1. Consumer Pulse Research Program – Wave 1, September 2011 Smart Grid Consumer Collaborative Market Segmentation Research Peer Connect October 19, 2011

2. Consumer Pulse Research Program – Wave 1, September 2011 Purpose of This Presentation Review the SGCC’s objectives for this research Discuss “Why Segmentation” Provide a snapshot of how this segmentation was done Introduce the five segments identified by this study Review the profile of one segment in depth as orientation to the report Briefly overview the other four segments Talk a little about how the segmentation might be used Answer questions Download the Consumer Pulse Wave 1 summary report from the SGCC website starting November 1. 2

3. Consumer Pulse Research Program – Wave 1, September 2011 Consumer Pulse – Wave 1 SGCC Research Objectives Help establish SGCC’s thought leadership in the realm of smart grid consumer issues. Establish baseline measures of consumer smart grid awareness, understanding, favorability, program interest, concerns, etc. Develop a clear, actionable segmentation framework that will help SGCC member companies to: −Design and execute segment-targeted smart grid-enabled products, programs and services −Create informational/marketing campaigns with targeted concepts and media strategies for specific customer segments Provide in-depth information about each segment: −Describe each segment’s characteristics, attitudes, values and motivations for engagement −Identify key information needs and existing attitudes toward smart grid, smart meter, and energy efficiency within each segment 3

4. Consumer Pulse Research Program – Wave 1, September 2011 Survey Methodology Telephone survey −Fielded August 15 to September 6, 2011 −N = 1,200 −Quotas by region, age, gender, income, and ethnicity −Weighting to align with national population parameters Qualifications to participate −Age 18+ −Head of household Sample source −National RDD landline and cell phone sample Statistical validity −For the total sample of 1,200, the margin of error is +/-3.2 percentage points at a confidence level of 95% Research and analysis conducted by Market Strategies International 4

5. Consumer Pulse Research Program – Wave 1, September 2011 Why Segmentation? 5 “The first commandment of marketing is to segment the market, choose the best segments, and develop a strong position in each chosen segment.” –Phillip Kotler, Northwestern University, Ten Deadly Marketing Sins Markets are heterogeneous mix of attitudes, values, & beliefs Single marketing plan, message, service strategy, will not be the most effective strategy Divide market into groups based upon similarities Provides ability to target and implement most effective strategies by segment Competitive advantage for SGCC member companies

6. Consumer Pulse Research Program – Wave 1, September 2011 Segmentation Approach: Segmentation Using MSTargets SM 6 Proprietary process for designing, conducting, and implementing market segmentation research Combines industry expertise and an optimal mix of advanced analytics Ensures that all relevant views of customers are included Produces segments that are accurately descriptive, concretely actionable, and easily targeted Theory, Experience, Knowledge, and Research Strategic Platforms Tactical Platforms Integrated Segmentation Scoring / Typing Tools Multiple Platform Approach

7. Consumer Pulse Research Program – Wave 1, September 2011 The five segments 7 Easy Street “We can afford to pay for electricity. The cost isn’t that much, on our budget.” DIY & Save “Energy efficiency and smart grid programs sound appealing, because they would help us save money.” Concerned Greens “Smart grid and smart meters will help protect the environment.” Young America “We wish someone would tell us how smart grid can help us save money and help the environment.” Traditionals “Frankly, we’re not at all sure Smart Grid is needed.”

8. Consumer Pulse Research Program – Wave 1, September 2011 Segment Profiles

9. Consumer Pulse Research Program – Wave 1, September 2011 9 “We can afford to pay for our electricity. The cost isn’t that much, on our budget.” “Honestly, we probably make less of an effort to save energy than most people.” “We turn off the lights when we’re not in the room. That’s about all we do to conserve energy.” “I do believe that global warming is real, and that saving energy is good for the environment.” Easy Street 20% of population

10. Consumer Pulse Research Program – Wave 1, September 2011 10 Easy Street Key Characteristics 20% of population High levels of education Highest income of any segment – 28% above $100K Middle aged, moderate-liberal politics Fairly diverse: 15% Hispanic, 13% African American Concentrated in the South (West South Central and South Atlantic) and Midwest (East North Central) regions Distinctive Attitudes and Behaviors Low levels of interest in smart grid programs or using smart meter information for energy management Moderately concerned about the environment at a global level, but not interested in making individual- level environmental efforts Believe global warming is real and the government should do more to promote energy efficiency and alternative fuel sources Low likelihood to try to minimize impact on the environment through daily actions Believe the most important reason to save energy is for the environmental benefits, followed by “for children and grandchildren,” then saving money SGCC Member Opportunities Easy Street customers are unlikely exhibit a high level of engagement with energy management. Simplicity and ease-of-use are keys to acceptance. Messaging should emphasize environmental benefits and stewardship for future generations. It will be a challenge to motivate them to change; they are satisfied with their current energy consumption habits and expenditures.

