HomeMy WebLinkAboutStaff Report 2512-56423.Discussion of the Residential Electric and Water Utility Customer Satisfaction Survey
Results (DISCUSSION 7:50PM – 8:30PM) Staff: Catherine Elvert, Utilities Communications
Manager Presentation
Item No. 3. Page 1 of 4
Utilities Advisory Commission
Staff Report
From: Alan Kurotori, Director Utilities
Lead Department: Utilities
Meeting Date: February 4, 2026
Report #: 2512-5642
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 will present the results of the City of
Palo Alto Utilities (CPAU) 2025 Residential Electric and Water Utility Customer Satisfaction
Surveys.
EXECUTIVE SUMMARY
CPAU conducts annual utilities customer satisfaction surveys to gauge perspectives on critical
utilities issues. This report summarizes the latest results of the residential electric and water
utility customer surveys performed October 14 through November 25, 2025.
The surveys were conducted with the primary purpose of assessing customer awareness and
satisfaction related to the following areas: service reliability, utility rates and affordability,
customer service, communication, infrastructure management, customer programs,
sustainability practices, and overall engagement with CPAU's 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. Proposed action items are included in the attached presentation.
PROJECT DESCRIPTION
The surveys were conducted in collaboration with California Municipal Utilities Association
(CMUA) members and administered by GreatBlue Research, Inc. CPAU participated with other
CMUA members in a statewide survey of municipal utility and investor-owned utility (IOU)
customers. Subsequently CPAU engaged with GreatBlue Research, Inc. to implement a follow-
up “oversample” survey of Palo Alto residents for expanded understanding of local utility
customer insights and benchmark comparisons to other municipal utilities and IOUs. This is the
second residential survey conducted for CPAU by GreatBlue Research, Inc. following an initial
survey of residential customers in 2023.
ANALYSIS
Item No. 3. Page 2 of 4
Considering the demographics of customers who responded to the survey, CPAU may try to
enhance future survey methodologies to improve representation of the Palo Alto community.
Overall Performance Context
Water Service: CPAU's average positive rating across organizational characteristics was
80.0% (+1.1 percentage points compared to 2023), compared to 63.3% for the statewide
municipal utility customer aggregate. CPAU scored higher on every single characteristic,
with the largest gaps in “environmental responsibility” (+23.2 percentage points),
"promoting efficient use and conservation" (+22.4 percentage points) and “monitoring
water quality” (21.0 percentage points).
Electric Service: CPAU's average positive rating was 74.4% (+3.5 percentage points
compared to 2023), compared to 62.0% for statewide municipal utilities and 62.6% for
IOUs. CPAU led other statewide municipal utilities on all 11 characteristics, with the
highest scores in reliability (+19.5 percentage points), outage restoration (+18.3
percentage points), and commitment to renewables (+23.7 percentage points).
Key Strengths Highlighted in Deeper Analysis
Alignment of Performance and Priorities: In both surveys, CPAU shows strong
alignment between what customers rate as most important (e.g., water quality and
monitoring, reliable supply, value for cost) and where CPAU earns its highest scores.
This alignment is tighter than the municipal utility averages, contributing to high Net
Positive Scores (86.1% among water customers; 82.1% among electric customers). Net
Positive Score (NP+S) = (advocates + loyal + satisfied).
Value and Affordability Perception: Despite rate pressures felt industry-wide, CPAU
customers rate value and reasonableness higher than benchmarks. For example, 68.0%
rate water value "good/very good"; and 71.8% find electric rates reasonable, which is
7.4 percentage points higher than other electric municipal utilities in California.
Environmental and Conservation Leadership: High ratings for conservation promotion
and renewable commitment stand out as differentiators versus other municipal utilities.
Areas of Opportunity
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While CPAU remains a top performer, a few areas showed slight declines compared to 2023
that align with broader industry trends.
Customer Service Resolution: First contact resolution dipped modestly among both
water customers (-13.9 percentage points) and electric customers (-3.8 percentage
points). Billing inquiries and lack of prior resolution were common drivers of repeat
contacts. These are common pain points for many municipal utilities dealing with rate
complexity. Also, customers are increasingly expecting to find more information on their
utility’s website and turning to customer service when they cannot find this information.
Preparedness Perceptions: Lower confidence in drought, natural disaster, and
emergency preparedness. These are notably below municipal utility averages in some
cases and may reflect statewide anxiety around climate risks rather than CPAU-specific
issues.
Digital Tools and Communication: Satisfaction with self-service digital options lagged
behind municipal utility averages in the electric survey (-9.8 percentage points),
suggesting room to enhance online portals for account management, mobile
application, or other self-service activities.
