaningful Experiences of consumers are
years
IoT and DER convergence, 47% interested in third party

home of the future,
community solar
programs
60% 77%
sustainability
more Interest in an online personalized marketplace to
select and purchase energy-related products and
Collective Consumption are interested in having services
Sharing economy, asset-light 69% an energy trading
marketplace
living, collaboration 46% 72%
more likely to be more satisfied if able to log on into

provider’s portal via social media credentials
Copyright © 2016
2017 Accenture All rights reserved. 55+ 18-34 8
4. INCREASING CUSTOMER DESIRE FOR ENGAGEMENT
WITH AN EFFORTLESS EXPERIENCE
Energy Indifferent Energy Engaged Energy Vulnerable Energy Savvy

“Do Not Disturb” “Make it Effortless” “Lend a hand” “Give me Added Value”
▪ The bulk of customers are neutral ▪ Expect multichannel, ▪ Have challenges paying ▪ Drawn to new technologies
▪ Want their utility to take things off instant communication and avoid engagement ▪ Want additional products that
their “thinking list” that is simple and easy unless necessary are convenient and tailored
▪ The ideal situation is no ▪ Happy to have a digital ▪ Medical, accessibility ▪ Interested in active contact
interaction with their utility relationship if it is easy disadvantages with energy provider if it
▪ Interested in bill provides value
reduction opportunities
% of customer base
Shift to value based Potential

Fix problems
Avoid value destroying relationship and grow with future
before they
Engage with engagement, build new products & services state
happen and let
“sleeping dogs lay” effective & trusted advisor
effortless self- relationship Current
serve state
Low Medium High
Copyright © 2016
2017 Accenture All rights reserved. Level of consumer engagement 9
5. VENDORS AND UTILITIES ARE ADOPTING INNOVATIVE
PARTNERSHIPS TO OFFER BEYOND ENERGY SERVICES
NEIGHBORHOOD OF
THE FUTURE
Adjacent
MAXIMIZE CUSTOMER Market
AND GRID VALUE Services Smart
Cities
ENABLE NEW ENERGY Digital Energy

CONSUMER EXPERIENCES Marketplace
Telemedicine
and Media
SOLIDIFY DIGITAL Energy as a Entertainment
OPERATIONS Electric
Service
Rooftop Vehicles Microgrids &
Solar Virtual Power
Plants
Storage
Home Energy
Smart Meter Management
Rollout
from commodity TO BEYOND ENERGY
Copyright © 2016
UTILITY
CASE STUDIES
Copyright © 2016
OUR EVALUATION REVEALS A VARIETY OF NEW
OPPORTUNITIES IN NEW PRODUCT AND SERVICES
Demand Side Distributed Energy Transportation

Business Services
Management Resources Electrification
Home Services Connected Retail Services Adjacent Market

Home Solutions
Copyright © 2016
DEMAND SIDE MANAGEMENT OVERVIEW
Demand Response
Energy Efficiency
Value Drivers Overall participation in DR programs in

14.6M 2015 in the U.S.
Operational
Customer Satisfaction
Efficiency
• Call center first call • Vendor quality &

resolution and call consistency The factor by which the benefits associated with
prevention • Online self-service tools 4 disaggregation (electricity savings) outweigh the
• Self-service adoption • Consistent and seamless costs
• Back office and front office customer experience
business process
automation
10% The average reduction for a consumer with a

monitor and disaggregation saves per year
Program Costs Grid Reliability
• Vendor selection & costs • Peak Load Reduction The amount a utility saves in setup fees per
• Procurement costs $310 customer by going from a full serviced DLC
• Contracting costs program to a Bring Your Own Thermostat program
• Marketing ROI
Copyright © 2016
DEMAND SIDE MANAGEMENT MARKET
Demand Response
Energy Efficiency
Evolving regulatory climates continue to Market Drivers

accelerate more integrated and holistic
• Increasing regulatory pressures for DSM goals
approaches to DSM for utilities
• Rising costs of grid modernization
• Penetration of smart devices and appliances
Market Barriers
• Utility resistance to change; budget constraints
• Cost-effectiveness and measurement and
verification challenges
• Niche/early adopter concerns
Integrated DSM Spending by Region, World Markets: 2016-2025

Copyright © 2016
DEMAND SIDE MANAGEMENT CONSUMER INSIGHTS
Demand Response
Energy Efficiency
The resilience of peak demand to energy efficiency creates an emerging imbalance and imperative
for utilities to better stabilize demand volatility with more effective energy efficiency programs.
104%
102% Local Energy Demand 51% consumers want an

application that
Management Value Pool enables them to
100% remotely monitor and
98%
96%
up to €80 bln control elements of
their homes in the next
five years
of annual revenue in 2030 may be created

94%
92%
from services for customers around
energy monitoring and control that 76% consumers are interested
in digital notifications
on new energy-
save energy or improve comfort and from
services for EV related products and
90% services
2005 2006 2007 2008 2009 2010 2011 2012 2013
Summer peak demand Total demand
Copyright © 2016
Source: Accenture New Energy Consumer Research Program 2016
DEMAND SIDE MANAGEMENT CASE STUDIES
Demand Response
Energy Efficiency
UNITED ENERGY OKLAHOMA GAS & ELECTRIC E.ON ENERGY
Demand Response SmartHours Demand Saving Energy Toolkit

