Winter Care Campaign

Project Description:

THE CHALLENGE Utility customers faced enormous economic pressures in 2022, from rising inflation across the economy, to significantly higher energy costs, primarily from the rising cost of natural gas. Consumers Energy forecasted that their customers’ average monthly residential bills would increase by 10.6% for natural gas and 14.2% for electricity.

THE APPROACH From a meeting with CEO Garrick Rochow and Google in September 2022, an idea was formed: to focus on helping customers reduce their energy bills for the coming winter. Nest thermostats help customers save between 10%-15% on heating and cooling, offsetting the planned rate increases. A specific focus on ALICE (asset limited, income constrained, employed) customers was identified.

Consumers Energy partnered with Google and Uplight to offer Nest Thermostats at no cost ($0) to low-income and ALICE customers via a dedicated Uplight marketplace. Investments from Consumers, Google, and Uplight covered the entire cost of the thermostat, tax, and shipping. To maximize uptake of the product, steps in the check out flow were streamlined, in an attempt to limit friction and reduce customer drop offs. Consumers Energy’s marketing team segmented a list of pre-qualified ALICE customers and a four-month, multi-phase marketing campaign was built to engage them. Marketing tactics included email, direct mail (postcards), bill inserts, messages in Home Energy

Reports, banners in Consumers Energy O&O online properties, earned media, and community engagement. Customers were offered help with installation and also invited to join the Smart Thermostat Program, through which they could earn additional incentives for participating in demand response.

THE RESULTS The Winter Care Campaign began in early December 2022 and concluded at the end of March 2023, capturing the majority of the heating season in Michigan. It was a huge success. Consumers Energy successfully engaged over 37,000 Michigan households with Nest Thermostats that will deliver energy and cost savings for years to come. Google estimates that those thermostats have the potential to collectively deliver up to 21.6M kWh of electricity savings per year and $7.4M in economic impact to those households in the form of bill savings. Going forward, the Consumers Energy marketing team has identified this campaign as a priority annual event to help customers save energy and money going into every heating season.

WHY CONSUMERS ENERGY IS DESERVING OF THIS AWARD Consumers Energy has demonstrated significant impact in three of the Alliance's four priority areas for energy efficiency: Equity, Affordability, and Decarbonization.

Equity - Consumers Energy’s specific focus on ALICE customers, and their successful engagement of 37,000 households, meaningfully increased access and equity in their EE programs.

Affordability - Consumers Energy was able to offer these Nest thermostats to customers at $0, successfully solving the affordability challenge. Those thermostats will also deliver significant bill savings to customers for years to come.

Decarbonization - Nest thermostats deployed at scale can drive meaningful kWh reductions, and also serve as an enabling device to participate in demand response programs.