J.D. Power and Associates Reports: Electric Utility Business Customer Satisfaction Increases across the Nation

Business Wire, March 4, 2005

WESTLAKE VILLAGE, Calif. -- Providing Service and Billing Options Improves Satisfaction among Business Customers

Electric utility companies across all regions in the United States are showing an increase in overall satisfaction among business customers, according to the J.D. Power and Associates 2005 Electric Utility Business Customer Satisfaction Study(SM) released today.

The expanded study, now in its second year, is based on interviews with representatives of more than 11,000 businesses that spend between $500 and $50,000 monthly on electricity. Overall customer satisfaction is based on six factors: power quality and reliability; customer service; company image; billing and payment; price; and communications.

The study finds that many utilities are receiving higher customer satisfaction rates due to improved options for businesses to directly contact their utility, either through a business call center or an assigned representative. In 2005, 69 percent of businesses surveyed indicated they have direct access options, compared to 61 percent in 2004. Businesses with an assigned account representative report an overall average Customer Satisfaction Index (CSI) score of 110 -- seven points higher than the industry average.

"One of the best ways utilities are improving satisfaction is by providing options to their customers, allowing customization of services and billing," said Alan Destribats, executive director of the utility practice at J.D. Power and Associates. "Businesses that take advantage of the variety of rate plans and those that use alternative methods of paying monthly bills, such as on the utility's Web site, are much more satisfied overall."

Businesses also perceive experiencing fewer and shorter power outages in 2004. Among those that did experience outages of more than five minutes, 22 percent said their utility companies re-contacted them to confirm that power had been restored. These businesses rate their utilities significantly higher for power quality and reliability than those that were not re-contacted.

East Region

PPL Electric Utilities ranks highest in the East Region with an overall CSI score of 109 points. PPL performs very well across all six factors. Other strong performers in the region are Exelon-PECO, Baltimore Gas and Electric, and Energy East.

Midwest Region

MidAmerican Energy ranks highest in the Midwest Region with an index score of 113 points -- the highest in the nation. MidAmerican receives particularly high ratings in power quality and reliability. Other utilities in the region with strong performances include We Energies, Alliant Energy, LG&E Energy and Xcel Energy-Midwest.

South Region

The South Region leads all regions in every satisfaction component. Despite the hurricanes that battered Florida in 2004, businesses perceived that Florida utilities handled power restoration well, and the scores reflect a small improvement in power quality and reliability ratings.

Southern Company ranks highest in overall satisfaction in the South Region with 111 index points and particularly high ratings in price and company image. Other strong performers in the region include Duke Power, Progress Energy, City Public Service and Tampa Electric.

West Region

Salt River Project ranks highest in overall satisfaction in the West Region with an index score of 111. It receives high marks in company image, customer service and communications. Other utilities in the region with strong performances include Arizona Public Service, Puget Sound Energy and Portland General Electric.

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com