J.D. Power and Associates Reports: Although Awareness of Smart Grid Technology Substantially Boosts Residential Customer Satisfaction With Electric Utility Providers, Awareness Rates Tend to Be Particularly Low

WESTLAKE VILLAGE, Calif., July 1 /PRNewswire/ -- Although $4.5 billion in government stimulus funds have been earmarked for the development of smart grid utility systems and infrastructure, awareness of the technology tends to be low among residential customers of electric utilities, according to J.D. Power and Associates. This raises a significant opportunity for utility providers, as customers who are aware of smart grid and smart meter technology are considerably more satisfied with their residential electric service than customers who are not aware.

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Smart grids and smart meters are emerging as an electric power delivery system that allows for two-way communication between electricity providers and individual households and appliances that use the power. The technology is designed to allow utility companies to enable conservation initiatives and improve power reliability. In addition, it is designed to allow consumers to receive detailed, specific information regarding their power usage patterns to help them manage consumption and cost.

According to the forthcoming J.D. Power and Associates 2010 Electric Utility Residential Customer Satisfaction Study(SM), fewer than one in six residential customers say they are aware of actions taken by their utility to implement smart grid and smart meter technology. While overall awareness of utility actions to implement smart grid technology is relatively low, awareness has increased slightly during the past year, from 12 percent in July and August 2009 to 16 percent in April and May 2010.

However, when residential customers are aware of smart electricity technology and their utility's actions around it, overall satisfaction with the utility company increases notably. This presents an important opportunity for utility companies seeking to increase customer satisfaction, which often has significant bearing on rate case decisions.

"As state governments and utility companies develop infrastructure and implementation strategies for smart grids and smart meters, it will be critically important for them to incorporate the voice of the customer in their plans," said Jeff Conklin, senior director of the energy and utility practice at J.D. Power and Associates.

According to Conklin, with residential smart grid technology currently in its infancy, utility companies have the ability to shape the perception and acceptance of smart meters and smart grids among consumers through proactive and appropriate communication. At the same time, utility providers that develop smart systems with customer satisfaction in mind may be able to get things right the first time, ultimately saving in long-term development and implementation costs.

The study finds that awareness of smart grid among electric utility customers varies widely among various states. Awareness of utility actions is relatively high among customers in California, Idaho, Georgia and Oregon, with approximately 28 percent of customers claiming some degree of familiarity. Awareness is particularly low among customers in Arkansas and Montana, with approximately 4 percent of customers in these states indicating they are aware of smart technology implementation.

J.D. Power and Associates will be releasing the 2010 Electric Utility Residential Study on July 14, which contains more information about residential electric utility customer perceptions of smart electric technology, as well as overall residential customer satisfaction with electric utility companies.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.  

J.D. Power and Associates Media Relations Contacts:

John Tews; Troy, Mich.; (248) 312-4119; [email protected]

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

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/corporate

SOURCE J.D. Power and Associates