Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans Data Collected by Woelfel Research Inc. Report Prepared by Joanne Binette

Transcription

1 Electric Utilities Regulation in Oklahoma: An AARP Survey of Oklahomans February 2003

2 Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans Data Collected by Woelfel Research Inc. Report Prepared by Joanne Binette Copyright 2003 AARP Knowledge Management 601 E Street NW Washington, DC Reprinting with Permission

3 AARP is a nonprofit, nonpartisan membership organization dedicated to making life better for people 50 and over. We provide information and resources; engage in legislative, regulatory and legal advocacy; assist members in serving their communities; and offer a wide range of unique benefits, special products, and services for our members. These include AARP The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; Segunda Juventud, our quarterly newspaper in Spanish; NRTA Live & Learn, our quarterly newsletter for National Retired Teachers Association members; and our Web site, We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Acknowledgements AARP staff from the Oklahoma State Office, State Affairs, and Knowledge Management contributed to the design and implementation of this study. Special thanks go to AARP staff including Sean Voskuhl, Oklahoma State Office; Susan Weinstock, State Affairs; Gretchen Straw, Knowledge Management; Cassandra Cantave, Knowledge Management; Darlene Matthews, Knowledge Management; Erica Dinger, Knowledge Management, and Jennifer Leslie, Knowledge Management. Joanne Binette, AARP Knowledge Management wrote the report. For more information, contact Joanne Binette, at (202)

4 Background In the 1990s some states deregulated their electric utilities allowing consumers to choose the company that generates their electricity. In 1997, a bill was passed in Oklahoma allowing electric deregulation to begin by 2002; however, this bill has not yet been implemented. Some believe that deregulation will bring lower rates and better service to everyone, while others argue that Oklahoma s electric utility rates are already among the lowest in the nation and therefore unlikely to go down more. In January of 2003, AARP conducted a telephone survey of 800 randomly selected Oklahoma adults age 50 and older to explore their opinions about the impact of electric utility deregulation on consumers. Specifically, this survey measures: Level of support and opposition for the deregulation of electric utilities; Circumstances that would change supporters of deregulation to opponents; Perception of the cost of monthly electric bills; Ease of understanding electric bills; Importance of utility consumer protections in the state; Importance of having a choice among electric providers. Highlights Oklahoma adults age 50 and older are divided on how strongly they support or oppose electric utility deregulation; however, more strongly oppose (25) deregulation than strongly support (16) it. Two in ten (18) are uncertain. Among supporters of electric utility deregulation, eight in ten say they would be opposed if they had to pay additional charges to cover the costs of deregulation (80) or if it resulted in less reliable service (78). Nearly half (48) of Oklahomans say their monthly electric bills have stayed the same over the past three years, and four in ten (40) say they have gone up. The majority (74) of Oklahomans think that it is very important to retain their current consumer protections if they were to switch electric companies. Oklahoma adults age 50 and older are divided on the importance of having a choice among electric providers: 48 say it is very or somewhat important while 47 say it is not very or not at all important. Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 1

5 Findings Oklahoma adults are divided on how strongly they support or oppose the deregulation of electric utilities in Oklahoma. More Oklahomans strongly oppose (25) deregulation than strongly support (16) it. There is also considerable uncertainty on this issue, as evidenced by the 18 percent of Oklahomans who say they don t know if they support or oppose electric utility deregulation. Support for and Opposition to Electric Utility Deregulation in Oklahoma (N=800) Somewhat oppose 17 Strongly oppose 25 DK/Refused 18 Somewhat support 24 Strongly support 16 Oklahomans who support electric utility deregulation would be opposed if they had to pay additional charges on their monthly electric bill to cover the costs of deregulation or if less reliable electric service resulted. Among the 40 percent who support electric utility deregulation in general, most would be opposed if they were made to pay additional charges to cover the costs of deregulation (80) or if less reliable service were to result from deregulation (78). Many supporters would also be opposed to deregulation if it meant increased solicitation by competing companies (65); their monthly bills were more difficult to understand (60); or if rates were different for different customers (59). Conditions Which Would Generate Opposition Among Supporters of Electric Utility Deregulation (n=318) Additional charges to cover deregulation costs Less reliable service More solicitation from competitors Lower rates for some, higher for others Bill would be more difficult to understand Strongly Oppose Somewhat Oppose Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 2