11. Consumer Pulse Research Program – Wave 1, September 2011 Smart Grid and Smart Meter Awareness and Knowledge 11 Basic to complete level of knowledge (%2–3) Positive favorability (%6–10 ) I support the idea that my electric utility should start now and work quickly to implement smart grid and smart metering technology (%4–5) Easy Street Smart GridSmart Meter A6. Has your electric utility installed a smart meter at your home? Base: Among Easy Street who have heard of smart meter, n=73 A1/A2. Which of the following statements comes closest to describing your current level of knowledge about smart grid/meter? Base: Easy Street, n=238 A4/A5. Considering what you know about the smart grid/meter, would you describe your general feelings about the smart grid/meter as favorable or unfavorable? Base: Among Easy Street who have heard of smart grid/meter, n=65/73 AA4. Please tell me whether you support the idea that your electric utility should start now and work quickly to implement Smart Grid and Smart Metering technology. Base: Easy Street, n=238 Easy Street Total highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Smart meter installed in home (%Yes) Basic to complete level of knowledge (%2–3) Positive favorability (%6–10) Smart Grid and Smart Meter Implementation Support

12. Consumer Pulse Research Program – Wave 1, September 2011 Smart Grid or Smart Meter Will Lead To… 12 Saving energy Saving money Improved ability to manage energy usage Improved accuracy of electric bills Elimination of meter reading Control over energy usage Improved reliability Easier to read meter A7A. Please tell me about any specific improvements or benefits you think would result from the introduction of Smart Grid or Smart Meters. A7. Please tell me about any specific problems or negative issues you think would result from the introduction of Smart Grid or Smart Meters. Base: Among Easy Street who have heard of smart meter, n=73 Bills will go up Loss of control Cost to implement Accuracy concern Privacy concern BenefitsProblems Easy Street Total highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

13. Consumer Pulse Research Program – Wave 1, September 2011 Using smart meter data for energy management Critical peak pricing TOU pricing Program Participation and Monitoring Energy Usage 13 Likelihood to Participate in Energy Management Programs Base: Easy Street, n=238 How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane) AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage… AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days… AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used… AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Easy Street, n=71 AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Easy Street who would prefer free website at over $100 in-home device, n=45 Easy Street Total Energy Management Monitoring Options $100 in-home device Free website Don’t know Refused Of those who would prefer the free website rather than the $100 in home device Free in-home device Free website Don’t know Refused (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

14. Consumer Pulse Research Program – Wave 1, September 2011 Message Effectiveness 14 Smart grid and smart meters will … Help me save money by using energy more efficiently Deliver more reliable electric service and more timely power restoration by helping my utility avoid power outages and manage any outages that do occur more effectively Help people avoid wasting energy Help protect the environment Supports a more independent and secure energy future for America, reducing the need for foreign sources of energy Give me more control of my home energy use, helping me make smarter energy decisions Give me more choices, allowing me to sign up for a range of rate and billing programs, that offer more flexibility in how I’m billed for electricity usage and more control over my energy costs Base: Easy Street, n=238 AA6–AA12. Tell me whether each [of the following statements] increases or decreases your support for going ahead with smart grid and smart meters. “Smart grid and smart meters will …” Easy Street Total Message Effectiveness (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

15. Consumer Pulse Research Program – Wave 1, September 2011 Reasons to Implement / Not Implement 15 To help consumers save money To help improve energy efficiency To help meet demand for electricity To reduce outages Remotely read/no meter readers Accurate readings/bills To help reduce greenhouse gas emissions To increase reliability To give people more control over how much electricity they use Base: Easy Street, n=238 AA1. Based on the information provided, in your opinion, which what is the most convincing reason to implement Smart Grid and Smart Meter technology? AA2. And what would you say is the most important reason not to begin implementing Smart Grid/Smart Meter technology? Easy Street Total Cost (unspecified) Increased cost to the customer Cost to implement Eliminates jobs Too much government/ utility control Reliability of the technology Compliance Will not improve/lower costs Equipment upgrade required Reasons to ImplementReasons Not to Implement highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

16. Consumer Pulse Research Program – Wave 1, September 2011 It is important to me to know my home is energy efficient and that I have done all that I can to lower energy costs (%6–10) Compared to most people, I make more of an effort to save energy in my home (%1–2) Energy Efficiency Knowledge, Importance, and Effort 16 EE Knowledge Base: Easy Street, n=238 Please tell me how knowledgeable you feel you are about each of the following… KN1. Actions I can take to make my home more energy efficient. KN4. How a smart meter can be used to help manage home energy consumption. KN3. Specific programs and services offered by your electric utility to help you use energy efficiently. EU1. How important is it to you, personally, to know that your home is energy efficient and that you have done all that you can to lower your energy costs? EU2. Compared to most people, would you say that you make more of an effort to save energy in your home, make less of an effort to save energy, or about average? Actions I can take to make my home more energy efficient How a smart meter can be used to help manage home energy consumption Specific programs and services offered by your electric utility to help you use energy efficiently Easy Street Total EE Importance and Effort highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street Total I believe it is worth spending more on Energy Star appliances and electronics It is too difficult to determine whether I will save money by buying energy-efficient products Energy-efficient products are too expensive - the extra cost outweighs the benefit I like to buy appliances that save me time and effort - I am less concerned about how much energy they use Appliance Efficiency Easy Street Total (%4–5) ES4. I believe it is worth spending more on Energy Star appliances and electronics. ES6. It is too difficult to determine whether I will save money by buying energy-efficient products. ES7. Energy-efficient products are too expensive - the extra cost outweighs the benefit. ES1. I like to buy appliances that save me time and effort - I am less concerned about how much energy they use.

