J.D. Power Reports: Overall Customer Satisfaction with Residential Electric Utilities Continues to Improve; However, Utilities Not Keeping Pace with Satisfaction Increases in Other Service Industries

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Jul 16, 2014, 09:00 ET

WESTLAKE VILLAGE, Calif., July 16, 2014 /PRNewswire/ -- Overall customer satisfaction with residential electric utilities has increased year over year driven primarily by improvements in corporate citizenship and outage communications, according to the J.D. Power 2014 Electric Utility Residential Customer Satisfaction Study^SM released today. However, the improvements in the electric utility industry are not keeping pace with those in a variety of other service industries.

The study, now in its 16th year, measures customer satisfaction with electric utility companies by examining six factors: power quality and reliability; price; billing and payment; corporate citizenship; communications; and customer service.

"Residential electric utilities have done a great job adding capabilities for proactive communications about outages and upping their corporate citizenship involvement. As a result, customer satisfaction levels have been improving over the past several years," said Jeff Conklin, senior director of the energy practice at J.D. Power. "However, when comparing satisfaction levels with many other service industries—such as television and telecommunication in which there is a physical connection to a home with a monthly bill payment arrangement—electric utilities are not improving at the same pace in overall satisfaction. Consumers are becoming more familiar with a higher level of service in their daily activities with other service providers and, as a result, their expectations are rising."

When looking at multiple comparable service industries[1] in which J.D. Power conducts research, overall satisfaction in the electric residential study is growing at the lowest average rate—4 index points per year over the past five years. In comparison, customer satisfaction with residential television service providers (cable TV) has increased by an average of 17 index points per year during the same time frame (to 699 on a 1,000-point scale in 2013), while satisfaction with residential Internet service providers (ISP) has increased by 10 points per year (to 683 in 2013).

KEY FINDINGS

Satisfaction in all six factors significantly improves in 2014, most notably in corporate citizenship (590), which increases by 12 points, and in customer service, which increases by 16 points year over year—the largest increase among all the factors. Satisfaction in all six factors reaches a six-year high in 2014, reflecting a steady improvement in the electric industry.
Communications satisfaction has steadily increased during the past six years, climbing to 592 in 2014 from 554 in 2009. Communication awareness has improved to 51 percent this year from 48 percent in 2013. Overall satisfaction increases to 701 when utilities proactively communicate outage information regularly and clearly via the channels customers prefer, including utility-initiated phone calls, emails, text messages and social media sites, compared with 624 when communication is not proactive.
Power quality and reliability, an important driver of customer satisfaction, has increased to 702 from 692 in 2013 and 677 in 2012. Customers experience much shorter outages in 2014 than in 2013. Among customers who experience an outage, the average longest outage is 5.6 hours, compared with 12.0 in 2013.
Overall satisfaction among electric utility residential customers has increased substantially in 2014 to 647, up 8 points from 2013 and 22 points since 2012.

Study Rankings
The Electric Utility Residential Customer Satisfaction Study ranks midsize and large utility companies in four geographic regions: East, Midwest, South and West. Companies in the midsize utility segment serve between 100,000 and 499,999 residential customers, while companies in the large utility segment serve 500,000 or more residential customers.

East Region
PPL Electric Utilities ranks highest among large utilities in the East region, followed by Duquesne Light; PECO; and West Penn Power, respectively.

Among midsize utilities in the East region, Southern Maryland Electric Cooperative ranks highest for a seventh consecutive year, followed by Penn Power; Delmarva Power; and Rochester Gas & Electric and Western Massachusetts Electric (in a tie), respectively.

Midwest Region
MidAmerican Energy ranks highest in the large utility segment in the Midwest region for a seventh consecutive year, followed by We Energies; DTE Energy; and Alliant Energy, respectively.

Lincoln Electric System ranks highest in the midsize utility segment in the Midwest region. Following Lincoln Electric System in the segment rankings are Omaha Public Power District, and Connexus Energy and Madison Gas & Electric (in a tie), respectively.

South Region
OG&E ranks highest in the large utility segment in the South region, followed by Georgia Power; Entergy Arkansas; and Alabama Power, respectively.

Walton EMC ranks highest in the midsize utility segment in the South region, followed by Sawnee EMC; Jackson EMC; and GreyStone Power, respectively.

West Region
Salt River Project (SRP) ranks highest in the large utility segment in the West region for a seventh consecutive year and receives an award in the study for a 13th consecutive year. Following Salt River Project in the segment rankings are SMUD; Portland General Electric; and APS, respectively.

Clark Public Utilities ranks highest in the midsize utility segment in the West region for a seventh consecutive year, followed by Colorado Springs Utilities; Seattle City Light; and Intermountain Rural Electric Assoc., respectively.