6 Approximately half of Oklahomans think their electric bills have stayed the same over the past three years. However, four in ten believe their electric bills have gone up. About half (48) of Oklahoma adults age 50 and older believe their electric bills have stayed the same over the past three years. Another four in ten (40) think their electric bills have gone up while about one in ten (8) believe they have gone down. Oklahomans find their monthly electric bills easy to understand. More than eight in ten (86) say their monthly electric bills are very or somewhat easy to understand. Only one in ten find their electric bills very or somewhat difficult to understand. Ease of Understanding Monthly Electric Bill (N=800) Very easy 60 Somewhat easy 26 DK/Refused 4 Somewhat difficult 7 Very difficult 3 Safeguarding consumer protections is extremely important to all Oklahomans. Oklahoma adults age 50 and older are virtually unanimous on the importance of consumers retaining the same consumer protections if they switch to a different electric provider: Nearly nine in ten (88) say this is very or somewhat important. Importance of Having the Same Consumer Protections if Switching to a Different Electric Provider (N=800) Very important 74 DK/Refused 4 Somewhat important 14 Not very important 2 Not at all important 5 *Note: Percentages may not add up to 100 due to rounding. Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 3

7 Oklahomans are divided on how important it is to have a choice among electric providers. Oklahoma adults age 50 and older are divided in their opinions about how important it is to be able to choose their electric provider. Nearly half (48) say it is very or somewhat important while the other half (47) say it is not very or not at all important. Importance of Having a Choice Among Electric Providers (N=800) Not very important 18 Not at all important 29 DK/Refused 5 Somewhat important 22 Very important 26 Conclusions Oklahomans are divided on whether they support or oppose deregulation of electric utilities in the state. However, most supporters of deregulation would shift to opposing deregulation if deregulation results in additional charges, less reliable service, more soliticitations from competing companies, different rates for different customers, or bills that are difficult to understand. Almost all Oklahomans think that keeping consumer protections in place in the event that they were to switch electric providers is important. Methodology In January 2003, AARP commissioned Woelfel Research, Inc. to conduct a Random Digit Dial (RDD) telephone survey of the adult population ages 50 and older in Oklahoma. A total of 800 interviews were completed. The survey was conducted between January 27, 2003 and February 5, 2003, yielding a 13 percent response rate and a 93 percent cooperation rate. 1 The survey has a sampling error of plus or minus 3.5 percent. This means that in 95 out of 100 samples of this size, the results obtained in the sample would fall in a range of ± 3.5 percentage points of what would have been obtained if every person age 50 and older in Oklahoma had been surveyed. Survey responses were weighted to reflect the distribution of age and gender in the adult population age 50 and older in Oklahoma. Weighted responses to all survey questions are in the attached annotated questionnaire. For more information about this study, contact Joanne Binette, AARP Knowledge Management, (202) The response rate is Response Rate 3 and the cooperation rate is Cooperation Rate 3 from the following publication: The American Association for Public Opinion Research Standard Definitions: Final Dispositions of Case Codes and Outcome Rates for Surveys. Ann Arbor, Michigan: AAPOR. Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 4

