EXHIBIT (CSP-REB-1) TO THE REBUTTAL TESTIMONY OF CUSTOMER SERVICES PANEL

Transcription

1 EXHIBIT (CSP-REB-1) TO THE REBUTTAL TESTIMONY OF CUSTOMER SERVICES PANEL

2 Improving Communication & Mitigating Media Impacts 750 JDP Residential Electric Survey DESIRED STATE = Top Quartile Overall Customer Satisfaction Index PSEGLI 2015 W1 PSEGLI 2015 W3 LIPA/PSEG Long Island LIPA 2013 CURRENT STATE LIPA/PSEGLI 2014 W3 PSEGLI 2015 W2 PSEGLI 2014 W % 0% 20% 40% 60% Recall Utility Communication (minus) Recall Media Story PSEGLI needs more investment in communications to increase recall utility communications. This will help move PSEGLI from the lower left hand quadrant to the upper right hand quadrant Source: J.D. Power MC-1

3 JD Power Residential 2015 Wave 1-3 Media news stories gave positive/negative impression of utility Nearly ¾ of respondents who recall Media Stories perceive these stories as very negative, negative or neutral, resulting in significant decline in overall satisfaction. Positive Media Stories result in higher customer satisfaction score (+165 pt difference) points MC-2

4 JD Power Residential 2015 Wave 1-3 Had Customer Service Interaction (past 3 months) +57 points Slightly under ¼ of respondents have had contact with customer service, either phone or online, within the last 3 months of the survey. Those with customer service interactions have higher overall satisfaction (+57 points). MC-3

5 PSEG Long Island Direct Contact Transactional Surveys Survey Baseline 2015 April YTD % Improvement 5 yr. Target Status Residential After Call 63.7% 90.6% 42% 83.3% Exceeded Business After Call 43.7% 86.7% 98% 83.3% Exceeded Energy Efficiency After Call 59.1% 92.4% 56% 85.0% Exceeded Major Account Executive 89.4% 91.9% 3% 92.0% On Target Electric Field Representative 94.6% 93.5% -1% 95.0% On Target Walk in Center 84.3% 89.4% 6% 90.0% On Target Baseline of customers who rated their contact experience with PSEGLI as satisfying or very satisfying has significantly improved with several exceeding their 5 year targets MC-4

6 Overall Satisfaction Climbs as Program Participation Increases Overall Customer Satisfaction Index Not aware 34% of Aware 56% of 13% 1 4% 2 2% 3 1% 4 5 or 1% more any offerings offerings but not participating Note: Out of 25 potential offerings Number of Offerings Currently Using As customers participate in more utility programs, their satisfaction grows exponentially (up to 257 pts) Source: J.D. Power MC-5

7 Long Island Is Aging Since 1960, the percentage of adults age 50 and older has grown by 70% Source: Long Island Index MC-6

8 JD Power W1-3: Demographics - D3 Age PSEG Long Island and PPL, PSE&G, BGE (combined results) PSEGLI respondents tend to be older than leading East large utility customers. Nearly half of PSEGLI respondents are 55 and older and less satisfied with their experience. 13% Under 35 49% Over 54 20% Under 35 41% Over 54 Developing targeted communication for these age groups through appropriate communication channels ( , direct mail) is essential to engage these customer segments. Source: J.D. Power MC-7

9 LIPA / PSEG Long Island OSA Contract Targets J.D. Power Electric Utility Study Communicating with all PSEG Long Island customers will be critical to informing them about new and improved services, and driving increases in customer satisfaction Source: PSEG/LIPA OSA metric MC-8

10 LIPA / PSEG Long Island OSA Contract Targets Customer Electronic Self-Service In order to engage non-participants in customer electronic self serve options, a diverse multichannel marketing campaign will be required. Low hanging fruit has already been gathered from aggressive campaigns in 2014/15 leading to diminishing returns for this channel Source: PSEGLI/LIPA OSA metric MC-9

11 LIPA / PSEG Long Island OSA Contract Targets Paperless Billing Paperless billing, one of the LIPA OSA component metrics, has an aggressive 5 year target. Communications to increase customer awareness, participation and satisfaction is part of the PSEGLI communications strategy Source: PSEGLI metric MC-10

12 and Direct mail are the two most preferred channels of communications Source: E Source MC - MC-11

13 The numbers for NYS show that as customers age, their preference for and direct mail communications increases Source: E Source MC-12

14 While distribution may be large, industry open rates can vary around the 20% rate meaning 80% of customers may not have seen your message Source: Questline Eservices MC-13

15 Direct mail allows for the specific targeting of customers with tailored messaging, in this case income eligible Energy Assistance prospects Source: PSEGLI MC-14

16 SMB == small, medium business 64% of large utilities in the USA and Canada spend on average over $5M on their marketing budgets Source: E Source MC-15

