communications handbook The Future of Energy A Working Communication Guide for Discussion Current as of April 12, 2016 April 2016 Is our language getting in the way of our success? As an industry, we share common goals to help bring about an energy future that is smarter, cleaner and stronger. Yet we do not speak with a common voice. The purpose of this handbook is to help our industry communicate our vision of the future with a common language that is… + plainspoken, so the average American can understand + personal, so customers understand the value of our actions + positive, by emphasizing what we are for, not against While you’re likely already using some of this recommended language, this handbook serves as a single resource across the industry to underscore the importance of speaking with one voice. By sharing one voice, we can build awareness, understanding and support for our efforts. 2 How the handbook is organized four areas of insight the basics the future of the energy grid leading the way on clean energy fundamentals of rates what’s included Each of the four substantive areas has a dedicated section that addresses key concepts including: + + + Recommended terms and definitions Language to use and to avoid Additional context from consumer research where it comes from The recommendations are derived from extensive lexicon research + + Conducted on a national scale Using a mix of emotion-based qualitative and statistically significant quantitative measures 3 how to read the recommendations current term what to call it: recommended term how to define it: recommended definition what matters: most important takeaway language to use and lose when talking about it: you say they hear recommended language to use why it works language you might consider, less ideal than recommended language reasons it works sometimes but not others language to lose why it doesn’t work 4 communication context the basics the future of the energy grid leading the way on clean energy fundamentals of rates + All good communication starts with an understanding of our audience what does the customer think about our industry? I don’t think about you often, and when I do… I have a problem + I have to pay my bill + I am trying to make sense of my bill + I don’t care about what you’re doing; I care about what I’m getting… I want safe, reliable, affordable energy + I don’t care about innovations unless they’re going to help me + I want to know you care about my needs and are doing everything possible to better serve me + I don’t see you as an innovator because… I see more wooden poles than solar panels + I see tech companies as the real innovators + 6 How to Tell Our Story We have a strong story to tell. To gain traction, we need to tell it in the right way. Based on the customer mindset, language that resonates does the following: focuses on consumer benefits Customers care most about what this means for them, so we need to remind them of the benefits every step of the way stays future-oriented Customers see energy is changing, so we need to show we are leading that change and delivering greater value gives tangible examples Customers won’t take our word for it, so we need to show them the value we’re providing 7 communication context the basics the future of the energy grid leading the way on clean energy fundamentals of rates + the basics Even at its most basic level, the terms we use to describe ourselves and our industry vary widely. What matters most is that we communicate consistently so that stakeholders can start with a basic understanding of who we are and what we do. Then we can build additional concepts on this foundation. core terms We are in the energy business… + (not electricity) We are energy companies… + (not utilities or advisors) That operate the energy grid… + + (only when you can’t say “smart grid”) (not the grid, power network, or energy highway) To efficiently deliver… + + (emphasizing what the energy grid does not what it is) (focused on our core role today) Affordable, reliable and safe energy… + (connecting the energy grid to core customer benefits) To our customers + (not ratepayers, users, or purchasers) 9 summary: the basics from to electricity energy utility energy company grid energy grid ratepayer customer We are an energy company that operates* and uses the energy grid to efficiently deliver affordable, reliable, and safe energy to homes, businesses, and communities. *When talking about your individual company, adjust this language accordingly (e.g., owns and operates). 10 electricity what to call it: energy what matters: elevate your language beyond the status quo language to use and lose when talking about it: you say they hear energy all-encompassing electricity clear, but also reinforcing the old power clear, but not as effective utility what to call it: energy company what matters: focus on what you give customers language to use and lose when talking about it: you say they hear company all-encompassing, commonly used provider the role you play with customers advisor overreach utility doesn’t convey benefit; can reinforce monopoly tag 11 grid what to call it: energy grid how to define it (when it isn’t a smart grid): it efficiently delivers reliable and safe energy so you always get the power you need what matters: customers need to know that the grid = delivery of energy; focus on what it does (efficiently delivers energy) as opposed to what it is (e.g., wires, substations) NOTE: