The book argues that the statistics typically used to gauge players – such as stolen bases, runs batted in, and batting average – are relics of a 19th century view of the game. The team’s front office used more empirical gauges of player performance to predict success, particularly on-base and slugging percentages, to become one of the league’s most successful teams despite its financial problems.

Cable news, major newspapers and business magazines – not just technology blogs – have been devoting time and space to the developing data analytics industry for several years now. But a major motion picture on the subject makes it clear that analytics is truly going mainstream.

When it comes to analytics, utilities are starting from behind, but some are catching up quickly.  While a World Series of Utility Analytics may be some time off, the games are well under way.

Many utilities are well behind other industries in marrying their systems to contemporary IT capabilities. Many are just now coming to grips with obtaining information from their operational activities – something that companies in most large-scale industries today take for granted. Heaped on top of the basic challenge of obtaining data is the far more advanced challenge presented by analytics.

“We’ve been doing the things for 30 years that utilities are challenged with now. We usually talk right past those things,” said an account executive with a predictive analytics provider. “With utilities, we have to take a few steps back and start with just getting the AMR data and doing what we’d call a simple analysis. Then we will have earned the right to move on to predictive analytics and the more advanced things we can do.”

Among the utilities to watch in this respect are PECO, We Energies, Florida Power & Light, Oncor and First Choice Power, a retail electricity provider in the deregulated Texas market.

Glenn Pritchard, principal engineer at PECO, said his company is using analytics “across the enterprise” – in distribution and planning operations, revenue protections, meter operations, finance, load research in energy efficiency efforts.  The company has found success in these areas while using AMR, and expects even greater results after its AMI deployment begins this year, Pritchard said.

“The new data will supercharge the existing analytics,” Pritchard said.

Lloyd Tokerud, manager of analytics at First Choice Power, notes that his team is already immersed in the regular practice of maximizing data.

“We are real-time analytical capability enablers. What we really believe is speed is where it’s at. We want our organization to be able to make decisions faster than our competition,” Tokerud said during the inaugural Utility Analytics Institute summit in Orlando in February. The company’s analytics group must be able to sit in a meeting with executives and answer their questions and solve their problems – in real time – during the meeting, he said.

Among the tenets of the group’s philosophy are “start big” and “start in the middle,” he said. Another principle is “speed, accuracy and scope – pick two.”

“Start big” means that an organization has to not only start with questions (and not start with data), but start with the most important questions according to the company’s leaders all the way to the executive level, he said.

“Start in the middle” means that the analysts should not get hung up on trying to get 100% of the data to provide answers to questions. Tokerud said his group applies the 80/20 rule – the so-called Pareto principle – that roughly 80% of effects come from 20% of causes. That is, 20% of the data is probably enough to work with at first in order to draw some useful conclusions, he said.

The best idea is to keep it simple, start off with some easy wins and build confidence before moving on to larger challenges, he said.

These matters will be discussed in more depth in Chartwell’s Data Analytics 2012 report to be released early this month.

Similar issues facing utilities today will be explored during Chartwell’s Smart Grid Customer Interaction Summit, April 19-20 in Atlanta. Attendees will learn strategies for engaging their customers on new smart grid technologies, communicating the value of energy management technologies and concepts and ultimately building an interactive relationship that will pay dividends over time.

* The Merriam-Webster Dictionary defines engagement (in this sense) as “emotional involvement or commitment.”

This lesson can easily be applied to a utility’s contact center, where employees are often faced with the demands and pressure of delivering a satisfactory customer experience. But, because these professionals are generally the first – and sometimes only – point of contact a customer has with their utility, it is important for management to first “win over” this set of employees to reach the ultimate goal of improving customer satisfaction.

In management, we often hear the question: ‘What keeps you up at night?’ Dr. Randy Ross, founder and CEO (Chief Enthusiasm Officer) of Enthusiasm, Inc. encouraged attendees of Chartwell’s inaugural Contact Center Management Summit last week in Atlanta to instead think about ‘What gets you up in the morning?’

Changing this one thought can make a world of difference in the way one views their job, bringing with it passion and purpose for meaningful work. A passionate utility employee, in turn, shares that passion with customers, who often then become passionate about the utility.