Gamification Response Program
Copyright © 2016
UNITED ENERGY
DEMAND RESPONSE ENABLED BY GAMIFICATION
Partnering with Bidgely in 2014 to pilot a DR program

driven by behavioral cues, analytics, and
gamification financial incentives
UE called three hour DR events, resulting in $25 Reduced peak load by

customer savings with customer specific targeting 30% with behavior
for incentives and gaming demand response
mobile application
After three summers of limited interested, the pilot
scaled to 1100 initial participants
Copyright © 2016
OKLAHOMA GAS & ELECTRIC
SMARTHOURS DEMAND RESPONSE PROGRAM
Partnered with Silver Spring to pilot a industry-

pioneering SmartHours DR initiative to curb
demand during times of peak load
Program helped participants save an average of Delayed building of two

$191 each, & delivered more than 67 MW of load peaker plants until 2020,
reduction in 2012 deferring significant
capital investments
OG&E scaled-up deployment to make it accessible to all
customers in their service territory
Copyright © 2016
E.ON
SAVING ENERGY TOOLKIT
Partnered with Opower to launch Saving Energy

Toolkit. an online tool which give its customers better
control of their home energy use
E.ON’s Saving Energy
Program’s success is demonstrated by an increase Toolkit, powered by
in E.ON’s net promoter score (NPS), showing Opower’s digital
improved customer satisfaction engagement platform &
Big Data analytics,
provides customers with
More than 600,000 customers have completed a simple personalized overviews of
‘What Uses Most’ online audit on toolkit to help them their energy usage
understand what drives up energy costs the most
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
DISTRIBUTED ENERGY RESOURCES OVERVIEW
Community solar Storage Fuel Cells
Rooftop solar Microgrid solutions Back-up generation
Key Developments around DER 2050
• Technology costs are following due to growth in
First year of PV parity with retail electricity prices

2045 USA States
manufacturing capacity, support from
2040 EU
federal and state subsidies and the
emergence of third party financing models 2035
Australian States and Territories
• Improving panel efficiencies are allowing Japan

2030
consumers to offset more energy usage or sell
Canada (after 2050)
more power back to the grid 2025
• Technologies are being focused on reducing the
2020
higher cost of customer sales and delivery
processes 2015
• Rising energy prices and emergence of low 2010

cost battery storage could enable additional 0,05 0,1 0,15 0,2 0,25 0,3
Residential electricity price in 2014 ($ per kWh)
0,35 0,4
market growth
• Sustained period of low natural gas prices Assumptions: High electricity price growth track, PV
price breakthrough, full net metering, WACC of 6% real,
and/or another recession could hinder growth USA capital tax credits (ITC) tapered off from 2019.
Copyright © 2016
Source: Accenture analysis
DISTRIBUTED ENERGY RESOURCES MARKET
Annual RDER Revenue by Technology, World Markets: Annual RDER Installed Capacity by Technology, World
2016-2025 Markets: 2016-2025
Key Highlights
• DR resources are expected to increase globally from approximately 10.1 GW to 93.5 GW over the 10-year forecast period at a CAGR of 28.1%.
• Distributed solar PV is expected to grow from $16.1 billion to $31.5 billion over the 10-years
• DESS revenue is expected to trail solar revenue, growing from $520.6 million to $11.1 billion between 2016 and 2025
• Though EV charging is expected to contribute very little to global RDER revenue, it is forecast to experience the highest CAGR of 62.8%.
Copyright © 2016
2017 Accenture All rights reserved. Source: Navigant Research- Residential DER 2016 22
DER CUSTOMER INSIGHTS
A majority of consumers are interested in energy self-sufficiency DER Revolution
~85% expected battery costs decline in US

89%
YES If you were to install technologies
Would you consider investing in to become power self-sufficient, expected residential solar costs decline in US
would you be interested in back-up ~65%
becoming power self-sufficient so
you would not have to buy energy power services that may be
57% offered by your energy provider to of consumers planning to lease or buy solar panels
from your energy provider?
minimize the risk of running out of 76% in the next five years are interested in batteries to
power? store the electricity they produce
10% EVs and plug-in hybrids expected penetration

rate in Europe by 2025
Source: Accenture New Energy Consumer Research Program 2015 Source: Accenture New Energy Consumer Research Program 2016
There is a substantial opportunity for energy providers to drive value
of consumers are planning to consumers want an electric of consumers are of consumers are
45%
sign up for rooftop solar
40%
or plug-in electric vehicle
that they buy or lease
62% interested in home 57% interested in back-
panels (buying or leasing) in energy generation up energy
the next five years products storage
Copyright © 2016
2017 Accenture All rights reserved. Source: Accenture New Energy Consumer Research Program 2016 23
DISTRIBUTED ENERGY RESOURCES CASE
STUDIES
Idaho Power Hawaiian
TransActive Grid Consolidated Edison
Electric Company
New Energy Storage Roofless Solar Power plant

Blockchain-based Micro-Grid Business Model
Duke Energy Southern Company

Green Mountain Power
Customer-Sited
Go Off-Grid With Solar and Batteries Storage Fleet
“Fuel Cell + Storage” solution
Backup-Generators
Copyright © 2016
2017 Accenture All rights reserved.
to generate savings 24
TRANSACTIVE GRID
BLOCKCHAIN-BASED MICRO-GRID
TransActive Grid, through a JV between LO3

