The 21 Day Myth: Changing Customer Behavior

Did you know that the concept that it takes 21 days to form a new habit is a myth or exaggeration of the facts, to say the least?  On average, it actually takes more than 2 months before a new behavior becomes automatic – 66 days to be exact.  And it takes anywhere between 18 to 254 days to break a habit completely, according to research. 
 

This leads me to my next question.  How long will it take customers to change their behavior based on incentives, time-of-use rates, and smart meters? Utility companies are trying to change consumer behavior to conserve energy.  But how successful are these tactics?  According to the Department of Energy, demand response programs and time variable pricing (TVP) recognize that electricity availability and production costs are almost always changing. TVP is one way electricity purveyors can incentivize load management, or load curtailment, to minimize cost and usage.

PG&E has Critical Peak Pricing (CPP) that they have dubbed, Smart Days.  From 4:00PM to 9:00PM prices are up by 2 to 4 times more than usual.  The PSC in Missouri is pushing for time-of-use premiums during peak times, despite objections from utility company, Evergy.  “Evergy has offered voluntary time-base rate options for several years because we see value in providing rate options for our customers,” Evergy spokesperson, Gina Penzig said. “We feel strongly that time-based rate plans should be voluntary, and we advocated for that choice in our last rate case.”  Their Standard Saver Rate will increase rates from 4:00PM to 8:00PM during summer months and between midnight and 6:00AM in the winter.  Is there enough power for everyone?  Updating the grid is an important part of the equation but the cost to build transmission lines is between $1 million and $5 million per mile with distribution lines around $30,000 to $150,000. 

“No one wants to pay for it, said Wencong Su, an associate professor of electrical and computer engineering who specializes in power systems.  “That’s why you’re seeing utilities focus on demand response or time-of-day pricing, which use price incentives to try to encourage users to use electricity during off-peak hours so they can keep rates roughly where they are now. This buys the utilities some time before they have to make major investments. But we’re adding all these incentives for EVs and heat pumps and basically skipping the infrastructure part.”

On one hand, experts agree utilities need infrastructure upgrades but to consumer advocates, utilities are ‘overspending’ on infrastructure that result in rate hikes.  Regarding Peoples Gas in Chicago and their plans for upgrades, Naomi Davis, CEO of Chicago-based environmental justice group Blacks In Green, protests.  “We're starting to see growth slow, but we're not seeing utilities turn the ship around and start strategically thinking about how they're going to move their customers off of gas… and that's been really disappointing,” said Jessica Azulay, executive director of New-York-State-based group Alliance for a Greener Economy.  “The gas system is increasingly expensive.”

Gas is expensive and to be less reliant on fossil fuels and well on our way to electrification, a clear path must be paved.   Is the grid ready for 'all things electric?'  Who will pay for infrastructure upgrades?  Are customers ready to dry clothes, charge EV’s and pre-cool their homes at off-peak times? 

Ask me again in 254 days.