Action Items
Strengthen customer service first-contact resolution through billing issue workflows,
identifying common failure points such as unclear bill language, difficulty navigating
online account tools, or delayed processing. Integrate proactive digital tools, such as
estimated bill explanations or usage trend visualizations, to help customers self-
diagnose matters before contacting support, reducing call volume and complexity.
Enhance education about utility rates and affordability through robust outreach
campaigns, utilizing a variety of different media, to better communicate the value of
publicly owned utilities.
Expand communication about infrastructure improvements, highlighting regular
updates on water and energy infrastructure projects to showcase reliability
improvements and conservation benefits. Clearly articulate how these investments align
with CPAU’s mission, customer priorities, and affordability.
Develop income-specific messaging pathways for electric appliance replacement
programs that reflect the motivations, financial constraints, and support needs of each
group. Offer simplified “guided installation pathways,” including contractor
recommendations and step-by-step support for high-income customers who prioritize
convenience and trusted installation partners. Enhance outreach during key
replacement moments, such as emergency replacements, with clearer, faster messaging
on available rebates and financing options.
Amplify outreach campaigns to inform water customers about efficient usage and
rebate opportunities. Align rebate tiers and cost-share structures with demonstrated
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willingness-to-pay segments, ensuring that lower-cost options remain accessible to
customers with limited budgets.
Expected Outcomes
CPAU plans to implement the identified action items and address key takeaway results to
improve customer satisfaction, trust, awareness, and engagement. Survey results indicate that
an improved understanding of rates and the value of what goes into those investments,
including program benefits, will lead to increased satisfaction and trust. Dedicated efforts to
raise awareness among different customer groups about programs and resources will lead to
higher participation in energy and water efficiency initiatives, as well as accelerate adoption of
electrification programs and conservation practices. Expanding educational outreach and
awareness around rates, infrastructure investments, and affordability initiatives will build
greater trust in CPAU among customers. Customer relationships will be strengthened,
solidifying CPAU’s reputation as a reliable utility provider focused on community needs.
This report serves as a foundational document for the Utilities Advisory Commission to consider
strategic actions based on customer feedback and insights gained from results of these
residential surveys conducted in 2025.
FISCAL/RESOURCE IMPACT
CPAU compensated GreatBlue Research, Inc. in the amount of $22,000 for the statewide
residential electric and water customer surveys and oversampling survey of Palo Alto residents.
STAKEHOLDER ENGAGEMENT
GreatBlue Research, Inc. utilized digital data collection to field responses from a statistically
significant, random sampling of residents. Staff provided public outreach to the Palo Alto
community to ensure the legitimacy of the surveys and encourage greater participation.
ENVIRONMENTAL REVIEW
This does not meet the definition of a project, pursuant to Section 21065 of the California
Environmental Quality Act, thus no environmental review is required.
AUTHOR/TITLE:
Alan Kurotori, Director of Utilities
Staff: Catherine Elvert, Utilities Communications Manager
RESIDENTIAL ELECTRIC AND WATER UTILITY CUSTOMER SATISFACTION SURVEY RESULTS
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PROJECT OVERVIEW AND RESEARCH OBJECTIVES
•Partnership with California Municipal Utilities Association (CMUA) and GreatBlue
Research, Inc.
•Annual surveys to understand customer perspectives on key utilities issues.
•Statewide survey of municipal and investor-owned utilities (IOU).
•Additional oversample of CPAU customers for robust local comparisons.
•2025 results cover both electric and water customers in Palo Alto.
•Findings inform near-term improvements and a strategic roadmap to increase
satisfaction, trust, and engagement.
METHODOLOGY SNAPSHOT
•Audience: Residential electric and water customers in Palo Alto
•Timing: October 14 – November 25, 2025
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AREAS OF INVESTIGATION IN 2025
Assess customer knowledge and satisfaction with:
•Service reliability
•Utility rates and affordability
•Customer service and problem resolution
•Communication and information access
•Infrastructure management
•Emergency Preparedness
•Customer programs and offerings
•Sustainability practices
•Overall engagement with CPAU’s services
Use insights to better understand expectations and identify targeted action items.
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BENCHMARKING
•Results compared to statewide municipal utilities and IOUs.
Overall Performance vs. Benchmarks
•CPAU significantly outperforms aggregated statewide municipal and IOU utility
benchmarks in both water and electric across most key metrics.
•Results indicate strong local trust, high performance in reliability and quality, and
benefits from a carbon-neutral, community-focused utility model.
Net Positive Scores (NP+S)
•NP+S = Advocates + loyal + satisfied customers.