Our future is built on a smart grid (see page 18), but we know we can’t use that term in every case. Where we can’t, use this term. language to use and lose when talking about it: you say they hear energy grid simple, clear, innovative reliable, safe, secure core benefits they care about efficient doing more with less grid (alone) simple, but less specific power grid understood, but not as innovative energy network energy delivery system simple but longer, and less commonly used resilient, robust lower priority, less clear benefits energy highway unclear, overreaching wires, equipment, transmission lines, substations clear, but sounds old-fashioned and outdated 12 ratepayer what to call it: customer what matters: no other term comes close to “customer” as the way we should refer to the people we serve language to use and lose when talking about it: you say they hear customer familiar, focused on me and my needs ratepayer unclear, focused on the fact that I pay you purchaser impersonal user 13 communication context the basics the future of the energy grid leading the way on clean energy fundamentals of rates + the future of the energy grid Though every energy company is at a different stage, all are investing in the future. Communicating about the value of these investments is critical. The language used to date is remarkably diverse – and often confusing. The following recommendations are designed to help make communications about the future of the energy grid clear and consistent. keys to an effective conversation You win when you… + + + Focus on what customers are getting: reliability, affordability, safety, peace of mind Emphasize continuous improvement & progress Stay future-focused obstacles to an effective conversation You miss opportunities when you… + + + Sound like a traditional utility, by focusing too much on wires and poles Sound too risky, by trying to be at the bleeding edge of technology Sound too company-focused, by talking about updates and innovations without customer benefits 15 summary: the future of the energy grid from to evolving distribution system building a smarter energy infrastructure advanced grid smart grid utility of the future next generation energy company advanced meter smart meter 16 summary: the future of the energy grid building a smarter energy infrastructure The future of energy is changing, and we’re changing with it, starting with the energy grid. Thanks to new technological innovations, we’re building a smarter energy infrastructure…one that will allow us to respond to outages more quickly, to seamlessly connect with cleaner energy sources, and better secure the energy grid against attacks. A smart grid means you get more control, greater flexibility, and more choice. And it is just one of many innovations we will introduce as we work to become your next generation energy company. smart meters and other advances Customers want tools to help them use energy more efficiently. That’s why we’re working to ensure every customer has a smart meter. These innovative new energy meters make the energy grid more secure and more dynamic and give customers more control over how they use their energy. 17 evolving distribution system what to call it: building a smarter energy infrastructure how to define it: investing in new technologies to deliver the benefits of a smart grid to customers what matters: “smart” is perhaps the single most positive word for the industry to own – talk about “smarter” when referring to the evolution of the industry language to use and lose when talking about it: you say they hear advanced energy delivery system innovative; suggests progress that matters continuous improvement progress modernizing the grid transforming the grid progress, but lacking detail about what I get evolving distribution system confusing and intangible 18 advanced grid what to call it: smart grid how to define it: a more dynamic and more secure energy grid that… + gives customers more control, greater flexibility, and more choices + responds to outages more quickly, seamlessly connects with cleaner energy sources, and better secures the grid from attacks what matters: meaningful innovation must be tied to specific customer benefits NOTE: Again, this should be used instead of “energy grid” where appropriate language to use and lose when talking about it: you say they hear smart, dynamic, secure most important attributes of the smart grid control, flexibility, choice preferred benefits of the smart grid integrated, connected, interactive positive, but not preferred, attributes advanced grid clear, but less resonant next generation grid costly upgrades every few years 21st century grid too little, too late; it’s already 2016 two-way grid unclear to customers 19 utility of the future what to call it: next generation energy company how to define it: committed to improving the way energy is delivered using new technologies that benefit customers what matters: emphasize your commitment to improvement without straining credibility note: terms like “next generation grid” don’t resonate, but “next generation” is a positive when it comes to the service you provide language to use and lose when talking about it: you say they hear next generation energy company future-focused energy company new technologies what drives improvements in every industry innovative energy provider different from the average utility, but might strain credibility trusted energy