Nest Expands Energy Business to More Than 50 Energy Providers; Nest Thermostat Rebates and Rewards Available to 30 Percent of U.S. Homes

Energy Providers See Value in Energy Efficiency of Nest Thermostat Combined with Nest’s Rush Hour Rewards Demand Response Service

PALO ALTO, Calif.--(BUSINESS WIRE)--Nest Labs, Inc. (www.nest.com), today announced continued growth in its energy business with the addition of more than 50 energy providers now working together with Nest to offer Nest Learning Thermostat rebates and rewards for residential customers. Along with the significant energy efficiency (EE) savings and enhanced customer engagement offered by the Nest Thermostat, many of these partners are also participating in Rush Hour Rewards (RHR), Nest's demand response (DR) service.


"A new study by Navigant Research predicts that integrated demand-side management spending will rise from just $40 million this year to $1.2 billion in 2025"
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More than 30 percent of homes in the U.S. now have access to a Nest Thermostat rebate or RHR program through their energy provider. Additionally, the number of customers enrolled in Nest's RHR programs has more than doubled in the last year.

"A new study by Navigant Research predicts that integrated demand-side management spending will rise from just $40 million this year to $1.2 billion in 2025," said Ben Bixby, director of energy and enterprise business, Nest Labs. "This research is consistent with the growing interest we're seeing in our Rush Hour Rewards service. And more than ever, energy providers are finding value in programs that offer both EE and DR components -- our new Kansas City Power and Light program is a great example of that."

KCP&L new program with Nest

The Kansas City Power and Light (KCP&L) RHR program takes advantage of Nest's cost-effective DR capacity along with significant EE savings and enhanced customer engagement.

Partnering with Nest, KCP&L is implementing a residential demand-side management (DSM) program designed to replace and expand upon KCP&L's existing programmable thermostat program. Through the program, customers can receive a free Nest Thermostat with the option for free professional installation, or a $50 credit for self-installation, when they agree to participate in KCP&L's RHR program. Customers will also receive a $25 annual participation incentive following their first year of participation.

Nest brings cost-effective DR while delivering customer satisfaction and engagement

By using the Nest Thermostat as the platform, Nest embedded DR in a product that is a leader the connected home category, and is being purchased in large volumes by customers. Using the sophisticated algorithms of the Nest Thermostat, Nest built a solution that tailors each event to the individual customer's preferences and home characteristics. As a result, Nest has earned high customer satisfaction scores, with more than 85 percent of participating customers saying they would recommend RHR to friends and family. In addition, more than 56 percent of RHR participants indicate that they are more satisfied with their energy provider due to their participation.

Beyond driving customer satisfaction, RHR delivers a competitive DR solution that uses pre-cooling and custom algorithms to significantly reduce A/C usage during peak periods. According to Nest estimates, customers enrolled in Rush Hour Rewards reduced A/C usage during events on average by over 55 percent, with some programs averaging more than 70 percent. Nest enables its energy provider partners to manage their Rush Hour Rewards program through a stand-alone interface that includes event dispatch tools, performance reporting, and customer enrollment verification and grouping.

Nest has successfully launched RHR programs with a diverse variety of energy partners in the U.S. and Canada, including investor-owned utilities like Southern California Edison and Commonwealth Edison, municipal utilities like Austin Energy and CPS Energy, and competitive energy retailers like NRG and Direct Energy.

Additional new Nest energy partners and programs

Commonwealth Edison - ComEd provides service to approximately 3.8 million customers across Illinois, or 70 percent of the state's population. ComEd is offering residential customers a $100 rebate on the Nest Thermostat. This is a part of the ComEd Smart Ideas Energy Efficiency Program that targets saving 11 million MWh of electricity.
Enbridge Gas Distribution - Enbridge delivers natural gas to 2 million homes and businesses across Ontario. Enbridge is offering residential customers a $100 bill credit for purchasing a Nest Thermostat.
Vectren - Vectren serves more than 1 million customers in adjoining service territories that cover nearly two-thirds of Indiana and about 20 percent of Ohio. As part of its pilot study, Vectren is providing select Indiana customers with a Nest Thermostat at no cost and Rush Hour Rewards. Vectren is also offering residential customers in Indiana and Ohio a $100 rebate on the Nest Thermostat.
United Cooperative Services - United serves more than 55,000 members in North Texas. United is offering residential members up to a $110 rebate when they enroll in Rush Hour Rewards, and an additional $50 if they replace an existing thermostat that's not wi-fi enabled.
CoServ Electric - The second-largest electric cooperative in Texas, CoServ serves more than 170,000 members in North Texas. CoServ is offering residential members a $100 electric bill credit when they enroll in Rush Hour Rewards.
Georgia Power - Georgia Power provides service to 2.5 million customers in all but four of Georgia's 159 counties. Georgia Power is offering residential customers a $100 rebate on the Nest Thermostat.
Santee Cooper -- Santee Cooper, South Carolina's largest power producer, is offering its retail customers a $125 rebate on the Nest Thermostat.
Portland General Electric - PGE serves 852,000 residential, commercial and industrial customers in Oregon. PGE is offering customers up to a $75 rebate for participating in Rush Hour Rewards, plus more every year. PGE is the first Nest partner to offer Rush Hour Rewards in both the summer and winter.
Puget Sound Energy - PSE serves more than 1 million electric customers and more than 790,000 natural gas customers in the Puget Sound area. PSE is offering residential customers a $75 rebate on the Nest Thermostat.
Additional rebates and rewards for the Nest Thermostat found can be at nest.com/rebates.

About Nest

Nest's mission is to create a home that's thoughtful -- one that takes care of itself and the people inside it. The company focuses on simple, beautiful and delightful hardware, software and services. The Nest Learning Thermostat™ and Nest Energy Services keep you comfortable and address home energy consumption. The Nest Protect™ smoke and carbon monoxide alarm helps keep you safe and Nest Safety Rewards lets you save money through participating home insurance providers, while Nest Cam™ keeps an eye on what matters most in your home. Nest products are sold in the U.S., U.K., Canada, France, Belgium, Ireland and the Netherlands and are installed in more than 190 countries. The Nest Learning Thermostat has helped save approximately seven billion kWh of energy to date. Through the Works with Nest program, third-party products can securely connect with Nest devices to make homes safer, more energy efficient, and more aware. For more information, visit www.nest.com.

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