TransActive Grid
Energy & ConsenSys, connects distributed energy
producers & consumers in the same neighborhood platform is open,
transparent, auditable,
non-repudiable, peer-
TransActive’s blockchain technology allows micro-
to-peer, and
grid communities to buy & sell electrons generated
in their micro-grid, eliminating the third-party costs cryptographically
secure.
It protect consumers from outages and reduce their
dependence on the main grid in future
Copyright © 2016
CONSOLIDATED EDISON
NEW ENERGY STORAGE BUSINESS MODEL
Filed proposal with NYPSC for a front-of-the-

meter demonstration energy storage project in
partnership with microgrid developer GI Energy
Customers
engage in a “real
estate transaction
New model will avert roadblocks to battery use
and eliminate skewed incentives for real-
that does not
estate developers require an
understanding of
Involve a new business model that would pay utility tariffs”
customers for hosting batteries through leases
while utility controls them.
Copyright © 2016
IDAHO POWER
ROOFLESS SOLAR POWER PLANT
Piloting community solar project that would allow

customers to purchase subscriptions from an
alternative energy enterprise
Participants will
receive a monthly
$1.16 M project will allow up to 1,093 residential &
470 commercial customers to buy one or more bill credit for their
subscriptions by June 2017 portion of the
output for 25
Subscriptions will be rewarded on a first-come, years
first-served basis until program capacity is
reached at 350 kW to residential customers
and 150-kW for commercial customers
Copyright © 2016
GREEN MOUNTAIN POWER
GO OFF-GRID WITH SOLAR AND BATTERIES
Piloting a first-of-a-kind program of providing

financial and technical assistance to customers to
increase energy independence and reduce carbon
emissions GMP will recover
fixed costs through
Program participants will be charged a flat monthly the fee, and will
fee between $400 and $850. earn a small margin
that benefits the
GMP will provide participants with technology customer base
ranging from solar and storage to home
automation.
Copyright © 2016
HAWAIIAN ELECTRIC COMPANY
CUSTOMER-SITED STORAGE FLEET
Partnering with Stem to test controlled operation of

aggregated energy storage by integrating with
predictive, cloud-based analytics seamlessly and in Stem’s software-
real-time. driven storage acts
as a virtual power
Customers installs Stem’s energy storage system on
Hawaiian Electric grid to reduce business costs and
plant (VPP) to
help support grid stability. manage diverse
load shapes to
This Storage fleet will provides 1 MW of intelligent serve the utility’s
storage services across 29 customer sites.to have real-time needs.
more renewable power on grid
Copyright © 2016
DUKE ENERGY
BACKUP-GENERATORS TO GENERATE SAVINGS
Running a Backup-Generator program for its C&I

customers who can reap substantial savings on
their energy bills Duke Energy will
install, free of
A 750 kW backup generator with a 500 kW load
charge, a switch
can earn credits of up to $29,400 a year. connecting the
backup generator
Customers can earn monthly credits in exchange for to their
utilizing their backup generator to help supplement communications
regional power during periods of extreme energy network
demands
Copyright © 2016
SOUTHERN COMPANY
“FUEL CELL + STORAGE” SOLUTION
Made strategic alliance with PowerSecure & Bloom

Energy to integrate distributed power generation
and smart storage technologies
Customer “Home
Delivers a reliable on-site generation solution
Depot” is expected
enabling optimized use of power to drive cost
predictability and strategic savings. to deploy the fuel
cell + storage
Southern Co. subsidiary Powersecure acquires 50 solution at 60 stores
MW of Bloom Energy’s distributed fuel cells under
long-term PPAs with high-quality C&I customers.
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
TRANSPORTATION ELECTRICFICATION OVERVIEW
Electric Vehicles: Rebates
Charging Infrastructure Education
A variety of factors impact the overall adoption rate of electric vehicles. Currently, EVs
represent <0.1% of the global fleet of passenger cars, but forecasts expect rapid growth
Adoption % by Income & Vehicle Type

By Vehicle Type & Geography
Economic Drivers
Addressable Market
Total Vehicles adopted

Rebates/Incentives
by Type & Income

Upfront Vehicle
Vehicle Range Costs
MSRP Customer Sentiment
Battery Costs
Charging Infrastructure Penetration
Fuel Customer Sentiment Estimates
Purchase Behavior Data Operating Vehicle Maintenance
Costs MPG Efficiency
OEM Production Data
Annual Incentives
Driving Patterns Resale Cost Resale Vehicle Value
Stakeholders play various roles across the value chain

Charge Station Infrastr. Services
Electric Vehicle & Batteries Customer-Facing Charging, Billing, and Data Services
Manufacturing Distribution & Sales Financial Maintenance Charge Station Charge Station Ops Charge Station Billing Charge Station Info Demand Mgmt.
(OEM) (Dealer) Services / Warranty Development & Maintenance & Data Mgmt. & Pricing Services & Home Integration
Responsibilities • Design and • Market and sell • Structure and • Ongoing • Pay up-front • Operate and • Align billing (across • Provide charging services – • Home services
manufacture vehicles extend financing maintenance and investment cost for maintain charge customer, REP, & charging and customer billing and stuff
or Services vehicles and lease contracts warranty charge station points utility)
Copyright © 2016
TRANSPORTATION ELECTRICFICATION MARKET
The U.S. is the largest market for EVs, though adoption

