ANN UAL REP ORT SOUTHERN MARYLAND ELECTRIC COOPERATIVE, INC. 02 CONTENTS BRINGING IT 03 ALL TOGETHER YOUR COOPERATIVE 12 AT A GLANCE BOARD OF 13 DIRECTORS 14 FINANCIALS 03 Bringing it all together For the past few years, SMECO has been implementing technological improvements to its many systems in order to increase reliability and provide better customer service for its members. In 2018, the cooperative was able to integrate its systems, combining smart meter data with rates and personalized housing data, to offer members a 360-degree view of energy usage and billing. Through SMECO’s online Account Manager, members can access usage and billing information that empowers them to take full control over their energy usage. The cooperative also redesigned its printed monthly bills and added a live chat to its website—all in an effort to give SMECO members easier access to the information they want and need from their electric cooperative. In addition, SMECO deepened its focus on risk mitigation opportunities. Through its Enterprise Risk Management program, SMECO continuously assesses more than 80 known risks that may potentially impact the cooperative. This work was done even as the employees managed day-to-day operations and faced one of Southern Maryland’s worst storms in six years. As we move forward, the cooperative will continue to anticipate the needs of its members and implement changes and features that will keep service levels at their highest. SMECO strives to put members first and to seek out ways to improve customer service, while providing reliable and competitively priced electricity and related services to its members. As an integral part of Southern Maryland, SMECO and its employees are invested in the success of the community where we live, because cooperatives work for members, not for profits. P. Scott White, Austin J. Slater, Jr., Chairman of the Board President and CEO 04 In 2017, SMECO installed smart meters throughout its service area. The smart meter deployment put into place the groundwork that would provide the cooperative’s members with detailed electric usage data. Smart meters made it possible in 2018 to implement the tools that could present that information to members. ACCOUNT MANAGER SMECO integrated the energy portal concept with its online Account Manager system and launched the new service on November 1. By viewing energy use data in SMECO’s online Account Manager, members can take more control over their electric bill. Account EMPLOYEE SPOTLIGHT: Manager now provides energy use and energy cost details that Sylvia Welch, Information enable customers to track and analyze their own data to determine Technology Managing Director, when they use the most electricity and how much it costs to run their started in SMECO’s new household every hour of every day. With energy use information at services department in 1988. their fingertips, members who want to save money by reducing their “The energy portal is a energy use can determine what energy-efficiency methods may work byproduct of the smart meter best for them. deployment and it was part of the overarching movement to Key features include energy use details, bill forecasting, bill provide members with as much comparisons, an energy use profile, and neighbor comparisons, information as possible under as well as tips on how to save. As the saying goes, “knowledge the umbrella of self-service. is power,” and with these tools, SMECO members will have the A lot of customers don’t knowledge to use less power and save money. want to speak to someone; they want to be able to go Energy Use Details. This section provides data based on energy online and perform whatever cost or energy use. Data can be shown monthly for a year, daily services they want to with for a month, or in 15-minute increments. Temperature data is also SMECO. We want to allow included to help members understand the relationship between people to do business in the weather and energy use. The data are shown in graphs to help manner in which they want. illustrate patterns. If members have a bill that seems higher than “The self-service platform normal, they can investigate the energy use details by clicking on initially let members log in, the graph to see which day the most energy was used. The data see their bill, and pay online. That was a long time ago. In order to expand, SMECO implemented Account Manager, which gave members a portal where they could do a number of things. Transitioning was a complex process and a huge step for us because now we have a platform where we can plug in additional pieces as they are available to add additional self-serve options to our members. Account Manager is more about the customer and their account than just energy conservation.” 05 can help members determine when they used the most electricity and how much energy was used, giving them the knowledge to implement changes in the home that can have lasting impacts on energy savings. If the usage details reflect an overall and consistent increase, the homeowner may be prompted to have their HVAC serviced since heating and cooling are typically the highest energy users CUSTOMER FEEDBACK: in the home. Providing weather data allows members to compare “The 15-minute data really consumption to outdoor temperatures during the same time period helps me see where my to help determine if the HVAC unit is operating properly. usage is happening.” Bill Forecast. The Bill Forecast tab shows how much the current “Daily access to my bill is expected to be based on at least seven days’ usage. Actual usage will help me manage usage will be shown if the member is only a few days into the billing my consumption.” period. If members who are on the path to a high bill are given a warning, they may have the opportunity to make changes and prevent a high bill. “The hour by hour usage is really very informative!” Bill Comparison. This tab shows how the current bill compares to the previous month’s bill or the same month last year. Possible “I love the information at reasons for the differences in bills are also provided based on meter 15-minute intervals. It’s really and weather data. helpful when I’m trying to figure Energy Use Profile. This tab shows how much energy is used for out what’s causing a high bill.” different purposes: heating, cooling, water heating, lighting, etc. By answering questions about their specific home, members can get the “I like the forecasted bill—it most accurate information. gives me an idea of what my next bill may be.” Neighbor Comparison. The Neighbor Comparison tab shows how much energy a member used in comparison to homes with “Viewing my usage by day similar square footage and sources of heat. In order to make the is really helpful!” comparison more accurate, members can update the Energy Use Profile to align their homes with those that are most similar. “I like that it shows the Ways to Save. This section provides tips for saving energy. The average temperature in relation tips can be more personalized if the questionnaire about the home to how much energy I’m using is completed. so I can see how weather impacts my usage.” Since the launch of the smart energy tabs in Account Manager, many members have already recognized the benefits of having access to the detailed data about their usage. Some members have noticed increased usage patterns that prompted servicing of their HVAC systems. Others noticed spikes that prompted simple modifications which could have long-term impacts on their electric bill. The second phase of the Account Manager smart energy rollout included weekly energy use emails to customers for whom SMECO had email addresses on file. Members can also receive email or text messages alerting them to a possible “high bill.” The emails and alerts launched on February 21, 2019. 06 BILL REDESIGN The wealth of information available to customers through the Account Manager smart energy tabs is reflected in the redesigned SMECO bills. SMECO worked with its bill print vendor to develop a new look with improved capabilities for showing bill details. The redesign process included many members of the SMECO team who could provide insight into customer feedback about the previous bill design. The team worked together to determine ways to reduce confusion, simplify the bill, and add information that would give members more details about their electric use and monthly charges. EMPLOYEE SPOTLIGHT: On the new bills, information is presented in a hierarchy of Marsha Huffin joined SMECO importance. For members who simply wanted to know how much in 2012 as the Customer Care they owe and when the payment is due, that information is displayed Manager. The Customer Care prominently at the top of the bill. Those who owe a past due amount Department has been involved in many of the customer service get a note printed in red, while members who made a payment will upgrades implemented by the have a “thank you” note with a thumbs-up icon. cooperative, including the bill While most account holders have fairly straightforward bills redesign, web chat, and more. without much change from month to month, others have more “When we introduced speech account information that SMECO needed to capture. For example, analytics in the Customer Care more than 5,700 customers with solar panels have net metering Center in 2014, we did a call information included on their bills. Members who are on Budget study and it showed us ways Billing and members who receive financial assistance also have we could improve customer additional information displayed on their bills.