most important customer, The

Electric Perspectives, Sep/Oct 2002 by Leonard, J Wayne, Nixon, Walter, Wagoner, Mary H

Recent research indicates that many customers are willing to pay a little extra to help the needy. However, only 2 percent of our customers contributed to the voluntary fuel funds in our four states last year. If that quarter of residential customers who think they already are giving actually did so-by adding just a dollar apiece to their bill each month-fuel funds in our service areas would balloon from $1.4 million to $11 million. Such an increase would make a substantial, positive difference in many people's lives and relieve the financial pressures borne by local agencies serving people faced with temporary bill payment crises.

Voluntary giving to fuel funds can make a big difference, but it won't come close to meeting the need. There will never be enough to help all those who qualify. I think our customers would be surprised to learn that the four Entergy states received nearly $100 million in federal Low Income Home Energy Assistance Program (LIHEAP) funding in 2001-and even more surprised to learn that that amount is grossly inadequate.

So what is the answer?

A Sleeping Giant

In 1999, Entergy hosted a novel "LowIncome Customer Assistance Summit" in New Orleans, bringing the company together with advocates for the poor, government agencies, private charitable groups, and national poverty experts to help us better understand the problem and develop concrete solutions. That year we launched a multipoint low-income strategy with three key elements:

* customer programs that required no changes in laws or regulations, including credit policies, contributions, employee support, and fuel funds promotions;

* expanded advocacy for greater-and more equitable-government assistance at the federal, state, and local levels; and

* education and communications programs to reach more low-income customers, using straight talk and information channels they prefer and trust.

The first thing we had to do was review and evaluate our own treatment of low-income customers. We then looked at how introducing flexibility and fairness into existing policies, procedures, and programs could produce mutual benefits to customers and the company. In doing so, we awakened a sleeping giant of employee interest and support. In my experience, employees always want to be a part of a company that does the right thing.

We supported efforts by the Internal Revenue Service to inform low-income taxpayers about available tax credits through bill inserts and by providing flyers and bulletin board posters to 1,500 churches, senior centers, and nonprofit agencies in our utility areas.

In 2000, at the second Low-Income Customer Assistance Summit in Jackson, ms, we formed the Entergy Charitable Foundation and committed $5 million to help low-income customers and advocates. In 2001, at the third summit in Little Rock, AR, we recommitted $5 million to the same cause. More than half the donations are awarded in grants: In our latest round, 68 percent of those grants went to organizations providing benefits to lowincome customers.