Light-Duty EV sales forecasts rate of EVs is higher in several European markets
2011 2012 2013 2014
Plug-in Hybrid (PHEV) and Battery EV (BEV) Sales by Year and Country
17,345
United States 52,361
96,602
118,682
3,181
China 10,990
12,587
37,193
13,347
Japan 26,867
30,587
30,390
2,243
Norway 4,700
10,769
23,390
1,141
Netherlands 5,222
Source: IEA EV Outlook 2015; Navigant Research 2014; Zpryme: Global EV Sales Volume (2013) 22,590
15,089
934
United Kingdom 2,092
3,101
12,714
2,630
5,663
France
8,779
10,560
2,154
2,956
Germany 7,436
Copyright © 2016
5,763
Source: "Electric vehicle market share in 19 countries". ABB Conversations
CONSUMER INSIGHTS
Accenture’s research shows utilities are well positioned to play an active role in
addressing user concerns and facilitating EV adoption
Would you be willing to let the charge point operator determine when your Who would you prefer buying charging services from?
vehicle can be charged?
Utilities 77%
Yes, I have no concern about this 12%
Yes, but only if the vehicle is charged 15% Consumers are Traditional Oil Companies 68%
Utilities are the
within predefined timing of my choice not ready to give preferred option for
Retailers 65%
up freedom on EV charging
when they can services but will be
No, I want my vehicle to be charged Vehicle leasing companies 30%
73% charge challenged by other
whenever I need it
28%
providers
Local governments
Internet service providers 17%
What are the top motivating factors that would lead you to buy an EV for your For those that bought EVs, what were the top factors in the EV purchase
next purchase? (top 6 listed below) decision? (top 5 listed below)
Charging point available at home 72%

Convenience and
Battery range equal to tank of a conventional car range are critical
64%
factors when
Total costs of buying and running the 60%
motivating
car are lower than ICE consumers to buy
Option to fast charge* (to charge L2) 55% an electric vehicle
for their next
Ability to charge at work or in public parking lots 54% purchase
Government subsidy or tax exemptions
to cover the additional cost
41% For early adaptors, purchase cost has not necessarily “the” motivating factor
Copyright © 2016
Source: Accenture New Energy Consumer Research Program 2015, Base: All US Respondents
TRANSPORTATION ELECTRICFICATION CASE
STUDIES
San Diego Gas & Electric
PG&E
EV Charger station Installation and Customer Education
SMUD
Record-Setting EV Charger Deployment
Copyright © 2016
2017 Accenture All rights reserved.
Considering a plug-in Electric Vehicle? 36
PG&E
RECORD-SETTING EV CHARGER DEPLOYMENT
Deploying the largest utility-led EV chargers under

the “Charge Smart and Save” plan The plan limits
PG&E’s ownership
and control of
charging
Plan includes 7,500 EV charging points and is
capped at a cost of $130 million.
infrastructure –a
compromise with
consumer and
“Site hosts” will be able to choose from a set of industry advocates.
time-of-use rates
Copyright © 2016
SAN DIEGO GAS & ELECTRIC (SDG&E)
EV CHARGER STATION INSTALLATION AND CUSTOMER
EDUCATION
"Power Your Drive" pilot project is aimed at boosting

electric vehicle ownership for every community that
SDG&E serves
SDG&E’s education
Installing 3,500 EV charging stations at 350 campaign will give
locations across its territory for its $52.5 million, opportunities to
three-year pilot project
customers to test
drive EVs from all
SDG&E will install, own, & maintain the stations at a
cost of $45 M and direct a $7.5 M shareholder the major
investment into customer education programs manufacturers
Copyright © 2016
SMUD
CONSIDERING A PLUG-IN ELECTRIC VEHICLE?
SMUD is providing platform to customers to

purchase or lease a new plug-in electric vehicle
SMUD is offering a
$599 “Charge free
There is an additional 1.5¢ per kWh credit for PEV for two years"
owners for charging their EV between midnight & 6
a.m. everyday, all year long if they opt for TOU plan
rebate for new
buyers beginning
this January 2017
Customers can avail information on available
charging options, list of EVs, Rate Plans, Incentives
on their website
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
BUSINESS SERVICES OVERVIEW
Outdoor Lighting Economic Dev Voltage Regulation
Wireless / Connectivity Dynamic Load Controls
Economic Outdoor Wireless / Dynamic Voltage

Development Lighting Connectivity Load Controls Regulation
Community Market Centricity Customers
Copyright © 2016
BUSINESS SERVICES MARKET
These market trends present new opportunities for utilities to serve C&I customers
1 The largest players in the utility world are targeting the C&I market
2 The market is evolving toward an “energy-as-a-service” model.
3 The bundled approach is nascent in the private sector.
4 A large balance sheet is only one of many predictors of success.
Copyright © 2016
BUSINESS SERVICES MARKET
Approximate Annual U.S. Market value for C&I Energy Management June 2016
10
9
9,1
Annual U.S. Market Value
8
7
6
5
4
3
2 2,5 2,4
1
1,1 0,71 0,3 0,16
0
Series 1
ESCO Services On Site Solar Off Site Solar
Electric Retail Brokerage Services Co-Generation/CHP Energy Management SW & Services
Onsite Energy Storage
Copyright © 2016
Source: GreenTechMedia
BUSINESS SERVICES CONSUMER INSIGHTS
Commercial and Industrial customers are consuming a large proportion of global energy
Cost of U.S. electricity Consumption by the industrial

$190 54%
consumption from commercial sector of the world’s delivered
Billion
sector annually energy
Estimated wasted U.S. Consumption and energy

consumption in heating, lighting, spend by business customers,
30% and operations for commercial 6X versus residential
sector
Of companies are taking steps to Of companies have

71% reduce energy consumption and 35% established time-bound targets
GHG emissions for energy consumption
reductions
Copyright © 2016
Source; US EIA; US DOE, CERES
BUSINESS SERVICES CASE STUDIES
Duke Energy Edison Energy Alliander
Economic Development in the communities Energy Efficiency Savings Creating Safe and Pleasant living
in C&I Sector by cross-industry IoT collaboration
Florida Power & Light
Gexa Energy PG&E
World’s Largest Networked Street Lights Commercial Demand

