Progress Energy is going to apply old-fashioned peer pressure to encourage customers to conserve electricity as part of a new energy efficiency program approved today by the N.C. Utilities Commission.
According to Raleigh-based power company, the novel program "is designed to reduce residential electrical consumption by applying behavioral science principles."
Specifically, Progress will mail notices telling customers how their household power bills compare to their neighbors. The notices could go out as early as June.
The periodic notices will be sent out to random customers who have above-average utility bills. The random sample is intended to cover a range of customer profiles, making the program statistically valid.
"The objective of this program is to reduce energy consumption by helping customers understand their energy use and how to reduce energy consumption through actions and behaviors," Progress told the utilities commission in its December application.
In layman's terms, when energy hogs see that their neighbors have lower power bills, they'll get motivated to turn out the lights, lower the thermostat and maybe even put in some weatherstripping.
Those who will receive the mailers won't know in advance they have been selected. But if you find a surprise in your mailbox, consider it a thank-you note from the company's shareholders in appreciation of your contributions to the profit margin.
The information won't identify the neighbors you're being compared with, but it will match your home with similarly-sized homes in your neighborhood.
Progress estimates there are about 50 such programs around the country. The company estimates that its North Carolina customers will cut back their electricity use by at least 2 percent once they start comparing themselves with their neighbors.
Progress expects the energy savings to exceed the $2.4 million administrative cost of the program over the next three years. The cost of the program will be recovered from all customers through incremental rate increases. The rationale for that is two-fold: First, Progress will recover its lost sales, so that it is not penalized financially for promoting conservatrion. Second, the overall reduction in electricity demand will reduce the need to build costly power plants, a benefit for all customers.
Those who don't want the mailers can request be discontinued, and customers who weren't randomly selected can request to be included on the mailing list.
The program will be limited to 50,000 participants.
John Murawski has been a full-time newspaper reporter since 1991, with stints at Legal Times and The Chronicle of Philanthropy (both in Washington, DC), The Philadelphia Inquirer and The Palm Beach Post (in South Florida) before arriving at the N&O in December 2004. At the N&O he covers energy (nuclear, coal, renewable, efficiency), utilities (electric, natural gas, telephone) and telecommunications. His beat includes such publicly traded companies as Progress Energy, Duke Energy, PSNC Energy, Piedmont Natural Gas, PowerSecure International, Tekelec, Cisco Systems, AT&T, among others. You can reach him at 919-829-8932 or 
Comments
Liars
Thu, 04/28/2011 - 14:14 — LocalYokalProblem is, we dont expect Progress Energy to tell the truth. As a corporation they are inherently untrustworthy and sociopathic. They have one primary motivation and thats to make money. So this "neighbors" power number isn't a real power number - its fake. Its another lie from a corporation. Its not like we can verify the power number because they dont back it up with a name or address.
Progress Energy can cancel neighbor vs neighbor program now, not pay the $2,400,000 adminstrator fee, and try a better trick.
progress energy idiocy
Thu, 04/28/2011 - 13:07 — hyang1What in the world is PE problem. They have nothing better to do. All these green energy and conservation program I know that instituted by other progressive states add more cost to our bill. Comparing my bill to my neighbor's to comparing apples to oranges as they have 4 teenagers living in their house aside that we have different sq ft houses. Also I consider letting plastering my bill around to others without my permission is an invasion of my privacy. When one really need ACIU where are they????????
Not quite true
Thu, 04/28/2011 - 12:47 — newenglandUtilities don't necessarily make more money when you use more electricity. In a growing area like a Triangle, conservation helps Progress/Duke delay having to build new generation plants and transmission infrastructure, which is expensive to build out. Conservation during peak summer hours also helps them avoid expensive blackouts and burnouts.
Progress Energy
Thu, 04/28/2011 - 10:35 — feedupvoterHow much money per letter is PG spending on this? Which is it costing the public that pay a electric bill? The NC Utilities Comm. approved this and we get to pay for it. Every who came up with this at PG needs to be fired when Duke buys them out. The fine public servants at the utility comm. need firing also for approving this. Every family and home is different. The number in the family, the age of the house and how hot or cold someone wants to be. AL Gore would be proud.