Dr. Ross spoke about the psychology surrounding employees, ultimately landing on the science of human values, or axiology, developed by Dr. Robert S. Hartman. Axiology – in its simplest state – can be defined by the following equation:

QW = (CSS+EP+GI)GJ

Quality Work (excellence) =
Competent Skill Sets + Efficient Processes + Good Information
All multiplied by Good Judgment

Breaking that down even further, Dr. Ross equates quality work to the product of skill and will. A great example of this equation came when Ross shared a video depicting a story similar to that described in The Greatest, a 1999 song performed by Kenny Rogers. In both the story and the song, a young boy is tossing a baseball to himself and attempting to hit – what he is imagining – a game-winning home run. After he swings and misses twice, the boy picks up the baseball one last time as “the game is on the line.” Determined to make the best of the situation, he tosses the ball one more time and takes an even bigger swing. But he again misses the ball.

And the world’s as still as still can be
And the baseball falls, and that’s strike three

Now it’s supper time and his mama calls
Little boy starts home with his bat and ball
Says I am the greatest that is a fact
But even I didn’t know I could pitch like that

One’s perception certainly goes a long way to being satisfied with any situation. If the little boy valued only hitting, he would have left the field crushed, but because he perceived value in the situation as a pitcher, he walked away with his head held high.

Most everyone wants to be the batter that hits the game-winning home run, but can’t it be just as fun to be the pitcher that strikes out that batter to seal the victory? One way or the other, each is important to the outcome of the game.

Whether your employee is the batter or the pitcher, keeping them engaged is vital to preserving the goal of engaging customers. And the biggest part of that engagement is making sure that each individual knows even though their role may be different from those surrounding them, they are an important part of the team.

Chartwell Summits provide an opportunity for utility industry professionals to learn from other utility leaders, as well as those outside the industry. In April, Chartwell will host another pair of summits - Smart Grid Customer Interaction or Web and Mobile Customer Interaction - focused on aiding utilities in their effort to improve customer relationships.

Chartwell will continue to track employee as well as customer engagement in an ever-changing business environment. In the meantime, managers are faced with the challenge of keeping top talent ‘in the game’ for the long-haul, a mission that involves a careful balance of workforce and human needs. As Ross reminds us, “Be yourself, because everybody else is taken.”

Whether these innovations in technology are disconcerting or comforting to you or not, there’s no doubt they have changed the way people communicate and interact. The same is true for utilities. As demand shifts to more automated self-service channels online, web-based solutions are becoming increasingly popular and important for utilities looking to enhance customer communications and promote new products and services.

In other words, to engage tech savvy customers, utilities need tech savvy solutions. Lately, online applications have become the norm for utilities looking to engage customers in energy efficiency initiatives with streamlined software programs. Apogee Interactive’s Home Energy Calculator  analyzes specific residential usage criteria to determine potential cost factors and savings. It’s now used by hundreds of utilities. For certain customers, personal billing data can also be incorporated into the Calculator, providing a customized analysis and a precise monthly bill comparison.  Aclara’s Bill Analysis Tool also helps customers decipher some of the more complicated energy terms and presents an energy analysis to the customer by highlighting dollar values to usage components in a customer’s home.

Even utilities on limited budgets, like the Lee County Electric Cooperative in Southwest Florida, see the online tools as conveniences and investments in customer satisfaction. “People don’t want to have to schedule [in-home energy audits] and have someone come into their home,” says Joe Padgett, director at LCEC. “If we can provide information to them through the web, that’s really what they’re looking for.”

Big Hill Software’s Vampire Power Calculator is a smartphone app that estimates potential savings from plugged-in electronics that sit idle. New York’s Con Edison has teamed up with ThinkEco, a software developer that has a smartphone app that allows customers to remotely shut off appliances when not in use.

The integration of smartphones with smart-meters will no doubt lead to smarter customers in the future. But providing these kinds of interactive, ‘game-like’ solutions to customers on the devices and platforms they use most often is critical to enhancing a customer’s experience and generating energy efficiency awareness.