advisor overreach; evokes skepticism utility of the future, utility of tomorrow almost an oxymoron 20 what to call it: smart meter how to define it: an energy meter that gives customers more information and control over how they use their energy what matters: most customers don’t think they already have one of these, so focus on how it improves what they’re used to today language to use and lose when talking about it: you say they hear smart meter technologically advanced gives customers more information and control end benefit advanced meter improvement over current meters, less resonant two-way communication communicating information about me next generation meter a new device every few years 21 communication context the basics the future of the energy grid leading the way on clean energy fundamentals of rates + summary: leading the way on clean energy One of the key challenges in communicating about the industry’s approach to clean energy is significant skepticism and a wide gap between how the industry and its customers view the world. communication gaps to keep in mind your truth customers’ truth We support clean energy You seem fundamentally opposed to it We’ve made huge strides to make our energy mix cleaner I haven’t seen it – and absent examples I won’t believe you We want to help customers save money with EE The Gap You make money by selling more energy Renewable energy is limited by cost and reliability We should use more renewable energy and stop using fossil fuels Net metering shifts costs to non-solar customers Rooftop solar customers deserve to get a return on their investment keys to an effective conversation You win when you… + Align yourself with your audience • + Support positive statements with clear examples, stories and facts • + You’re committed to providing more clean energy, delivered more reliably and more affordably than ever before They are skeptical you support clean energy…so you need to prove it at every opportunity Stay future-focused • Speak about clean energy goals before talking about balancing your energy mix to get to those goals 23 summary: leading the way on clean energy from to de-carbonization reducing carbon footprint fuel mix balanced energy mix low-carbon energy clean energy green energy renewable energy intermittent sources variable sources utility-scale solar universal solar rooftop solar private solar solar installation solar power plant distributed generation private generation net metering private solar credits wholesale rate competitive rate baseload generation 24/7 power sources generation capacity power capacity 24 summary: leading the way on clean energy balanced energy mix We’re committed to delivering reliable, affordable, safe, and clean energy to our customers. To do that, we are building a bridge to a clean energy future by utilizing a balanced energy mix. This all-of-the-above approach integrates clean and renewable resources with traditional energy sources that help us deliver affordable and reliable power. universal solar Part of our commitment to an efficient and reliable energy future means making more renewable sources of energy accessible to all of our customers. Private solar has played an important role in helping some Americans generate solar for their individual homes through the use of rooftop panels. Moving forward, our goal is to significantly expand access to solar power in the most cost-effective way possible. Right now, we’re investing in universal solar so we can bring the benefits of solar energy to all American homes, businesses, and communities without sacrificing affordability and reliability. Every customer can benefit from universal solar. 25 fuel mix what to call it: balanced energy mix how to define it: an all-of-the-above approach that combines clean and renewable energy sources with traditional ones what matters: stay positive by emphasizing the need for a mix of sources (clean, renewable, and traditional) if you have to talk specifics, focus on increasing solar and wind, as well as “cleaner coal” and “safer nuclear” to maintain credibility language to use and lose when talking about it: you say they hear bridge to the future demonstrates the need for balance traditional source neutral, still necessary to the mix balanced inclusive, well considered all-of-the-above all available resources cleaner continuous improvement, credible solar, wind, hydropower clean cleaner coal, safer nuclear more credible, but still a red flag clean coal, safe nuclear not credible fuel, fuel mix outdated, fossil fuels 26 what to call it: clean energy how to define it: energy from sources that help reduce our environmental impact what matters: where possible only talk about renewable energy sources and “traditional” energy sources, don’t directly call out cleaner coal, natural gas, or safer nuclear language to use and lose when talking about it: you say they hear clean energy demonstrates the need for balance reduce environmental impact neutral, still necessary to the mix traditional energy sources neutral, doesn’t raise concerns advanced fossil fuel technology improved from the past, but raises some credibility questions low-carbon energy unclear, negative 27 what to call it: renewable energy how to define it: energy produced entirely from natural resources, like solar, wind, and hydropower, which are constantly replenished what matters: spelling out the various renewable resources (e.g., solar, wind, hydro) helps