J.D. Power Reports: Satisfaction Rebounds for Gas Utility Companies Driven by Proactive Communication

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1 w J.D. Power Reports: Satisfaction Rebounds for Gas Utility Companies Driven by Proactive Communication MidAmerican Energy; Oklahoma Natural Gas; Southern California Gas Company; and Washington Gas Rank Highest in Satisfaction in Their Respective Regions WESTLAKE VILLAGE, Calif.: 12 March 2014 Satisfaction rebounds for gas utility businesses from 2013 driven by increases in proactive communication, according to the J.D. Power 2014 Gas Utility Business Customer Satisfaction Study SM released today. Now in its ninth year, the study measures customer satisfaction among business customers with their gas utility company in four regions: East, Midwest, South and West. Each of the 54 brands included in the study serve at least 25,000 business customers, or 3.5 million in total. Overall satisfaction is measured by examining six factors: billing & payment; corporate citizenship; price; communications; customer service; and field service. Gas utilities are beginning to understand that business customers want to be proactively informed, said Jeff Conklin, senior director of the energy practice at J.D. Power. Whether it is an in-person visit from an account representative, an from the utility or calling the business customer directly, satisfaction is positively impacted when more of these touch points occur on a regular basis. KEY FINDINGS Overall satisfaction among gas utility business customers averages 687 (on a 1,000-point scale), a 30- point improvement from 657 in Satisfaction improves in each of the six factors year over year, with the greatest increase in price (+36 points), followed by corporate citizenship (+33) and communications (+31). Proactive communication via channels that gas business customers prefer drives satisfaction. On average, the number of proactive customer contacts such as an in-person visit, telephone call or from a utility representative has increased to 3.1 from 2.7 during the past six months. Preferred customer service channels include communication from their utility by (30%); from their assigned account representative (30%); or by calling a business services center phone number (16%). Recollection of communication via a utility s digital channels including website, blog, social media, or text message has increased to 35 percent from 31 percent in Awareness of a utility s corporate citizenship efforts remains an important driver of satisfaction, with 28 percent of gas business customers indicating they are aware of their utility s donations and sponsorships, compared with 24 percent in Additionally, awareness of utility employees volunteering/working in a community rises to 26 percent from 22 percent year over year. (Page 1 of 2)

2 Study Rankings East Region Washington Gas ranks highest in overall satisfaction in the East region with a score of 705, followed by PECO with 694 and Con Edison with 693. Midwest Region MidAmerican Energy (712) ranks highest for a second consecutive year. Following in the rankings are Xcel Energy-Midwest (698) and Laclede Gas (697). South Region Oklahoma Natural Gas (737) ranks highest among gas utilities in the South region for the first time. South Carolina Electric & Gas (731) ranks second, followed by Texas Gas Service (714). West Region Southern California Gas Company ranks highest in satisfaction for a second consecutive year in the West region, with a score of 722. Following in the regional rankings are NW Natural (710) and Questar Gas is tied with Southwest Gas (705). The 2014 Gas Utility Business Customer Satisfaction Study is based on responses from more than 9,500 online interviews with business customers who spend at least $200 monthly on gas. The study was fielded from May through July 2013 and October through December Media Relations Contacts Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; ; jperlman@brandwarepr.com John Tews; Troy, Mich.; ; media.relations@jdpa.com About J.D. Power and Advertising/Promotional Rules About McGraw Hill Financial # # # (Page 2 of 2) Note: Four rank charts follow.

3 East Region Washington Gas 705 PECO 694 Con Edison 693 BGE 684 PSE&G 676 UGI 675 National Fuel Gas 674 East Region Average 674 New Jersey Natural Gas 669 Columbia Gas of Pennsylvania 667 National Grid 659 Philadelphia Gas Works 620 Source: J.D. Power as the publisher and the J.D. Power as the source.

4 Midwest Region Source: J.D. Power as the publisher and the J.D. Power as the source.

5 South Region Source: J.D. Power as the publisher and the J.D. Power as the source.

6 West Region Note: Included in the study, but not ranked due to insufficient sample size are Cascade Natural Gas, Intermountain Gas Company, Montana-Dakota Utilities, and NorthWestern Energy. Source: J.D. Power as the publisher and the J.D. Power as the source.