To learn more about these innovations and how to effectively identify and deliver customer expectations surrounding mobile devices and web applications, register for Chartwell’s Web and Mobile Customer Interaction Summit, April 19-20 in Atlanta.

Why are mega-companies like State Farm and Discover spending advertising dollars to promote customer service rather than showcasing a product or service?  Perhaps it’s because they realize that a company’s CSRs are its customers’ primary touch-points. While these kinds of ads are both entertaining and humorous, they are also are indicative of the levels of personalized service, knowledge and demand that modern consumers not only expect, but also require.

Spending big bucks on branding, marketing and expensive advertising can have very little impact if customers have negative experiences with CSRs.  Innovative technologies have changed the way businesses connect and respond to customers. From smartphone applications to social media, the utility industry should embrace change rather than fight it. But, how?

A business must learn to field information through a variety of channels – texting, online chatting and traditional phone calls – but, how does one ensure a positive experience on all fronts?

Chartwell is tackling these evolving customer contact issues during its upcoming Customer Contact Management Summit on Feb. 23-24, 2012 in Atlanta, Ga. The summit will allow customer contact managers to learn and discuss how to manage new and emerging customer contact channels.

Unlike other customer care center and contact management conferences, Chartwell’s summit provides a focus on utilities and the direct issues they face with smart grid, energy efficiency, customer education and the complexities of electric, gas and even water utilities that are not experienced in other industries.

We hope to see you next week in Atlanta. In the meantime, thank you for taking the time to check in and read Chartwell’s Industry Insights. And, as always, if you have any complaints, press 2 to speak to an operator. Please hold…

The electric power industry’s ability to deliver timely and accurate information to customers and key stakeholders following major outages was tested in 2011 on a scale not seen for several years. Hundreds of tornadoes ripped through Alabama and other states in late April, killing 346 people in all and cutting power to more than 2 million. In late August, Hurricane Irene made landfall over North Carolina’s Outer Banks and tore through the Northeast, causing 56 deaths and more than 5.7 million people to lose power. On Sept. 8, a major southwestern U.S. power line failed, bringing San Diego to a standstill at rush hour and affecting about 5 million people overall. And in late October, a rare but massive snowstorm hit the Northeast, impacting more than 3 million.

Here’s a quick rundown on the regulatory reviews under way:

• Connecticut: A consultant’s report released last December criticized Connecticut Light & Power for overly ambitious restoration estimates after the October snowstorm. The report also noted that CL&P and other utilities in the region had trouble getting mutual aid crews because workers with those other companies had to prepare to fix damage in their own areas. Meanwhile, a storm review panel appointed by the governor has proposed 82 recommendations to improve emergency response among utilities, telecommunications service providers and governments.

• Maryland: The state Public Service Commission is considering proposed reliability standards for utilities intended to reduce the average length of outages statewide by 90 minutes and the frequency of outages by 24% by the end of 2015. The standards would also set deadlines for restoring power during normal and inclement weather. The PSC would have the authority to impose fines if utilities fail to meet the standards. The commission also is reviewing the response by BGE and other utilities to Hurricane Irene.

• Massachusetts: Regulators have completed a series of public hearings to determine how National Grid, NSTAR and other electricity companies prepared for and responded to the remnants of Irene. The hearings are expected to lead to an official order and could also result in some penalties against utility firms.

• New York: In response to the October snowstorm, U.S. Sen. Charles Schumer (D-N.Y.) asked the state Public Service Commission to require utility providers to offer an opt-in text message, email and “robocall” alert system to give customers timely and accurate service updates during power outages. State regulators have begun a review of utilities’ performance in response to Irene and the October snowstorm.

• New Jersey: The state’s preliminary report on power outages caused by Hurricane Irene called for immediate action by the four regulated utilities to improve communications with customers, including adding staff during storm events to handle expected calls, the use of social media and having a full communications plan approved by regulators in advance.

• Pennsylvania: The state Public Utility Commission adopted a policy statement intended to improve utility communications with customers, including recommending the use of social media and other new technologies.

• Rhode Island: After hearing testimony from National Grid and other companies, lawmakers reviewing the utilities’ response to Irene say they hope to find ways to better prepare the state for future storms.