Wireless Consulting
Copyright © 2016
2017 Accenture All rights reserved. Response programs 45
DUKE ENERGY
ECONOMIC DEVELOPMENT IN THE COMMUNITIES
Supporting business growth to C&I customers in the

communities they serve
Duke helps in
Duke provides “Rate Options” and “Financial
Incentives” as well as economic development and
finding perfect
redevelopment riders to help customers reduce location to launch
costs and expand
businesses
Offers a wealth of specialized services and
assistance on “Energy Efficiency Program”, “Power
System Solutions”, and “Reliability”
Copyright © 2016
EDISON ENERGY
ENERGY EFFICIENCY SAVINGS IN C&I SECTOR
Defining the path to achieve “Energy Efficiency”

savings for C&I organizations C&I organizations in
U.S. spend an
estimated $260
$80 billion, a whopping 30% savings in meeting the billion on electricity
energy needs of C&I organizations by changing the
and natural
way they use energy
gas every year
Eliminating unnecessary consumption can improve
profitability, reduce equipment downtime, become a
competitive differentiator, and lower carbon
emissions.
Copyright © 2016
ALLIANDER
CREATING SAFE AND PLEASANT LIVING BY CROSS-
INDUSTRY IOT COLLABORATION
Collaborating with Philips, Cisco to adopt an IoT

approach to install an outdoor smart lighting project Four posts are installed,
at Hoekenrodeplein, near Amsterdam Arena each equipped with
lamps that can emit light
of varying intensity &
Lighting can be controlled as per the prevailing color, movement
conditions in order to save energy and making the sensors, cameras, & wifi
place safer and attractive connectivity
Good for local population, visitors and commuters,
and subsequently might lead to higher turnover to
the local business and higher real estate prices
Copyright © 2016
FLORIDA POWER & LIGHT
WORLD’S LARGEST NETWORKED STREET LIGHTS
Partnering with Silver Spring to deploy new

networked LED street lights across 35 county FPL to Connect
service territory statewide Nearly 500,000
Street Lights for
Street lights can be dimmed at the right time to
reduce usage & save money, and brighten them to World’s Largest
help create safer streets by connecting street lights Networked Street
to grid-network Lights Program
Program scope has expanded from 75k street lights
to 500k to help improve the reliability & efficiency of
street light network while supporting the ongoing
performance of smart grid
Copyright © 2016
GEXA ENERGY
COMMERCIAL DEMAND RESPONSE PROGRAMS
Offering diverse range of Commercial DR solutions Value-added services

in partnership with Autogrid are designed to help
generate value by
Help customers lower their energy bills by adjusting curtailing the load at
energy consumption, manually or with an automated one or more of
solution, during times of peak energy demand or high customer’s facilities
wholesale electricity prices
GEXA Energy ControlComm™ program enable

customers to visualize their energy use, monitor grid
conditions and benefit from DR products
Copyright © 2016
PG&E
WIRELESS CONSULTING
Offers cell-site connections, or collocations, and

related services for wireless carriers and other
businesses
Businesses “lease”
steel poles, wood
Costs can range from $500 to more than poles or other viable
$2,000/month depending on location and need for structures through a
coverage master service
agreement
PG&E claims to have installed 1,100 collocation
sites
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
HOME SERVICES OVERVIEW
Surge Protection
Home Warranty
Utilities are offering a range of services to increase their share of the householder and
business expenses. These services can be broadly classified in the following categories:
Business &
Warranty &
Community
Insurance
Solutions
Maintenance
Installation
& Repair
& Fitting
Copyright © 2016
HOME SERVICES MARKET
Surge Protection
Home Warranty
Home & Business Services is a high volume and low margin market which has many different
types of segments where utilities can play
$314 US home improvement and $144 Revenue generated by home

bn repair expenditure in 2014 bn improvement stores in the US in 2014
$174 US HVAC & plumbing $50 US landscaping industry

bn industry revenue in 2014 bn revenue in 2014
US home warranty market The different types of home

$2
size in 2014 700 services offered by Amazon
bn
• Basic home warranty plans typically range from $350 to $500 a year, souped-up plans can cost as much as $800.
• On top of the cost of the plan, customers also usually have to pay a service fee or deductible of roughly $50 to $125 each time they
need something fixed
Copyright © 2016
Source: IBISWorld Report 2014, Statista 2016, FranchiseHelp - Home Services Industry Analysis 2015
HOME SERVICES CONSUMER INSIGHTS
Surge Protection
Home Warranty
Consumer Demand for Home & Business Services provided by utilities is increasing as
Bundling Services with Electricity
they look for more value added services such as monitoring and product/service bundles
Home Warranty Services 17%
Adoption of Home Services
A service contract for your heating / coling
Appliance Monitoring Services 22%
equipment that includes an annual tune-up 12%
Heating & Cooling Equipment Maintenance
A home warranty that insures your home against Services 33%
problems with plumbing, electrical wiring, heating 13%
and air-conditioning systems as well as problems…
Consumers None of the above 40%

An extended warranty for major appliances 20%
want more % Interested in Bundling
An insurance policy for damage caused by lighting

bundled &
or an electrical surge 21% value added
Likelihood of Adopting with Value Added
services
An extended warranty for TVs or other electronic
22% Services
devices in the home 15%
12% 12%
10%
None of the above 50% 7% 8%
% Selecting
HVAC Service Contrct Extended Warranty for Major Home Warranty for Major
Appliance Systems & Appliances
With Energy Monitoring Service Without Monitoring Service

Copyright © 2016
Source: Parks Associates – Winning Smart Home Strategies for Energy Management - 2015
HOME SERVICES CASE STUDIES
Direct Energy FirstEnergy
”Protects your Home”

