This report summarizes key findings generated by Burbank Water & Power's (BWP) Summer 2005 customer satisfaction survey among business customers. These results are being shared with BWP customers as a way of thanking them for their continuing support.

This survey represents the second time BWP has conducted customer satisfaction research among business customers, with its initial benchmark study first done in 2003.

This survey was designed, conducted and implemented by RKS Research & Consulting, an objective third party that conducts similar surveys for California municipal utilities on a continuing basis.

The results presented here are based on 125 telephone interviews conducted during late summer 2005. Respondents were informed of BWP's role as survey sponsor, but their specific rankings and opinions were kept confidential. At about the same time as the BWP survey was conducted, RKS Research & Consulting conducted a statewide survey of business customers served by California utilities. This consisted of 500 telephone interviews with 400 done among business customers of municipal utilities and 100 among business customers served by investor-owned utilities. The results generated by the BWP survey are compared in this summary with the statewide norms, shown in the tables as "Total Muni '05", and "IOU '05" which refers to results generated by interviews among customers of California investor-owned utilities.

The survey addresses business attitudes and opinions on subjects such as utility image, power delivery, account services, key accounts, billing services, pricing, value, and public benefit programs.

Summarizing BWP Performance

The Business Performance Record (BPR) is RKS' proprietary statistical model used to measure business customers' satisfaction with their utility.

Burbank Water & Power turns in excellent BPR scores in several areas. It surpasses its own 2003 scores in Value, Relationship and Image. Factors such as Price, Power Delivery and Power Information remain consistent with 2003.

BWP, as assessed by its customers, does a better job than the average municipal utility statewide on all factors, except price. This is also true when BWP is compared against investor-owned utilities.

Utility Image

Asked about their overall opinion of BWP, nearly nine in ten business customers (87%) say they have an extremely positive opinion - an increase of 20 points over 2003. BWP's scores register above the average for municipal utilities across the state.

BWP's "very favorable" rating stands at 11 points above the average municipal utility statewide and 27 points above the average investor-owned utility statewide.

While the majority of BWP business customers (67%) say their opinion has stayed the same over the past few years; many (28%) say they've seen an improvement. Less than 1% believe things are worse.

The number of BWP customers seeing improvement in their utility has nearly doubled - from 15% in 2003 to 28% in the present survey. This stands well above the standards for municipal utilities statewide (12%) and investor owned utilities (10%).

BWP customers feel good about the utility's environmental commitment, giving it ratings slightly above the average on this measure. More neutral scores are offered when asked about BWP's efforts to help customers use less energy and save money.

Power Delivery

BWP business customers applaud BWP's reactions to power outages. Customers award BWP very high marks for being easy to reach for outage information and for quick response in restoring power. BWP's scores on both measures top its 2003 performance and state norms.

Account Services

BWP customer representatives were kept busy during the past year. More than three out of four (77%) of BWP business customers contacted the utility in the last 12 months, a dramatic increase from the 58% of 2003, and higher than the state average of 64%. Overall, BWP business customers called more frequently, making an average of 8.7 calls over the last 12 months, up from the 6.8 logged in 2003. The state average, in comparison, is 5.0 calls.

Billing issues were most common reason for BWP business customers' most recent call (18%). Power outages (17%), new construction (9%), new service/disconnects (10%).and inquiries about energy efficiency programs (5%) were also cited.

BWP business customers are quite complimentary when asked about their contact experience, awarding ratings well above BWP's 2003 ratings and state norms in all areas. Most are very satisfied with their interaction overall, and feel good about their customer service rep's ability to solve issues quickly and in one call.

Key Accounts

Customers who have been assigned a Key Account representative are enthusiastic about the service they receive from their Key Account reps, awarding them excellent ratings for responsive, informative and meeting their overall needs.

Pricing and Value

More than half (53%) of BWP business customers feel the price they pay for electricity is high, a dramatic jump from 33% in 2003. Its average ratings confirm this - on a 10 point scale where 0 means the price is low and 10 means the price is high, BWP customers give their electricity price an average rating of 7.1. This score has risen slightly from 6.9 in 2003, indicating that price perceptions are growing higher. Overall, BWP customers see their prices as higher than others around the state (BWP 7.1; Total Muni 6.2).

When asked to rate the total value of what they receive from their utility, BWP receives slightly higher ratings than its peers. Customers give it an average rating of 8.1 for the value it provides in electricity and associated services. In comparison, the average statewide is 7.8.

In spite of their belief that their electricity price is a little high, BWP business customers say they feel good about the service they receive for their money, at levels above 2003 and state averages for all California municipal utilities. Their perceptions of value received for the money and the competitiveness of BWP's pricing remain relatively consistent with both BWP and state benchmarks.

Utility Preference

The vast majority of customers in California are served by one of two types of electric utility companies: a municipal- or community-owned utility or an investor-owned utility (IOU). BWP is a community-owned utility. California's three investor-owned utilities are Southern California Edison, San Diego Gas & Electric, and Pacific Gas & Electric.
By a wide margin, most BWP business customers say they would prefer to obtain their electricity from a municipal utility, at higher levels than other municipal business customers around the state. In addition, they show much less interest in IOUs - just 4% state a preference for an investor-owned utility compared to 16% statewide.

Summary and Conclusions

This research confirms that BWP has developed an excellent relationship with its business customers, marked by growth in several areas. Customers who were relatively satisfied with BWP in 2003 now give it excellent marks for its performance in nearly all areas. Overall, Burbank businesses report having high trust and confidence in BWP and see it as a well-run, progressive and service-oriented organization that values their business. And while BWP business customers tend to feel they pay a high price for electricity, they feel good about the value and service that it provides.

Business customers also express positive feelings about BWP's ability to provide them with clean, reliable power. Its response to outages clearly plays a part - business customers give it high praise for restoring power quickly and notifying them in advance about planned outages.

BWP's performance stands above other California utilities on the vast majority of subjects surveyed. Still, there are two areas that offer an opportunity for growth:

• Bill clarity. While not a major issue, BWP's business customers give it only moderate to neutral scores for the clarity of its bills, coming in below the state average. BWP's very largest electric-using customers appear to be the least content with BWP's billing format. It may be worth gathering input from these customers to better understand their concerns and determine how their needs might be addressed.
  
  
• Energy efficiency information and programs. Many business customers, including BPW's, show limited interest in currently available programs, perhaps because they are less relevant or practical to smaller businesses. BPW should continue to look for ways to provide this information and support to its customers.