As federal and state officials wrap up their work, Chartwell research shows the industry is not standing still. More and more electric utilities are exploring mobile websites, iPhone applications and text messaging to improve contact with customers. Utilities also are adding or expanding online storm centers, interactive outage maps, self-service portals and social media sites to provide customers with the information they want, when and how they want it.

Chartwell will continue to research and watch these trends as well as offer insights into the best practices, success stories and lessons learned from the events that made 2011 an important year for outage communications across the electric power industry. Many of these efforts will be highlighted during Chartwell’s Web and Mobile Customer Interaction Summit, set for April 19-20 in Atlanta.

Many observers predicted earlier this week that the commission would create a program that included an option for customers to keep their legacy, analog meter, as well as the ability to choose a smart meter with its wireless capability turned off among other options. After all, that’s what the Maine Public Utility Commission did in May – required Central Maine Power to initiate an opt-out program with four options.

But what the California commission did today was initiate an opt-out program with analog as its only option.

Customers electing to retain or return to an analog meter will be assessed an initial fee of $75 and a monthly charge of $10. Customers enrolled in the CPUC’s low income program – California Alternate Rates for Energy (CARE) – electing to opt-out will be assessed an initial fee of $10 and a monthly charge of $5.

The decision ends PG&E’s smart meter installation “delay list.” Customers on that list have about 30 days to ask to participate in the opt-out program or their analog meter will be replaced with a smart meter.

Today’s decision came during a somewhat verbally quarrelsome meeting this morning which started with a public comment period of about 90 minutes, during which 60 or so smart meter opponents voiced their disapproval of the devices. The proceedings were broadcast live on the internet here.

CPUC President Michael R. Peevey then began to speak about the benefits of smart meters, including their vital role in creating a nation of “fully empowered energy consumers.” As he spoke, many in the crowd erupted with shouts such as “Lies! Lies!” Peevy repeatedly asked the attendees to show the commission the same respect they had shown by quietly allowing complainants to speak about smart meters.

Peevey spoke about the study by California Council on Science and Technology (CCST) released early last year, which reported that smart meters “result in much smaller levels of radio frequency exposure than many common household electronic devices including cell phones and microwave ovens.”

“Wrong!” came the yells. “Why are you reading it to us? It’s wrong!”

Peevey said that the CPUC is “not a public health agency” and that it must rely on the judgment of agencies such as the CCST and the FCC. The commission in July adopted privacy and security rules regarding smart meters in response to customer concerns.

“And yet after all of this, some customers called for an opt-out program,” Peevey said. He then explained the fees that the program would entail and asked his fellow commissioners to vote on the issue. After long discussion, the commission voted in favor of the opt-out program.

Afterward, there were shouts of protests against the fees.

“This is a crime against humanity!” one person yelled.

In March, PG&E proposed an initial fee of $128 and a monthly charge of $10.69 for the “non-wireless” option, but the PUC rejected those figures. In a November preliminary ruling, the commission proposed that regular customers should be charged an initial fee of $90 and a monthly charge of $15. Meanwhile, customers enrolled in CARE would pay only a $5 monthly charge, with no initial fee.

While some utilities estimate that only about 1% of customers are likely to take advantage of an opt-out program, others – such as Southern California Edison – have said that fees must be set high in order to discourage participation.

In a filing made with the commission Dec. 19, PG&E announced that it now “supports approval of an analog meter option, in addition to the non-communicating radio-off option, in response to customers’ and parties’ continued requests for an analog meter alternative.”

The apparent general consensus among California utilities in recent months has been that whatever opt-out program the PUC ultimately approved for PG&E would provide a model for other utilities, including San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE).

Among the aspects of the motion approved today, the commission ordered PG&E to:

• Establish procedures to inform customers that a smart meter opt-out option is available. A customer currently on the delay list will be informed that the customer will be scheduled to receive a wireless smart meter unless the customer elects to exercise the opt-out option.
• Establish new two-way electric and gas “modified smart meter memorandum accounts” to track revenues and costs associated with providing the opt-out program until a final decision on costs and cost allocation issues associated with providing an analog meter opt-out proposal is issued.

