High Bills and No Power? Get Ahead of Potential Energy Shortfalls
- Jun 9, 2021 12:36 am GMT
As the first official day of summer draws near, many look forward to sunshine, vacations and picnics with the family. However, many others also look to summer with hesitation, fearing the continuation of extreme weather patterns. The North American Electric Reliability Corporation’s (NERC) 2021 Summer Reliability Assessment warns that parts of North America are at high risk of energy shortfalls during above-normal peak temperatures.
Forecasting Energy Impacts
The forecast of increased temperatures comes as no surprise, with climate change continuing to present numerous environmental and energy concerns. The Texas winter storm in February 2021 provides an unfortunate example of such changes, having led to more than 100 people dead and over 4 million people without power. California is another example; in August 2020 the state had to enact rotating blackouts that left over 400,000 homes and businesses without power for hours when energy supply ran short.
Looking ahead to summer 2021, NERC’s analysis again shows California at high risk of energy impacts during peak hours, followed by Texas, New England and parts of the West at elevated risk. The report notes that California expects an additional 3 GW of extra additional generation resources versus summer 2020. However, most of this additional energy will be solar photovoltaic (PV) generated, which will fall off in the late afternoon despite demand remaining high.
NERC’s report also states that, in addition to above-normal temperatures, other risks for energy emergencies include:
- Low wind scenarios
- Variable solar generation
- Drought and wildfire-related impacts
Reach Out to Customers Before High Bills Arrive
Although these concerns impact energy utilities, it’s their customers who will feel the fallout. With the knowledge of what to expect this season, now is the time to proactively encourage customers to lower their energy usage. This can provide relief to the grid to prevent brownouts and can help customers lower their energy bills – a win-win situation. Plus, share insights and tips with customers about why their energy bills might be higher and how they can combat increasing energy use by making efficient choices.
Proactively communicating with customers about potential outages is also key for increased customer satisfaction. J.D. Power’s Business Customer Overall Satisfaction survey says that “Proactive communication about power outages and estimated restoration times have played a key role in this increase [of satisfaction], with overall satisfaction increasing 24 points when customers are alerted to an outage.”
Questline suggests utilizing segmented content to speak to the wants, interests and needs of your customers. Although energy emergencies effect everyone, it will impact residential customers differently than business customers.
In addition, energy efficient tips will look different for each segment – for residential customers, it could be making simple swaps to LED lighting or investing in ENERGY STAR© appliances. For business owners, it might mean encouraging equipment to be powered off and unplugged when not in use or purchasing energy efficient HVAC units.
The key is to remember that, in this instance, no one likes surprises. Your energy utility doesn’t want the surprise of a grid failure no more than your customers want the surprise of high bills or outages.
Communicate transparently with customers ahead of a potentially difficult season to set expectations with them. In return, your customers may see lower bills, be more forgiving during outages and will see your energy utility as a trusted resource. In addition, if both your energy utility and its customers act early enough, there is the potential to skip outages altogether. As the saying goes, prepare for the worst and hope for the best.
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