05.28.09Alexandra Behringer, Research Manager, E SOURCE

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Many electric and gas utilities reported record numbers of customer arrearages and disconnections in late 2008 and early 2009. Although the U.S. Congress doubled the Low Income Home Energy Assistance Program (LIHEAP) funds to $5.1 billion, 2009 may be unique in terms of the number of consumers having difficulty paying their utility bills. Increasing numbers of customers will need to learn how to access payment assistance and avoid disconnection. How are utilities communicating with customers and what messages are they using?

Troubled Times, Uncommon Approaches

Citizens Gas is an example of a utility that approaches communications with residential customers in unique and effective ways. The techniques they use include:

• Using utility employees to coordinate efforts with community agencies and provide direct assistance
• Partnering with trusted community members like clergy and firemen to convey messages about safety, conservation, and financial assistance
• Having the utility CEO or senior staff answer customer questions directly through online web chats and radio shows

Citizens Gas

Citizens Gas delivers natural gas to customers in and around Indianapolis, Indiana. "Coming into winter, we saw a 26 percent increase in 2008 disconnections versus 2007," says Greg Sawyers, director of customer service. "We're a heavy manufacturing state, so layoffs have a direct impact on our service territory."

In response, Citizens Gas took a proactive approach to communications for the 2008-2009 winter season, employing a variety of measures.

Earlier communications. Citizens Gas issued its typical messaging (about conservation and assistance) and ran its annual Be Winter Wise energy-conservation and safety fair earlier than normal, in September 2008.

Unique communications vehicles. To advertise its Be Winter Wise event, the utility put a two-stories-high sticky note on the side of the Citizens Gas building. After that event, the bottom half of the sign was replaced with one that promotes the budget payment plan.

Citizens Gas also partnered with clergy and the Indianapolis fire department to distribute free smoke alarms and information on home safety and energy assistance to people in the community, primarily in low-income neighborhoods.

Assistance through employees. In the utility lobby, case specialists connect customers with resources and community agencies. In the call center, a client eligibility service representative provides financial assistance based on a self-referral from a customer. The utility also sends associates to the two largest intake sites for Indiana's energy assistance program.

In fall of 2008, the utility also resumed its annual outreach program in which field-collection staff go door-to-door to homes disconnected since the previous winter. They provided residents with the opportunity to get reconnected as well as information on energy assistance and home heating safety. "And they have the ability help on the spot with fuel-fund dollars from our Warm Heart Warm Home Foundation," Sawyers explains.

Radio talk shows. Citizens Gas CEO Carey Lykins and Senior Vice President and Chief Administrative Officer Jean Richcreek have taken live questions from customers on WTLC's "Afternoons with Amos", one of the biggest radio call-in shows in Indianapolis. Callers have asked how to get energy assistance, how to avoid disconnection, and what utility policies are regarding customer account deposits.

An online video chat with the CEO. The utility's most unique communications vehicle over the winter was a live online chat with CEO Carey Lykins, who answered customers' e-mailed questions live every Tuesday evening from October through January on a video webcast called "Let's Chat". While the live chat is now over, customers can still submit questions and get answers, as well as review archived postings on the site.

"We put our CEO out there to help him connect directly with customers and understand the challenges they're facing," Citizens Gas Communications Manager Dan Considine notes. "Their questions -- about energy assistance, how to lower gas bills, and avoiding service disconnection -- show an increasing number of people need help."

Innovative and Integrated Approaches to Customer Communications

These examples from Citizens Gas illustrate how utilities can use creative and innovative approaches to communications during these economically troubled times. Such efforts can be effective in helping customers understand their payment and assistance options. Integrating messaging about payment assistance and conservation programs also helps ensure customers understand how to access payment assistance and reduce energy consumption and costs over the long term.

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