Potential Fault Lines Under the Utility’s Customer Strategy

Potential Fault Lines Under the
Utility’s Customer Strategy
Annual State of the Utility Customer
© 2020 Distributed Energy Financial Group LLC
Consumer Survey Report No. 40
January 2020
Originally presented to the Winter Meeting of the
Utility Customer Research Consortium (UCRC)

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As I write this overview, I can’t help but hum the great lyric by the Rolling Stones:
“You can’t always get what you want, but if you try sometimes, you might find, you
get what you need.” That lyric goes along way to summarize what many customers
think of their utility customer service going into 2020.
The Annual State of the Customer Survey is an exercise in “money ball”; in short, we
asked 1000+ consumers across the United States a series of questions to test the
most basic assumptions underpinning utility customer strategy.
There are a number of tracking questions from prior years to provide trend analysis.
Just as important, we added new questions to explore new dimensions or offerings,
e.g., residential solar or electric vehicles, or questions not typically asked, e.g., the
level of customer trust of the utility.
The findings provide plenty of fodder for further analysis. As in past surveys, there is
good news. Most customers believe utilities provide good customer service and value
their utility over other service providers.
However, the findings also point to growing fault lines beneath the utility, especially
the investor-owned utilities. Our collective assumptions around reliability, equity, and
ownership may be outdated. Like all fault lines, though, it is necessary to dig to see
them. In this case, we began to ask the tough questions of consumers to get their
input.
Jamie Wimberly, CEO, DEFG LLC, January 2020
Overview

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• The Russell Omnibus was conducted via the internet among 1,014 adults 18 years of
age or older from November 8 - 11, 2019. Figures for gender, age, and geography
were weighted where necessary to match their actual proportions in the population.
The bases shown in this report are the unweighted bases.
• An invitation to participate in the study was sent by e-mail to panel members who have
agreed to be contacted by Russell Research and interviewed over the Internet.
- Participating respondents were interviewed online at a secure Russell Research URL
programmed for this study.
- Sample was provided to Russell Research from a leading sample provider.
• All research was carried out in compliance with all relevant legal and ethical
requirements within the market and in compliance with ISO 20252:2012.
Methodology METHODOLOGY

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The statistical significance of a result in this survey is the probability that the observed relationship (e.g., between
variables) or difference (e.g., between means) in a sample occurred by pure chance, and that in the population from
which the sample was drawn, no such relationship or differences exist. Using less technical terms, one could say that
the statistical significance of a result tells us something about the degree to which the result is "true". More
technically, the value of the p-value represents a decreasing index of the reliability of a result. The higher the p-
value, the less we can believe that the observed relation between variables in the sample is a reliable indicator of
the relation between the respective variables in the population. Specifically, the p-value represents the probability
of error that is involved in accepting our observed result as valid, that is, as "representative of the population." For
example, a p-value of .05 (i.e.,1/20) indicates that there is a 5% probability that the relation between the variables
found in our sample is a "fluke.“
The following statistical notation is used throughout the report:
= Indicates figure is significantly higher than other cell at a 95% confidence level (i.e. p-value of .05 or
less).
In theory, with probability samples of this size, one could say with 95 percent certainty that the results have a
statistical precision of plus or minus 3.1 percentage points of what they would be if the entire adult population had
been polled with complete accuracy. Unfortunately, there are several other possible sources of error in all polls or
surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be
interviewed (non-response), question wording and question order, and weighting. It is impossible to quantify the
errors that may result from these factors. This online survey is not a probability sample.
Statistical Analysis STATISTICAL
ANALYSIS

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Executive Summary

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The results of this study show that even though only one third of consumers have contacted their electric
utility during the past two years, more than half are satisfied with the customer service they have received
and found their interactions with the company to be easy. They are most likely to describe their utility
company’s customer service positively (using words such as great, good, excellent, awesome, and
friendly).
• 57% of adults in the U.S. gave their utility company’s customer service a top-3-box rating (rated 8-9-10 out of 10-
point scale). Older adults gave a significantly higher positive rating compared to their counterparts (65% of adults
55+ vs. 53% of adults 18-54).
• Approximately three fourths of adults who contacted the customer service department in the past two years
indicted that it was somewhat or very easy to interact with their utility. Older adults were significantly more likely to
say it was easy to interact with their utility compared to younger adults (81% of adults 55+ vs. 70% of adults 18-54).
Their level of trust, however, in terms of what their electric utility says or does was relatively low, with less
than half giving them a top-3-box rating (rated 8-9-10 out of a 10-point scale).
• Older adults (53% of those age 55+ top-3-box rating vs. 45% of younger adults) and homeowners (51% vs. 43% of
renters) were significantly more likely to trust their utility compared to other adults.
Approximately one in four would recommend a program or other offering from their utility provider to a
family member or friend.
Executive Summary