According to the decision, “residential customers may begin signing up to participate in the opt-out option 20 days after the effective date of this decision. PG&E shall have a dedicated phone number for customers to call and sign up for the opt-out option. This number shall be staffed by customer service representatives trained to explain the opt-out option and fees.”

Because customers may “opt-out for any reason, or no reason, PG&E may not require a customer to explain or state why they wish to participate in the opt-out program,” according to the decision. The commission is expected to revisit the issue and adjust fees after the true costs of the program become apparent.

Once again, the exhibit hall was extensive, or, as one attendee quipped, “big enough to land a [Boeing] 747 on.” We at Chartwell couldn’t cover it all. So we stayed focused. What was there to improve the utility customer experience? And the answer: still plenty. Here’s a recap of some of the things we saw and heard for those of you who missed DistribuTECH 2012, including what we came away with as the big three topics related to the end-use utility customer:

Data analytics

There was a lot of noise on the exhibit hall floor about this important and evolving topic. A number of leading vendors, including Oracle, Itron, Aclara Technologies, Calico Energy, Telvent, eMeter and others promoted or launched products to help utilities harness the massive amounts of data from not only interval meters but other sources (grid sensors, load control events, weather information, etc.) into more intelligent grid operation.So just how can data analytics improve the customer experience? According to Andy Zetlan, vice president of product management for Aclara, by giving utilities the ability to better manage their data along with a single “view” of each customer those utilities can then improve programs and services, such as demand response efforts, and enhance customer engagement initiatives. Aclara and Calico Energy announced a partnership that will rely on the latter’s operations management application integrated with Aclara’s customer communications and metering platforms for state-of-the-art demand response. The Aclara Demand Response Management System will allow utilities to see and surgically control all of their resources in one place. “It gives [utilities] the ability to analyze what worked, and what didn’t work” during an event, says Tom Doggett, chief marketing officer for Calico Energy.

Oracle Utilities’ Guerry Waters, vice president, industry strategy, noted in an interview that Oracle provides “out-of-the-box analytics” as a rapid way for utilities to launch new analytics capabilities as they work to improve customer service while reducing costs. Oracle unveiled several dashboards at the show, including Oracle Utilities Meter Data Analytics and Mobile Workforce Analytics, all which would naturally integrate with the Oracle software.

Itron also offered Chartwell a demonstration of its new Active Smart Grid Analytics platform. Itron’s Darby McKee, director of software products, told Chartwell the new ASA platform will right out of the gate help utilities in the areas of theft detection, transformer management and power quality.

Much of the analytics solutions showcased at DistribuTECH are in the pilot phase at select utilities, but appear to offer great promise in helping utilities get their arms around the data dilemma that is growing for utilities.

Customer Engagement

Lots of vendors have the solution for this, yet it’s an issue that continues to dog utilities that deal with growing privacy and safety concerns. While those things must be dealt with, the bigger concern for utilities remains consumer apathy – getting them interested enough to take advantage of all the bells and whistles that were on display in San Antonio last week. Gamification was a big topic of conversation, and a number of utilities discussed how they’ve taken to Facebook and other media as a way to get customers involved.

Opower was demonstrating the much-talked about social media application they’re developing in conjunction with the Natural Resources Defense Council and Facebook. Though not yet public, it appears to have all the makings of the next Farmville once it goes live – still, it may require utility involvement and connectivity to truly get customers the data they may covet. Of course, consumers whose utilities are not involved will get a message to that effect – social marketing at its finest.New York-based Con Edison in conjunction with ThinkEco and its technology that will shut off appliances when not in use, talked about how a demand response initiative in the Big Apple last summer pitted apartment building against apartment building in a social marketing effort to get more users taking part.

Perhaps Comverge CTO Bud Vos summed up the customer engagement issue best during a presentation when he said that home energy management is “trying to create a dialogue between utility and customer, but the customer doesn’t want to have a very long conversation.”

Another interesting play was offered by Capgemini Energy, which would remain device neutral while managing a utility’s entire home energy management and demand response program. In other words, no matter which smart thermostats and DR tech the customer has outfitted in the home – Honeywell, Ecobee or even the much-coveted Nest, Capgemini would manage the DR program and work with the utility and customers to ensure program success.

