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November 13, 2009

Can newfangled utility bills persuade Americans to use less energy?

You've swapped out your old thermostats for programmable models, replaced inefficient incandescent lightbulbs with the best compact fluorescent lightbulbs, followed our advice for saving energy at home, weatherized your attic, and taken advantage of tax credits and other incentives for energy-related home improvements.

There are still other ways to squeeze some more energy savings out of your home, and your utility company might be able to help—not by giving you an energy audit or lowering your rates (like that'd ever happen!). Rather, some utilities nationwide are sending out new bills that show your energy use compares to those of your neighbors, with a goal of getting you to keep up (or is that down?) with the Joneses. See the image below for some of the detailed information customers receive.

National Grid is sending 50,000 of its Massachusetts customers bills (shown) with data showing how their gas and electricity consumption compares to the 100 nearest and 20 thriftiest households of similar size in the area, according to this Boston Globe report. "There's obviously a little bit of a competitive aspect to it, to see if you can one-up your neighbors in terms of energy savings,'' said Monica Ibrahim, program manager for the National Grid program, told the paper.

The bills also contain energy-saving tips to spur energy hogs to consume less. A nationally representative survey by the Consumer Reports National Research Center found that 55 percent of respondents had done very little to conserve energy in their homes.

The technology for the consumption comparisons in these bills comes from Arlington, Virginia-based software company Opower, which has established partnerships with 21 utilities nationwide, including the Sacramento Municipal Utility District and Puget Sound Energy. "We're best known for use of behavioral science to show people how their energy usage compares to that of their neighbors," says Opower CEO Daniel Yates, whose company's software draws upon psychologist Robert B. Cialdini's theories of persuasion. National Grid hopes Opower-assisted bills will persuade customers to cut household energy consumption by 3 percent a year over the next decade. (Learn more about how the billing is designed to work.)

If your own utility still isn't using such high-tech bills, you might want to look into Google's PowerMeter or Microsoft's Hohm services or one of the watt meters we tested to ferret out energy-wasting appliances and practices.—Gian Trotta | | Twitter | Forums | Facebook

Essential Information:
Our Energy Saving & Green Living guide offers other advice, including updated coverage of the $300 million State Energy Efficient Appliance Rebate Program, aka cash for clunkers for appliances.

National Grid Opower Utility Bill
 

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