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Approximately one fourth of adults feel that they are getting a comparatively better value from their
electric company compared to their cable, internet, mobile, or entertainment/streaming service providers.
Less than two out of ten feel the same way when comparing their electric utility to other commonly used
service providers (i.e. landline phone, water, home security, and natural gas providers). For the most part
between one third and half of these consumers feel the value of their electric utility is comparable to these
other service providers.
• The comparative value was most positive in terms of cable providers (28% said electric utility is better value),
Internet providers (25%), mobile service (24% better value) and entertainment/streaming services (23% better
value).
 Younger adults were significantly more likely than older adults to say the electric utility is a better value compared to most of
the other providers (with the exception of cable, internet and landline phone service where their value ratings were
comparable). Men saw the electric utility as a significantly better value compared to women in relation to entertainment and
landline service, while homeowners were significantly more likely than renters to say their utility was a better value than their
cable service provider.
• Conversely, the electric utilities fared worst against natural gas (only 12% say electric utilities are a better value),
home security (13% better value), water service (16% better value), and telephone [landline] (18% better value)
providers.
 Younger adults (18-54) were significantly more likely than those 55 or older to consider electric utilities a lesser value
compared to entertainment, water, and natural gas providers.
When asked what the electric company could do to earn a better value rating, the primary response was
related to cost (57% net mentions) – mainly rates that are cheaper/less expensive (40%). Two in ten adults
who felt that other providers offered a better value than their electric utility also suggested a variety of
service related actions – i.e. customer service improvements (8%), improved quality (2%), fewer service
outages (2%), and quicker response to outages (2%).
Executive Summary (continued)

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Americans generally feel that their electric utility service is reliable in terms of keeping the lights on (68%
gave a rating of 8-9-10 on a 10-point scale), but only half believe the utility is adequately prepared to meet
it obligations during natural disasters or other emergencies. Regardless of their beliefs, only one fourth are
willing to pay more to get an increased level of reliability.
• Utility reliability is viewed as significantly better by those who are older (75% top-3-box rating vs. 65% among those
18-54) or own their own homes (71% vs. 63% of renters).
• Homeowners are significantly more likely than renters to believe their electric utility is adequately prepared to
maintain service during emergencies and natural disasters (54% vs. 43% of renters). No other differences were
evident.
• The only group significantly more willing to spend more to get an increased level of reliability are those in the higher
income bracket (29% of those with HH incomes of $50k+ compared to 21% with lower HH incomes).
 On the other hand younger adults (11% vs. 7% of those 55 or older) and renters (13% vs. 8% of homeowners)
are significantly more willing to pay less for slightly less reliability.
Power restoration is important to Americans. A gift card in lieu of earlier power restoration was not a
strong incentive.
• Three out of ten would accept a $10 gift card and wait an extra hour to have their service restored. Interest in this
option was significantly higher among younger adults (33% vs. 18% of those 55+) and those in the lower income
bracket (32% of those with incomes under $50k vs. 26% with higher incomes).

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The majority of adults believe that their utility company gives them the right amount
of information to help them manage their monthly usage and costs.
• More than half of the American adults surveyed say they get “just the right amount of information” to
help them manage their electric usage and monthly bills.
 The older respondents (66% v. 53% of younger adults), those with higher incomes (60% vs. 52% with
incomes under $50k), and home owners (63% vs. 48% of renters) are significantly more likely to feel this
way.
When asked what is most important to them in terms of their utility company’s
billing and payment options, consumers are most likely to be looking for more detail
(rather than less), incremental payments, paying each bill themselves (rather than
automatic/recurring payments), and monthly payments (rather then weekly). They
are also somewhat more interested in flexibility and going paperless.
• Some differences in who found these different factors important were evident.
 Flexibility was significantly more important to younger adults (57% vs. 40% of older adults), those in lower
income brackets (58% of those with lower incomes vs. 47% with higher incomes), and renters (62% vs. 43%
of home owners).
 Making incremental payments rather than paying larger amounts was significantly more important to
women (81% vs. 70% of men), lower income households (83% vs. 69% of higher income households), and
renters (82% vs. 79% of home owners).
 Women (74% vs. 66% of men) and lower income households (75% vs. 66% of higher income households)
were significantly more interested in paying each bill themselves rather than making automatic payments.

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Nearly half of these American consumers think it is extremely or very important that
their electric utility offer the ability to pay their bills using a mobile phone or other
mobile platform in the future.
• Significantly more women (53% vs. 46% of men), younger adults (61% vs. 21% of those 55+), and
renters (62% vs. 41% of home owners) expressed the importance of mobile payment options.
More than half of these Americans felt it was important that their local electric utility
reduce emissions and support environment -friendly practices (rated 8-9-10 out of a
10-point scale).
However, only one third actually feel that their utility company is supportive of solar
and other renewable energy (rated 8-9-10 out of a 10-point scale).

