Metro Magazine

JAN 2013

Magazine serving the bus and rail transit & motorcoach operations since 1904

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The microgrid manager, PJM, manages all the major power suppliers in the Northeast, which produce energy at various rates, balancing the supply and demand. PJM pays SEPTA to charge and discharge the battery at the rate they need to help balance the load. Over the last decade, as new sources of energy come online — particularly renewables, such as wind and solar — the ability to regulate energy became more difficult. "You can't make the wind blow harder when you need more power," Gillespie says. "Frequency regulation balances the load and supply." The battery is projected to decrease the agency's electric bills, promising a savings of about $190,000 per year. The savings generated from the regenerative braking will be used to help fund SEPTA's sustainability initiatives. "We're doubling the benefit of the battery, financially, [with] this multi-purpose use," Gillespie says. of capital and hundreds of thousands of potential new riders over the summer. Additionally, the discounted rate will encourage more people to use the 3-Day pass, which offers a better value than the pay-as-you-go option. The CTA Groupon also cultivates new riders and eventually captures permanent local customers, expanding the ridership base. Groupon is selling the passes on its Chicago, Indianapolis, Milwaukee and Detroit websites, as well as travel discount sites. The deal-of-the day service also reaches out-of-towners through the company's "Getaways" section, which offers deals on hotels and travel. CTA's 3-Day passes are heavily used by tourists and this deal will help further expand that market, particularly for festivals and weekend activities, DAILY DEAL PROMOTION While looking into different revenue opportunities to diversify its nonfarebox revenue last year, CTA decided to make some of its passes available through Groupon, the popular dealof-the-day website. With Groupon's estimated 36.9 million active customers and nearly 900,000 daily page views, CTA spotted an opportunity to advertise to a national and international audience. CTA partnered with Groupon to offer discounted 3-Day passes to riders, marking the first-ever partnership between the Chicago-based daily deal site and a U.S. transit agency to sell fare media, according to CTA. The ongoing discount started at the end of June. Groupon pre-purchased 250,000 3-Day passes and paid CTA $1.8 million upfront. Each pass is sold for $7.53 wholesale and offered to Groupon members for $9 instead of $14, the current price of a 3-Day pass. The offer has a limit of four per person. Groupon will own the cards it purchases until they are sold and is responsible for selling the passes. The deal was a win-win for the agency, bringing it an immediate influx JANUARY 2013 mETRO mAGAZINE > 55

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