2006 APPA CUSTOMER SERVICE POLICIES SURVEY
Summary Information
The following document summarizes the results of the 2006 Customer Service Policies Survey sent to APPA members in June 2006. There were 495 respondents. Not all questions were answered by all respondents; therefore the percentages indicated are based on the number of utilities that answered a particular question.
APPLICATION FOR SERVICE
1. Do you take applications for service over the phone?
For new residential customers 50% Yes 50% No
For new commercial customers46% Yes 54% No
2. If by phone, is follow-up application form with signature required?57% Yes 43% No
- Do you charge a hook-up fee for new customers? 49% Yes 51% No
If yes, what is the fee? Responses ranged from $3 to $200. The most common response was $15; the average fee was $26.45.
4. Do you collect a security deposit or other guarantee of payment?
Residential88% Yes 12% No
Commercial 90% Yes 10% No
5. Is deposit waived:
For utility employees20% Yes 80% No
For customers having good credit at another electric utility48% Yes 52% No
For customers with a good credit score27% Yes 73% No
For customers having someone else guarantee their bill30% Yes 70% No
6. Is the deposit a fixed dollar amount or variable depending on service, location, previous usage, etc.?
Residential 63% Fixed 37% Variable
Commercial 27% Fixed 73% Variable
If variable how do you determine deposit? Responses ranged from 1 month’s average bill to 3 months’ highest bills. The most common response was 2 months’ average bill.
- Does the customer’s credit history affect the amount of deposit?
Residential 27% Yes 73% No
Commercial 20% Yes 80% No
8. What is the range of the deposit for a customer with poor credit history?
Residential 1% 0-$25 3% $26-$50 3% $51-$75 7% $76-100 87% More than $100
Commercial5% 0-$100 24% $101-$500 22% More than $500 49% % of consumption
9. What is the range of the deposit for a customer with good credit history?
Residential 54% 0-$25 6% $26-$50 5% $51-$75 12% $76-100 23% More than $100
Commercial43% 0-$100 26% $101-$500 6% More than $500 23% % of consumption
- If credit history does not affect the amount of deposit, what is the range of the deposit for a new customer?
Residential 4% 0-$25 7% $26-$50 11% $51-$75 20% $76-100 62% More than $100
Commercial11% 0-$100 35% $101-$500 14% More than $500 14% % of consumption
11. How long is the deposit kept if the account has good credit?
Residential 47% 1 year 16% 2 years 31% Until account is closed Other 6 months (1%); 8 months (<1%); 18 months (1%); 3 years (3%); 4 years (<1%); and 5 years (1%).
Commercial 29% 1 year 19% 2 years 42% Until account is closed Other 6 months (1%); 18 months (1%); 3 years (4%); 4 years (<1%); 5 years (2%).
12. Is interest paid on deposits?
Residential 46% Yes 54% No
Commercial 47% Yes 53% No
If yes, what interest rate is paid? Responses ranged from .09% to 12%. The most common rate was 5%; the average rate was 3.47%. Respondents also commonly indicated their rates were determined by current bank rates, treasury bill rates, and rates set by state and/or Public Service Commissions.
13. If interest is paid, when is it credited to the customer?
43% Annually
<1% Every 2 years
41% At return of deposit
11% At closing of account
Other Monthly (4%); quarterly (<1%); semiannually (1%).
METER READING & BILLING
14. Are meter reading and billing done:
Residential98% Monthly 2% Bi-monthly <1% Quarterly
Commercial99% Monthly 1% Bi-monthly <1% Quarterly
15. Do you routinely estimate readings on active accounts?
Residential 11% Yes 89% No
Commercial 8% Yes 92% No
If yes, why? No access (68%); weather conditions (20%); meter malfunctions (10%); dogs (8%); staffing issues (8%); to reduce costs (3%); do not read every billing period (3%); unusual usage (2%); automatic billing for contract lighting (2%); rural customers read own meters (2%).
16. Do you charge a fee when the customer requests a meter re-read? 9% Yes 91% No
If yes, what is the fee?Responses ranged from $5 to $80; the most common response was $10, and the median fee was $20. 18% of respondents indicated customers received 1 free meter re-read per year; 15% of respondents indicated they did not charge any fee unless the original meter read was correct.
17. Do you use prepaid metering? 1% Yes 99% No
If yes, % of meters Responses ranged from 5.5% to 20%. The average response was 11%.
18. Do you “automatically” read any meters with computerized equipment, thereby eliminating
the meter reader?