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Without cost in the equation there is a decent level of interest in obtaining solar
power or purchasing an electric vehicle during the next two years. Consumers who
are interested in these new technologies also expect that they will need more
customer assistance from their local utility to help them deal with the new
technology.
• Nearly half (47%) of these adults indicated they would be interested (top-3-box rating on a 10-point
scale) in owning or leasing solar power in the next two years (putting aside cost). Interest was highest
among younger adults (50% vs. 41% of those 55+).
• Approximately one third also expressed interest in purchasing an electric vehicle. Interest was highest
among younger adults (34% vs. 18% of those 55+) and those with higher incomes (33% vs. 27% of
those with under $50k household income).
• Nearly half of Americans felt that if they went solar or purchased an electric car they would need
much more help or information from their local electric utility.
One third of these adults are concerned that costs are being shifted onto those
consumers who don’t want or can’t afford renewable energy or electric vehicles (by
having them pay the fixed portion of the utility bill used to invest in and maintain
infrastructure for everyone).

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When asked if they would choose a different provider if given the option to do so, approximately half did
not have a strong feeling one way or the other. Approximately one quarter gave a top-3-box (likely to
change) rating, while only a slightly higher number gave a bottom-3-box (not likely) rating.
• Older adults were significantly less willing to change providers compared to their younger contemporaries (38% gave
a bottom-3-rating vs. 26% of the younger adults).
Four out of ten adults surveyed indicated that they would be likely to recommend that young people
entering the workforce consider working for their local utility (based on a rating of 8-9-10 out of a 10-point
scale).
Due to the special circumstances related to wild fires in California, utilities have been shutting off power to
local residents to avoid sparking new fires. The governor of California has argued that utilities should pay
$100 to consumers whose lives were disrupted by these shut-offs. Americans, regardless of where they
live, were asked their thoughts on this proposition.
• More than half of Americans agree that consumers in California should be compensated when their power gets shut
off specifically in relation to the wild fire issue. The youngest adults (58% vs. 49% of those 55+) and renters (63% vs.
50%
Americans believe that the best form of utility ownership is either public power/local governments or co-
ops/customers (with approximately three out of ten choosing each of these options). Relatively few
believe they should be owned by private investors/shareholders (13%).
• Many differences in ownership options were evident among the various demographic segments included in this
analysis.

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Detailed Findings

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57 59 54 53
65
56 57 60
53
39 36
41 41
33
39 38 36
40
5 4 5 6 2 5 5 4 7
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box
(Rated 1-2-3)
Middle (Rated 4-
7)
Top-3-Box (Rated
8-9-10)
Overall Rating of Customer Service
Received from Electric Utility in Past Year
Base: Total Respondents. Q. B1: Overall, how would you rate the customer service you have received from your electric
utility in the past year?

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One Word to Describe Customer Service
Received from Electric Utility
Base: Total Respondents. Q. B2: What one word would you use to describe the customer service that you receive from
your electric utility?

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30 32 29 32 27 32 30 31 31
70 68 71 68 73 68 70 69 69
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Have not contacted
electric utility in past
two years
Contacted electric
utility in past two
years
Contacted Electric Utility Directly in Past Two Years
for Issues Other than Paying Monthly Bill
Base: Total Respondents. Q. B5: Other than to pay your regular monthly bill, have you contacted your electric utility
directly for any other reason in the past two years?

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42 43 41 42 43 43 43 46
37
31 31 31 28
38 32 30 30
33
10 11 9 10
12
9 8
9
12
12 10 14 14
6
12 13 10 14
5 5 4 6
2 3 5 5 4
0%
20%
40%
60%
80%
100%
Total
(n=298)
Male
(n=148)
Female
(n=150)
Age 18-54
(n=214)
Age 55+
(n=84)
HH Income
Under $50K
(n=133)
HH Income
$50K or More
(n=151)
Own Home
(n=171)
Rent Home
(n=110)
Very difficult
Somewhat difficult
Neither easy or
difficult
Somewhat easy
Very easy
Ease of Interacting with Electric Utility
73 73 72
70
81
75 73
76
69
Base: Total Have Contacted Electric Utility Other Than To Pay Regular Monthly Bill In Past Two Years. Q. B6: How easy or
difficult would you say it was to interact with your electric utility?

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28 25 24 23
18 16 13 12
40
52 50
38
36
58
30
52
13
15 19
20
10
10
8
9
19
8 8
19
37
16
50
28
0%
20%
40%
60%
80%
100%
Cable TV service
provider
Internet service
provider
Mobile (wireless)
phone service
provider
Entertainment
provider (e.g.,
streaming service
such as Netflix)
Telephone
(landline) service
provider
Water service utility Home security
provider
Natural gas utility
Not applicable
Electric Utility Is a
Lesser Value
Compared To…
Electric Utility Is Is
About the Same
Value Compared
To…
Electric Utility Is a
Better Value
Compared To…
Value of Electric Utility Compared to
Other Service Providers (Total Respondents)
Base: Total Respondents (n=1014). Q. B7: Do you think your electric utility currently provides you with a Better Value,
About the Same Value, or a Lesser Value than the service providers and industries listed below?