17. Consumer Pulse Research Program – Wave 1, September 2011 Shopping Habits and Technology Adoption 17 I carefully research and compare products and brands before I choose the product that best meets my needs In my household we like to ”do-it- ourselves” in order to save money I would generally spend more on an environmentally-friendly product than on one that is not I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store Shopping Habits %4–5, Total Agree shown Base: Easy Street, n=238 GS2. I carefully research and compare products and brands before I choose the product that best meets my needs. GS4. In my household we like to ”do-it-ourselves” in order to save money. GS6. I would generally spend more on an environmentally-friendly product than on one that is not. GS5. I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store. DI3. I only buy new products or technologies after the ones I am currently using wear out or become obsolete. DI1. I am always eager to be the first one to buy new products or technologies. Easy Street Total I only buy new products or technologies after the ones I am currently using wear out or become obsolete I am always eager to be the first one to buy new products or technologies Adoption (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

18. Consumer Pulse Research Program – Wave 1, September 2011 Environmental Opinions 18 I believe that saving energy helps the environment (%4–5) I try to minimize my impact on the environment through my daily actions (%4–5) The Government should take a stronger role in promoting energy efficiency and alternative fuel sources (%4–5) I believe that global warming is real and we need to make immediate, substantial efforts to combat it (%4–5) I have contributed my time and/or donated to an environmental organization in the past year (%Yes) Environmental Opinions Base: Easy Street, n=238 EN5. I believe that saving energy helps the environment. EN3. I try to minimize my impact on the environment through my daily actions. EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it. EN2. In the last year, have you contributed your time or given a donation to any environmental organizations? Easy Street Total highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

19. Consumer Pulse Research Program – Wave 1, September 2011 The money I can save For the future of our children and grandchildren To reduce the need for foreign sources of energy The environmental benefits To be socially responsible To improve America’s ability to compete with other countries Energy Management Reasons and Opinions 19 When I make an effort to save electricity in my home, I see a corresponding reduction in my electric bill I have already done everything I can to save energy in my home The most important thing about my home’s heating and cooling equipment is how comfortable it makes my family I find the whole issue of energy efficiency difficult to understand Energy management Opinions Base: Easy Street, n=238 AB5. When I make an effort to save electricity in my home, I see a corresponding reduction in my electric bill. AB4. I have already done everything I can to save energy in my home. AB1. The most important thing about my home’s heating and cooling equipment is how comfortable it makes my family, not how much energy is used. AB3. I find the whole issue of energy efficiency difficult to understand. AB10. In your personal opinion, which of the following is the most important reason to save energy? Easy Street Total The Most Important Reason to Save Energy (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

20. Consumer Pulse Research Program – Wave 1, September 2011 Beliefs, Attitudes, and Viewpoints 20 Base: Easy Street, n=238 LA1-LA11. I’m going to read a series of statements that may or may not describe you and the way you feel about things. PV1. Compared to one year ago, do you consider the current financial situation in your household to be... PV4. Considering your overall political views, would you describe yourself as... It is important to help others who are less fortunate I would like to set an example for young people I like the challenge of doing something I have never done before I would like to understand more about how the universe works I don’t like it when others tell me what to do My religion guides the way I live I have more ability than most people I like my life to be pretty much the same from week to week I like being in charge of a group I follow the latest trends and fashions Easy Street Total Beliefs, Attitudes and Viewpoints Current Financial Situation Better (%4–5) Worse (%1–2) Conservative (%4–5) Liberal (%1–2) Overall Political Views (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

21. Consumer Pulse Research Program – Wave 1, September 2011 Demographics 21 Employment Status Employed full-time Employed part-time Unemployed Retired Homemaker Temporarily laid off Student Other Current Financial Situation Much worse Somewhat worse About the same Somewhat better Much better Political Views Very liberal Somewhat liberal Middle of the road Somewhat conservative Very conservative Political Affiliation Democrat Republican Independent Other None Overall Satisfaction of Electric Utility % Satisfied (6–10) Overall Favorability Towards Electric Utility % Favorable (6–10) Average Electric Bill Less than $50 $50 to $100 $101 to $200 $201 to $300 $301 to $400 More than $400 Included in rent Smart Meter Installed at Home % Yes Region New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific Home Ownership Own/buying Rent # of Bedrooms Mean # People in Home Mean # of people under 18 in Home Mean Age 18-24 25-34 35-44 45-54 55-64 65 or older Race White African-American Hispanic Other Gender Male Female Income <$30,000 $30,000-$50,000 $50,000-$100,000 $100,000+ Low Income % Low income Education High School or Less Some College College or Post Graduate Internet Accessed Most Frequently At my home/home computer At work/office Through a mobile phone Public library Friend/relative’s house None/do not use the internet highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Easy Street

22. Consumer Pulse Research Program – Wave 1, September 2011 Geographic Distribution 22 Pacific Mountain West North Central East North Central West South Central East South Central South Atlantic Middle Atlantic New England Less than 7.8% 7.8%-19.0% 19.0%-21.9% More than 21.9% Easy Street

23. Consumer Pulse Research Program – Wave 1, September 2011 In their own words 23 I’m concerned about the lack of having our whole house air conditioned in extremely hot weather. In 98 or 100 or up, that is when this would reroute the power, but also when it’s needed most.” “I feel like I’ve been told lots of good things about smart meters, but I would like to know what the cost impact would be, and does it pose any risks? For example, could anyone else monitor my usage and possibly determine if I’m home or not?” “I don’t like that smart meters can turn off your power even if you don't want them to. Smart Meters should have been discussed at public forums and meetings, and I think that consumers are being left out of the loop when it comes to fair distribution of energy to all who need it.” “I worry that smart meters could reduce my air conditioning on days I would need it the most, and it might limit my use of other electric appliances.” “ Easy Street

24. Consumer Pulse Research Program – Wave 1, September 2011 24 “Our values and religion are important to us.” “Energy management and smart grid programs sound appealing - they would help us save money.” “With a large family and moderate income, money is always tight.” “In our house, we like to do it ourselves and save money.” DIY & Save 16% of population

25. Consumer Pulse Research Program – Wave 1, September 2011 25 DIY & Save Key Characteristics 16% of population Middle-income Families; 20% have three or more children at home Diverse range of ages from 25-65+ Largely White, 12% Hispanic Average levels of education Conservative politics Higher concentrations in Mountain states, but wide dispersion across almost entire U.S. Distinctive Attitudes and Behaviors High levels of interest in smart grid programs, especially TOU pricing, primarily for the financial benefits Believe the most important reason to save energy is to save money High percentage of homeowners, and 84% agree they like to “do it themselves” to save money Low level of environmental interest and involvement Not motivated to minimize impact on the environment through daily actions Most likely segment to say “Religion guides the way I live.” SGCC Member Opportunities Product and program design and messaging should emphasize saving money and de-emphasize environmental benefits. There are opportunities to market products and programs that leverage their DIY interest and experience. Consider outreach through religious affiliations and communities.