Though it wasn’t on display, perhaps the customer engagement tool that was discussed the most during DistribuTECH was the “Green Button.” Based on the White House initiative to get consumers involved in their energy usage, utilities across North America starting in – you guessed it – California will place a green button on their customers’ energy usage page at the utility website. The customer will then get up to 13 months of electricity usage data, either monthly or more frequent. The California utilities went live with the green button just prior to the conference. Government officials hope the green button will spur development and ingenuity around energy usage data communications and apps, including gamification and energy usage notification devices.

Electric Vehicles

The plug-in electric vehicle (EV) movement was indeed present at DistribuTECH. An EV presentation garnered one of the highest-attended sessions that we saw, and there were several EVs and numerous charging station technologies on display throughout the massive exhibit hall. In fact, the first gadget that one saw when walking onto the exhibit floor was a charging station display showcased by Schneider Electric. A number of smart grid vendors are hitching their wagons to the EV train, which only makes sense. After all, EV adoption is of great interest to the utilities as they look at strategies for metering EVs and whether or not to offer special pricing programs for EV owners.

Other hot topics: Prepay metering, smart grid in the cloud, smart grid sensors and distribution technology, and where to get the best steaks and Southwestern food.

Indeed, DistribuTECH 2012 offered a wide array of smart grid technologies and supporting products. As for the Hooter’s girls, well, they did a nice job of walking the exhibit hall floor and steering patrons to various product demonstrations. Not that anyone noticed.

During Chartwell’s Webinar last week on Transforming Employees into Energy Efficiency Advocates, Gulf Power and New Jersey Natural Gas (NJNG) provided a more in-depth look at how internal support and communications have increased their respective utilities’ energy efficiency program visibility, as well as employee buy-in.

Gulf Power is working with employees to take ownership in its energy efficiency programs, encouraging them to sign up for various offerings. Through this ‘seeing is believing’ approach, Gulf Power is providing employees with rebates or programs for appliances such as heat pump water heaters, air conditioners and refrigerators. The utility has also launched a comprehensive educational campaign that uses internal media channels to create champions of Gulf Power’s energy efficiency messaging.

NJNG has been able to successfully involve its customer service representatives (CSRs) in spreading the utility’s Conserve to Preserve® (CTP) messaging. When appropriate, CSRs are encouraged to pass along CTP energy and cost-savings tips. By offering incentives and friendly competition, NJNG has considerably increased the number of tips provided during customer calls. The utility’s reach also expands across many other departments, through efforts such as a monthly E-tips email and company-wide events featuring energy efficiency information through games and contests.

Energy efficiency isn’t the only facet of the industry that is requiring a change from the inside out. As smart grid data becomes increasingly available, customer-facing employees are going to be tasked with speaking this new language. This will require a culture-change for many organizations on at least a micro-level in the years ahead. We’ll discuss these issues in more detail next month (Feb. 23-24) at our Customer Contact Management Summit in Atlanta.

When looking to create ambassadors, sometimes it takes the ‘been there, done that, got the t-shirt’ approach. Creating energy efficiency advocates from within can generate an excitement that can be conveyed externally, one customer interaction at a time.

California may add analog to opt-out plan

The delay leaves customers on PG&E’s smart meter installation “delay list” in a prolonged holding pattern. But the nearly month-long stay may result in an opt-out plan that is more effective in the long run. The standard analog meter – regarded by most die-hard opponents as the only valid alternative to smart meters – now appears to be on the table as an option.

Analog meters were not part of the opt-out program originally proposed in March by PG&E. Nor were they included in the CPUC’s proposed decision issued in November.

Then, in a filing made with the commission Dec. 19, PG&E announced that it now “supports approval of an analog meter option, in addition to the non-communicating radio-off option, in response to customers’ and parties’ continued requests for an analog meter alternative.”

The apparent general consensus among California utilities is that whatever opt-out program the PUC ultimately approves for PG&E will provide a model for other utilities, including San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE). At different times last year, the Commission ordered both utilities to submit proposals to the commission outlining the costs and other requirements of initiating opt-out programs including payment plans for four options: analog meter, digital meter with no radio installed, smart meter with radio transmission turned off and a wired smart meter.