Residential29% Yes 71% No
Commercial25% Yes 75% No
If yes, % of meters that are automatically read<1% / 1%-10% / 11%-20% / 21%-30% / 31%-40% / 41%-50% / 51%-60% / 61%-70% / 71%-80% / 81%-90% / 91%-99% / 100%
Percent of Respondents / Residential / 12% / 38% / 8% / 7% / 5% / 4% / 3% / 2% / 4% / 2% / 13% / 13%
Commercial / 25% / 51% / 2% / 10% / 1% / 1% / 2% / 1% / 10% / 2% / 10% / 8%
What type of communication system do you use for automatic meter reading?
ResidentialCommercial
Telephone line 5% Yes 95% No29% Yes 71% No
Power line27% Yes 73% No19% Yes 81% No
Radio frequency73% Yes 27% No56% Yes 44% No
Cable TV line3% Yes 97% No3% Yes 97% No
OtherFiberFiber, cellular, satellite
What vendor and system do you use? Itron (60%); Hunt Technologies (19%); DCSI (4%); Cannon Technologies (4%); MuNet (3%); others include Datamatic, Siemens, Schlumberger, Elster, RAMAR, Cellnet, Neptune, Sensus, Power Measurements, Laudis, Stark, Masterlink, GE, Omni Pro, Invensys, Hexagram, ABB-Wesco, and in-house.
19. Have you done a re-route for meter reading?14% Yes 86% No
If so, what system did you use? In-house (27%); Itron (23%); manual (14%); Radix (4%); GIS MWRAP3 (4%); Harris (4%); others include CIS Plus, Sungard THE, Northrop Grumman, Excel, CIS/NOV, ARCS, RouteSmart, InCode, Cogdale, Ardemis, Cassell, FieldTech, BannerAdvantage, AS400, Sensus, Power Manager.
20. Do you contract out meter reading to an entity outside the utility?
7% Yes 93% NoIf yes, % of meters Responses ranged from 25% to 100%. The median response was 99%.
21. Do you contract out or outsource bill printing? 20% Yes 80% No
Do you contract out or outsource bill mailing? 24% Yes 76% No
22. Do you provide billing services for utility services (electric, water, etc.) in another community?
11% Yes 89% No
If yes, what services? Water (55%); Sewer (51%); Electric (23%); Trash pick-up (17%); Stormwater (6%); Landfill (4%); Cable/Broadband (4%); Recycling (2%); Gas (2%); Security Lighting (2%).
23. What is the primary form of the regular bill?72% Mailed in envelope 28% Postcard
If postcard and the customer is mailed two or more bills, are bills mailed in an
envelope?64% Yes 36% No
If yes, % of customers that receive two or more bills in envelope? Responses ranged from <1% to 35%. The most common response was 5%. The average overall percentage was 7.16%.
If an envelope is used, is the return envelope enclosed?61% Yes 39% No
24. Do you use bill stuffers to provide information?69% Yes 31% No
25. Have you redesigned your bill in the past five years?51% Yes 49% No
If yes, did you involve consumers in bill redesign?21% Yes 79% No
26. Do you offer a budget billing plan for bill payment?73% Yes 27% No
27. If you are a multiple service utility (i.e., electric, water, gas, etc.) do you consolidate all
individual charges on one bill?90% Yes 10% No
28. If a customer has multiple meters and multiple sites within the service area, do you provide
a summary of all utility charges on one bill?25% Yes 75% No
29. Do you offer flexible due dates, where a customer can choose the day that is most
convenient to pay the bill? 9% Yes 91% No
- Which of the following special services for low-income customers does your utility provide?
Waiver of customer charge3% Yes 97% No
Low income rates7% Yes 93% No
Percentage of income payment plan2% Yes 98% No
Arrearage forgiveness program3% Yes 97% No
Low income weatherization program18% Yes 82% No
Other: Payment plans, senior discounts, referrals to assistance agencies, disability discounts, lower deposit rates, refrigerator programs, energy audits, educational workshops, cold weather rules, and deployed military discounts.
31. Do you help low-income customers pay their bills? 52% Yes 48% No
If yes, indicate all types of funding used by your utility.
Soliciting customers through utility bills or roundup program 56% Yes 44% No
Raising funds though other utility fund-raising events 11% Yes 89% No
Utility match for customer donations/utility contribution 18% Yes 82% No
Federal Low-Income Home Energy Assistance Program (LIHEAP) funds 81% Yes 19% No
Other: Local charities/other agencies provide funds, public benefit programs, referrals to assistance agencies, state/federal funds, city contribution, provide office space to local assistance agency.
Is money collected and/or administered:
By the utility? 31%
By another community agency? (i.e. Salvation Army, etc.) 74%
CREDIT & COLLECTION
32. Is there an additional charge for late payment?89% Yes 11% No
If yes, how much?
