EIRP Residential and Business Research Summary
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1 EIRP Residential and Business Research Summary Presented to Customer Advisory Group (CAG) February 4,
2 Purpose To determine customer willingness to pay an additional amount to purchase renewable energy from Colorado Springs Utilities To determine customer opinion of how Colorado Springs Utilities should invest in electricity sources To support the EIRP process and Energy Vision 6
3 Survey Methodology 635 randomly selected residential customers were surveyed by phone in November / confidence interval 270 randomly selected business customers were surveyed by phone in November and December / confidence interval Survey was conducted at same time of year to better enable trending 7
4 Key Takeaways Increased price sensitivity overall Higher income less sensitive to price Majority support in residential and business customer bases for the addition of renewable sources Majority support for a bill amount increase of up to 2% The relative importance of investment in natural gas and coal increased from
5 Customer Prioritization of New Electricity Sources When considering new electricity sources, low price increased significantly and was selected as the first priority by over half of residential and business customers. Adequate supply was chosen as the second priority and low environmental emissions was the third priority, consistent with 2013 survey results. 9
6 Customer Importance of Investments How important should each of the following be to Colorado Springs Utilities? Investment in programs and products that help customers use less electricity Investment in renewable energy sources such as wind, solar or hydro power Investment in electric energy produced by coal Investment in electric energy produced by natural gas Keeping electricity rates as low as possible regardless of the energy source 10
7 Customer Importance of Investments Residential Price was the greatest priority, followed closely by Demand side management and renewable sources which measured about the same. Investments in natural gas and coal received lower priority. Business Price was the greatest priority. Demand side management was favored over investments in renewable sources, natural gas, and coal. The importance of investments in renewables and natural gas were relatively the same, with coal the lowest priority. 11
8 Residential Customer Importance of Investments by Income Customers reporting an income <$45,000 per year rated price, renewable sources, and demand side management most favorably. Customers reporting an income >$45,000 per year rated renewable sources, demand side management, and price most favorably. Customers with higher income are less pricesensitive. 12
9 Customer Willingness to Pay for Renewables The majority of both residential and business customers indicated willingness to pay more per month for electricity to cover any increased cost to provide renewable energy. Residential Business % 78% 77% 77% 66% 63% 65% 52% 42% 24% 49% 36% % 7 67% 52% 47% 53% 37% 23% 24% 19% 14% 1 1% 2% 5% 1 1% 2% 5% 1 13
10 Income Influences Residential Customer Willingness to Pay for Renewables Residential Income <$45,000 Residential Income >$45, % 77% 71% 77% 64% 59% 41% 62% 46% 19% 44% 32% % 88% 83% 82% 66% 73% 45% 7 63% 27% 57% 43% 1% 2% 5% 1 1% 2% 5% 1 14
11 Supply Portfolio Customer Opinion Trending The majority of customers think Colorado Springs Utilities should include renewable resources in our portfolio even if they could cost more than other options. Change (2013 to 2014) Residential 62% 77% 65% 12% Business 65% 77% 65% 12% 15
12 Who Should Pay For Renewable Energy? While residential opinions changed slightly, business opinion remained stable. Residential Business % 39% 48% 48% 5 44% All electricity customers % 51% 5 44% 45% 46% All electricity customers 3 2 Only electricity customers who use renewable energy Don't know 3 2 Only electricity customers who use renewable energy Don't know 1 7% 4% 6% 1 5% 4% 4% 16
13 Renewable Energy Programs Do you think Colorado Springs Utilities should offer renewable energy programs to customers who would like increased renewables where they would subscribe each month to support the increased use of renewables? Residential Business % 79% % 79% % 9% 3% % Yes No Don't know % 12% 3% % Yes No Don't know Question not asked on 2011 survey; in 2014 the question wording changed from option to subscription. 17
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