•Strong NP+S reflects close alignment between what customers value and how they
rate CPAU’s performance.
•Water customers NP+S:86.1%.
•Electric customers NP+S:82.1%.
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ELECTRIC SERVICE PERFORMANCE
•Average positive rating 74.4%, +3.5 points from 2023.
•Statewide municipal utilities 62.0%, IOUs 62.6%.
•CPAU leads on 10 of 11 electric characteristics, with strongest advantages in:
•Reliability:+19.5 points
•Outage restoration:+18.3 points
•Commitment to renewables:+23.7 points
WATER SERVICE PERFORMANCE
•Average positive rating 80.0%, +1.1 points from 2023.
•Statewide municipal utility aggregate 63.3%.
•CPAU scores higher on every water characteristic, with largest gaps in:
•Environmental responsibility +23.2 points
•Promoting efficient use and conservation +22.4 points
•Monitoring water quality +21.0 points
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ORGANIZATIONAL CHARACTERISTICS
Electric
Utility
Customer
Satisfaction
Scores
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Top expectations in 2025 remained affordability, reliability, and
prompt response to outages.
•Over four-fifths (82.4%) reported CPAU meets their expectations
"all" or "most of the time.“
Rates and Affordability
•More than seven-in-ten (71.8%) find CPAU’s rates reasonable.
•76.0% prefer utility invest in keeping utility rates affordable.
Customer Service
•83.2% satisfied with their customer service experience in 2025.
•Over one-half (54.7%) had issues resolved on first contact.
•Respondents with first-contact resolution reported significantly
higher satisfaction with customer service overall.
•98.9% compared to 64.4% of those who needed multiple
contacts or were unsure.
KEY STUDY FINDINGS: ELECTRIC UTILITY
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Emergency Response and Preparation
•Over three-quarters (77.9%) rated CPAU's outage response
time as acceptable, relatively on par with 2023 CPAU (75.5%)
and muni findings (78.8%).
•27.7% feel CPAU is well prepared for emergencies
•-24.1 percentage points compared to muni findings,
although 51.7% were unsure.
Communications
•Email clearly preferred over direct mail and paper bill inserts.
•78.4% said the frequency of CPAU communications is
“about right,” fewer than 2023 (-2.9 percentage points)
•68.1% satisfied with self-service digital tools
•-9.8 percentage points lower than all munis
•+6.1 percentage points higher than 2023 CPAU results
KEY STUDY FINDINGS: ELECTRIC UTILITY
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•Interest strongest for HPWH, induction cooktop stoves; up-
front costs limit adoption.
•Over four-fifths (81.6%) are "very" or "somewhat familiar"
with home electrification.
•72.3% "strongly" or "somewhat support" CPAU’s investment
in electrification.
•Low to moderate income - own single-family or townhome:
•Replace gas water heater with heat pump (HPWH)
•31.5% willing to spend $500 to >$1,000
•21.7% willing to spend $2,500 or more
•Replace gas HVAC system with heat pump alternative
•33.7% willing to spend $1,000 to >$2,000
•27.2% willing to spend $5,000 to >$7,000
ELECTRIFICATION
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•More than three-out-of-ten (31.4% ) considering purchasing an
electric vehicle (EV).
•Significantly fewer than in 2023 (-15.9 percentage points)
•Cost, range, and battery failures are top barriers
•One-fifth (16.9%) of respondents already have solar.
•7.1% are "very" or "somewhat likely" to install solar panels
in the next year.
•One-tenth (9.5%) are "very" or "somewhat likely" to install a
battery storage system at their home in the future, while only
0.5% have one already.
•Three-fifths (60%) were "not at all likely to install" either solar
panels or battery storage systems.
ELECTRIC VEHICLES (EV), SOLAR, BATTERY
STORAGE
CONSIDERATIONS
•CPAU continues to outperform muni and IOU utilities in
multiple customer service metrics.
•Customers who resolve issue on the first contact provide
higher satisfaction ratings.
•Focus on first-contact resolution by standardizing billing
resolution workflows and rapid resolution review.
•Proactive digital tools:
•Estimated bill explanations, usage trend visualizations.
•Help customers self-diagnose issues before contacting
support, reducing call volume and complexity.
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CONSIDERATIONS
•Respondents of both income groups show a willingness to pay
for replacement of gas water heaters and HVAC systems in
exchange for heat pump alternatives.
•Low to moderate income = rebates, guidance, and financing
support.
•High income = contractor access and convenience.
•Income-specific messaging for HPWH and HVAC replacement
programs.
•Simplified “guided installation pathways.”