8 Annotated Questionnaire Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 5

9 Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans Telephone Survey---Sample: Unweighted N=800 Oklahomans Age 50+, Response Rate 13, Sampling Error= Weighted N=800 (Percentages may not add up to 100 due to rounding.) Introduction Hello, this is calling from vendor, a national opinion research firm. We are conducting a survey in Oklahoma to find out your opinions on electric utility services in the state. Your views are important and we would greatly appreciate your participation. Let me assure you, this is not a sales call and you will not be asked to buy anything either now or later. All of your responses are kept entirely confidential. The survey should take only about 7 minutes of your time. I1. RECORD GENDER OF PERSON WHO ANSWERED PHONE: 1) Male 2) Female I2. To make our study more representative of those living throughout Oklahoma, I need to speak with the youngest male who is at home right now and is at least 50 years old. 1) Person on phone is youngest male [SKIP TO S1] 2) Other person is youngest male and is coming to phone [SKIP TO I4] 3) Person is not available 4) REFUSED [SKIP TO R1] I3. Then may I speak to the oldest female who is at home right now and is at least 50 years old? 1) Person on phone is oldest female [SKIP TO S1] 2) Other person is oldest female and is coming to the phone [SKIP TO I4] 3) Person is not available [TERMINATE] 4) REFUSED [SKIP TO R1] Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 6

10 I4. Hello, this is calling vendor, a national opinion research firm. We are conducting a survey in Oklahoma to find out your opinions on electric utility services in the state. Your views are important and we would greatly appreciate your participation. Let me assure you, this is not a sales call and you will not be asked to buy anything either now or later. All of your responses are kept entirely confidential. The survey should take only about 7 minutes of your time. 1) CONTINUE 2) REFUSED [SKIP TO R1] Screening S1. Who is your current electric provider? 37 Public Service Oklahoma (PSO) 50 Oklahoma Gas and Electric (OG&E) 14 An Electric Cooperative that is NOT currently deregulated [TERMINATE IF HAVE AN ELECTRIC COOPERATIVE THAT IS CURRENTLY DEREGULATED] A Municipal Utility [TERMINATE] DON T KNOW (DO NOT READ) REFUSED (DO NOT READ) Note: The interviewers will have a list of all the electric cooperatives that are currently deregulated and all municipal utilities in the state. Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 7

11 Main Questionnaire [READ INTRODUCTION TO ALL RESPONDENTS] Over the past few years, a number of states have decided to allow consumers to choose the company that generates their electricity just as they currently choose their long distance telephone company. This is commonly referred to as electric utility deregulation. Some believe that deregulation will bring lower rates and better service to everyone, while others argue that Oklahoma s electric utility rates are already among the lowest in the nation and therefore unlikely to go down more. In 1997, a bill was passed in Oklahoma allowing electric deregulation to begin by 2002; however, this bill has not been implemented. 1. How important is it to you to be able to choose your electric provider in the same way as you choose your long distance telephone provider? 26 Very important 22 Somewhat important 18 Not very important 29 Not at all important 5 Don t know (DO NOT READ) 0 Refused (DO NOT READ) 2. In the past three years, do you think your electric bill has. 8 Gone down 40 Gone up 48 Stayed the same 4 Don t know (DO NOT READ) 0 Refused (DO NOT READ) 3. How easy or difficult is it to understand your monthly electric bill? Would you say it is. 60 Very easy 26 Somewhat easy 7 Somewhat difficult 3 Very difficult 4 Don t know (DO NOT READ) Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 8

12 4. How strongly do you support or oppose the deregulation of electric utilities in Oklahoma? 16 Strongly support 24 Somewhat support 17 Somewhat oppose (SKIP TO QUESTION 10) 25 Strongly oppose (SKIP TO QUESTION 10) 18 Don t know (DO NOT READ) [IF STRONGLY OR SOMEWHAT SUPPORT IN QUESTION 4, ASK QUESTIONS 5-9 AND ROTATE QUESTIONS] 5. Would you still support the deregulation of electric utilities even if it meant your monthly electric bill would be more difficult to understand? 10 Strongly support 26 Somewhat support 22 Somewhat oppose 38 Strongly oppose 4 Don t know (DO NOT READ) 6. Would you still support the deregulation of electric utilities even if there are additional charges or fees added on to your monthly electric bill to cover the deregulation costs to electric utilities? 6 Strongly support 11 Somewhat support 21 Somewhat oppose 59 Strongly oppose 4 Don t know (DO NOT READ) 0 Refused (DO NOT READ) 7. Would you still support the deregulation of electric utilities even if it meant less reliable service? 7 Strongly support 10 Somewhat support 19 Somewhat oppose 59 Strongly oppose 5 Don t know (DO NOT READ) Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 9

