Consumer education is a critical and key component in access and affordability of electric service. Energy education can provide societal, environmental and economic benefits. Without information, knowledge and skills to evaluate energy choices, consumers will jeopardize control of their household budgets and unwittingly contribute excessive greenhouse gases and pollutants to the environment. In the late seventies, energy education was initiated to contain fears of unaffordablity with the world oil embargo. In the mid-eighties, oil prices dropped dramatically and the affordability fears waned. With relatively stable energy prices, and the political will to go to war for oil, along with an economy on the upswing, interest in this education has fallen off from the utilities and governments. The most noted effort remains in the low-income sector with the Weatherization Program. The new competitive electric market is anticipated to have volatile prices and significant differentials between customer classes. Where there has been low rates, these will likely reach an equilibrium with what the market will bear and reflect increased costs for many consumers and small businesses. Small businesses, especially retail merchants will be forced to pass these costs on in consumer goods prices. In addition, the loopholes in the Clean Air Act that have grandfathered power plants that today would not meet compliance standards more air pollution will trigger increased health care costs. The low-income, elderly and disabled populations will be most vulnerable to these changes the energy market . It behooves the energy industries, governments, and consumers to work together in an education effort.

Consumer education traditionally has included marketing and providing information. The changes we are approaching will require much more than that. The goal of consumer education needs to be one of providing "effective" education. A foremost consideration needs to be the recognition of diversity among consumers. Urban, rural, age, ethnic, and education differences need to be addressed to overcome barriers and permit equitable access to the electric markets. A "one size fits all" approach will likely fail as an education initiative. For example, a recent study done at Ohio State University states that mass media messages are rarely effective, tend to have low penetration levels, with a typical public service announcement campaign awareness rates as low as 5-10%. In New York state, media advertising for a low-income weatherization program had relatively low visibility despite extensive advertising. The lessons of several studies are that dedicated outreach efforts through existing networks of service providers is effective in educating consumers, be it the DMV, DSS or Weatherization Programs where there is existing channels and communication. The proposed Pilot Program of Virginia Power provides a Speakers for community organizations alone. Most low to moderate income people do not belong to many organizations. The proposed Pilot Program reflects an effort that is cost effective for Virginia Power rather than designed for effective education for consumers and there probable costs, which is what needs to be learned from a pilot program.

An effective education program must incorporate a significant planning component. Planning needs to begin with research and analysis of segmented consumers groups and account for diversity. The Consumer Education Plan would then take broad policy goals and translate them into objectives with specific strategic approaches, implemented through specific tactics. The objectives are to be: (a) attainable; and (b) measurable. Again, the proposed Virginia Power Pilot Program has not addressed Evaluation and Adjustments to determine whether the objectives are being met and to what extent. The education planning needs measurable objectives to indicate its effectiveness. If a failure is evident in a market segment, it can be traced back through tactic and strategy and corrected in a timely manner to minimize cost and losses.

Effective education must begin with each person's needs, knowledge and experience. Effective education is accomplished when the consumer has the information, knowledge and skills to engage in the decision-making process. Moreover, this effective education will improve the household energy burden, extend our natural resources and reduce the costs and effects of pollution.

Attached is a Summary of Consumer Education Recommendations and an Evaluation Process.

Acknowledgment:   Roger D. Colton, Consultant
                              Fisher, Sheenan & Colton
                              General Economics and Public Finance
                              Belmont, MA

Respectfully submitted by:

Mary Ann Capp
Energy Management Services
VMH, Inc.