27% Less than 2%
33% 2%-5%
32% 5%-10%
2% More than 10%
8% Fixed dollar amount
If fixed how much? Responses ranged from $3 to $40. The median response was $10.
Other: Several utilities reported that besides charging a % late charge, there was a minimum fee. These minimum fees ranged from $2.50 to $10. Several utilities also indicated they calculated late fees differently for residential and commercial customers, while a few did not charge late fees to residential customers at all. A few utilities also had varying late fees, depending on how many times an account made late payments.
33. Is there a discount for early payment?4% Yes 96% No
34. Do you handle reminder or disconnect notices via:
ResidentialCommercial
Mail90% Yes 10% No90% Yes 10% No
Phone37% Yes 63% No41% Yes 59% No
Hand Deliver50% Yes 50% No50% Yes 50% No
Electronic Mail1% Yes 99% No2% Yes 98% No
Other: Door hangers, notice on bill, Fed Ex, and only notify 1st time offenders.
35. Do you have a procedure for third party notification for elderly or disabled customers?
33% Yes 67% No
36. Is utility representative making disconnection given authority to not disconnect? 61% Yes 39% No
- What fee do you charge to reconnect a customer after disconnection?
47% 0-$25 45% $26-$50 11% $51-$75 5% $76-100 4% More than $100
These responses total over 100% as several respondents indicated they charged different amounts for reconnections during regular business hours and after hours..
38. What forms of bill payment are accepted? (check all that apply)
ResidentialCommercial
Cash100% Yes 1% No99% Yes 1% No
Check by mail98% Yes 2% No98% Yes 2% No
Check by phone11% Yes 89% No12% Yes 88% No
Credit Card48% Yes 52% No45% Yes 55% No
Debit Card40% Yes 60% No38% Yes 62% No
Automated Bank Draft79% Yes 21% No79% Yes 21% No
Other: Money order/cashier’s check, 3rd party payments online (e.g. ACH, EFT, Paypal, BillMatrix, E-Pay), credit card online, debit card online, automated (recurring) credit card, credit card by phone, debit card by phone, check online, direct deposit, wire transfer, payments at local bank.
39. Can the field representative accept cash payments?40% Yes 60% No
40. Do you use manned pay stations (limited agents) for bill payment?42% Yes 58% No
Do you use unmanned (automated) pay stations for bill payment?6% Yes 94% No
41. Do you have drop boxes ?96% Yes 4% No
42. Do you use lock boxes? 18% Yes 82% No
CUSTOMER SERVICE/CALL CENTERS
43. Do you have extended customer service office hours beyond 8 a.m. - 5 p.m.?27% Yes 73% No
44. Do you use silent monitoring to listen to your customer service representatives as they handle customer calls? 12% Yes 88% No
- Do customer service representatives also act as cashiers and accept money? 82% Yes 18% No
46. Do customer service representatives handle both walk-in customers and phone customers?
95% Yes 5% No
47. Do you have an Interactive Voice Response System (same as Automated Response System,
Automated Response Unit)?21% Yes 79% No
If yes, what is it used for?
53% Outage Reporting 44% Customer Account Information
45% General Information 55% Routing Calls
Other: Bill payments, bill arrangements, outbound credit & meter reading notifications, tracking service level, disconnect list, special waiver recertification.
These responses total over 100% as several respondents indicated they use the IVR system for several reasons.
48. Do you have automatic telephone number identification that allows you to identify customers when they call the utility? 31% Yes 69% No
49. Do you use the call center to make outbound calls such as market research or sales calls?
5% Yes 95% No
50. What is the average number of customer calls handled per day?
20% Less than 25 44% 25-100 18% 100-200 18% More than 200
51. What is the average number of customer calls handled per customer service representative per day?
13% Less than 10 28% 10-20 33% 20-40 26% More than 40
- What is the average telephone customer wait time before the customer is connected to a customer service representative?
60% Less than 15 seconds 25% 15-30 seconds 9% 30-60 seconds
6% More than 1 minute
53. What is the average number of customers per customer service representative?
(# of total customers divided by the # of CSRs) Responses ranged from 2 to 18,601. The median response was 1,400.
54. Do you outsource:
Emergency/Outage calls? 13% Yes 87% No
Customer service calls? 3% Yes 97% No
55. Do you offer customer services over the Internet:
Application for service? 17% Yes 83% No
Transfer of service? 13% Yes 87% No
Disconnection? 13% Yes 87% No
Access to account information? 24% Yes 76% No
Bill payment? 28% Yes 72% No
Bill presentment? 18% Yes 82% No
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