13 8. Would you still support the deregulation of electric utilities even if it meant you could be subject to more mail, telephone, and door-to-door solicitations from competing electric providers? 12 Strongly support 20 Somewhat support 18 Somewhat oppose 47 Strongly oppose 3 Don t know (DO NOT READ) 9. Would you still support the deregulation of electric utilities even if it meant lower rates for some people and higher rates for other people? 9 Strongly support 23 Somewhat support 19 Somewhat oppose 40 Strongly oppose 8 Don t know (DO NOT READ) 10. Currently, Oklahoma residents are guaranteed certain consumer protections with regard to service from their electric provider. These include rules regarding meter reading, deposit limitations, billing and late fees, average monthly payment plans, and service disconnections. How important is it for Oklahoma residents to have the same consumer protections when they switch from their current electric provider to a competitive electric provider? 74 Very important 14 Somewhat important 2 Not very important 5 Not at all important 4 Don t know (DO NOT READ) Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 10

14 D1. What is your marital status? Are you currently.. 59 Married 12 Divorced 2 Separated 21 Widowed 5 Or have you never been married? 0 Living with partner (VOLUNTEERED) <.5 Don t know (DO NOT READ) 2 Refused (DO NOT READ) D2. What is your age as of your last birthday? [RECORD IN YEARS] 39 Yes 39 No 19 Don t know (DO NOT READ) 3 Refused (DO NOT READ) D3. Are you or your spouse a member of A-A-R-P formerly known as the American Association of Retired Persons? [IF NOT MARRIED ASK, Are you a member ] 52 Yes 47 No 1 Don t know (DO NOT READ) D4. Thinking about your state elections for Oklahoma Governor and Legislators in the last ten years, which of the following best describes your voting behavior? Would you say you always vote, sometimes miss one, rarely vote, or never vote? 63 Always vote 24 Sometimes miss one 7 Rarely vote 6 Never vote <.5 Don t know (DO NOT READ) Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 11

15 D5. What is the highest level of education you have completed? (READ) 9 Less than high school 31 High school graduate or equivalent 32 Some college or technical training beyond high school 14 College graduate 12 Post-graduate or professional degree? <.5 Don t know (DO NOT READ) 1 Refused (DO NOT READ) D6. Which of the following best describes your current employment status? Are you currently. 31 Employed full-time 9 Employed part-time 47 Retired and not working 2 Unemployed and looking for work 4 Homemaker 7 Or something else? (Specify: Disabled 5 Self-employed 2) 1 Don t know (DO NOT READ) 1 Refused (DO NOT READ) D7. Are you Hispanic, Spanish, or Latino? 3 Yes 96 No 0 Don't know (DO NOT READ) 1 Refused (DO NOT READ) D8. What is your race? 86 White/Caucasian 4 Black/African American <.5 Asian 5 Native American or Alaskan Native 3 Other 0 Don t know (DO NOT READ) 1 Refused (DO NOT READ) Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 12

16 D9. Now, for statistical purposes only, please stop me when I get to the category that includes your household s income before taxes in Was it (READ) 9 Less than $10, $10,000 but less than $20, $20,000 but less than $30, $30,000 but less than $40,000 8 $40,000 but less than $50, $50,000 but less than $75, $75,000 or more 4 Don t know (DO NOT READ) 17 Refused (DO NOT READ) D10. What is your 5-digit zip code? D11. Is the area where you live considered urban, suburban, small town, or rural? 22 Urban 18 Suburban 34 Small town 24 Rural 2 Don t know (DO NOT READ) 1 Refused (DO NOT READ) D12. Respondent gender: 45 Male 55 Female Electric Utility Regulation in Oklahoma: An AARP Survey of Oklahomans 13

17 AARP Knowledge Management For more information contact Joanne Binette (202)