Thursday, July 26, 2012

In Energy Conservation, a Focus on Bragging Rights

At Duke Energy, the country’s largest utility after its merger with Progress Energy, the effort has included something beyond the usual messages to turn down the air-conditioner. The company is promoting a series of Web videos featuring a fictitious girl named Shannon who appears with her family, the Powers, to dispense energy-saving advice.

“This summer, why not use a clothesline to dry your clothes instead of a dryer?” Shannon, also known as Bossy Pants, suggests while pinning up the family wash in a clip promoted recently on Youtility, Duke’s Facebook page for energy efficiency. “You’ll save a lot on your energy bill and your clothes will come out nice and fresh.”

The series, started last summer, is just one way that Duke and other electric companies across the country are trying to use social media, competitive games and Big Brotherish data analysis to push customers to buy less of the electricity they sell.

While it seems counterintuitive for utilities to discourage use of their product, it actually makes financial sense as they face government mandates to encourage more energy conservation and deal with the rising cost and difficulty of building power plants and distribution systems.

So in Chicago, a household that uses a lot of electricity might receive a mailing showing that more energy-efficient neighbors wash their clothes in cold water, along with a coupon for Tide Coldwater detergent. In Texas, customers can compete to be named the Biggest Energy Saver and get a shot at winning new appliances, home improvement gift cards or $5,000 to put toward a wind turbine. And outside Boston, customers earn points for saving energy that they can redeem for meals at local restaurants or a $10 discount at Whole Foods.

Motivating people to save energy isn’t really about the money, behavior experts say. Successful programs foster a sense of achievement and identity. And competing to beat your friends and neighbors at the savings game doesn’t hurt.

Many of these programs are still in their infancy, and it remains to be seen whether a significant number of customers want to work with their utility companies over energy savings; most customers become interested in their electricity only when it doesn’t work, executives and experts say. The Duke Youtility page, for instance, has fewer than 3,300 “likes,” and most of the recent comments complain about power failures, rate increases and the company’s troubled merger with Progress Energy.

But utilities hope to tap into the same dynamic that works for video games and applications like Foursquare, where users compete against one another to earn bragging rights, like becoming “mayor” of a favorite restaurant.

Opower, a leading home energy management company, has shown promising results with its keeping-up-with-the-Joneses approach, sending people reports on how their electricity use compares with households in their neighborhoods — complete with a smiley face, or two, depending on how they stack up. The company has created an app with Facebook and the Natural Resources Defense Council that can load a user’s energy data and allow people to compete with their friends and family.

Soon, said Daniel Yates, a co-founder of Opower, customers of the roughly 75 utilities he works with will be able to earn electronic badges saying things like “Congratulations: You are an energy saver” for cutting their bills.

While it might sound hokey, the strategy works. Tom Lyons, a customer of Pacific Gas and Electric in San Jose, Calif., said Opower’s feedback was reinforcing. “You’re getting some nourishment or some reward from the energy report and the smiley faces,” he said.

When his conservation efforts slip, he said, it makes him dig for the reason: extra company that month, working more from home or his daughter having a couple of sleepovers “where they were yakking, watching TV with all the lights on in the room until 3 a.m.”

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