26. Consumer Pulse Research Program – Wave 1, September 2011 Using smart meter data for energy management Critical peak pricing TOU pricing Program Participation and Monitoring Energy Usage 26 Likelihood to Participate in Energy Management Programs Base: DIY & Save, n=189 How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane) AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage… AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days… AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used… AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: DIY & Save, n=71 AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: DIY & Save who would prefer free website at over $100 in-home device, n=45 DIY & Save Total Energy Management Monitoring Options $100 in-home device Free website Don’t know Refused Of those who would prefer the free website rather than the $100 in home device Free in-home device Free website Don’t know Refused (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence DIY & Save

27. Consumer Pulse Research Program – Wave 1, September 2011 Shopping Habits and Technology Adoption 27 I carefully research and compare products and brands before I choose the product that best meets my needs In my household we like to ”do-it- ourselves” in order to save money I would generally spend more on an environmentally-friendly product than on one that is not I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store Shopping Habits Base: DIY & Save, n=189 GS2. I carefully research and compare products and brands before I choose the product that best meets my needs. GS4. In my household we like to ”do-it-ourselves” in order to save money. GS6. I would generally spend more on an environmentally-friendly product than on one that is not. GS5. I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store. DI3. I only buy new products or technologies after the ones I am currently using wear out or become obsolete. DI1. I am always eager to be the first one to buy new products or technologies. DIY & Save Total I only buy new products or technologies after the ones I am currently using wear out or become obsolete I am always eager to be the first one to buy new products or technologies Adoption (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence DIY & Save

28. Consumer Pulse Research Program – Wave 1, September 2011 In their own words 28 I like the way that with a smart meter you can make decisions on how much energy you use, and it helps prevent outages.” “I think smart meters would help with awareness of usage. It just makes you more aware every time of the amount of power you’re using.” “One benefit to smart meters is that you can have peak charges. I may be able to have lower my electricity costs during the day, then use it later. I like the idea of being able to monitor my electric usage on a daily basis.” “ DIY & Save

29. Consumer Pulse Research Program – Wave 1, September 2011 29 “We believe global warming is real and the government should take a stronger role in promoting energy efficiency.” “Smart meters will give me more control of my home energy use, helping me to make better decisions.” “Smart grid and smart meters will help protect the environment.” “Protecting the environment really matters to us.” Concerned Greens 31% of population

30. Consumer Pulse Research Program – Wave 1, September 2011 30 Concerned Greens Key Characteristics 31% of population Highest levels of education, High income – 23% above $100K Moderate/liberal politics Higher concentrations in Pacific and Northeast (New England and Mid-Atlantic) regions Middle aged (65% are between 25-54) More women than men Largely White, 14% Hispanic Distinctive Attitudes and Behaviors Most concerned and active regarding environmental issues High Smart Grid knowledge, favorability and support Most likely to participate in smart grid programs Eager to buy new products and technologies Want to save energy for the future of our children and grandchildren and for the environmental benefits; not as concerned about saving money SGCC Member Opportunities Segment is receptive to environmental concerns and tries to protect the environment through their own actions. This segment is the most naturally inclined toward participating in energy efficiency and smart grid programs. Like new technology, and have the resources to make investments in better energy management.

31. Consumer Pulse Research Program – Wave 1, September 2011 Using smart meter data for energy management Critical peak pricing TOU pricing Program Participation and Monitoring Energy Usage 31 Likelihood to Participate in Energy Management Programs Base: Concerned Greens, n=370 How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane) AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage… AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days… AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used… AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Concerned Greens, n=71 AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Concerned Greens who would prefer free website at over $100 in-home device, n=45 Concerned Greens Total Energy Management Monitoring Options $100 in-home device Free website Don’t know Refused Of those who would prefer the free website rather than the $100 in home device Free in-home device Free website Don’t know Refused (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Concerned Greens

32. Consumer Pulse Research Program – Wave 1, September 2011 Environmental Opinions 32 I believe that saving energy helps the environment (%4–5) I try to minimize my impact on the environment through my daily actions (%4–5) The Government should take a stronger role in promoting energy efficiency and alternative fuel sources (%4–5) I believe that global warming is real and we need to make immediate, substantial efforts to combat it (%4–5) I have contributed my time and/or donated to an environmental organization in the past year (%Yes) Environmental Opinions Base: Concerned Greens, n=370 EN5. I believe that saving energy helps the environment. EN3. I try to minimize my impact on the environment through my daily actions. EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it. EN2. In the last year, have you contributed your time or given a donation to any environmental organizations? Concerned Greens Total highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Concerned Greens

33. Consumer Pulse Research Program – Wave 1, September 2011 In their own words 33 Most people don't believe climate change is a big deal, however I do. The things I can do are somewhat limited. We need to think about how we are producing our energy. New technologies have to be developed because the use of fossil fuel has gotten out of control.” “Any technology that moves us forward is a good technology. We need to be more efficient for economic reasons and the future. All that combined will make our country a cleaner and safer place to live.” “Accessibility for new, clean energy to use the grid is the most convincing reason to implement smart grid technology.” “Better cost and more efficient and green delivery of power means that they can better utilize green technology and reduces the need for new power plants.” “ Concerned Greens

