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Communicating Pricing toResidential and Business Customers
2006 APPA
Customer Connections Conference
Kevin MartinKey Accounts Manager
Danville Utilities
November 6th, 2006
Introducing Danville, Virginia
Located in Southside Virginia on the Virginia - North Carolina border
207 miles from Washington, D.C.
150 miles from Richmond, Va.
67 miles from Raleigh, N.C.
Web Siteshttp://www.danville-va.gov
http://www.discoverdanville.com
Introducing Danville, Virginia
Population -- City: 46,000 Metropolitan Area: 107,000 Size -- City: 44 sq. mi. Electric Service Area: 500 sq. mi. History -- Founded in 1793 and incorporated in 1830 as a tobacco and textile manufacturing center. Utilities founded in 1880’s.
Government Structure -- Council-Manager Municipal Employment -- 1,245 full-time and part-time employees
About Danville Utilities
D anville U tilities O rganizational C hart
D a n v ille U tility C o m m iss ion
F isca lS e rv ices
P o w er & L ig h t W a te r & G asD is trib u tion
W a terT re a tm e nt
C u s to m erS e rv ice
K e yA ccou n ts
A ss is ta n t C ity M a n a g erfo r U tilit ie s
C ity M an a g er
C ity C o u n c il
About Danville Utilities
187 fulltime employee positions$154 million in expenditures in FY 2007
(over ½ of the City's budget!)
About Danville Utilities
500 Square Mile Territory
City Served: Danville, VA
3 Counties Served: Pittsylvania, Henry, and Halifax
About Danville Utilities
Natural Gas
16,500 Customers
29,000 Decatherms/Day
Additional Capacity Available
About Danville Utilities
Water and Wastewater
16,500 Customers
18 MGD Water Plant
24 MGD Wastewater Plant
Water Source: Dan River
About Danville Utilities
Telecommunications
nDanville Fiber Optic Network
Gigabit Ethernet
OC-3 Internet Connection
About Danville Utilities
Electric
45,000 Customers
Size: 240 MW
Generation: 12 MW Hydro, 6 MW Diesel Units
Situational Background
RATE INCREASES!!!
Fuel Cost Increases
Electric Deregulation
Dysfunctional Wholesale Electric Markets
Situational Background
Residential Rate per kWh:
From 5 cents to 7.4 cents
Business Rate per kWh:From 3 cents to 6 cents
Situational Background
Natural Gas
We All Know What Happened There…
Situational Background
Water and Wastewater Operations
Are Large Power Users
Electric Increases = Water Increases
3 M’s of Marketing
Market Target
Message
Mode of Delivery
Market Target
Residential Customers
Businesses
Key Accounts
Message: Residential Customers
What’s Happening
Why It’s Happening
What You Can Do
Message:Businesses
What’s Happening
Why It’s Happening
What You Can Do
Technical Information
Message:Key Accounts
How It Happened
Future Projections
Actions To Be Taken
Detailed Technical Information
Modes of Delivery:Residential Customers
Web Page Information
Group Meetings
TV, Radio, Newspaper
Bill Stuffers
Modes of Delivery:Businesses
Web Page Information
Chamber of Commerce
Business Group Meetings
TV, Radio, Newspaper
Modes of Delivery:Key Accounts
Personalized E-mail
Key Account Group Meetings
Individual Key Account Meetings
Recommendations
Be Honest
Be Direct
Listen
Recommendations
Inform In Advance
Give People Time to Prepare
Be Cognizant of Budgeting Schedules
Recommendations
Educate Internally & Externally
Don’t Assume Understanding
Anticipate Questions
Recommendations
Chase The Media
Don’t Let The Media Chase You
Tell The Negatives
But Keep The Focus On Strengths
Resources We Used
US Department of Energy:
Energy Saver Books
Industrial Technology Classes
Industrial Energy Assessments
Resources We Used
Energy Consultants:
Rate Analysis
Energy Audit Seminars
Informational Business Meetings
Resources We Used
United Way:
New Utility Assistance Program
Continued Public Education In
Energy Conservation & Household Budgeting
Results of our efforts
New and Expanded
Local Markets
For
Energy Efficiency Products
Results of our efforts
Community Trust
&
Strengthened Relationships with Businesses and Key Accounts
Results of our efforts
Continued Success
In
Economic Development
Results of our efforts
And… I get to keep my job!
Thank you
Questions?
Communicating Pricing toResidential and Business Customers
Kevin MartinKey Accounts Manager
Danville Utilities
November 6th, 2006
E-mail: [email protected]: 434.799.6474C: 434.548.2537