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Actions Utility Can Do to Earn a Better Value Rating
Major mentions 2% or higher Gender Age HH Income Home Ownership
Total Male Female 18-54 55+ Under $50K
$50K or
More Own Rent
Total Rated Any Other Serv. Provider As Better Value Than
Elec. Utility
(460) (228) (232) (3450 (115) (202) (239) (251) (171)
% % % % % % % % %
Price/Cost (net) 57 55 59 55 63 55 60 60 59
Cheaper/better rates/pricing/lower rates/less expensive 40 38 42 38 44 39 42 41 41
Fair prices/more value 2 1 3 3 1 1 3 4 1
Easier payment methods/fixed rate/flexible payment plans 2 1 3 2 2 3 2 2 3
Money saving options/programs/incentives 2 2 2 1 3 1 2 1 3
Service (net) 21 20 21 22 17 22 20 18 20
Customer Service (subnet) 8 7 9 8 8 11 7 6 11
Better customer service (unspecified) 3 2 3 3 2 3 3 3 3
Miscellaneous Service Mentions
Be better/improve quality 2 3 2 3 - 0 4 3 2
Fewer outages/service interruptions 2 2 3 1 6 2 2 3 1
Better/faster response to fix outages 2 0 4 3 - 3 1 1 2
Service/better service (unspecified) 2 2 2 2 2 2 2 2 1
Miscellaneous Mentions
Prefer other serv. provider/all other serv. provider mentions 8 9 8 8 9 7 9 9 7
Nothing/happy with their serv./already do a great job (unsp) 6 7 4 6 5 7 4 5 6
Don't know/No Answer 7 7 9 8 8 10 4 8 7
Q. B8: You indicated that [INSERT ALL PROVIDERS RATED “BETTER VALUE” IN Q.7] provided a better value than your
electric utility. What could the utility do to earn a “better value” rating from you?

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47 48 46 45
53 48 49 51
43
46 45 46 47
42
45 44 43
48
7 7 8 8 5 7 7 7 9
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box
(Rated 1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
Level of Trust with What
Electric Utility Says and Does
Base: Total Respondents. Q. B3: How much would you say that you trust what your electricity utility says and does?
Would you say that they are …

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EXPLANATION OF LOYALTY
MEASURE
NET PROMOTER
SCORE
When customers are highly likely to recommend a product or service,
it means they are willing to stake their own reputation to promote it.
Reichheld’s* loyalty measurement is determined by asking customers
to use a scale of 0 to 10 to rate how likely they are to recommend the
product/service to a friend or colleague.
From these ratings three types of customer groups can be
determined:
• Promoters - Extremely likely to recommend (rate 9 or 10)
• Passively satisfied - Rated 7 or 8
• Detractors - Extremely unlikely to recommend (rated 0 - 6)
This score can be used to measure loyalty and predict the growth that
a company can expect from having loyal customers.
The companies with the most loyal and enthusiastic customers and
the resulting growth have scores between +75 and +80. However
Reichheld determined in his research that the median Net Promoter
Score (NPS) of over 400 companies in 28 different industries was +16.
* Frederick F. Reichheld, Director of Bain & Company. Harvard Business Review, December 2003.

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26 24 28 25 28 29 25 27 25
31 32 29 31 29 26 34 32
30
44 44 43 44 42 45 41 41 45
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Detractors
(Rated 1-6)
Passively satisfied
(Rated 7 or 8)
Promoters
(Rated 9 or 10)
NPS Recommendation Likelihood Ratings
Net Promoter
Score: -18 -20 -16 -19 -14 -16 -16 -14 -21
Base: Total Respondents. Q. B4: How likely are you to recommend a program or other offering from your local electric
utility to a family member or friend?

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41 42 39 39
45 43 41 43 38
49 48 51 51 44 47 51 48
51
10 10 10 9 11 10 8 9 11
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box
(Rated 1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
Likelihood to Recommend Young People Think About
Working for Their Local Utility Company
Base: Total Respondents. Q. B17: For young people entering into the workforce, how likely would you be to recommend
them to think about working for their local utility?

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68 68 68 65
75
67 70 71
63
28 28 28 31
22
29 26 25
32
4 4 4 4 3 4 4 3 5
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box (Rated 1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-9-10)
Reliability Rating of Current Utility’s Service
Base: Total Respondents. Q. B9: How would you rate the current level of your utility’s reliability to keep the lights on and
with minimal to no disruptions of service to you?