34. Consumer Pulse Research Program – Wave 1, September 2011 34 “We believe global warming is real and the government should take a stronger role in promoting energy efficiency.” “I’m not sure that any of that smart meter stuff applies to me, since I live in an apartment.” “We wish someone would tell us how smart meters can help us save money and the environment.” “We don’t know much about smart meters and the smart grid. They seem complicated.” Young America 23% of population

35. Consumer Pulse Research Program – Wave 1, September 2011 35 Young America Key Characteristics 23% of population Youngest and most ethnically diverse segment Lowest levels of education and income Least likely to have kids under 18 at home Likely to live in apartments/condos/mobile homes Concentrated in the South and Midwest (East North Central) regions Distinctive Attitudes and Behaviors High level of concern regarding environmental issues. Think energy efficiency is important, but lack knowledge of how it works and feel they may have already done all they can to save energy. Say they have low likelihood to participate in smart grid programs, but they are interested in using information from a smart meter for energy management. They say the most important reasons to save energy are saving money and for the future of our children and grandchildren SGCC Member Opportunities The primary focus in communication with this segment should be education. They are concerned about environmental issues and face financial constraints - let them know how Smart Grid products and programs can help address both. May be considered a longer tem developmental opportunity, as they mature and become more likely to be homeowners.

36. Consumer Pulse Research Program – Wave 1, September 2011 Using smart meter data for energy management Critical peak pricing TOU pricing Program Participation and Monitoring Energy Usage 36 Likelihood to Participate in Energy Management Programs Base: Young America, n=277 How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane) AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage… AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days… AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used… AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Young America, n=71 AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Young America who would prefer free website at over $100 in-home device, n=45 Young America Total Energy Management Monitoring Options $100 in-home device Free website Don’t know Refused Of those who would prefer the free website rather than the $100 in home device Free in-home device Free website Don’t know Refused (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Young America

37. Consumer Pulse Research Program – Wave 1, September 2011 Environmental Opinions 37 I believe that saving energy helps the environment (%4–5) I try to minimize my impact on the environment through my daily actions (%4–5) The Government should take a stronger role in promoting energy efficiency and alternative fuel sources (%4–5) I believe that global warming is real and we need to make immediate, substantial efforts to combat it (%4–5) I have contributed my time and/or donated to an environmental organization in the past year (%Yes) Environmental Opinions Base: Young America, n=277 EN5. I believe that saving energy helps the environment. EN3. I try to minimize my impact on the environment through my daily actions. EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it. EN2. In the last year, have you contributed your time or given a donation to any environmental organizations? Young America Total highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Young America

38. Consumer Pulse Research Program – Wave 1, September 2011 In their own words 38 I don't know anything about a smart grid, so I don't know what it would do. I have a smart meter but don't know anything about it or how it functions.” “I know I have a few things already hooked up with my meter, but I’m not sure if it is a smart meter. When my air conditioning is on, I have a little box so whenever there is a high volume, it cuts the power. I'm also on an equal payment plan. It may be I have a smart meter on my air conditioning, but I’m not really sure.” “I like the fact that smart meters would help use more green energy instead relying on fossil fuels. I also like that the smart meters can reroute electricity, because I use a lot of smaller electronics that are sensitive to power surges.” “Smart grid will save more energy and we’ll have to build fewer power plants, use less energy, which is better for the environment. It would also be nice to know the different times of day to know when energy is less expensive; I would be able to conserve more.” “ Young America

39. Consumer Pulse Research Program – Wave 1, September 2011 Traditionals 11% of population 39 “ We can make our own decisions about how much energy to use.” “Frankly, we’re not at all sure Smart Grid is needed.” “We don’t spend a lot of time worrying about the environment or how to conserve energy.” “ We just want to be comfortable in our home.”

40. Consumer Pulse Research Program – Wave 1, September 2011 40 Traditionals Key Characteristics 11% of population Predominantly older (25% are age 65+) The most politically conservative and religious segment Higher concentrations in the Mountain states and Mid-South Relatively low levels of education Average income More men than women Mostly white Distinctive Attitudes and Behaviors Least favorable segment toward smart grid programs Lowest interest in monitoring energy usage Least engaged in environmental issues Prefer comfort and saving time and effort over saving energy Feel their financial situation compared to a year ago is worse SGCC Member Opportunities Segment is probably not a high priority initial target for smart grid programs. Program/product design and promotion for this segment should emphasize immediate money savings and de- emphasize environmental considerations. Messaging may also communicate that energy efficiency can contribute to having a comfortable home.