The 2014 Electric Utility Residential Customer Satisfaction Study is based on responses from 104,460 online interviews conducted from July 2013 through May 2014 among residential customers of the 138 largest electric utility brands across the United States, which collectively represent more than 96 million households.

Overall Customer Satisfaction Index Scores (Based on a 1,000-point scale)

East Region: Large Segment
PPL Electric Utilities	667
Duquesne Light	656
PECO	648
West Penn Power	647
PSE&G	646
BGE	643
Central Maine Power	643
Penelec	637
NSTAR	632
NYSEG	631
East Large Segment Average	626
Con Edison	625
National Grid	622
Appalachian Power	608
Connecticut Light & Power	608
Pepco	601
Jersey Central Power & Light	596
PSEG Long Island	532

Note: PSEG-LI overall results include survey responses from Long Island Power Authority from July 2013 through January 2014

East Region: Midsize Segment
Southern Maryland Electric Cooperative	703
Penn Power	666
Delmarva Power	650
Rochester Gas & Electric	637
Western Massachusetts Electric	637
Met-Ed	635
East Midsize Segment Average	628
Atlantic City Electric	627
Green Mountain Power	626
Mon Power	619
Public Service of New Hampshire	619
Central Hudson Gas & Electric	613
Potomac Edison	612
United Illuminating	608
Emera Maine	602
Orange & Rockland	592

Midwest Region: Large Segment
MidAmerican Energy	687
We Energies	666
DTE Energy	661
Alliant Energy	659
Xcel Energy-Midwest	658
Consumers Energy	647
Duke Energy-Midwest	644
Midwest Large Segment Average	644
Ohio Edison	643
KCP&L	641
Indiana Michigan Power	640
Ameren Illinois	639
The Illuminating Company	634
Ameren Missouri	631
AEP Ohio	627
ComEd	627
Westar Energy	619

Midwest Region: Midsize Segment
Lincoln Electric System	683
Omaha Public Power District	682
Connexus Energy	680
Madison Gas & Electric	680
Indianapolis Power & Light	670
Minnesota Power	669
Kentucky Utilities	665
Great Lakes Energy	664
Wisconsin Public Service	664
Louisville Gas & Electric	663
South Central Power	663
Midwest Midsize Segment Average	654
Dayton Power & Light	646
Toledo Edison	646
NIPSCO	618
Vectren	618
Empire District Electric	609
Kentucky Power	585

South Region: Large Segment
OG&E	696
Georgia Power	680
Entergy Arkansas	672
Alabama Power	671
Florida Power & Light	669
CPS Energy	666
Entergy Louisiana	665
Dominion Virginia Power	661
South Large Segment Average	658
Duke Energy-Carolinas	641
South Carolina Electric & Gas	638
Duke Energy-Progress	637
Tampa Electric	635
Duke Energy-Florida	610

South Region: Midsize Segment
Walton EMC	735
Sawnee EMC	730
Jackson EMC	729
GreyStone Power	723
NOVEC	722
SECO Energy	709
Santee Cooper	702
EPB	700
CoServ	699
Cobb EMC	683
Clay Electric Cooperative	680
Gulf Power	680
EnergyUnited	677
Rappahannock Electric Cooperative	676
Entergy Mississippi	674
Entergy Texas	674
Pedernales Electric	674
Xcel Energy-South	668
OUC	666
South Midsize Segment Average	664
Middle Tennessee EMC	660
Mississippi Power	655
Southwestern Electric Power	651
Public Service Co. of Oklahoma	649
Austin Energy	648
JEA	647
Lee County Electric Cooperative	647
Withlacoochee River Electric Cooperative	647
Knoxville Utilities Board	645
Lakeland Electric	636
Huntsville Utilities	632
Cleco Power	627
NES	622
MLGW	615
Entergy New Orleans	610

West Region: Large Segment
SRP	730
SMUD	706
Portland General Electric	699
APS	673
Southern California Edison	662
Rocky Mountain Power	658
West Large Segment Average	657
Pacific Power	654
San Diego Gas & Electric	652
NV Energy	650
Pacific Gas and Electric	643
Xcel Energy-West	643
Puget Sound Energy	641
L. A. Dept. of Water & Power	623


West Region: Midsize Segment
Clark Public Utilities	720
Colorado Springs Utilities	689
Seattle City Light	686
Intermountain Rural Electric Assoc.	681
Snohomish County PUD	673
Tacoma Power	670
Tucson Electric Power	668
West Midsize Segment Average	663
Idaho Power	662
Avista	658
NorthWestern Energy	655
Montana-Dakota Utilities	649
El Paso Electric	646
PNM	621

Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest

Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [email protected]
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; [email protected]

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[1] Sources: J.D. Power 2013 U.S. Residential Television Service Provider Satisfaction Study^SM and J.D. Power 2013 U.S. Residential Internet Service Provider Satisfaction Study^SM

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