HomeMy WebLinkAboutStaff Report 395-10
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: November 8, 2010 CMR: 395:10
REPORT TYPE: INFORMATIONAL
SUBJECT: Report on Residential Customer Satisfaction Survey
This is an informational report and no Council action is required.
EXECUTIVE SUMMARY
This update provides the results of a bi-annual City of Palo Alto Utilities (CPAU) residential
customer satisfaction survey conducted during August and September 2010. Results of this
“oversample” are compared to those of statewide surveys completed in 2010 and 2008. The survey
results show that the challenging economy has affected all utilities and their customers in California.
Statewide municipal utility and CPAU customers are less satisfied than previously with their utilities.
Customer trust in CPAU remains stable, satisfaction with power delivery is still strong, and customer
service ratings are high. Thirty percent of CPAU customers report having financial difficulties, and
CPAU customers are more critical on price and value than they have been. Palo Alto residents are
also less positive on the image dimensions of environmental concern, community involvement,
keeping prices down and providing practical efficiency information. Residents statewide are
interested in Smart Grid, efficiency, and Electric Vehicle issues; however, Palo Altans express less
interest in the benefits of the Smart Grid than do others statewide.
BACKGROUND
The California Municipal Utilities Association (CMUA) has contracted with RKS Consulting to
provide statewide surveys customers since 2001. Residential customers are surveyed in even years,
and businesses are surveyed in odd years. This year, the CMUA survey was completed in summer
2010, with the comparative oversample of Palo Alto customers following in August and September.
The CMUA study included 603 telephone interviews. Of these, 502 were with municipal utility
residential customers: 202 in Northern and 300 in Southern California. An additional 101 were
among California’s investor owned utility (IOU) customers. Palo Alto’s oversample included 200
telephone interviews.
The survey was divided into three major sections:
o Performance Metrics: satisfaction, value, image, power service and delivery, community
characteristics and billing.
o Communication: effectiveness, usefulness of information and website characteristics.
o Smart Grid/Electric Vehicles (EV)/Energy Efficiency (EE): awareness about EE and its
perceived benefits, knowledge of the Smart Grid and its features and interest in EVs and
charging options
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DISCUSSION:
The results of this survey are influenced by the negative economy. Palo Alto customers still remain
generally more satisfied than other utility customers statewide; however, statewide satisfaction trends
are downward, likely reflecting economic conditions. Three in ten Palo Alto customers report
troubled economic times. Although significantly lower than the 51% of all Northern California Power
Agency (NCPA) utilities serving residential customers, recognition of the size of this Palo Alto
segment is important.
Performance Metrics: About half of CPAU customers report a good relationship with the utility
(46%), while a third are on the fence (35%) and 15% have a weak relationship. Customers with a
less positive relationship with the utility are younger, are more likely to have visited CPAU’s
website, are less concerned about global warming and environmental issues, are more focused on
reducing costs and are less convinced CPAU is providing practical conservation information.
Strong
Relationship
On the Fence
Relationship
Age 50%: Over 65 yrs old 58%: Under 54
CPAU has practical conservation information 69% (top 3-box) 25% (top 3-box)*
Visit CPAU website 33% 49%
Smartphone Owner 42% 56%
Outage in 12 Months (avg. is 63%) 55% 72%
CPAU has effective communications 81% (top 3-box) 27% (top 3-box)
More Conservation Information 15% (Want More) 30% (Want More)
Environmental Concern 76% Very Concerned 65% Very Concerned
Global Warming 67% Very Concerned 59% Very Concerned
* “top 3-box” are those customers who most strongly agree with this position
Previous research has shown that the stronger a customer’s relationship with the utility, the higher
satisfaction and involvement in customer programs. Over time, the numbers of customers with a self-
reported stronger relationship has slipped, as satisfaction has declined. About two-thirds of Palo Alto
customers (65%) are very satisfied with CPAU, down from 79% two years ago, but still higher than
at other utilities.
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Despite declines from 2008 in satisfaction, customers’ level of trust in CPAU remains stable.
While Palo Alto residents strongly believe the utility has high reliability (86%), most want more
communication about outages. Nearly two-thirds of all CPAU customers (65%) believe some outage
information would be very helpful, even if it were inaccurate 25% of the time. A majority of all
residential customers prefer to receive outage restoration information from automated telephone calls.
A sizable group of CPAU customers also wants outage information by email, text messages and the
website.
How Customers Want Outage Information CPAU CA Muni NCPA
Automated phone calls to home 62% 58% 62%
Emails 29% 10% 6%
Text messages 20% 12% 7%
Post on website 20% 9% 7%
TV/Radio 1% 1% 2%
Other 3% 4% 2%
(Volunteered) Not Sure 3% 10% 16%
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Over one-third of CPAU residential customers now say that prices are high (35%), up from 29% in
2008. However, price perceptions among CPAU customers are better than at other utilities: half of
all municipal customers and 40% of NCPA customers describe prices as “high.”