41. Consumer Pulse Research Program – Wave 1, September 2011 Using smart meter data for energy management Critical peak pricing TOU pricing Program Participation and Monitoring Energy Usage 41 Likelihood to Participate in Energy Management Programs Base: Traditionals, n=127 How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane) AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage… AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days… AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used… AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Traditionals, n=71 AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Traditionals who would prefer free website at over $100 in-home device, n=45 Traditionals Total Energy Management Monitoring Options $100 in-home device Free website Don’t know Refused Of those who would prefer the free website rather than the $100 in home device Free in-home device Free website Don’t know Refused (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Traditionals

42. Consumer Pulse Research Program – Wave 1, September 2011 Message Effectiveness 42 Smart grid and smart meters will … Help me save money by using energy more efficiently Deliver more reliable electric service and more timely power restoration by helping my utility avoid power outages and manage any outages that do occur more effectively Help people avoid wasting energy Help protect the environment Supports a more independent and secure energy future for America, reducing the need for foreign sources of energy Give me more control of my home energy use, helping me make smarter energy decisions Give me more choices, allowing me to sign up for a range of rate and billing programs, that offer more flexibility in how I’m billed for electricity usage and more control over my energy costs Base: Traditionals, n=127 AA6–AA12. Tell me whether each [of the following statements] increases or decreases your support for going ahead with smart grid and smart meters. “Smart grid and smart meters will …” Traditionals Total Message Effectiveness (%4–5) highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Traditionals

43. Consumer Pulse Research Program – Wave 1, September 2011 Environmental Opinions 43 I believe that saving energy helps the environment (%4–5) I try to minimize my impact on the environment through my daily actions (%4–5) The Government should take a stronger role in promoting energy efficiency and alternative fuel sources (%4–5) I believe that global warming is real and we need to make immediate, substantial efforts to combat it (%4–5) I have contributed my time and/or donated to an environmental organization in the past year (%Yes) Environmental Opinions Base: Traditionals, n=127 EN5. I believe that saving energy helps the environment. EN3. I try to minimize my impact on the environment through my daily actions. EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it. EN2. In the last year, have you contributed your time or given a donation to any environmental organizations? Traditionals Total highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Traditionals

44. Consumer Pulse Research Program – Wave 1, September 2011 In their own words 44 What if I’m sitting here and I have my home cool, and they decide I’m running too much power? …I just do not need the federal government involved and placing these restrictions on the company that provides my power. That is an agreement between me and the company.” “Smart meters are going to be relying on computers, and there's no way that stuff is reliable. There's only one way our power comes in to us and they would have to add another line just for the grid. The part about power plants is a bunch of crap. It's not reducing any greenhouse emissions or anything.” “The smart grid, that certainly does make sense because it could effectively control how much electricity is being sent to certain areas, but as far as smart meters I would be very suspicious of them. I have no faith in any business. They don't have the public’s interest at heart.” “I don’t believe anybody should be able to regulate my power and take away my power at any time of the day. If I need an oxygen tank, I don't believe they should be able to tell me that I could only use it at a certain time of the day. As far as greenhouse emissions go, I don't think it would affect anything. It’s still coming from the same places.” “ Traditionals

45. Consumer Pulse Research Program – Wave 1, September 2011 Using market segmentation

46. Consumer Pulse Research Program – Wave 1, September 2011 Using market segmentation to address real world strategic and tactical issues Smart Grid/Smart Meter marketing manager −Understand which segments are most represented in your service territory −When launching Smart Meters, shape customer communications around the aspects that will speak to your customers, based on their segment membership. −Design a menu of targeted Smart Meter-enabled programs focused on distinctive needs and preferences by segment. Website management −Create clickpaths designed for each segment. When a customer arrives at the homepage, he sees a variety of statements. He selects which one that most represents his opinions and needs, and clicks on it. That takes him to a page designed for customers in that segment. That way, for example, the website could focus on money-saving opportunities for customers who are looking for them, while focusing on environmental aspects for other customers. 46

47. Consumer Pulse Research Program – Wave 1, September 2011 Companies can make strategic and tactical use of market segmentation in a variety of ways. Call center management… Channel management… Finance/accounting… Regulatory… Product development… 47

48. Consumer Pulse Research Program – Wave 1, September 2011 Appendix: Segment Overviews

49. Consumer Pulse Research Program – Wave 1, September 2011 49 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview Smart Grid KnowledgeTotalTraditionals Concerned Greens Young America Easy StreetDIY & Save I’ve heard the term, but don’t know much about what it means 24%23% 22%27%26% I have a basic understanding of what it is and how it would work 16%14%22%10%16%14% I have a fairly complete understanding of what it is, how it would work, and how it would affect homes and businesses 7%15%6%4%7%9% I have not heard that term 51%43%47%61%50%49% Don’t know 2%5%2%3%1%2% Smart Meter Knowledge I’ve heard the term, but don’t know much about what it means 23%20%24%22%23%24% I have a basic understanding of what it is and how it would work 18%22% 15%16%18% I have a fairly complete understanding of what it is, how it would work, and how it would affect 9%15%9%6%9%11% I have not heard that term 48%40%44%56%51%45% Don’t know 2% Smart Grid Favorability % Total Positive 52%29%61%48%53%50% Smart Meter Favorability % Total Positive 54%36%63%43%54%65% Smart Meter Installed in Home % Yes 27%15%30%26%23%36% Smart Grid and Smart Meter Implementation Support % Total Support 68%33%83%65%70%63%

50. Consumer Pulse Research Program – Wave 1, September 2011 50 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Improvements Due to Smart Grid/Smart Meter Technology Saving energy 16%12%19%11%16%18% Saving money 16%9%16%9%19%22% Need more information/ education 10% 12%11%12%6% Improved ability to manage energy usage 10%5%13%9%10% Negative mentions (no positive mentions noted) 7%14%3%14%5%7% Improved accuracy of electric bills 7%2%8% 7% Elimination of meter reading 6%3%4%5%10%8% Control over energy usage 3%2%4%3%2%5% Improved reliability 3% 0%4% 0%4%7% Easier to read meter 3% 0%3% 5%3% Good idea/helpful (unspecified) 2% 3%2%1% Better grid distribution 2%1%2% 0%6%1% Improved power quality 2%1%2% Environmental benefit 2%1%4% 0%1% 0% Faster restoration of service after an outage 1% 0%1%2% 1% Improved ability to use renewable energy 1%3%1% 0%1% 0% Have to build fewer power plants 1% 0%1% 0%1% 0% Other 7%6%10%5%3%11% Don’t know 19%24%17%20%19% Problems Due to Smart Grid/Smart Meter Technology Bills will go up 9%11%8%9%11%9% Loss of control 7%23%3%8%6%4% Cost to implement 5%2%7%6% 1% Accuracy concern 4%3% 5%7%1% Privacy concern 3%7%2%3%1%5% Technology is still unproved 3%1%4%3%4%2% Power reliability 2% 0%3%1%3%2% Loss of jobs 2% 1% Security concern 2% 0%4% 0%2%