17 What successful marketing and advertising strategies have utilities used to raise awareness and participation in their Home Performance with Energy Star programs? The most common marketing channels that programs are using include direct mail, marketing, online banner ads, radio ads, and contests. According to NYSERDA, there is no marketing strategy that the organization hasn t used. NYSERDA s HPwES program has used many common consumer channels, such as billboards, radio, TV, newspapers, and online marketing. The possibilities are endless, but some of the best advertising that the organization has had is increasing energy prices. Every time people get their utility bills, requests for audits increase. Austin Energy s marketing department sends out about six mailers a year for the HPwES program, and the utility has found that these get the biggest bang for the buck. Customers can fill them out and send them back in. Those leads are distributed to the contractors. The utility has also advertised federal tax credits as well as created radio ads to help raise awareness. Salt River Project did a series of online banner ads to promote its HPwES program in SRP also sent [a] direct mail piece to a targeted group of customers who were selected based on their propensity to replace their HVAC systems or air conditioners. The utility experienced a 100 percent lift of website visits within three days of the drop dates and reached its overall goal of 1,400 completed assessments. Source: E Source MC-16

18 How do utilities use imagery to promote energy-efficiency programs to business customers? PPL developed a comprehensive marketing campaign using mass advertising. To raise awareness and support the efforts of trade allies, the utility leveraged extreme segmentation and highly targeted messaging to motivate action. The goal was to increase small business customer participation in the utility s E-power rebate programs to help support the company s energy efficiency and conservation plan and to meet state-mandated energy-reduction targets. Strategy and tactics. PPL developed a comprehensive multimedia campaign, including advertising (TV, digital, and print), marketing collateral (brochures and displays), a chamber of commerce effort, outreach teams, trade ally communications, social media, and a targeted direct mail stream (hard copy and ). Results. Across the targeted and segmented efforts, 647 small business energy-efficiency projects were tracked to this campaign, with total savings of 55,264,896 kilowatt-hours (kwh) per year. The campaign helped PPL exceed its energy-efficiency targets for the small business segment and contributed to the company exceeding its overall energy-efficiency target of billion kwh per year by 25 percent for the first phase of the state-mandated program. Source: E Source MC-17

19 What motivates noncompetitive utilities to advertise? Florida Power & Light ran a value and image campaign in 2011 and used TV, radio, print, and online media. The campaign s goal was to put the daily cost of electricity into perspective. According to FPL, Customers who saw our ad campaign rated us 8 points higher on customer value and on the overall effectiveness of our communications. Awareness of our key messages is at an all-time high above 90 percent as a result of the ad campaign. Which utilities have used television advertisements to promote home energy audit tools? Georgia Power s Sniff Out Savings campaign, which featured TV, print, and radio ads. This promotion generated a significant increase in the utility s audit program participation, from just 1,800 customers using the online energy checkup tool before the campaign kicked off to over 60,000 customers using the tool at the conclusion of the promotion Source: E Source MC-18

20 TV as a media channel on Long Island has the ability to deliver almost 3 times more customer impressions than a similar investment in Newsday Source: HN Media MC-19

21 JD Power W1-3: CC3 Familiarity with utility energy efficiency or conservation programs PSEG Long Island and PPL, PSE&G, BGE (combined results) 65% Unfamiliar 49% Unfamiliar Customer satisfaction rises as familiarity with energy efficiency and conservation programs increases. +84 Points Source: J.D. Power +64 Points PSEGLI customers are 16 percentage points behind leading east large utilities in program familiarity. Increased communications to the customers through multiple channels about our energy efficiency and conservation programs will provide additional opportunities for customers = % respondents to lower their bills. MC-20

22 Sampling of the 88 Newsday articles about PSEGLI May YTD, PSEGLI is currently not in market enough to counter this information Source: Newsday MC-21

23 Utilities across the country are facing the same budget, communication and messaging challenges Source: E Source MC-22

24 2015 JD Power W1-3 Recall utility communications (past 3 months) +54 Pts Overall Customer Satisfaction is higher for those who recall Utility Communications (+ 54 pts) = % respondents MC-20

25 With respect to receiving information around Energy Efficiency information, customers top 2 choices for communications: and direct mail Source: E Source MC - MC-21

26 JD Power W1-3: Average Monthly Bill & Fairness of Pricing PSEG Long Island and BGE Baltimore Gas & Electric (one of the leading utilities in the East Large region) customers report a higher monthly average bill than PSEG Long Island. Even in this high price environment, by effectively communicating with its customers through a mass media multichannel marketing campaign BGE customers now believe pricing is fair for the services provided. Source: J.D. Power MC-22

27 JD Power W1-3: BP1 Type of Monthly Bill Statement PSEG Long Island and PPL, PSE&G, BGE (combined results) +33 Points Satisfaction is significantly higher for those receiving Electronic statements. +57 Points A continued shift from Paper (> 75%) to Electronic will improve satisfaction. Leading East Large utilities have 50% more customers receiving electronic statements than PSEG Long Island. Promotions through multiple channels to encourage customers to go paperless will increase overall satisfaction with the utility. Source: J.D. Power = % respondents MC-23

28 JD Power W1-3: BP8 Online account set up on utility s website PSEG Long Island and PPL, PSE&G, BGE (combined results) +52 Points Significantly higher satisfaction is reported by respondents with online accounts. +58 Points PSEG Long Island is 11 percentage points below top East Large utilities in online account set up. Encouraging sign-up for My Account can increase convenience for a customer and overall satisfaction. = % respondents Source: J.D. Power MC-24