“Simple. Affordable. Important.” Surge Protection
Copyright © 2016
DIRECT ENERGY
“SIMPLE. AFFORDABLE. IMPORTANT.” SURGE PROTECTION
Offering a crucial financial safety net to customers

that shields budget from devices that don't survive Surge Essentials
the surge. plan from Direct
Energy® delivers
Surge protection plan provides up to $2,000 of coverage for
annual coverage for the repair or replacement of kitchen appliances,
electronics
home electronics,
and even mobile
Customers can claim the damage after a licensed
devices
repair technician assess the damage, and provide a
written repair estimate/invoice
Copyright © 2016
FIRSTENERGY
”PROTECTS YOUR HOME”
Collaboration with Homeserve to protect customers

from unexpected cost of home appliances’ repair
$12.99 per month, the Heating System Repair Plan

provide cover up to the $1,750 for a year
Homeserve provides 24-hour repair hotline service,

30-day wait period with a money-back guarantee
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
CONNECTED HOME OVERVIEW
Smart Thermostats Connected Devices
Home Energy Mgmt
SECURITY PEACE ENERGY eHEALTH MEDIA COMMERCE

• Professional security OF MIND MANAGEMENT • Tele-Diagnostic • TV + Cable channels • eCommerce Hub
alarms • IP cameras + motion • Smart Thermostat • Online streaming
• Elder falls alarm • Connected Kitchen
• 24/7 service detectors services
• Smart Plugs • Blood pressure • Replenishment
• Video surveillance • Smoke / CO2 detectors • Applications
• Remote controller • Glucose levels • Pay per usage
• Law enforcement call • Door lock • News
• Renewables • Market places
remote control
• Demand response • Rent/Sell/Exchange
• Lighting automated/
remote control • EV, PV, storage… • Service providers
Copyright © 2016
CONNECTED HOME MARKET
Home Energy Mgmt
Home automation, security and entertainment will
drive smart home growth through 2020.
2016 Global Connected Home Devices &
Revenue1
Total Number of Devices (million units) 2016
1000
Over-the-top content &
on-demand video
800
600
Smart
Home medical meters
400 monitoring
Online game
sales
Home Energy
200
Management Image source: Statista
Home (HEM) systems2
security
Home
automation
The global market is quickly emerging
0 globally for collaborative home
0% 10% 20% 30% 40% 50% 60% 70%
Estimated number of
CAGR, 2010-2016 smart thermostats
Notes: 30M
1 - Size of the bubble represents the size of the opportunity in revenue terms (USD $bn) projected globally by 2020 $50M
2 – Home Energy Management Systems are a subset of the overall Home Automation category,
shown separately here due to their significance for Utilities
Projected total market of the home
Source: ABI, Berg Insight, IMS Research (OTT and VOD), Informa (connected TVs and game consoles), security solutions market by 2020,
DFC Intelligence (gaming), GSMA – “Vision of Smart Home The Role of Mobile in the Home of the Future” CAGR between 2015
67% and 2020 globally
with a CAGR of 8.7%
Copyright © 2016
CONNECTED HOME CONSUMER INSIGHTS
Home Energy Mgmt
Global consumer interest in Connected Home devices and services has

accelerated gradually in the past five years
of consumers are interested in

76% automated home energy management 2012 2014 2016
service Home energy Home energy Connected home
efficiency efficiency (integrated with
of consumers are interested in a all in one products products mobile app)
bundled service, incl. automated home energy Energy management
69%
Home Energy saving
management, plus home monitoring & control, generation consultations
devices and services
connected car, connected media & (DER) (with automation)
entertainment services Energy saving Home Home

consultations generation generation
(DER) (DER)
of consumers expressed interest in value
69% propositions bundling an energy trading
marketplace with connected home and
Connected home Connected home
Automated energy
supplier switching
service
automated home energy management offerings Energy Energy management
management devices and services Electric vehicle
devices and (with back-up energy
of consumers want an application that enables
51%
services storage)
them to remotely monitor and control elements
of their homes in the next five years
Copyright © 2016
Base: All respondents | Accenture New Energy Consumer Research 2016
CONNECTED HOME CASE STUDIES
Eneco Group Southern California Edison Electric Ireland
International “Toon” smart-thermostat Home Energy Management

expansion The Smarter Living Panel Program
Copyright © 2016
ENECO GROUP
INTERNATIONAL “TOON” SMART-THERMOSTAT EXPANSION
Acquired “Quby” in order to become a sustainable

energy company that encompasses major Eneco and Quby
investment in innovation and collaboration combines their
expertise and networks
to realize their shared
Analysis of the annual bills demonstrates that
ambition: 1M European
energy bill of Toon users has reduced by ten percent
Toon users in 2017
Installed base of 175,000 Toon thermostats in

Netherlands shows that Eneco and Quby form a
successful partnership
Whitepaper
Copyright © 2016
SOUTHERN CALIFORNIA EDISON
HOME ENERGY MANAGEMENT
Partnering with HEM providers to compete in

growing Home Energy Management space U.S. HEM market is
poised to grow to
more than $4 billion
Customers can save $1.25 for each kWh and $60 a by 2017, up from $1.5
summer under the proposed peak-time rebate billion last year
program
SCE expects to see 30,000 to 40,000 smart

thermostats installed in its service territory each year
Copyright © 2016
ELECTRIC IRELAND
THE SMARTER LIVING PANEL PROGRAM
Collaborated with Accenture to develop and deliver The trial will use
a pilot program that will introduce new Connected Accenture Connected
Home solutions to its customers Platforms as a Service
(CPaaS) to allow for the
600 Electric Ireland Smarter Living Panel members control of multiple
will receive smart plugs to run a series of trial on smart devices across
Smart Controls for Connected Homes homes.
Smarter Living Panel trial will deliver innovative new

services to Irish consumers, including real-time
energy consumption feedback & remote control of
different devices in home
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
RETAIL SERVICES OVERVIEW
Ecommerce Marketplace
Brick-and-Mortar
Retail customer acquisition tactics are transforming globally with six trends emerging.
1 Low Price Offers on Comparison Websites 4 Retail Partners for Face to Face
Becoming Channel for Quick Growth Combined with Immediate Offers
2 Door Step Selling Was Out But is Coming 5 Loyalty & Rewards Programs Have
Back Limited Results
3 Media Undermining Incumbents is 6 Group Switch Can Grab Un-tapped