•Contractor recommendations and step-by-step support for
high-income customers.
•No-interest, on-bill financing options for low to moderate
customers.
•Enhance outreach during key replacement moments.
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ORGANIZATIONAL CHARACTERISTICS
Water
Utility Customer
Satisfaction
Scores
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Top expectations in 2025 are clean water and affordable prices.
•Over eight-out-of-ten (82.6%) reported CPAU meets these
expectations “all" or "most of the time.”
Rates and Affordability
•Two-thirds (65.4%) expressed “a great deal” or “some trust”
in CPAU to keep rates affordable.
•Two-thirds (68.0%) rated the overall cost of water relative to
the value received as either “good” or “very good.”
•Six-out-of-ten (66.0%) customers prioritized “protecting local
water quality and sources” and "keeping water rates
affordable" (64.8%) as the top future investments for CPAU.
KEY STUDY FINDINGS: WATER UTILITY
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Water Quality
•Satisfaction with water quality characteristics remained
consistent with 2023, with "clarity" receiving the highest
positive ratings (89.9%), followed closely by "smell" (89.6%)
and "taste" (88.5%).
•Nine-out-of-ten (88.8%) rated the quality of their water
positively.
•Three-quarters (75.7%) trust CPAU to take immediate action
to resolve water quality issues, consistent with 2023.
KEY STUDY FINDINGS – WATER UTILITY
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KEY STUDY FINDINGS – WATER UTILITY
Emergency Preparedness
•One-third (34.3%) believe CPAU is prepared to meet the challenges of another
drought.
•-3.0 percentage points lower than 2023
•-15.1 percentage points lower than all muni customers
•One-quarter (27.5%) believe CPAU is prepared to handle an emergency or natural
disaster, such as an earthquake or wildfire.
•Consistent with 2023, -20.2 percentage points lower than muni customers.
Infrastructure
•One-quarter describe CPAU’s water infrastructure as being in “pretty good shape.”
•One-quarter (29.0%) believe infrastructure is in need of some upgrading and repair.
•Three-fifths indicated support for major investments to upgrade and maintain water
infrastructure, even if funded by higher rates.
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KEY STUDY FINDINGS: WATER UTILITY
Customer Service
•Overall, three-quarters (75.9%) reported being satisfied with their experience.
•-4.8 percentage points from 2023
•-9.0 percentage points lower than muni respondents.
•Highest rated area (84.4%) “being courteous and treating customers with respect.“
•Three-fifths (60.2%) rated the utility’s customer service as either among the best or
above average compared to other service providers, on par with 2023.
•Over one-half (52.8%) reported issues were “taken care of the first time.”
•-13.9 percentage points lower than 2023
•Most common reason–lack of resolution in previous contacts, high bill or consumption.
Communication
•82.0% prefer email communications, 37.6% prefer direct mail.
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WATER CONSERVATION
•One-half (49.4%) "try hard to use less water but could probably do a little more," on par
with 2023.
•Most useful for water efficiency:
•Leak detection tools and notifications.
•Materials on specific ways to reduce household water use at no cost.
•Three-fifths (63.3%) familiar with the "WaterSmart Home Water Report Program."
•Half (50.9%) familiar with "Landscape Rebate Program," and "Landscape Workshops.”
•Assistance most helpful for low-income customers for water-efficient fixtures.
•Two-fifths (41.7%) prefer "upfront rebates"
•One-third (37.5%) prefer "information and guidance”
•One-quarter (28.1%) prefer "help finding a contractor," followed by "no interest
loans paid through my utility bill“ (17.7%).
CONSIDERATIONS
•Customer service performance remains an important strength
for CPAU relative to municipal utility benchmarks, 2025 results
show downward shift from 2023.
•Focus on first-contact resolution by standardizing billing
resolution workflows to reduce repeat contacts.
•Consider post-contact survey to capture immediate feedback.
•Expand training, proactive communication about high bill and
billing adjustment calls.
•Develop knowledge-base improvements or quick-reference
tools.
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CONSIDERATIONS
•Address uncertainties of preparedness to handle natural disasters
or drought by communicating more broadly about CPAU’s
emergency preparedness and response activities.
•Educate about critical infrastructure projects.
•Align conservation rebate tiers and cost-sharing structures with
demonstrated willingness-to-pay segments.
•“Water-efficiency navigation guide” with installation guidance,
recommended products, and contractor contacts.
•Conduct affordability and program-design survey for low-income
households.
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Alan Kurotori
Utilities Director
Alan.Kurotori@paloalto.gov
Catherine Elvert
Utilities Communications Manager
Catherine.Elvert@paloalto.gov
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