Attorneys for SDG&E have expressed the utility’s opposition to the analog option. In fact, on the same day the PG&E filed its comments in favor of an analog option, SDG&E made its own filing in the case opposing an analog meter offering.

“Multiple parties recommend that the Commission authorize an analog meter opt-out option to alleviate concerns about health impacts. This recommendation is inappropriate because the commission has already ruled that health issues are not within the scope of this proceeding,” according to the SDG&E filing.

That very argument was dismissed by the Maine Public Utilities Commission in May, when it ruled that Central Maine Power (CMP) must provide an opt-out program to customers that included an analog option. Commissioner Vendean Vafiades wrote after the ruling that it had been a matter of “sound public policy.” Opt-out programs “shift the focus” of the conversation from the criticisms against smart meters to the economic and environmental benefits of the meters, he wrote.

A seemingly similar sentiment was stated in PG&E’s Dec. 19 filing, which states that the utility “firmly believes that ‘choice’ is both important and necessary, and that the choice that this commission authorizes should be a meaningful one for all customers.”

PG&E spokesman Greg Snapper said last week that “it’s important that our customers have a choice when it comes to the meter on their home.”

The cost that customers will have to pay for the analog option hasn’t been determined. The California commission has expressed its opinion that “it is appropriate that all ratepayers share in a portion” of the costs of an opt-out program rather than structuring fees in a way that would make the opt-out program revenue-neutral.

In March, PG&E proposed an initial fee of $128 and a monthly charge of $10.69 for the “non-wireless” option, but the PUC rejected those figures. Instead, regular customers will be charged an initial fee of $90 and a monthly charge of $15, according to the November preliminary ruling. Meanwhile, customers enrolled in the state’s low-income program – California Alternate Rates for Energy, or CARE – would pay only a $5 monthly charge, with no initial fee.

While some utilities estimate that only about 1% of customers are likely to take advantage of an opt-out program, others – such as Southern California Edison – have said that fees must be set high in order to discourage participation.

The fate of opt-out rates in California remains to be seen. These discussions will undoubtedly be central as the commission prepares for its decision next month. More information on related developments may be found in Chartwell’s recent report Smart Meter Opt-Out Programs 2012.

Regardless of the decisions made over the next few months, when the new contract goes into place prior to the 2014 season one thing will be certain: there will be some people that are happy … and some that are not. The truth of the matter – in sports or in any other facet of life – is that you can’t please all the people all the time.

The key to customer satisfaction in any industry is pleasing as many people as possible. For utilities that means providing customers with what they desire most. According to a recent Chartwell consumer survey, the most important drivers of customer satisfaction are – not surprisingly – reliability and cost.

While no utility will ever perform without any service interruptions, customers care most that service is restored as quickly as possible and that they are kept informed. J.D. Power and Associates, which has measured customer satisfaction in the utility industry since 1999, reported in 2011 the top performing utilities provided more outage information points (2.5 per outage) than others (2.3 or fewer).

As for pricing, provided there are no alternatives, there is a pretty simple formula: the lower the cost, the happier a customer will be. J.D. Power’s numbers also show utilities ranking in the first and second quartile have significantly lower costs at 10.41 and 10.49 cents per kilowatt hour, respectively, compared with 12.17 for the third quartile and 13.39 for the fourth. However, all customer satisfaction levels cannot be simply tied to energy costs as there are a number of variables – some of which are out of a utility’s control – that affect pricing.

There’s no question, customer satisfaction took a major hit during the economic downturn from 2005 to 2008, but it appears customers are becoming happier with the state of utilities as more than half of the 1,509 consumers that participated in Chartwell’s survey expressed their level of overall satisfaction as “very” or “extremely” satisfied with their utility provider.

For more on customer satisfaction, download Chartwell’s newest Customer Care Service report, Customer Satisfaction 2012, which takes a deeper look into how utilities are measuring and improving satisfaction. Chartwell will continue – as it has over the years – to track customer satisfaction.