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HomeMy WebLinkAboutStaff Report 2401-2507Item No. {{item.number}}. Page 1 of 1 Utilities Advisory Commission Staff Report From: Dean Batchelor, Director Utilities Lead Department: Utilities Meeting Date: February 7, 2024 Staff Report: 2401-2507 TITLE Discussion of the Residential Electric and Water Utility Customer Satisfaction Survey Results RECOMMENDATION This item is for discussion and no action is requested. Staff presents the results of the City of Palo Alto Utilities (CPAU) residential electric and water utility customer satisfaction surveys. The attached presentation describes the goals, methodology, key findings, and considerations for CPAU based on customer feedback from the survey results. The primary goals of this research study were to assess customer satisfaction with CPAU, uncover customer perceptions of their utility, and explore customer interest in various utility-related products and services. The outcome of this research will enable CPAU to clearly understand customer expectations, act on near-term opportunities for improvement, and create a strategic roadmap to increase customer satisfaction. ATTACHMENTS Attachment A: Presentation AUTHOR/TITLE: Dean Batchelor, Director of Utilities Staff, Catherine Elvert, Utilities Communications Manager RESIDENTIAL ELECTRIC AND WATER UTILITY CUSTOMER SATISFACTION SURVEY RESULTS FEBRUARY 7, 2024 www.cityofpaloalto.org1 TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 7, 2024 www.cityofpaloalto.org PROJECT OVERVIEW AND RESEARCH OBJECTIVES •Partnership with California Municipal Utilities Association (CMUA) and GreatBlue Research, Inc. •Statewide survey of municipal and investor-owned residential electric and water utility customers •Plus “oversample” survey in Palo Alto •Conduct comprehensive research among residential customers to gain a deeper understanding into their perceptions of the utility and satisfaction with the services provided. •Research outcomes will enable CPAU personnel to: •a) more clearly understand, and ultimately set, customer expectations, •b) act on near-term opportunities for improvement, and •c) create a strategic roadmap to increase customer satisfaction. 2 2 TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 7, 2024 www.cityofpaloalto.org AREAS OF INVESTIGATION IN 2023 •GreatBlue and CPAU developed a research study to learn about the following topics: •Organizational characteristic ratings •Customer expectations •Satisfaction with customer service and field personnel •Reliability, quality, and service ratings •Preferred methods of receiving information •Importance of and satisfaction with self-service digital options •Perception of CPAU’s emergency preparedness •Interest in electric and water services and devices •Awareness and utilization of incentives and rebates •Demographic profiles of respondents 3 3 TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 7, 2024 www.cityofpaloalto.org44 FEBRUARY 7, 2024 www.cityofpaloalto.org ELECTRIC CUSTOMER SURVEY Results and Analysis 5 6 1 Ratings •CPAU received significantly higher ratings than the Northern California region and/or the State of California in the following areas: •average positive organizational characteristic rating, •trust, •meeting customer expectations, •and customer service ratings Notable Positive Ratings •Average positive organizational characteristic rating of 70.9% •Net Positive Score (NP+S) of 82.1% •NPS = (advocates + loyal + satisfied) •85.6% of customers provided positive ratings for CPAU "providing consistent and reliable electric service to customers," which is higher than ratings provided by customers in Northern California, statewide, and nationwide •79.6% reported CPAU meets their expectations "all" or "most of the time" KEY STUDY FINDINGS 6 7 Outage Preparedness •One-quarter (24.6%) believe CPAU is prepared to handle an emergency, which is significantly less than the frequency of customers in Northern California and the State of California who reported the same. •Of note, nearly one-half (49.5%) indicated they “don’t know” if CPAU is prepared to handle an emergency. Electric Vehicles (EVs) •Nearly one-half of customers (47.4%) have plans to buy an electric vehicle, and 30.0% already own an electric vehicle. •Over four-fifths (84.4%) are likely to charge their electric vehicle during off-peak hours •Over one-half (53.7%) are likely to install an L2 charger at their home rather than rely on CPAU to upgrade its infrastructure to a faster charging system. KEY STUDY FINDINGS 7 1 Electrification •About two-thirds (67.0%) support CPAU investing in electrification •Just over one-half of customers (51.0%) are considering purchasing an electrification product •Nearly one-half (46.5%) are aware of CPAU’s electrification program; however, customers under 55 years of age are significantly less aware than customers 55 years of age or older. ∘Despite this, significantly more customers under 65 years of age plan to participate in this program than customers 65 years of age or older. KEY STUDY FINDINGS 8 8 9 9 10 10 CONSIDERATIONS Strategy to push electrification to younger customers. •Most CPAU customers are familiar with the concept of electrification and support CPAU’s investment in it •About one-half of customers are considering purchasing an electrification product of some sort. •Key differences based on demographics: under 55 years of age are less familiar with electrification and CPAU’s program but show higher enthusiasm, are more likely to believe electrification will save money and are more interested in learning ways to lower their energy consumption. •CPAU can use targeted email campaigns showing the difference in efficiency between electrification products and fossil-fuel alternatives to reinforce cost savings and reduced energy use from electrification. •CPAU can present electrification program as an intro to transition to electric and drive higher participation among younger customers. •Promote electrification and electric products during times of higher average energy consumption, showing energy and cost savings. 