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Study shows satisfaction with major utilities tumbles

RP news wires, Noria Corporation
Overall customer satisfaction fell substantially among residential customers served by the nation's 76 largest electric utilities, according to the J.D. Power and Associates 2006 Electric Utility Residential Customer Satisfaction Study released July 20.

The customer satisfaction industry average is now at 668 points on a 1,000-point scale-down from 704 points in 2005. Overall customer satisfaction is based on performance in six factors: power quality and reliability; company image; price and value; communications; billing and payment; and customer service. Utilities are ranked in four geographical regions as well as in a segment for medium-size utilities.

Customers report spending 16 percent more on electricity in 2006, marking the fourth consecutive year that reported average monthly bills have increased. Nationally, the average stated monthly electric bill is $127. The utility industry also experiences more outages, as customers report an 11 percent increase since 2005 in the frequency of electric service interruptions.

"Electricity prices and consumption are both up sharply, and customers are critical about how much they're now spending on electricity," said Alan Destribats, executive director of the utility practice at J.D. Power and Associates. "The leading utilities are curbing the impact of this by offering more pricing options such as time-of-use or load-control rates, and they work hard to keep their customers informed and educated about how to conserve energy and reduce their electric bills."

Eastern Region: Two utilities tie to rank highest in the Eastern Region: Allegheny Power and PPL Electric Utilities. This is the first time Allegheny has earned this distinction. PPL has ranked highest in satisfaction (or tied) in seven of eight years since the study's inception. Also performing well in the region are Exelon PECO, FirstEnergy, and Duquesne Light Company.

Midwestern Region: E.ON U.S. (formerly LG&E Energy) ranks highest in the Midwestern Region for the seventh time in eight years. E.ON U.S. outperforms all other utilities in the region in four of the six factors of satisfaction. Also performing well in the region are MidAmerican, Indianapolis Power & Light and Consumers Energy.

Southern Region: Southern Company ranks highest in overall customer satisfaction in the Southern Region for the third time in eight years. Southern Company leads the region in power quality and reliability, company image, and customer service. Also performing well are Progress Energy, Duke Energy and CPS Energy.

Western Region: For the seventh time in eight years, Salt River Project ranks highest in the Western Region. Salt River Project receives the highest score in the study, and nationally has the highest scores in five of six factors. Also performing well in the region are Sacramento Municipal Utility District, San Diego Gas & Electric, and Arizona Public Service.

Medium-Size Utilities (serving between 160,000 and 400,000 customers each): Omaha Public Power District (OPPD) ranks highest in the Medium-Size Utilities segment for a fifth consecutive year. Also performing well in this segment are Pedernales Electric Cooperative, Colorado Springs Utilities, Seattle City Light and Tucson Electric Power.

The study results are based on customer responses from 26,688 telephone interviews conducted from March 23, 2006 through June 6, 2006 among residential customers of the 76 largest electric utilities across the continental United States.

  Customer Satisfaction Index Scores
  (Based on a 1,000-point scale)

  Eastern Region

  Allegheny Power                           712
  PPL Electric Utilities                    712
  Exelon-PECO                               707
  FirstEnergy-East                          685
  Duquesne Light                            674
  Energy East                               669
  Public Service Electric and Gas           662
  Con Edison                                658
  East Region Average                       654
  Northeast Utilities                       644
  Pepco Holdings                            636
  National Grid                             626
  Baltimore Gas & Electric                  595
  NSTAR Electric                            588
  Long Island Power Authority               570

  Midwestern Region

  E.ON U.S.                                 725
  MidAmerican Energy                        713
  Indianapolis Power & Light                702
  Consumers Energy                          693
  Alliant Energy                            685
  Xcel Energy-Midwest                       684
  AEP-Midwest                               680
  Kansas City Power & Light                 679
  Duke Energy-Midwest                       667
  Midwest Region Average                    663
  Ameren                                    656
  FirstEnergy-Midwest                       651
  We Energies                               649
  Dayton Power and Light                    639
  Detroit Edison                            633
  Exelon-ComEd                              624

  Southern Region

  Southern Company                          723
  Progress Energy                           717
  Duke Energy-South                         716
  CPS Energy                                711
  Tampa Electric                            705
  Oklahoma Gas and Electric                 697
  Dominion Virginia Power                   681
  AEP-South                                 679
  South Region Average                      679
  South Carolina Electric & Gas             671
  Florida Power and Light                   663
  PNM Resources                             656
  Entergy                                   654
  TXU Energy                                629
  Reliant Energy                            626

  Western Region

  Salt River Project                        765
  Sacramento Municipal Utility District     734
  San Diego Gas & Electric                  710
  Arizona Public Service                    699
  Southern California Edison                683
  Portland General Electric                 676
  West Region Average                       675
  L.A. Dept. of Water and Power             674
  PacifiCorp                                674
  Puget Sound Energy                        667
  Pacific Gas and Electric                  658
  Sierra Pacific Resources                  634
  Xcel Energy-West                          624

  Medium-Size Utilities (Between 160,000 and 400,000 Customers)

  Omaha Public Power District               750
  Pedernales Electric Cooperative           747
  Colorado Springs Utilities                735
  Seattle City Light                        724
  Tucson Electric Power                     717
  Snohomish                                 716
  Cleco                                     714
  Wisconsin Public Service                  704
  Idaho Power                               702
  Jacksonville Electric Authority           695
  El Paso Electric                          686
  Austin Energy                             679
  Avista Utilities                          677
  Medium-Size Utilities Average             675
  Nashville Electric Service                668
  Central Hudson Gas & Electric             664
  United Illuminating                       636
  Westar Energy                             633
  NorthWestern Energy                       628
  Aquila                                    625
  Northern Indiana Public Service Co.       606
  Memphis Light, Gas & Water                563



  

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. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

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