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Kat Kelly and her daughter, Ava, have breakfast in their Rancho Cardova, Calif., home. The Kellys have cut their energy use since seeing how their neighbors conserve.

(Tony Avelar/The Christian Science Monitor)

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Energy use falls when neighbors compete

A California utility is using smiley faces on customer bills to show how people's usage compares with their neighbors'.

By Mark Clayton  |  Staff writer/ September 30, 2009 edition


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Rich Clabaugh/Staff

One of the best ways to save energy and cut carbon emissions isn’t the much-touted “smart grid,” low-watt light bulbs, or high-tech appliances – it’s a little neighborly competition.

Just ask Sacramento resident Kat Kelly, who last year began getting a new “home energy report” from her utility company that compared her family’s electricity use directly with her neighbors’.

On the report, one bar chart rated her family’s electricity use against the average of 100 neighbors with similar sized houses – and also of her 20 most energy-efficient neighbors. The report had three rating levels: “below average,” a smiley face for a “good,” or two smileys for a “great!” average.

A self-described “competitive person,” Ms. Kelly says she was shocked to learn that her family not only failed to get a smiley, it received a “below average” rating. That same day, she began turning off lights, changing the thermostat, and switching off her power strips – anything to save juice and win future smiley faces.

“It got my competitive spirit going,” Kelly says. “I wanted to be one of the
energy conservers in my neighborhood.”

Her reaction is not unusual. Some say it’s the power of competition – the desire to keep up (or in this case “down”) with the Joneses. Others say it’s just logical
decisionmaking. Whatever it is, the simple act of informing residents about their neighbors’ power use can be like firing a starting gun in a race to save energy, researchers say.

Improving residential energy efficiency is critical to combating climate change since it equals about 35 percent of total US energy use and 15 percent of total US greenhouse-gas emissions, federal data show.

Over the decades, Americans have become more frugal with energy. But thousands of tiny personal choices around the house could substantially cut energy use.

How much? The “human dimension” in energy consumption could whack household energy use 22 percent nationwide – a 12 percent reduction in overall US energy consumption, according to a new American Council for an Energy Efficient Economy (ACEEE). By comparison, all solar, geothermal, and wind power consumed last year amounted to about 1 percent of US energy use.

Yet human impact has been largely ignored by electric utilities. Instead, their efficiency programs have focused mostly on “widget based” programs that pay rebates for efficient appliances, for instance.

But with new state laws boosting efficiency requirements, widget programs are reaching their limits. That’s pushing dozens of utilities to experiment.

“Energy is very much an invisible commodity for most people,” says Karen Ehrhardt-Martinez, an ACEEE researcher. “It’s not like pumping gas into your car. It flows invisibly into the house, and you don’t know anything until you get the bill. We need people to have all the information so they can make better choices.”

Widely used on college campuses today to combat binge drinking, a “social norms” approach surveys and then publishes data to make plain to students that campus drinking levels are (almost always) far lower than they think. Less binge drinking is the frequent result.

The social-norms approach has also been applied to curb gambling and environmental pollution, and to promote health choices. Online retailers use it to encourage purchases when they tell visitors that “customers who bought the items in your shopping cart also bought….”

“The middle is a magnet for behavior,” says Robert Cialdini, professor emeritus of psychology at Arizona State University and a pioneer on the social-norms impact on energy use. “What you find is people who are in the outlying areas as violators of the desirable behavior will move to the middle when they learn they’re outliers.”

That’s what the Sacra­men­to Municipal Utility District (SMUD) in California found when its social-norms pilot tests over the past year cut energy demand by 2 percent – just by telling folks how their energy use compared with their neighbors’. That drop may sound puny, but SMUD saved 9.5 billion watt-hours, equal to the electricity use of 1,000 average homes for a year.

The Kelly family, for instance, cut its energy use 10 percent – and have yet to win a smiley face. But Kat Kelly and thousands like her have SMUD officials smiling.

“Even those folks who received the ‘You are below average’ message from us saved, and actually saved the most of any other group,” says Alexandra Crawford, a SMUD project manager. At least two dozen utilities nationwide are experimenting with saving energy this way.

“You aren’t born knowing what your utility bill should be or ‘Am I using more than I need to?’ ” says Daniel Yates, president of OPOWER, in Arlington, Va., which analyzes SMUD customer energy use and pioneered using smiley faces. “You know people think a Prius is a good thing and a Humvee is bad,” he says. “Well, a lot of Prius owners have Humvee houses and don’t even know it.”

While OPOWER focuses on developing reports like those SMUD sent by mail, others are putting it on the Internet.

At Efficiency 2.0, a New York-based software provider to utility companies, Andy Frank’s team is working with the Western Massachusetts Elec­tricity Company to create a Facebook-like community where people can help one another save energy and compare results in a friendly, yet competitive way.

Online comparisons come with frowny or smiley faces and also give people highly customized tips about how they can reduce their energy use. It offers, for instance, a calculator tallying myriad decisions – take shorter showers, adjust thermostat settings, or hand-wash dishes.

“We’re like Weight Watchers for your energy use,” says Mr. Frank, Efficiency 2.0’s executive vice president for business development. “Most Americans would like to lose weight, but they don’t do it because they don’t get feedback. We provide that feedback [to cut energy use].”

Wendy Penner loves that feedback. Her website profile tells the community of users that she has chosen to hand- wash her dishes in cold water, saving 238 pounds per year of carbon dioxide and knocking $45 off her energy bill.

When those results didn’t satisfy her, Ms. Penner further pledged to dial down her water heater temperature from 135 to 115 degrees F., saving 626 pounds of CO2 and $92 worth of fuel annually. Overall, she’s lowered her personal energy use by 1.4 percent and is on track to save $190 per year and 1,120 lbs. of CO2.

