Smart Grid Preconceptions

Tammy McLeod, Vice President and Chief Customer Officer for Arizona Public Service Company (APS)

Conduct a man or woman in an on-the-street interview anywhere in the US asking one simple question; "What is the smart grid?" The response? Well, beyond the wide-world of utility executives and the ever-hungry technology vendors, my prediction is that few average Americans are really contemplating the smart grid.

In fact, my own experience tells me that the majority of my electric customers expect that the grid already possesses some form of artificial intelligence. They believe that I can tell when their power is out and that I'm able restore it, remotely, with the click of the mouse. My customers rarely imagine that although it's evolving, in today's world, I still need their eyes and ears and phone calls in order to have intelligence about the grid. For many of us, today our customers are our smart grid.

The reality that the majority of customers really can't define a concept that's garnered millions in stimulus spending, and increased headcount at most utilities, shouldn't be that surprising. We aren't the customer. Our customers don't think about this everyday as we do. They're not caught up in the frenzy of technology vendors. They simply want the power to be on when they flip the switch and we must continually remind ourselves of that.

But it's also complicated by the fact that the definition of smart grid varies not only from vendor to vendor but also by utility. One company is testing pad-mounted batteries, another is focusing their attention on distributed solar and advanced switching. Yet another simply refers to their advanced metering infrastructure as their smart grid. Finally, another is conducting a regulatory filing for an in-home gadget that they are sure will bring value. Regardless, we'll need to revisit Marketing 101 and understand that in order to communicate about the Smart Grid, we have to approach our customers with the benefits rather than the features.

And before we run out to educate our customers about these emerging technologies, it's imperative that we can gauge where they're starting from. We have to talk with them.

My anecdotal research tells me that our customers will want to know four things.
What is it? What does it do? Who will pay for it? And finally, the crux of the matter; how will it help me reduce my bill?

Clearly, we're wrestling with some parts of those questions too. We need to explain how a smart grid is different than the system that they believe they already have or we need to explain the system as it exists today, so that they don't feel ripped off by getting benefits that they'd had for years. Before we march in to extol the benefits of our new technologies, we need to find out what current perceptions are. In this digital age, talking to customers is not a one-time exercise. We truly need continuous monitoring and feedback in order to deliver value in terms that they will understand.

Tammy McLeod is Vice President and Chief Customer Officer for Arizona Public Service Company (APS). McLeod, who joined the company in 1995, previously served as General Manager of Marketing, Customer Service and Southern Arizona Operations. Her responsibilities include management of statewide customer service operations, including customer marketing, research, call center, credit and collections, customer offices, aps.com, remittance processing, billing and metering. In addition, McLeod oversees the company's Corporate Communications and Community Development organizations.

Prior to joining APS, McLeod worked in a variety of marketing and management roles within the software industry including Educational Management Group and Jostens Learning Corporation. She began her career as a project manager for Whitbread & Co P.L. C. in London, England. McLeod achieved her Bachelor of Science from the University of Colorado in Boulder and her MBA from the Wharton School at the University of Pennsylvania.

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