Public power utilities across the U.S. were recognized by J.D. Power in its U.S. Electric Utility Brand Appeal Index Study.
In late July, J.D. Power released the 2024 U.S. Electric Utility Brand Appeal Index Study, as well as the J.D. Power 2024 U.S. Gas Utility Brand Appeal Index Study.
The Electric Utility Brand Appeal Index Study and Gas Utility Brand Appeal Index Study are each in their second year but are in their first year of being award eligible.
Along with public power utilities, the studies also include cooperatives and investor-owned utilities.
The studies analyze how well U.S. utilities relate to their customers, evaluating the specific actions that influence overall brand experience, including company reputation, marketing execution and customer trust, among 149 electric utilities and 85 gas utilities.
The index applies to all U.S. electric and natural gas utilities profiled in the J.D. Power Electric Utility Residential Customer Satisfaction Study and the J.D. Power Gas Utility Residential Customer Satisfaction Study. This year’s studies captured the responses of 116,914 utility customers and were fielded from July 2023 through May 2024.
“Brand appeal has become a critical marker of a well-managed utility because it shows that the utility is going above and beyond to engage and connect with customers and, importantly, that their communications are aligning with the brand traits customers most value,” said Chris Oberle, managing director of utilities intelligence at J.D. Power.
“The best utilities recognize that there is far more to building a strong reputation in their communities than simply providing reliable service. From leading on industry innovation, service quality and proactive customer interactions to being engaged in the communities they serve, utilities that cultivate a strong brand presence in their customers’ lives are rewarded in several important ways,” he said.
Following are some of the key findings of the 2024 studies:
- High brand appeal has benefits: Customers with strong brand appeal for their utility have an average overall satisfaction score that is more than 200 points higher (on a 1,000-point scale) than those with weak brand appeal. Utilities with appealing brands also enjoy higher customer loyalty; an increase in support for rate increases; and a significantly higher percentage of customers who believe the utility manages its financials well and are willing to advocate for the utility.
- Trust is high, but reputation still needs work: The customer trust score for electric utilities is 723 and for gas utilities is 751—both of which are up from a year ago. Despite these high scores for trust, however, company reputation scores for electric (655) and gas (674) utilities are the lowest of all factors evaluated in the study, suggesting that many utilities still have work to do building meaningful brands.
- Gas utility brand appeal is stronger than electric utility brand appeal: Gas utilities score an average of 717 on the overall Brand Appeal Index, an increase of 5 points from 2023. The average Brand Appeal Index score for electric utilities is 22 points lower at 695, a 2-point decline from a year ago.
Two public power utilities were included in the list of highest-ranking electric utilities in brand appeal by region and category: South: EPB; West: Clark Public Utilities.
“We're honored our customers continue to give EPB their vote of confidence in these new national rankings,” said EPB CEO David Wade, “J.D. Power and Consumer Reports are well-respected organizations that depend on customer surveys, and we’re honored our customers’ feedback reflects the reputation for trustworthiness and dependable service our employees work so hard to provide for both our electric and fiber optic services.”
In terms of overall brand appeal index ranking, public power utilities were ranked as follows:
MIDWEST
- Omaha Public Power District (#3, 721 score)
- Lincoln Electric System (#18, 694 score)
- City Utilities (#27, 631 score)
SOUTH
- EPB (#1, 773 score)
- OUC (#5, 720 score)
- JEA (#8, 710 score)
- Santee Cooper (#12, 704 score)
- Tallahassee (#17, 696 score)
- CPS Energy (#23, 687 score)
- NES (#24, 684 score)
- Knoxville Utilities Board (#25, 683 score)
- Lakeland Electric (#27, 682 score)
- Austin Energy (#29, 678 score)
- Huntsville Utilities (#30, 669 score)
- MLGW (#31, 600 score)
WEST
- Clark Public Utilities (#1, 761 score)
- SRP (#2, 755 score)
- SMUD (#3, 729 score)
- Seattle City Light (#4, 728 score)
- Snohomish County PUD (#5, 727 score)
- Colorado Springs Utilities (#8, 704 score)
- Imperial Irrigation District (#15, 684 score)
- LADWP (#16, 682 score)
- Tacoma Power (#21, 678 score)
Gas Utilities
Public power utilities CPS Energy, Colorado Springs Utilities and MLGW also earned rankings in the Gas Utility Brand Appeal Index Study.
In the South Region, CPS Energy ranked 12th with a score of 718, while MLGW ranked 15th with a score of 665, while Colorado Springs Utilities ranked #10 in the West region with a score of 717.