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49 51 47 47
53 48 51 54
43
29 30
27 31 23 30 29 27
34
22 19
26 22 25 22 21 20 24
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no
response
No, I don't believe
my utility is prepared
Yes, I believe my
utility is prepared
Utility Preparedness
Base: Total Respondents. Q. B11: Do you believe your utility is prepared to keep the lights on during natural disasters or
other emergencies?

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10 10 10 11 7
12
7 8
13
54 55 54 52 60 53
57 59 49
26 27
24 26
26
21 29 25
28
10 8
13 11 8
13
7 8 10
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no response
Paying slightly more for
increased reliability
Paying the same for
same level of reliability
Paying less for slightly
less reliabiity
Willingness to Pay More for Disaster Planning
Base: Total Respondents. Q. B12: Some experts say that utilities need to better plan for natural disasters - like fires, hurricanes and ice
storms - to ensure that the lights stay on. To do that, customers may need to pay slightly more on their utility bills for increased
reliability. Others say that they don’t need as much reliability so would prefer to pay less than today. Which option would you choose?

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63 62 65
59
74
59
69 67
58
29 32 26 33
18
32
26 27
32
7 7 8 7 7 9 5 6 9
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no
response
Gift card valued at $10
Power back on 60
minutes sooner
Choice of Getting Power Back on 60 Minutes Sooner vs.
60 Minutes Later Along with a $10 Gift Card at a Preferred Store
Base: Total Respondents. Q. B10: If you had a choice of getting your power back on 60 minutes sooner during an outage or receiving
a gift card from your preferred store valued at $10 to restore your power 60 minutes later, which option would you choose?

27
RUSSELL RESEARCH
55 57 54 58
49
57 54 50
63
15 16
13
13
19
12 17
18
11
23 21
24
23 23 23 22 23
21
7 6 9 7 9 7 7 8 5
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no response
It depends
No, I do not agree that
consumers should be
compensated when
power is shut off
Yes, I agree that
consumers should be
compensated when
power is shut off
Agreement that California Consumers Should Get $100 if
Their Electricity was Shut Off to Lessen Risk of New Wildfires
Base: Total Respondents. Q. B13: In California, the risk of wild fires has recently led utilities in California to shut off power for periods
of time to avoid sparking new fires. This has caused disruption in the lives of many consumers even though the shut offs were done
for public safety. The Governor of California has argued that utilities should pay $100 to consumers whose lives were disrupted by the
shut offs. What is your opinion?

28
RUSSELL RESEARCH
22 19 24 24
17
24 21 19
27
56 59
54 53 66 52 60 63 48
5 6 5 6
4
5
6 5
6
8 7 8 8
7
9
7 7
8
9 9 9 10 6 10 6 6 10
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no
response
Not interested in
receiving information
at this time
Too much
information
Just the right amount
of information
Not enough
information
Amount of Information Provided by Electric Utility
to Help Customers Manage Usage and Monthly Bills
Base: Total Respondents. Q. B14: Most electric utilities provide information to customers to help them manage their
electric usage and monthly bills. Which of the following describes your feelings about how much information your
electric utility provides you about how to manage your electric usage and monthly bills?

29
RUSSELL RESEARCH
What is More Important Regarding Utility Company’s
Billing and Payment Options
Gender Age HH Income Home Ownership
Total Male Female 18-54 55+
Under
$50K
$50K or
More Own Rent
Total Respondents (1014) (496) (518) (712) (302) (432) (521) (558) (373)
% % % % % % % % %
Flexibility 52 53 51 57 40 58 47 43 62
Certainty 48 47 49 43 60 42 53 57 38
More detail 78 79 77 80 72 78 79 79 76
Less detail 22 21 23 20 28 22 21 21 24
Incremental payments 75 70 81 77 72 83 69 70 82
Pay larger amounts 25 30 19 23 28 17 31 30 18
Pay each bill 70 66 74 69 73 75 66 71 70
Automatic and recurring 30 34 26 31 27 25 34 29 30
Pay monthly 93 93 93 90 99 92 93 93 92
Pay weekly 7 7 7 10 1 8 7 7 8
Paperless 56 58 53 61 42 53 59 50 62
Paper 44 42 47 39 58 47 41 50 38
Q. B15: When you think of your utility’s billing and payment options, what is more important to you? Choose one for each set of
comparisons below.

30
RUSSELL RESEARCH
29 25
32 36
11
32 28 23
39
21
21
20
25
10
19
22
18
23
22
23
21
22
21
24
19
22
20
26 29 24
15
55
21 30
36
15
3 3 3 3 3 4 2 2 2
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no
response
Not important
Somewhat important
Very important
Extremely important
Importance of Electric Utility Offering the Ability to
Pay Electric Bill Using Mobile Phone or Platform
49
46
53
61
21
51 50
41
62
Base: Total Respondents. Q. B16: How important is it to you that your electric utility offer the ability to pay your electric bill using
your mobile phone or other mobile platform in the future?