Shaping the Brand Conversation Customer Segments
Copyright © 2016
RETAIL SERVICES MARKET
Brick-and-Mortar
There are examples of disruptors in the power utility industries in some geographies
Online Virtual Online Online

price personal collective distributed
comparators energy switching energy trading
shoppers platforms platforms
1.1m 52% £200

*Between January to March 2016
1.1 million electricity 52% of those who switched Many UK households
customers in UK switched across gas and electricity could save around £200
in 3 months* in UK moved to per year through switching
Copyright © 2016
independent suppliers energy supplier
RETAIL SERVICES CONSUMER INSIGHTS
Brick-and-Mortar
The digital energy consumer enables more Consumers are interested in

business value for energy providers ‘Collaborative Energy’
consumers
69%
interested in having
an energy trading
85% 81% marketplace
60% 60%
in 2015 there were
17 billion-dollar
more interest in
$17b companies in the
so-called “sharing”
more interest in
an online energy trading business
personalized marketplace
marketplace
customers expect
Digital users (44% of all respondents) 57% their energy provider
to partner with
Non-digital users
other companies
Copyright © 2016
Source: Accenture New Energy Consumer Research Program 2016
RETAIL SERVICES CASE STUDIES
Vattenfall
SDG&E Marketplace ActewAGL
Discover and shop energy-efficient products

Building “Power Sharing” economy Assist Stores and Energy Shops
Copyright © 2016
VATTENFALL
BUILDING “POWER SHARING” ECONOMY
Launched a online marketplace called “Powerpeers”,

a new brand to build a “Power Sharing” economy in Powerpeers is
Netherlands based on the
many-to-many
model. Multiple
Customers will pay a monthly fee for using the
scalable platform provided by Powerpeers
producers of
energy can
supply power to
Powerpeers is evolving with experience and if
successful will share the platform with other Energy
multiple
providers consumers and
vice versa
Copyright © 2016
SDG&E MARKETPLACE
DISCOVER AND SHOP ENERGY-EFFICIENT PRODUCTS
SDG&E launched a marketplace guiding customers

about energy efficient products and rebates
It offers an option
for personalized
Customers will be able to shop for rebate-eligible energy-saving
products, such as high-efficiency appliances, smart
thermostats, and water conservation products.
tips based on a
customer’s home
profile and smart
SDG&E Marketplace makes it easy and empowers
customers to choose the products that help them
meter data.
save electricity and money
Copyright © 2016
ACTEWAGL
ASSIST STORES AND ENERGY SHOPS
ActewAGL, a joint venture between AGL Energy and

ACTEW Corporation is offering a wide variety of
utility services in their retail stores Customers can
book one-on-one
personalized
Purchasing and installing a heating, cooling or hot
water system is easy and more affordable with the appointment to
12 or 24-month ActewAGL Appliance Payment Plan. discuss and review
ActewAGL services
ActewAGL has two Assist stores and four Energy without facing the
shops providing products and personalized services queues.
Copyright © 2016

Business Services

Home Solutions
Copyright © 2016
ADJACENT SERVICES OVERVIEW
Food and Agriculture Other Services
Water Services
Leveraging customer Professional Expanding field

Asset Ownership
service knowledge services
• Surge Protection • Building Retrofits • Indoor/Outdoor Lighting • Asset Leasing

• Air Cleaners • Wireless Consulting • Tree Services • EV Charging
• Home Warranties • Weatherization • Landscaping • Economic Development
• Appliance Warranties • Design Services • Electric/Fuel Line Repair Loans
• Generator Sales • IP Licensing • Sewer/Water Line Repair • Permitting / Land Use
• Home/Building Financing • Phone Wire Repair
• Component Sales (e.g., A/C
filters)
• Bundled Services
Copyright © 2016
ADJACENT SERVICES MARKET
Water Services
Source: U.S. Census Bureau, Energy Information Association Source: Edison Electric Institute, GTM Research Source: GTM Research, FERC Form 1
✓ Today customer spends less than 3% of disposable income on home energy expenses. Spending on other home-related
products and services offers potential revenue opportunities for utilities
✓ Large IOUs have more exposure to decreases in authorized ROE and are more likely to explore new product
and service business models early on.
✓ Huge investment made in servicing their customers, with future earnings growth stagnating, offers potential opportunities to develop
additional products and services and shore up lost revenues
Copyright © 2016
ADJACENT SERVICES CONSUMER INSIGHTS
Water Services
Loyalty
73% of consumers would Energy Literate
consider energy products from 68% are interested in energy
non-traditional providers like a management solutions from their
telecom utility
The digital shift and evolving