51. Consumer Pulse Research Program – Wave 1, September 2011 51 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Likelihood to Participate in Energy Management Programs % Total Would Participate Using smart meter data for energy management 67%27%89%63%55%73% Critical peak pricing 62%13%91%49%53%66% TOU pricing 49%11%87%41%7%64% Energy Management Monitoring Options Choice: Free Website or $100 In–Home Device $100 in-home device 33%37% 28%33%28% Free website 56%43%57%54%58%61% Don’t know 7%10%4%11%6%9% Refused 4%10%2%7%3%2% Sub–Choice: Free Website or Free In–Home Device Free in–home device 59%42%63%60%53%61% Free website 31%32%29%27%36%32% Don’t know 7%17%6%8% 4% Refused 4%9%2%5%3% Message Effectiveness % Total Increase Support Protect the environment 78%37%93%78%81%72% Save money by using energy more efficiently 80%53%91%78%81%80% Give me more control of my home energy use 75%43%89%73%74% More reliable electric service and more timely power 80%54%90%77%83%80% Supports a more independent and secure energy future for America 78%50%86%78% More choices, allowing me to sign up for a range of rate plans 75%52%87%72%66%80% Helps people avoid wasting energy 80%47%92%80% 78%

52. Consumer Pulse Research Program – Wave 1, September 2011 52 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Most Convincing Reason to Implement Smart Grid/Smart Meter To help consumers save money 26%16%28%27%26%29% To help improve energy efficiency 25%15%31%22%24%26% To help meet demand for electricity 11%10%13%10% 12% To reduce outages 11%10%11%9%13%11% Remotely read/no meter readers 8%7%8%12%4%10% Accurate readings/bills 7%3%8% 7%9% To help reduce greenhouse gas emissions 7%5%10%5%8%6% To increase reliability 7% 8%3%8%9% To give people more control over how much electricity they use 6%3%8%3%7%6% To help the environment 6%1%9%4%8%1% To enable faster restoration of service after an outage 5%7%5%6%7%4% To give people near real time energy usage information 5%3%7%4%5% I like everything about it 5%4% 6% 5% To make it easier to use renewable energy sources 5%1%6%4% 5% Other 7%8%5%10%7%6% Don’t know 5%4%3%11%5% Most Important Reason Not to Begin Implementing Smart Grid/Smart Meter Cost (unspecified) 12%6%11%10%16% Increased cost to the customer 11%16%7%12%8%19% Cost to implement 11%9%12%5%12%14% Need more information 7%3%7%9%6%5% Eliminates jobs 6% 5%7%9%6% Too much government/ utility control 6%20%3%4%3%6% Reliabilty of the technology 5% 4% 5%6% No/None/Not any/Nothing 17%9%24%17% 9% Don’t Know 12%13%8%18%11%9%

53. Consumer Pulse Research Program – Wave 1, September 2011 53 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save It is Important to Me to Know My Home is Energy Efficient and That I Have Done All That I Can to Lower Energy Costs % Total Importance 93%85%97%96%89%90% Effort to Save Energy in Your Home Compared to Most People Much more effort 21%17%27%24%11%21% More effort 32%29%35%33%27%32% About average 45%46%36%42%59%45% Less effort 2%8%1% Much less effort 0%1% 0% 1% Shopping Habits %Total Agree I carefully research and compare products and brands before I choose the product that best meets my needs 89%83%94%83%88%91% In my household we like to ”do–it–ourselves” in order to save money 76%75%78%77%67%84% I would generally spend more on an environmentally–friendly product than on one that is not 74%39%91%77%74%58% I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store 55%50%62%40%61%57% Product Adoption %Total Agree I only buy new products or technologies after the ones I am currently using wear out or become obsolete 69% 68%72%69%70% I am always eager to be the first one to buy new products or technologies 19%9%24%20% 13% Appliance Efficiency %Total Agree I believe it is worth spending more on Energy Star appliances and electronics 78%62%87%78%79%72% It is too difficult to determine whether I will save money by buying energy–efficient products 33%37%28%41%27%35% Energy0%efficient products are too expensive–the extra cost outweighs the benefit 29%39%20%38%26%29% I like to buy appliances that save me time and effort–I am less concerned about how much energy they use 25%44%19%27%19%27%