31
RUSSELL RESEARCH
57 58 55 55 60 58 57 58 56
38 35 42 39 35 37 38 38 39
5 7 3 5 5 5 5 5 5
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box (Rated
1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
Importance that Electric Utility Reduce Emissions and
Support Environmentally-Friendly Practices
Base: Total Respondents. Q. B18: How important is it to you that your local electric utility reduce emissions and support
environment-friendly practices?

32
RUSSELL RESEARCH
33 34 32 33 32 32 35 35 30
55 53 56 53 57 55 52 54
55
13 13 12 14 10 13 13 11 14
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box
(Rated 1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
How Supportive of Solar/Renewable Energy
is Local Utility Company
Base: Total Respondents. Q. B20: How for or against do you think your local electric utility is of solar and other renewable energy?

33
RUSSELL RESEARCH
47 47 48 50
41
48 48 46 48
36 36 36
37
33
36 35 37 36
17 17 16 13
26
15 17 17 16
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box (Rated
1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
Interest Level in Owning or Leasing Solar Power in Next Two Years
Base: Total Respondents. Q. B19: Putting aside cost, how would you rate your interest in owning or leasing solar power over the next
two years?

34
RUSSELL RESEARCH
30 33
27
34
18
27
33 31 27
37 35
38
38
33
41 33 33 41
34 32 35
27
50
33 34 36 32
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box
(Rated 1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
Interest in Purchasing Electric Vehicle in Next Two Years
Base: Total Respondents. Q. B21: Putting aside cost, how would you rate your interest in purchasing an electric vehicle over the next
two years?

35
RUSSELL RESEARCH
46 43
49 44 49 45 48 46 47
35 39 32 37 31 35
37 36 36
6 6 6 6 5 6
5 5 6
13 13 13 13 14 14 11 12 11
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no
response
Less help or
information
Same level of help or
information
Much more help or
information
Amount of Help or Information Would Need from
Electric Utility if Go Solar or Purchase Electric Vehicle
Base: Total Respondents. Q. B22: Let’s say you do go solar or purchase an electric vehicle. How much more help or information do
you estimate you will need from your local electric utility?

36
RUSSELL RESEARCH
37 36 39 37 39 41 36 36 40
53 55 51 54 50 49 54 53 51
10 10 10 9 11 10 10 10 9
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box
(Rated 1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated
8-9-10)
Concern that Costs for Investment/Maintenance of Infrastructure Being Shifted onto
Consumers Who Don’t Want/Can’t Afford Renewable Energy or Electric Vehicles
Base: Total Respondents. Q. B23: How concerned are you that costs are being shifted onto those consumers who don’t want or can’t
afford renewable energy or electric vehicles but still must pay the fixed portion of the utility bill used to invest in and maintain
infrastructure for everyone?

37
RUSSELL RESEARCH
25 27 22
28
15
25 27 24 26
46 45
47
46
46
46 46 46 47
29 28 31 26
38
29 27 30 27
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Bottom-3-Box (Rated
1-2-3)
Middle (Rated 4-7)
Top-3-Box (Rated 8-
9-10)
Likelihood to Choose a Different Electric Utility Provider
Base: Total Respondents. Q. B25: If you had the ability to choose a different provider than your electric utility, how likely would you
be to choose a different provider?

38
RUSSELL RESEARCH
29 32
26 31 25 26 31 28 32
29
29
29
26 37 34 27 31 28
13
17
10
14
13
10 17 17
10
28
21
35
30
24
30 25 24
30
0%
20%
40%
60%
80%
100%
Total
(n=1014)
Male
(n=496)
Female
(n=518)
Age 18-54
(n=712)
Age 55+
(n=302)
HH Income
Under $50K
(n=432)
HH Income
$50K or More
(n=521)
Own Home
(n=558)
Rent Home
(n=373)
Don't know/no
response
Private
investors/shareholders
Co-ops/customers
Public power/local
governments
Best Form of Utility Ownership
Base: Total Respondents. Q. B24: From your perspective what is the best form of utility ownership?

39
RUSSELL RESEARCH
In 2018, a majority of customers gave high marks for their utility’s customer service
with a slight increase from 2018
57% of the respondents gave high marks (top 3 boxes on a 10-point scale) when asked to rate
their utility’s customer service. This represented an increase of 1% from 2018. Older Americans
(55+) were especially pleased with 65% giving high marks as compared to 53% of younger
Americans (>55+) giving high marks
Customers describe their utility customer service in positive terms
When asked for a one-word description, “good” was the word most often used followed by
“great” and “excellent”
For those customers who contacted the utility directly over the past two years, 73%
of the customers found the experience to be “easy”
42% responded “very easy” and 31% responded “somewhat easy.” This compares favorably to
ease-of-use ratings from other industries
Customers felt that their local utility provided a better or equal value to most of the
comparable service providers, e.g. mobile or Internet
When comparing the value provided by their utility to other comparable service providers,
respondents felt the utility provided a better value compared to other service provides
What could utilities do to increase customer value? By far, customers would
appreciate lower prices or other ways to lower their utility bill
Improved Marks for Utility Customer Service

