Residential Consumer Satisfaction Jumps

JULY 23, 2010

Better service reliability and lower monthly bills led to an increase in the satisfaction level of residential electric utility customers this year, according to J.D. Power & Associates’ annual satisfaction study, released last week. Several electric cooperatives scored strongly in the study and received high satisfaction rankings.

Overall customer satisfaction averaged 630 on a 1,000-point scale in this year’s study, increasing from 618 in 2009. Customer-reported bill amounts decreased by 5 percent from 2009, and power reliability improved, with service interruptions falling by 8 percent.

“Utility companies are continuing to improve when it comes to managing customer expectations around power outages and restoration of service,” said Jeff Conklin, senior director of the Energy and Utility Practice at J.D. Power. “Even though outages can have a negative impact on satisfaction, utility providers who manage these incidents properly—by providing sufficiently detailed information about the outage and restoring power when they say they will—may be able to mitigate declines, or even improve satisfaction.”

The study also found that customer awareness of utility actions to implement smart grid technology is relatively low. But when customers are aware of smart grid technology and their utility’s plans for it, satisfaction increases notably. “This presents an important opportunity for utility companies seeking to increase customer satisfaction,” J.D. Power said. It also can have a bearing on rate case decisions.

“As state governments and utility companies develop infrastructure and implementation strategies for smart grids and smart meters, it will be critically important for them to incorporate the voice of the customer in their plans,” Conklin said.

A number of cooperatives received high scores in this year’s study. Among midsize utilities in the East region, Southern Maryland Electric Cooperative ranked highest for a third consecutive year, with a score of 662. In the South, Jackson EMC took top honors with a score of 707, while Northern Virginia Electric Cooperative placed second. SECO Energy, Sawnee EMC and Clay Electric Cooperative also placed in the top six. Results of the 2010 Electric Utility Residential Customer Satisfaction Study, as well as a video of highlights, are available on J.D. Power’s website.