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Portable Cell Chargers a Potentially Big Marketing Opportunity for NRG, If Noting Else

March 17, 2014

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Karen Abbott and Paul Ring
kabbott@energychoicematters.com • ring@energychoicematters.com

NRG Energy's offering of portable cell phone chargers at the currently ongoing Houston Livestock Show and Rodeo represents a unique and innovative marketing opportunity that can be replicated at a number of venues or other locales where NRG currently has, or will have, a physical presence, though NRG considers the portable chargers to be a pilot and would not discuss specific plans for the devices.

Currently, at the Houston Rodeo, NRG is offering for rent "Portable Power" mobile device chargers as part of its promotional activities at the Rodeo. Customers simply pay via credit card for the wireless device chargers at one of several automated kiosks (Portable Power stations) on the grounds, and return the charger at the kiosk or additional dropboxes.

A mobile charger rental costs $2.99 per day. The chargers work with all Apple iPhones and Android, Windows, and Blackberry phones that use Micro-USB charging plugs, as well as iPads and other tablets (though not providing a full charge for tablets)

NRG told EnergyChoiceMatters.com that Portable Power is a pilot. "We tested the concept for the first time [at] the Grand Prix of Houston in June. This is our first pilot of the Portable Power stations," NRG told EnergyChoiceMatters.com

The kiosks as well as the individual chargers currently include the NRG logo.

Although a pilot, it's easy for us to see the potential future applications of the service. In addition to just the logo (which could in the future be one of NRG's specific retail brands), we see the potential for the charger and kiosk to include a specific web address with a special promotional retail supply offer for power charger renters.

We believe, therefore, that the chargers represent a unique opportunity for both branding and for pushing customers to specific offers. Unlike other items that retail suppliers may give away at public events (t-shirts, frisbees, etc.), customers seek out the power chargers, carry them around throughout the day, and directly interact with them. Moreover, the chargers directly relate to power supply, creating a connection in the customer's mind between electricity and NRG.

NRG told EnergyChoiceMatters.com that NRG Portable Power is a pilot program. "Plans for how we market the service and/or the devices themselves are still in development," NRG said.

However, NRG did confirm that, "NRG Portable Power will be available at other events and festivals." Specific plans are still in development.

"At NRG, we are focused on providing energy to consumers in new, innovative ways. We power homes and businesses and now we power people on the go. NRG Portable Power will be available at events and festivals. Specific plans about how we market this service and the devices are still in development," NRG said.

We see NRG as uniquely situated to leverage the portable charger solution through two channels -- its NFL and other stadium sponsorships, and its eVgo electric vehicle charging network.

NRG has various sponsorships or partnerships with several NFL stadiums (the respective homes of the Patriots, Giants/Jets, Eagles, Redskins, Texans, and 49ers).

With NFL fans increasingly content to watch multiple games, not just one, in hi-def from the comfort of their homes, we see stadiums as trying to enhance the customer experience, and a mobile-friendly environment, to allow fans to stream clips of other action around the NFL, seems like a no-brainer. Wiring 75,000 seats is impractical, but offering fans a mobile charger for rent appears to be a viable solution. With the NFL increasingly restricting what customers may carry into the stadium, offering a portable charging solution for rent on-site also appears pragmatic.

Notably, all but one of the NFL stadiums with which NRG has a partnership are in active retail electric markets, and we see adding a portable power charger to NRG's existing marketing efforts at those stadiums as opening new avenues to reach customers.

Aside from stadiums, we see portable mobile charging devices as making sense in any public setting in which the customer spends considerable hours -- particularly shopping, dining, and entertainment environments. Such environments are also, we believe, where NRG would generally seek to install (or already has) its eVgo electric vehicle charging infrastructure (though we understand specific installations are also heavily driven by specific retail merchant partners). In any event, it would seem to us that many places with an NRG eVgo charging station (those at malls, promenades, etc.) would also be natural candidates for the installation of a Portable Power station, to allow customers to rent an NRG-branded mobile device charger for a few hours.

Aside from renting the chargers, we see the potential for NRG to offer free portable charger rentals as a perk for enrolling onto an electricity plan, or for reaching certain loyalty milestones.

Thus far, we have focused on the portable power chargers as a marketing tool for NRG at sites with existing NRG partnerships, but we see a potential for NRG to not only use the chargers as a sponsorship tool, but to become a mobile charging solutions provider to other properties. Specifically, we see the potential for NRG to offer a portable power charger rental solution, on a turnkey basis, to various public arenas -- stadiums, malls, airports, etc., similar to its eVgo offering.

Additionally, like eVgo, we see the potential to sell (or otherwise provide) the individual power chargers directly to end users, rather than renting chargers to the public for one-time use. Depending on their capabilities, portable chargers for mobile devices generally cost anywhere from $30 to $200, and we do not know at what price NRG's specific device would retail.

But we see the potential for NRG to either sell the units on a stand-alone basis, or include them as a bundle and/or reward for enrolling on a specific retail electric supply plan.

Regarding the potential sale of the portable power chargers, NRG's website for the chargers, nrgstation.com, states:

"Are these chargers for sale? Can I buy one? Where can I buy it?"

"Unfortunately, our Portable Power stations only rent chargers at this time. However, NRG Energy is in the process of developing a charger with even better capabilities than the chargers available at the Houston Livestock Show and Rodeo! We want you to have the best of the best."

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