Energy reports compare you with neighbors

Energy reports compare you with neighbors

Feb 01 - USA TODAY

More than 1 million U.S. households now receive reports on how their energy consumption compares with their neighbors as utilities encourage conservation, some with smiley faces for those doing well.

The reports -- deployed by 25 utilities, including six of the 10 biggest -- have resulted in households cutting energy use an average of 2% to 3%, says Alex Laskey, co-founder of Opower, which provides the reports.

While that may sound small, the savings add up. The Sacramento Municipal Utility District, which started sending the reports to 35,000 households in 2008, says the households saved enough energy in a year to power 800 homes for a year.

Dozens of companies provide products to help consumers manage home energy use, such as websites to monitor use. Opower is somewhat "unique in that it discusses the social norm," says Teresa Mastrangelo, analyst with researcher Smart Grid Trends. "Everybody gets a utility bill. Few understand what the numbers mean," she says.

Opower's reports don't reveal specifics on how particular neighbors use energy. Instead, they compare a household's use to 100 similar-size homes in the same area. Opower, founded in 2007, also gathers such data as the home's age and construction type, which may reveal how well insulated it is, along with the number of people in the house or whether it has a pool, which drives up energy use. With data, Opower can personalize conservation tips. For instance, houses with heavy air conditioning use may benefit from more fans.

Utilities use different ways to tell consumers where they stand. The Sacramento utility sent its first reports with frown faces for those consuming more energy than their neighbors. "They didn't like it," says project manager Alexandra Crawford. The utility dropped the frowns.

In Minnesota, Connexus Energy first told consumers they were "below average" if their energy use exceeded that of their neighbors. "We learned people don't like being called below average," says Bruce Sayler, manager of regulatory affairs for Connexus. Now, consumers are told they use more energy than neighbors.

While some consumers have objected to the reports as too Big Brotherish, complaints are few. In Massachusetts, National Grid started sending reports to 50,000 customers last year. Project manager Monica Ibrahim says fewer than 20 customers have opted not to participate. National Grid saw a more than 1% drop in home energy use in the first two months and expects that to climb, Ibrahim says. National Grid expects to expand the program this spring to a territory in Upstate New York.

The privately held Opower had 11 utility clients at the end of 2008. In the past year, it's more than doubled the number of households served, Laskey says.