Image ratings have also declined. The most severe declines among CPAU residential customers are
in perceptions of CPAU’s community involvement (down 16%) and efforts to maintain low prices
(down 11%).
On the positive side, satisfaction with customer service has increased. The number of customers
calling CPAU in 2010 significantly increased since 2008: up to 35% from 9%. The number of
residents in contact with CPAU (45%) is well above the 30% reported by customers of NCPA and
other municipal utilities and reflects customers’ willingness to engage directly with CPAU. In all
cases, most interactions consist of calling the utility, followed by writing (including email) and
visiting an office. Seven in ten CPAU customers are very satisfied with their contact experience,
much more than IOU-served customers. One area of customer service that is a concern is that length
of wait time on phone calls, as customers are reporting dissatisfaction.
Communication: In 2008, 60% of CPAU residential customers said that electric utility
communications were effective. In 2010, that number declined to 52%. While this is a concern,
CPAU effectiveness ratings are in line with other municipal utilities. Most CPAU customers are
satisfied with the EE information they received; few (22%) want more information in this area.
Another area of utility communication is the utility bill. While about 80% of Palo Altans say that
utility bills are easy to understand, 39% want more information about their charges.
As communicating with customers is becoming more challenging, effectiveness is down. Whole
segments of the population are not being reached by traditional means due to the variety of
communication channels customers are now using. Palo Altans are much more likely than others
statewide to have high speed internet connections (85% versus about 50% statewide) and to use smart
phones (about 50% compared to almost 25% statewide). In 2010, between 20 and 25% of customers
at utilities statewide looked at their utilities’ website. For CPAU, the number visiting the website
was much higher at 39%, but less than half of these were satisfied with it. In addition, more than
60% of CPAU and half of other municipal residential customers say they prefer to pay their utility
bills online as opposed to traditional paper bills.
Smart Grid: Palo Alto residents have a high awareness of Smart Grid options, but expectations are
somewhat more modest than for others statewide. Six in ten residential customers of municipal
utilities believe Smart Grid installation is a good idea for helping to monitor and control electric use.
However, sizable numbers (20% to 26%) are not sure. Even more are negative about the benefits,
suggesting education and outreach is necessary. About half of customers see strong value in
monitoring electric usage when they want to. CPAU customers are less likely to see benefits from in-
home displays of usage from the Smart Grid program and are more critical of them—28% see no
benefit.
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Energy Efficiency (EE): CPAU customers participate more in EE programs than do others, but 16%
of participants believe that the benefits were less than expected. Just under 40% compared to 31% of
other municipal utility customers of Palo Alto residents report participating in an EE program.
Customers would like more information, especially on specific actions they can take. Interestingly,
Palo Alto residents are less interested in receiving EE information on new media (Facebook, Twitter,
and Smart Phone) than are others in the state.
Interest in Facebook EE information:
CPAU 2010 NCPA 2010 Muni 2010 IOU 2010
79%
18%
61%
35%
56%
39%
51%
43%
0%
20%
40%
60%
80%
100%
No Yes
Interest in Smart Phone EE information:
Electric Vehicles (EVs): CPAU customer interest in learning about plug-in EVs is at about 40%,
which is higher than for other utilities’ customers. Despite the strong interest, there is a sizable group
with little or no interest—about 30% in Palo Alto. Of those interested in EVs, 24% in Palo Alto are
very likely to buy or lease one. Among likely acquirers, some expect to buy or lease between now
and the end of 2011, but most expect to in 2012 or later. Those likely to acquire EVs earn over
$50,000 per year, are between 35 and 54 years of age and are more likely to own a Smart Phone or
tablet computer.
Measurable numbers of customers believe that utilities should provide information about charging
systems and safety information. Significant numbers (44% in Palo Alto) also support utility-run
charging stations at public locations, such as malls.
Use of Results: Staff will use the results of this study in developing and modifying communication
and program options for customers, as well as identifying other areas for improvement.
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RESOURCElMPACT
None.
POLICY IMPLICATIONS
None.
ENVIRONMENTAL REVIEW
The actions summarized in this report do not meet the definition of a "proj ect" pursuant to California
Public Resources Code section 21065, thus no California Environmental Quality Act (CEQA) review
is required.
ATTACHNIENT
None
PREPARED BY:
REVIEWED BY:
APPROVED BY:
CITY MANAGER APPROVAL:
CMR: 395:10
JOYCE KlNNEAROV~ M;ieting Services
TO AUZENNE
Assistant Director, Utilities Customer Support Svs. VALE_
Director, Utilities Department
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