paint a positive picture, so be specific language to use and lose when talking about it: you say they hear renewable energy clean, good for the environment constantly replenished unlimited, good for the environment solar, wind, and hydropower good for the environment green energy clean, good for the environment, but less specific carbon-free energy more technical, less desirable low-impact energy unclear what the impact would be on 28 de-carbonization what to call it: reducing carbon footprint how to define it: making the generation of power cleaner and more efficient what matters: keep it clear, positive, and credible language to use and lose when talking about it: you say they hear cleaner clear, credible, where they want to be headed reducing carbon footprint clear, continuous improvement, actionable, positive lowering greenhouse gases clear, actionable, but slightly negative low-carbon economy unclear de-carbonization unclear 29 intermittent sources what to call it: variable sources how to define it: energy sources that only produce power in certain conditions what matters: stay straightforward and positive language to use and lose when talking about it: you say they hear variable not consistent certain conditions practical limitations intermittent sources unreliable, negative fluctuating sources unclear, negative sometimes-on sources 30 utility-scale solar what we support: universal solar how to define it: the most cost-effective way to increase the use of solar and bring its benefits to all American homes, businesses and communities what matters: stay positive about solar by emphasizing the ultimate benefit: solar for all language to use and lose when talking about it: you say they hear universal solar solar for all the most cost-effective available to all American homes, businesses and communities core benefits increase the use shows our commitment community solar benefit focused, but potential confusion with 3rd-party solar efforts cloud-based solar unclear utility-scale solar utility control a fraction of the cost of rooftop solar insulting rooftop even for those with limited income, income blind divisive message 31 rooftop solar what to call it: private solar how to define it: private energy generating sources that provide power to individual homes and businesses what matters: clear contrast with universal solar language to use and lose when talking about it: you say they hear private solar clear, straightforward individual homes for some people rooftop solar familiar term, but no contrast with universal solar not continuously available, don’t generate around the clock negative toward solar 32 solar installation what to call it: solar power plant how to define it: large source of solar power that helps energy providers deliver universal solar what matters: when you need to talk about where universal solar comes from, this is the best term to use language to use and lose when talking about it: you say they hear solar power plant powerful, large-scale, provider-owned solar farm lots of solar panels, could be a 3rdparty provider, could take up a lot of outdoor space solar installation unclear, could be rooftop solar field takes up a lot of natural space 33 distributed generation what to call it: private generation how to define it: small energy generating sources serving a limited area what matters: when speaking to customers about this technical topic, shift from jargon to clearer explanations language to use and lose when talking about it: you say they hear private generation power generated within a limited area limited area only for a small area customer-generated power customer-focused, resonant, but less technically accurate distributed generation unclear 34 Communicating effectively about the future of net metering Net metering is a complicated subject. Its current structure is unsustainable, but opposing the policy comes with the real risk of being perceived as anti-solar. As a result, it is critical to talk about what we support before highlighting the limitations of current policy. • Step 1: Start with what you support “We’re leading the way on renewable energy. We’re working toward universal solar with the goal of bringing the benefits of solar to all American homes, businesses, and communities. We also support policies where private solar customers can sell back their excess energy at a competitive rate.” • Step 2: Why you support it “When priced competitively, these ‘private solar credits’ encourage and support the sustainable growth of renewable energy.” • Step 3: What needs to change “We believe it’s important to balance the needs of all customers. A fair system means paying private solar customers the same, competitive price we pay for other solar power, instead of above-market rates that result in higher costs for all customers.” • Step 4: All customers need to support the energy grid “We know that some private solar customers may choose to separate from the energy grid. And we agree they shouldn’t have to pay for the energy grid if they don’t use it. But if they continue to use the energy grid – for back-up power and to earn credits for selling energy back – then they should share the costs of operating and enhancing that energy grid like all other customers.” 