J.D. Power Reports: Electric Utilities Achieve Highest Level of Business Customer Satisfaction since 2009

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1 w J.D. Power Reports: Electric Utilities Achieve Highest Level of Business Customer Satisfaction since 2009 Satisfaction Improves for More than 80 Percent of Utilities for Second Consecutive Year WESTLAKE VILLAGE, Calif.: 14 January 2015 Business customer satisfaction with their electric utility has hit its highest mark since 2009, based primarily on a substantial year-over-year increase in satisfaction with power quality and reliability, which, in turn, is driven by a significant improvement in utilities efforts to provide more accurate outage information, according to the J.D. Power 2015 Electric Utility Business Customer Satisfaction Study SM released today. The study measures satisfaction among business customers of 101 U.S. electric utilities, each of which serves more than 25,000 business customers. In aggregate, these utilities provide electricity to more than 12 million customers. Overall satisfaction is examined across six factors (listed in order of importance): power quality and reliability; billing and payment; corporate citizenship; price; communications; and customer service. Satisfaction is calculated on a 1,000-point scale. Reaching its highest score in the past seven years, overall satisfaction among electric utility business customers is 677 in 2015, compared with 617 in 2009 a significant 60-point increase. Additionally, satisfaction increases by 15 points from 2014 (662). Performance improvement in 2015 is driven by a sharp year-over-year rise in satisfaction with power quality and reliability (+19 points), which is bolstered by a notable improvement in utilities efforts to provide more accurate information about outages. In addition, this is the second consecutive year of improvement for more than 80 percent of the electric utilities included in the study, regardless of whether they rank among the highest- or lowest-performing companies. It s important to note that many electric utilities that have traditionally ranked at the low end of the overall index now include in their business goals initiatives that are aimed at improving customer satisfaction, said Andrew Heath, director of the energy practice at J.D. Power. Among those utilities, several are posting substantial increases in satisfaction as a result. When utilities highly satisfy its customer base, there is a quantifiable positive impact on profitability and credit ratings for the utility. KEY FINDINGS Power quality and reliability satisfaction among business customers who receive outage information (713) is 143 points higher than among those who do not receive such outage information (570). Utility communications positively impact satisfaction. Overall communications satisfaction among customers who recall receiving a communication from their utility is 74 points higher than among those who do not recall any communication. The percentage of business customers recalling a communication from their utility has increased to 55 percent in 2015 from 51 percent in Online account setup among business customers has grown to 57 percent in 2015 from 33 percent in Nearly three-fourths (72%) of business customers resolve their problem or issue online during (Page 1 of 2)

2 the first contact, compared with 69 percent of those who resolve their problem by phone during the first contact. Overall satisfaction is highest among industrial business customers (682) and lowest among healthcare customers (675). Study Rankings Within each of the four geographic regions included in the study, utility providers are classified into one of two segments: large (serving 85,000 or more business customers) and midsize (serving between 25,000 and 84,999 business customers). Rankings within each region and segment are as follows: East Region PSE&G ranks highest among large electric utility providers in the East Region, with a score of 685. Among midsize electric utilities in the East Region, Delmarva Power ranks highest with a score of 691. Midwest Region In the Midwest Region, MidAmerican Energy (718) ranks highest among large electric utilities for a second consecutive year. Omaha Public Power District (728) ranks highest among midsize utilities. South Region Georgia Power (731) ranks highest among large utilities in the South Region for a third consecutive year. Among midsize electric utilities, Gulf Power ranks highest (731). West Region SRP (Salt River Project) ranks highest among large electric utilities in the West Region for a second consecutive year, with a score of 741. Among midsize electric utility providers, Seattle City Light ranks highest with a score of 716. The 2015 Electric Utility Business Customer Satisfaction Study is based on responses from 22,857 online interviews with business customers who spend at least $200 monthly on electricity. The study was fielded from April through June 2014 and July through November Media Relations Contacts John Tews; Troy, Mich.; ; About J.D. Power and Advertising/Promotional Rules About McGraw Hill Financial # # # (Page 2 of 2) Note: Eight rank charts follow.

3 East Region: Large Segment PSE&G PPL Electric Utilities Con Edison National Grid NYSEG BGE East Large Segment Average NSTAR Jersey Central Power & Light PECO Appalachian Power Connecticut Light & Power 626 PSEG Long Island 595 Source: J.D. Power

4 East Region: Midsize Segment Delmarva Power 691 United Illuminating 689 Rochester Gas & Electric 659 Duquesne Light 654 Met-Ed 654 Central Maine Power 652 Penelec 646 East Midsize Segment Average 644 Public Service of New Hampshire 639 West Penn Power 639 Pepco 635 Atlantic City Electric 619 Note: Included in the study, but not ranked due to insufficient sample size are Central Hudson Gas & Electric, Green Mountain Power, Mon Power, Orange & Rockland and Potomac Edison. Source: J.D. Power

5 Midwest Region: Large Segment MidAmerican Energy Xcel Energy-Midwest KCP&L DTE Energy We Energies Consumers Energy Midwest Large Segment Average Ohio Edison Duke Energy-Midwest Alliant Energy Ameren Illinois Ameren Missouri ComEd AEP Ohio Source: J.D. Power

6 Midwest Region: Midsize Segment Omaha Public Power District 728 WPS 699 Indianapolis Power & Light 691 Indiana Michigan Power 690 Kentucky Utilities 686 Dayton Power & Light 681 Midwest Midsize Segment Average 674 Louisville Gas & Electric 670 Westar Energy 665 The Illuminating Company 659 NIPSCO 612 Note: Included in the study, but not ranked due to insufficient sample size are Empire District Electric and Toledo Edison. Source: J.D. Power

7 South Region: Large Segment Georgia Power 731 Alabama Power 729 OG&E 723 Entergy Arkansas 706 Florida Power & Light 700 South Large Segment Average 698 Entergy Louisiana 696 Dominion Virginia Power 691 South Carolina Electric & Gas 687 Duke Energy-Carolinas 678 Duke Energy-Progress 672 Duke Energy-Florida 667 Source: J.D. Power

8 South Region: Midsize Segment Gulf Power 731 Entergy Mississippi 722 Entergy Texas 711 CPS Energy 707 JEA 705 Public Service Co. of Oklahoma 692 South Midsize Segment Average 689 OUC 684 Austin Energy 677 NES 657 Tampa Electric 655 MLGW 623 Note: Included in the study, but not ranked due to insufficient sample size are Cleco Power, Mississippi Power, Santee Cooper, Southwestern Electric Power and Xcel Energy-South. Source: J.D. Power

9 West Region: Large Segment SRP 741 Portland General Electric APS Pacific Power Rocky Mountain Power NV Energy Southern California Edison Xcel Energy-West West Large Segment Average San Diego Gas & Electric Puget Sound Energy Pacific Gas and Electric L.A. Dept. of Water & Power Source: J.D. Power

10 West Region: Midsize Segment Seattle City Light 716 SMUD 713 Avista 704 West Midsize Segment Average 691 Idaho Power 685 PNM 684 NorthWestern Energy 679 Tucson Electric Power 678 Note: Included in the study, but not ranked due to insufficient sample size are El Paso Electric and Snohomish County PUD. Source: J.D. Power

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