Public Utilities are a bad idea
Thu, 04/28/2011 - 10:21 — MassnativeI know many people are anti-government these days but as long as a for-profit runs our utilties we'll never see true conservation. Note that PE is going to raise rates so they won't be "punished" for promoting conservation. Real conservation only happens when you tier rates by consumption and let the consumer decide whether they want to conserve or not based on the price. I decide how important air conditioning is to me just as I decide how important chocolate is. You can't embarrass people into it. A for -profit won't do this (tier rates) because it will reduce their profits. Raleigh is going to tier rates with water service. Electricity should be similar. Maybe the energy landscape will change once we develop new sources like solar, fuel cells, etc. for the grid customers and governments can get involved in the early stages before private companies take over. We will always pay too much for energy, health care, etc. as long as private companies provide services.
Agreed
Thu, 04/28/2011 - 11:33 — rpmoore33Tiered rates are the way to go for electricity in NC. Rep Patsy Keever has encouraged this change with House Bill 135. I'm not sure how far it got but it proposed a tiered schedule to encourage conservation. This system allows people to use as much as they want but it puts more of the burden on the heavy users. So, for the person that said he/she may want to have his/her house at 65 during the summer...a tiered schedule would be great because he/she could do just that without raising the cost for the rest of us (more demand = higher rates). If you agree, write your state representative and let them know.
Progressive
Thu, 04/28/2011 - 10:21 — burnstockJudging by the comments below, I can see why NC and the south in general are not what you'd call "progressive" states. Change is bad, well guess what, change is the only constant so you'd better get used to it bubba!
PROGRESS
Thu, 04/28/2011 - 12:03 — DB_NCOh you're absolutely right -- we hate progress down here.....in fact, we hate it so much that there's no hope for the entire region ever moving beyond where we are now, so you should pack up the U-haul and get back up North!! We wouldn't want to you become infec.......uh oh...looks like it's too late -- you've already got a bad case of IDIOT.
Progressive, indeed
Thu, 04/28/2011 - 10:33 — gtrain82Judging an entire region based on the comments of two idiots on an internet message board, eh? That's quite an extrapolation. Despite the short-sighted mouth-breathing tea partiers in the state legislature now, North Carolina has traditionally been a very progressive state. As an example, it is the only southern state with a renewable portfolio standard.
Hooray!
Thu, 04/28/2011 - 09:13 — gtrain82Look at me! I'm posting a comment to let people know that I don't understand that my actions have repurcussions that affect other people! I just do what I want whenever I want and don't worry about the consequences! I take no personal responsibility whatsoever! Let the world crumble around me I don't care!
Get over your self-glorification
Thu, 04/28/2011 - 10:04 — PlainAndSimple@gtrain82, I'll let you know a few things, since you seem to be questioning my character.
I drive a car that gets well over 30mpg, and my wife takes the bus to work. I've raised four adopted children. I spend multiple hours each week in community service (not court-ordered :) ). I certainly do understand that my actions affect others.
I still will exercise my right to allocate my finances where I choose, and a letter from Big Brother isn't going to change that.
One more point
Thu, 04/28/2011 - 10:44 — gtrain82This program does nothing to tell you how to allocate your finances. No one is telling you what to do, they're simply giving you more information. What you do with that information is up to you. Acting like this is some kind of infringement on your rights is a bit excessive.
This isn't about your finances
Thu, 04/28/2011 - 10:39 — gtrain82Congratulations on all your good works, but this issue isn't about your wallet. It's about the air, land, and water pollution that results from our use of power. The energy we use is only cheap because we don't have to pay for the coal miner's medical bills, or the devasation that the mining itself does. We don't see the coal-fired power plant belching out pollution that makes kids sick and don't have to pay for their medicine. We don't pay for these things financially, we pay for them as a society with the loss of our personal and environmental health.
I'll spend my d*#m money where I want
Thu, 04/28/2011 - 08:51 — PlainAndSimpleIf I want my house at 65 degrees through the summer, that's where I'll allocate my money. I don't care if my neighbor lives with his windows open and reading by candle light.
Ha, see whether TimeWarner Cable does the same thing!
What a moronic use of Progress Energy Postage budget.
oink oink
Thu, 04/28/2011 - 14:23 — LocalYokalenergy hog
Contest?
Thu, 04/28/2011 - 08:30 — sftwareguyI think they have it backwards. I'm going to see if I can be the top energy user. Being on the bottom is for Prius drivers and losers.