54. Consumer Pulse Research Program – Wave 1, September 2011 54 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save EE Knowledge % Total Knowledgeable Actions I can take to make my home more energy efficient 75%74%80%69%73%76% How a smart meter can be used to help manage home energy consumption 48%43%54%46%45%49% Specific programs and services offered by your electric utility to help you use energy efficiently 43%45%44%43%39%41% Environmental Opinions %Total Agree I believe that saving energy helps the environment 95%61%100%98%99%97% I try to minimize my impact on the environment through my daily actions 87%71%99%90%83%74% The Government should take a stronger role in promoting energy efficiency and alternative fuel sources 75%25%93%85%84%46% I believe that global warming is real and we need to make immediate, substantial efforts to combat it 70%1%99%88%96% 0% In the last year, have you contributed your time or given a donation to any environmental organizations? 32%16%46%29%35%20% Energy management Opinions %Total Agree When I make an effort to save electricity in my home, I see a corresponding reduction in my electric bill 69%53%74%75%66%67% I have already done everything I can to save energy in my home 55%53%55%65%46%52% The most important thing about my home’s heating and cooling equipment is how comfortable it makes my family, not how much energy is used 53%66%43%61%54%49% I find the whole issue of energy efficiency difficult to understand 20%19% 29%17%16% The Most Important Reason to Save Energy The money I can save 26%40%16%31%18%38% For the future of our children and grandchildren 23%14%30%20%24%18% To reduce the need for foreign sources of energy 16%26%14%15% 19% The environmental benefits 15%4%19%16%21%6% To be socially responsible 10%4%14%8%12%8% To improve America’s ability to compete with other countries 5%6%4% 5%7%

55. Consumer Pulse Research Program – Wave 1, September 2011 55 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Beliefs, Attitudes and Viewpoints %Total Agree It is important to help others who are less fortunate 94%85%96% 88% I would like to set an example for young people 93%84%96%93%92%93% I like the challenge of doing something I have never done before 86%81%92%82%86%83% I would like to understand more about how the universe works 67%53%77%72%61%58% I don’t like it when others tell me what to do 62%68%60%59%63%65% My religion guides the way I live 58%66%48%60%51%75% I have more ability than most people 57%51%62%47%60%62% I like my life to be pretty much the same from week to week 52%61%43%58%50%61% I like being in charge of a group 48%42%59%38%48% I follow the latest trends and fashions 22%11%25%26%24%16% Current Financial Situation Much worse 11%24%6%15%6%13% Somewhat worse 22%24%22%24%16%24% About the same 46%37%49%44%52%40% Somewhat better 15%10%16%11%19%15% Much better 6%4%6%4%7% Overall Political Views Very liberal 8%4%11%9%13% 0% Somewhat liberal 22%5%31%21%29%6% Middle of the road 28%17%33%32%30%16% Somewhat conservative 23%32%15%22%17%42% Very conservative 15%38%6%12%9%32% Employment Status Employed full–time 47%39%55%27%56%54% Employed part–time 10%6%12% 8%9% Unemployed 8% 6%17%5%3% Retired 23%31%19%26%21% Homemaker 6%10%4% 6%8% Temporarily laid off 0%1%0%1%0% Student 1% 2% 0%1%

56. Consumer Pulse Research Program – Wave 1, September 2011 56 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Political Affiliation Democrat 36%8%47% 42%9% Republican 23%47%11%15%17%48% Independent 31% 34%29%30%31% Other 1%2%0% 1%3% None 4%3%4%5%4%5% Age 180%24 [19870%1993] 5%6%1%13%3% 0% 250%34 [19770%1986] 20%16%21%16%25%18% 350%44 [19670%1976] 19%22% 12%18%26% 450%54 [19570%1966] 21%14%25%20%22%20% 550%64 [19470%1956] 17% 18%15%17% 65 or older [19000%1946] 18%25%15%21%17%20% Race White 71%88%69%59%70%81% Black or African American 11%4%9%20%13%3% Hispanic or Latino 13%5%14%15% 12% Other 5%4%7%6%3%5% Gender Male 47%62%42%43%44%58% Female 53%38%59%57%56%42% Income <$30,000 23%15%5%74%4%11% $30,0000%$50,000 19%23%24%8%20%23% $50,0000%$100,000 26%25%34%7%31%35% $100,000+ 18%19%23%2%28%17% Low income 19%15%9%55%1%11% Education High School or less 18%22%12%27%16% Some College 29%30%25%39%23%31% College or Post–Graduate 52%47%63%33%60%53%

57. Consumer Pulse Research Program – Wave 1, September 2011 57 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Internet Accessed Most Frequently At my home/home computer 68%73%71%59%66%73% At work/office 12%10%18%4%15%10% Through a mobile phone 4%2%3%4%8%3% Public library 3% 0%1%7%2% Friend/relative’s house 2%1% 4%1% None/do not use the internet 12%15%6%21%8%11% Overall Satisfaction of Electric Utility % Total Satisfied 83%87%84%79%84%83% Overall Feelings of Electric Utility % Total Favorable 81%85%81%77%79%83% Average Electric Bill Less than $50 7%5%7%11%6% $50 to $100 32%20%32%39%30%31% $101 to $200 38%51%37%29%41%39% $201 to $300 12%14%11%10%12% $301 to $400 3%2%3%2%3%5% More than $400 2% 3%2% Included in rent 1% 0%1%0%2% 0% Smart Meter Installed at Home % Yes 27%15%30%26%23%36% Region New England 7%6%10%6%2%5% Middle Atlantic 13%7%19%12%5%14% East North Central 14%9% 18%19%15% West North Central 7%5%7%8% 9% South Atlantic 17%12%13%20%22%15% East South Central 7%17%4%9%6%4% West South Central 11%12%6%15%14%11% Mountain 8%16%9%2%8%11% Pacific 17%16%23%10%16%

58. Consumer Pulse Research Program – Wave 1, September 2011 58 highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence Segment Overview TotalTraditionals Concerned Greens Young America Easy StreetDIY & Save Home Ownership Own/buying 77%88%77%58%83%87% Rent 23%12%23%42%16%13% # of Bedrooms Mean 3.13.23.12.63.23.3 # People in Home Mean 2.93.0 2.42.83.1 # of people under 18 in HH Mean 1.0 1.10.81.01.3