Regular, open communication with customers tends to improve customer satisfaction. But what about when you have to deliver bad news? Energy production costs, decarbonization and the cost of day-to-day operations are all on the rise, but customers just see an increase on their bill. How are utilities responding to the disconnect consumers have between increases and reliability?
Nevada’s Bureau of Consumer Protection is asking FERC to reverse an earlier to decision approving rate hikes for NV Energy. The rate hikes would go toward recouping the costs of its $2.5 billion Greenlink transmission line project. The Bureau of Consumer Protection said the plan “fails to make any findings that the incentive rate treatments will benefit customers by ensuring reliability and reducing the cost of delivered power via reducing transmission congestion.”  NV Energy spokeswoman Katie Nannini assured them the costs would be recouped by “delivery of service” customers not industrial, commercial or residential retail customers. “Rate shock” is real. Are consumers willing to pay for reliability, clean power and a modernized grid?
After a year-long negotiation, an 8.7 percent rate increase by Puget Sound Energy (PSE) has been approved. “We know it’s never welcome to see the bills go up,” Andy Wappler, PSE’s senior vice president and chief customer officer. “At the same time, we know that we’re looking for energy to be cleaner in the future, and to be more reliable, and easier to use.” Being transparent, Jarrett Tomalin, PSE’s customer communications manager explained the costs, “It’s recovering costs from projects that we have in place.” He continued, “It’s the recovery of $3.1 billion in reliability and service upgrades made over the past four years. These are not currently factored into customer rates.” Will transparency, like that of PSE, ease customer complaints when rates go up?
Rochester Gas and Electric (RG&E) asked for an increase that they also believe will enable much needed investment in the Companies’ infrastructure, provide for a better customer experience, and provide benefits for the Companies’ most vulnerable customers. New York’s Monroe County Executive, Adam Bello, is asking state utility regulators to deny their request. “It is certainly not just and reasonable at this time and would compound the strain from the already escalating electricity and gas supply commodity costs,” said Bello. Rochester Gas and Electric’s request ask for an increase in electric delivery rates by 19% and natural gas delivery rates by 20%. Bello protests and feels those increases would be an unrealistic expectation from customers. In a statement RG&E defended their request saying, "It also re-affirms the Companies’ commitment to build more economic, social, and environmentally sustainable communities throughout the areas we serve. In short, it will allow us to accomplish our top priority, which is to provide safe, reliable electric and natural gas service to our customers."
How can utilities help customers and their advocates to see the direct connection between dollars invested and the company’s reliability and resiliency? Â
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