40
RUSSELL RESEARCH
Measuring trust is an important proxy for customer loyalty. A customer could
appreciate and value the utility’s customer service, but still not fully trust the utility
A little less than half of the respondents fully trust what their utility says and does
47% of the respondents gave high marks (top 3 boxes on a 10-point scale) when asked
how much they trust what their utility says and does. 46% gave their utility a middle
score, possibly indicating some question of the trustworthiness of their utility. Older
Americans (55+) were much more trusting with 53% giving high marks as compared to
45% of younger Americans (>55+) giving high marks
The average Net Promoter Score for the utility sector remains extremely low
compared to other sectors, with an aggregate score of “-18.” In short, this means
there are more “detractors” than “promoters” for most utilities
41% of respondents would highly recommend the utility as a place of potential
employment for young people
Measuring Customer Trust

41
RUSSELL RESEARCH
Customer perceptions of the utilities level of reliability remains high but declined
from last year
68% of respondents were highly satisfied (top 3 boxes) as compared to 71% last year
If given a choice, 3 out of 10 customers would choose a $10 gift card over having their
power restored in 60 minutes or less
This is a consistent finding over a number of years
Only 49% of the customers surveyed thought their utility was prepared to keep the
lights on during natural disasters or other emergencies
29% of the respondents didn’t believe their utility was prepared and 22% didn’t know how to
respond
26% of customers would pay slightly more for disaster planning for “hardening the
grid” and increased reliability
This represents a slight increase from last year. But utilities could face opposition to rate
increases based on a rationale to provide increased reliability
A majority of Americans (55%) believe utilities should compensate customers when
the power is shutoff (e.g., California when power has been shut off for wild fires)
Only 15% of respondents felt that consumers should not be compensated
Customer Perceptions of Reliability

42
RUSSELL RESEARCH
The survey findings pointing to the increasing segmentation of the customer base in
regard to customer preferences and needs. All of the survey questions focused on
questions around customer service had many instances of statistical deviation from
one demographic to another
 A majority of customers believe that they receive the right amount of information
from their utility. But there are statistically significant differences between younger
Americans that want to receive more information from the utility (24%) versus
older Americans who want to receive more information (17%)
 Customers were asked a series of questions about their preferences in regard to the
utility’s billing and payment questions. There were significant differences between
the demographic groups for every paired set of responses
 Stark generational divide on the importance of being able to pay the utility bill using
a mobile phone or platform. 61% of younger Americans felt it to be either
“extremely important” or “very important” as compared to only 21% of older
Americans
The Personalization of Customer Service

43
RUSSELL RESEARCH
An increasing number of customers are concerned about climate change and
environmental impacts due to energy production and consumption. These consumers
expect their utilities to be leaders when it comes to the environment.
 Customers are keen (57% in top 3 boxes) on having their utility be a leader on
climate change. A 6% increase from last year
 Yet only one third (33% in top 3 boxes) thought their utility was strongly supportive
of solar and other renewable energy
 Putting aside cost, customers are very interested (47% in top 3 boxes) in owning or
leasing solar at their homes over the next two years. A 4% increase from last year
 Putting aside cost, customers are also interested (30% in top 3 boxes) in purchasing
an electric vehicle over the next two years. A 2% increase from last year
 Customers interested in either buying solar power or an electric vehicle expect a
different and better customer experience than your traditional customer service
model, with 46% of respondents expecting to need more assistance or customer
service than they receive now. A 14% increase from last year
 A new question this year was to gauge concern over cost shifting for fixed utility
system costs to low income customers due to renewable energy. 37% were very
concerned (top 3 boxes)
The Green Challenge to Utilities

44
RUSSELL RESEARCH
 Utilities generally score well in regard to customer satisfaction and in
comparisons with other service providers; however, a focus on
customer satisfaction (i.e., what’s right), may be hiding deeper issues,
(i.e., what needs to be improved or be fixed)
 Customer satisfaction is not customer loyalty. Customer trust is an
issue that needs to be addressed, especially for engagement with
younger customers
 There is a large and growing generational gap. The customer service
model of utilities is a perfect fit for senior citizens. This generational
gap will impact the utilities ability to also attract and retain new talent
 The “average” customer does not exist, yet the customer service
model was built on that assumption. The survey questions around
customer preferences were riddled with significant deviations in the
demographic breakdowns
Potential Fault Lines Underneath Utility
Customer Service Model