That hasn’t won her a smiley face yet, though. Until recently, her page sported a frowny face because she’s doing better on energy use than only 25 percent of the community at large. She would like to be competing against a group of “energy friends,” but doesn’t have any since the site has only been running a month.

“This is really a very powerful tool and I like it a lot,” Penner says. “The motivation from it is pretty strong. People really don’t like getting the frowny faces.” (In fact, SMUD and others have nixed frowny faces after some negative reactions.)

Commonwealth Edison, a Chicago-area utility, is pleased overall with its program, which is similar to SMUD’s.

“In a few cases we’ve been accused of being agents of some secret service spying on them,” says Val Jensen, vice president for marketing and environmental programs for Commonwealth Edison. “But that kind of reaction has been in the low single digits. Only one homeowner has said, ‘Stop sending me this.’ ”

When Dennis Boland, a stock-index trader from Glenview, Ill., got his new home energy report from Commonwealth Edison last month, he was aghast.

The report showed that the 20 most efficient homes in Mr. Boland’s neighborhood used about 587 kilowatt-hours (kWh) per month, while his group of 100 neighbors used 1,150 kWh per month. And Boland’s home? Try 1,987 kWh monthly – 92 percent more than the average.

“My first observation when I read the report was: ‘I am a pig!’ ” he says. “I knew I was paying a lot every month for electricity, but I thought everyone was. I didn’t know I was such a glutton.”

Even though it made him feel guilty, Boland says he was also grateful. Now he’s changing his thermostat setting to reduce his air-conditioning load and looking for other ways to save energy – and money.

He’s eager to see the next report to determine if he’s off the “below average” list. “I hope more power companies will pick up on this,” he says, “and not be afraid to tell their users: ‘You’re below average’ or maybe, ‘You’re a pig!’ ”

[Editor’s Note: The original version of this article referred to OPOWER by its previous name, Positive Energy.]

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Comments

1. Think Again | 09.30.09

Good idea or what?

Using human tendencies and natural motivations to make things better.

2. Sriram | 10.01.09

Thats really a cool idea. I just cant wait to implement similar ideas in my neighbourhood.

3. Caroleejam | 10.01.09

This is a good promotional idea for all utilities nationwide. People may not be excited about it forever, but should click with many people who want to avoid seeing that that they are wasting KWH and paying more too

4. FreeCleanSolar | 10.06.09

Anything that promotes energy savings is good. Installing a solar power system at your home or business is a great investment that will save money for years to come. You can reduce or eliminate your monthly utility bill to near $0. With today’s federal tax credits for solar and many state and local cash rebate programs, you can reduce the installation cost by up 50% to 70%. This means you can install solar for as little as a few thousand dollars. Then compare this cost to paying a utility over a year timeframe. The savings from solar can be tremendous and produce a very healthy ROI. Web sites like freecleansolar.com have a national directory of local installers, and rebate and tax credit incentive information. In addition to saving money, the best part is that you’ll be doing something good for the Earth at the same time.

5. TCBinNC | 10.07.09

This is really cool, but so many factors can skew a comparison.
Example: Assume two identical houses in the same, new, neighborhood in the panhandle of Florida(e.g. no trees). The floorplan of these houses has the majority of windows/doors at the front and back of the house. One house faces north, the other faces east. The owner of the house facing north should be happy, because the house with its windows facing east/west will get a lot of heat gain in the morning and afternoon (more air conditioning) and higher utility bills.

6. joeshuren | 10.23.09

CSM could join or emulate The Guardian’s 10:10 campaign. See their new carbon calculator. Set up an online area that shows people how to read electric meters and tips on saving energy and carbon and post the results. Last month I was at 359 kWh, how about you? This produces 502.2 pounds of CO2, which will be reduced when the power comes from the nuclear plants being built nearby. Even so, the global per capita average will soon have to go down to 3 or even 2 tonnes of CO2 equivalent per year if a 2 degrees C rise in temperature is to be averted, with 2/3 probability on current models. This will require an 80% cut in developed nations, much more than household economy will permit, and thus require cuts in “stuff” we buy as well as manufacturing, schools, offices, and so on. However, the information about neighbors is essential to start.

7. Uncle B | 11.07.09

Look forward to the day when you can afford LED lights, and Solar cells charging storage batteries to get your lighting requirements independent of the power-lines,for “safe-rooms” at least. As the economy peaks and troughs you will have free lighting no matter what! Next, think Passive Solar heat and Super-Insulation, so that you will have a warmable room in your home for near free. Gardening will always provide minimal food for survival. Plant an edible garden in place of massive lawns, flower beds. Even in the downturns, you will have very inexpensive food right in your yard, or greenhouse! Hoard gardening information, techniques, and Aquaculture information, Chicken raising information, pressure canning data,a pressure canner and glassware for same, food drying facts, methodologies,dryers, composting and even humanuring information from the net while it is still available - in the darkest days of a deep trough you may not have easy access to free information any more. Just as a hobby, develop a contingency plan for your home, involving shutting down rooms, modifying insulation, minimizing space heated, cooled, lighted, for extra frugal survival in the worst case possible! A pass-time, and exercise in paranoia perhaps, but having seen markets manipulated, dollar values change, $147.00 dollar a bbl oil at one point, even major financial institutions fail and need bail-outs, high unemployment, and even unemployability as jobs go to Asia, maybe, just may be, it is not a time in America to throw caution to the wind. A good contingency plan might help us through the worst of times, and give us a secure feeling for the better days.

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