11 11 CONSIDERATIONS Consider implementing an off-peak electric vehicle charging rate in conjunction with L2 home-charger installation. •CPAU customers that own or plan to purchase an electric vehicle indicated they are very likely to charge their vehicle during off-peak hours. There was also a strong preference for Level 2 chargers over Level 1 chargers, and a little over one-half showed interest in installing a home Level 2 charger. This presents an opportunity for CPAU to promote Level 2 charger installations more effectively. Implementing an off-peak electric vehicle charging rate and presenting it as a bundle with home-chargers could increase the attractiveness of the offer, potentially resulting in more home-charger investments. 12 12 Consider implementing an off-peak electric vehicle charging rate in conjunction with L2 home-charger installation. •CPAU customers that own or plan to purchase an electric vehicle are very likely to charge their vehicle during off-peak hours. •Strong preference for Level 2 chargers over Level 1 chargers, and a little over one-half showed interest in installing a home Level 2 charger. CONSIDERATIONS •This presents an opportunity for CPAU to promote Level 2 charger installations more effectively. •Implementing an off-peak electric vehicle charging rate and presenting it as a bundle with home chargers could increase the attractiveness of the offer, potentially resulting in more home charger investments. 13 13 FEBRUARY 7, 2024 www.cityofpaloalto.org WATER CUSTOMER SURVEY Results and Analysis 14 15 KEY STUDY FINDINGS Ratings •CPAU received significantly higher ratings than the Northern California region and/or the State of California in the following areas: •maintaining an adequate supply of water •monitoring water quality •environmental responsibility •promoting the efficient use and conservation of water Notable Positive Ratings •Average positive organizational characteristic rating of 78.9% •Net Positive Score (NP+S) of 87.4% (advocates + loyal + satisfied) •CPAU received the highest ratings for "maintaining an adequate supply of water,“ at 93.8% and received higher ratings than customers in Northern California and the State of California for all other characteristics. •85.0% of customers say CPAU meets their expectations all or most of the time. •80.7% report satisfaction with the most recent customer service experience. 15 16 KEY STUDY FINDINGS Water Quality and Conservation •The majority of customers (95.5%) provided positive ratings for the "overall quality of water" provided by CPAU. •One-half of customers (55.5%) reported concern over possible contaminants in CPAU's water supply. Significantly more customers reported concern compared to Northern region customers (46.9%). •However, 83.3% of respondents indicated they trust CPAU to take immediate action to solve any issues with the water supply, which is significantly more than the frequency of customers from the Northern region and the State of California as a whole who reported the same. •Over two-thirds of customers (68.3%) indicated they would support water infrastructure investments. 16 17 KEY STUDY FINDINGS Program Use and Interest •Nearly one-half of customers indicated they try hard to use less water but could probably do a little more, compared to nearly two-fifths who indicated they are doing everything they possibly can to use less water. •Over two-thirds of customers indicated water conservation materials would be useful, and nearly three-fifths reported a reading of their household's water use compared to others in the neighborhood would be useful. Communication •Significantly more customers prefer receiving information through digital methods (website, email, social media) than traditional methods of communication (TV, radio, direct mail). 17 18 18 19 19 20 20 21 21 CONSIDERATIONS Leverage digital channels for effective communication. •Majority report preference to receive information through web, email, and social media for operations, efficiency, and programs. Tailor water conservation resources to suit the needs of homeowners and renters. •Nearly one-half report being proactive about reducing water consumption, but also willing to do a little more to conserve water. •Less than one-half is acquainted with CPAU's existing water programs and rebates = potential to inform and involve those who already expressed interest in water conservation efforts. •Renters less focused on monitoring water usage compared to homeowners. •CPAU can strategically target outreach efforts to ensure renters have access to resources tailored to their specific concerns about water usage and conservation. •Over two-thirds of both renters and homeowners find it beneficial to receive effective strategies for reducing household water use. 22 22 www.cityofpaloalto.org Dean Batchelor Utilities Director dean.batchelor@cityofpaloalto.org (650) 496-6981 Catherine Elvert Utilities Communications Manager catherine.elvert@cityofpaloalto.org (650) 833-9433 23 23