45
RUSSELL RESEARCH
 Utilities view reliability as systemic and non-negotiable versus
customers who increasingly see reliability as situational and a
variable cost
 Arguments for increased expenditures on reliability and/ or resiliency
may lead to customer expectations of accountability and financial
compensation if power goes out
 Customers expect more from their utility in regard to environmental
leadership and supporting renewables, starting with transparency
 What’s the utility’s transformational vision for LMI customers who
are subsidizing wealthier customers for renewables and electric
vehicles?
Potential Fault Lines Underneath Utility
Customer Service Model (continued)

46
RUSSELL RESEARCH
1. Use less of your product
2. More third parties (e.g., community energy aggregators
(CEAs), other service providers, etc.) enter the market,
even under regulated model
3. Change in ownership model (e.g., municipalization)
4. Self-generation and/ or other customer actions behind the
meter
5. Or—for about one quarter of the customers surveyed—
could be for just about any reason …
Fault Lines Could Lead to Cracks for Customer to
Leave the Utility …

47
RUSSELL RESEARCH
47RUSSELL RESEARCH
Appendix -
Demographics

48
RUSSELL RESEARCH
DEMOGRAPHICS
Under
$50K
$50K or
More Own Rent
% % % % % % % % %
Gender
Male 49 100 - 49 49 38 57 53 42
Female 51 - 100 51 51 62 43 47 58
Mean Age 44.5 44.4 44.6 35.9 66.2 43.1 45.6 49.0 39.7
Marital Status
Married 47 52 43 44 55 30 63 62 32
Not Married 52 47 56 55 44 69 37 37 67
Refused 1 1 1 1 1 1 - 0 1
Mean Household Size 2.9 2.9 3.0 3.3 2.1 2.8 3.0 2.9 2.9
Presence Of Children
Children Present 40 36 44 53 6 39 42 38 45
No children present 60 64 56 47 94 61 58 62 55
Parent Of Children In Household
Parent 35 30 39 47 3 35 37 33 41
Not the parent 65 70 61 53 97 65 63 67 59

49
RUSSELL RESEARCH
DEMOGRAPHICS (CONTINUED)
Under
$50K
$50K or
More Own Rent
% % % % % % % % %
Education
College 72 75 69 70 78 60 83 79 66
No College 27 24 31 30 22 39 17 21 34
Refused 1 1 0 1 0 0 0 1 0
Employment
Employed 58 66 50 69 29 49 68 59 61
Not Employed 40 32 49 29 69 48 32 40 37
Refused 2 2 2 2 2 3 - 1 3
Household Income
Mean 66.3 76.6 56.6 64.3 71.6 27.5 99.1 83.1 46.8
Median 55.4 66.5 45.5 54.2 58.6 27.7 88.9 73.9 37.3
Home Ownership
Rent 37 32 43 43 22 53 25 - 100
Own 55 59 50 47 75 35 72 100 -
Other 8 9 7 10 3 12 3 - -
Type Of Community
Urban 28 27 28 29 24 31 25 23 34
Suburban 51 58 45 51 50 41 58 54 46
Rural 21 16 27 20 25 28 17 23 20

50
RUSSELL RESEARCH
DEMOGRAPHICS (CONTINUED)
Under
$50K
$50K or
More Own Rent
% % % % % % % % %
Hispanic Origin Or Descent
Hispanic 15 15 15 19 5 16 14 14 16
Not Hispanic 84 84 84 80 95 83 86 86 83
Refused 1 1 1 1 1 1 - 0 2
Ethnic Background
Caucasian 74 71 77 70 86 72 77 79 69
African-American 14 14 13 16 7 16 11 8 20
Asian/Pacific Islander 5 7 3 6 3 3 6 6 4
Native American 1 2 0 1 1 1 1 1 2
Mixed Ethnic Background 2 2 2 2 1 2 2 3 2
Other/Refused 4 3 4 5 1 5 2 3 4
Political Affiliation
Democrat 36 33 38 36 35 38 34 34 41
Independent 20 19 21 20 18 20 20 20 20
Republican 26 30 23 22 38 21 32 33 17
Other Political Party 4 4 3 5 0 4 3 3 4
Not registered to vote 14 14 15 17 8 17 11 10 18
Census Region
Northeast 19 19 20 19 20 14 22 20 18
South 36 35 36 36 36 43 31 35 37
Midwest 23 23 23 23 23 24 23 26 20
West 22 23 22 23 20 19 24 19 25

51
RUSSELL RESEARCH
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Phone: 201.528.0400
Fax: 201.528.0210
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One Meadowlands Plaza, Suite 1001
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Phone: 201.528.0400
Fax: 201.528.0210
Email: info@russellresearch.com
John DeBiasio, Partner
Phone: 201.528.0303
Email: john.debiasio@russellresearch.com
DEFG believes retail customers are the future of energy. We partner
with clients to improve all aspects of the customer relationship. We
identify opportunities to create value in a commodity marketplace.
Persons interested in our publications should “Join Our Mailing List” to
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Phone: 202-255-2860
Email: jwimberly@defgllc.com

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