35 net metering what we support: private solar credits how to define it: a system that allows private solar customers to sell back excess energy at competitive rates what matters: focus on what you DO support rather than beginning by highlighting what’s wrong with the current system language to use and lose when talking about it: you say they hear competitive rates fair rates credits clear, incentives wholesale rate lower than the market rate net metering unclear, undefined contract rate legal agreement 36 wholesale rate what we support: competitive rate how to define it: the same price we would pay another supplier for the same amount of [renewable] energy the price that balances the needs of private solar customers with all other customers what matters: competitive has a positive spin whether you support higher or lower net metering rates language to use and lose when talking about it: you say they hear competitive rates fair price market rate widely accepted price wholesale rate lower then market value contract rate legally required rate 37 baseload generation what we support: 24/7 power sources how to define it: energy resources that can consistently generate reliable energy what matters: shift from jargon to clear, benefit-focused explanations language to use and lose when talking about it: you say they hear 24/7 sources always available reliable core benefit consistent positive contrast to renewables baseload sources, baseload generation unclear 38 generation capacity what to call it: power capacity how to define it: the maximum amount of electricity a power plant can produce at any point in time what matters: eliminate jargon whenever possible 39 communication context the basics the future of the energy grid leading the way on clean energy fundamentals of rates + summary: fundamentals of rates Most customers know very little about how their rates are set or what the various charges on their bill mean. So it’s up to you to let them know about regulations and their bill in clear, consistent language. communication gaps to keep in mind your truth their truth Regulators must approve rates Utilities set rates to make the most profit possible The Gap We go out of our way to make their bills clear I still don’t understand what makes up my bill keys to an effective conversation You win when you… + Let them know that independent regulators, who represent customer interests, must approve all rate changes + Use simple, straightforward language to talk about the pieces that make up their bill 41 summary: fundamentals of rates from to rate case regulatory rate review rate rate or bill demand response smart usage rewards distribution charge energy delivery charge 42 summary: fundamentals of rates rate reviews Getting safe, reliable energy at a fair price is important to all of our customers. And we want to make information about how your rate is set available to anyone who wants it. Understandably, some people think energy companies determine the rates that customers pay, but that isn’t the case. Rates are determined through something called a regulatory rate review. It’s a public process where independent state commissions determine what customers pay. This independent, public process helps ensure transparency and fair rates for all customers. 43 rate case what we support: regulatory rate review how to define it: a public process where independent state commissions determine energy rates what matters: emphasize the independent and public nature of this review at every turn language to use and lose when talking about it: you say they hear review careful deliberations determine regulators have the final say regulatory, independent state commission a neutral third party public process transparent legal process publicly inaccessible approve a rubber stamp rate case unclear 44 rate what to call it: rate or bill what matters: keep terms familiar and straightforward whenever possible language to use and lose when talking about it: you say they hear bill familiar, what customers pay every month rate more jargon-y, but understood & appropriate in some circumstances 45 demand response what we support: smart usage rewards how to define it: an energy program that allows customers to save money by reducing their energy use during periods of peak demand what matters: shift from charging heavy users to rewarding careful users language to use and lose when talking about it: you say they hear smart usage rewards a credit for saving energy energy reduction incentives an incentive to save energy reducing energy use reducing energy waste high demand reduction unclear demand response unclear demand charge an extra charge 46 distribution charge what to call it: energy delivery charge how to define it: the cost to deliver energy to your home or business what matters: makes clear it is about delivery NOTE: may have to retain “distribution charge” 47 What’s changed since our initial version? Based on feedback we’ve gotten and additional research, a number of recommendations in this document have been updated since the March 17 version. Below is a rundown of what changed – and WHY. + Grid  power grid  energy grid + + Distributed generation  local generation  private generation + + WHY: To help support the “private solar” language and maintain consistency. Net metering  private solar generation credits  private solar credits + + WHY: Based on further research, we found that “energy grid” is seen as more innovative than power grid. WHY: Simpler. Rate  rate  rate or bill + WHY: To give communicators greater flexibility when the term “bill” does not fit the context. 48 I maslansky Edison Beams partners INSTITUTE