Set and Forget customer expectations is Individualized
47% say they would pay a impacting the utility’s organization 61% of consumers would allow their
premium for automated energy provider to share data with 3rd parties to
management solutions get presonalized offerings
Energy Diverse
68% of consumers are interested in
bundled products and services from their
energy provider
Copyright © 2016
ADJACENT SERVICES CASE STUDIES
SMUD We Energies Dominion
”Shade Tree” Program Agricultural Services
Southern California Edison Georgia Power
Sewer/Water Line Repair
Film Scouting And Location Services

Copyright © 2016
2017 Accenture All rights reserved. Bundled Services 79
SMUD
”SHADE TREE” PROGRAM
Partnered with Sacramento Tree Foundation to SMUD’s “Tree Benefit

provide free shade trees to plant around customer’ Estimator” helps
homes estimate energy savings
(KWh), capacity savings
Properly placed shade trees can help save as much (KW) and pounds of
as 40% on summer electric bills and help conserve carbon & CO2
energy during SMUD's peak usage period sequestered.
“Shade Trees” improve air quality, provide beauty

and privacy, increase property values, and absorb
storm runoff.
Copyright © 2016
WE ENERGIES
AGRICULTURAL SERVICES
Running a well-established Agricultural Services

program for agriculture farm customers Livestock confinement
facilities receive
additional attention
Trained technicians help livestock farm customer, because of the
including dairy farmers on issues of wiring safety, possibility of stray
efficiency and reliability at discounted prices under voltage from farm and/or
various plans utility sources
The effort has resulted in safer and more efficient

farming throughout the We Energies service area.
Copyright © 2016
SOUTHERN CALIFORNIA EDISON
FILM SCOUTING AND LOCATION SERVICES
Provides film scouting services within its territory and SCE properties have
provides SCE-owned locations for movie, TV and served as backdrops
editorial shoots for an impressive
number of productions-
It bring in >$1M/year in revenue without much Mad Men, Revenge,
investment in additional operational costs Hangover 3, Godzilla,
Terminator 3 etc
SCE handles permitting needs and any other local

jurisdictional requirements for the production crew
Copyright © 2016
GEORGIA POWER
BUNDLED SERVICES
Collaborated with Allconnect® to offers bundled

services to residential customers within its service
territory Services offered either
as single product or in
For each new service connected, Georgia Power bundles:
receives a percentage of the transaction as profit. • Home phone connection
• High-speed internet
• Cable/satellite TV
Bundled services are offered in addition to • Home security solutions
connecting electric service. Interested customers • Natural gas or other
are transferred to Allconnect® for processing. utility providers
Copyright © 2016
DOMINION
SEWER/WATER LINE REPAIR
Offers a variety of home protection programs

designed to provide financial protection from
unexpected water, sewer and gas line repairs
Dominion offer the Sewer Line Repair Program, an

affordable coverage plan at $7.95/Month
The Water Line Replacement Program covers the

repair or replacement of a residential water supply
line that has failed due to normal wear and tear.
Copyright © 2016

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NEW PRODUCTS AND

SERVICES FOR THE

THE CHANGING UTILITY MARKETPLACE

UTILITY CASE STUDIES

Copyright © 2017 Accenture. All rights reserved. 2

1. DECREASE IN 2. INDUSTRY 3. VOLATILE 4. INCREASE IN 5. EXPANDING

DER REVOLUTION IOT DEVICE PROLIFERATION

Cost of Cost of Cost of

0.5x 40x 60x

Competition within The new era of industry Asymmetric

of utility executives expect the

84% of utility executives expect

66% of utility executives expect

70% resources (DER) and facilitates the

Source: Accenture Digitally Enabled Grid 2016

Instant Everything want a customer

Digital expectation, 92%

IoT and DER convergence, 47% interested in third party

more likely to be more satisfied if able to log on into

Energy Indifferent Energy Engaged Energy Vulnerable Energy Savvy

Shift to value based Potential

Low Medium High

ENABLE NEW ENERGY Digital Energy

from commodity TO BEYOND ENERGY

Demand Side Distributed Energy Transportation

Home Services Connected Retail Services Adjacent Market

Value Drivers Overall participation in DR programs in

• Call center first call • Vendor quality &

10% The average reduction for a consumer with a

Evolving regulatory climates continue to Market Drivers

Integrated DSM Spending by Region, World Markets: 2016-2025

102% Local Energy Demand 51% consumers want an

of annual revenue in 2030 may be created

Summer peak demand Total demand

UNITED ENERGY OKLAHOMA GAS & ELECTRIC E.ON ENERGY

Demand Response SmartHours Demand Saving Energy Toolkit

Partnering with Bidgely in 2014 to pilot a DR program

UE called three hour DR events, resulting in $25 Reduced peak load by

Partnered with Silver Spring to pilot a industry-

Program helped participants save an average of Delayed building of two

Partnered with Opower to launch Saving Energy

Demand Side Distributed Energy Transportation

Home Services Connected Retail Services Adjacent Market

Key Developments around DER 2050

• Technology costs are following due to growth in

First year of PV parity with retail electricity prices

• Improving panel efficiencies are allowing Japan

• Rising energy prices and emergence of low 2010

~85% expected battery costs decline in US

10% EVs and plug-in hybrids expected penetration

There is a substantial opportunity for energy providers to drive value

New Energy Storage Roofless Solar Power plant

Duke Energy Southern Company

TransActive Grid, through a JV between LO3

Filed proposal with NYPSC for a front-of-the-

Piloting community solar project that would allow

Piloting a first-of-a-kind program of providing

Partnering with Stem to test controlled operation of

Running a Backup-Generator program for its C&I

Made strategic alliance with PowerSecure & Bloom

Demand Side Distributed Energy Transportation

Home Services Connected Retail Services Adjacent Market

Adoption % by Income & Vehicle Type