Customer Support of Energy Utilities Directly Related to Brand Trust

Support of utility rates and attracting consumer use of alternative energy offerings requires brand trust among residential electric and natural gas utility consumers, according to a new Cogent Reports™ study by Market Strategies International. This annual study highlights a statistical relationship between brand trust and rate support, and shows customers expect utilities to expand support for new offerings and community outreach as a result of rate increases. The study’s findings, which designates 44 utilities as “Most Trusted Brands,” can be found in the 2017 Utility Trusted Brand & Customer Engagement™: Residential study.

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“Building a brand that customers trust and offering products and services customers will use are the new utility challenges. Brand trust is truly the difference between customers supporting or resisting new utility income opportunities,” said Chris Oberle, senior vice president at Market Strategies International.

High brand trust scores are required to attract customer use of alternative energy offerings and to increase the preference to use utilities as providers of these products. Additionally, customers who trust their utility are twice as likely to recommend those alternative energy products to other customers.

“Our research clearly shows utility brand trust levels are closely tied to financial success, customer advocacy and market support for rate changes,” continued Oberle. “High brand trust benefits customers, shareholders and stakeholders, and positions utilities as credible players in shaping the evolving utility market.”

The study’s brand trust index has declined by one point this year to 692 (on a 1,000-point scale). The study, now in its fourth year, benchmarks brand performance of 130 utilities on a quarterly basis among 59,823 utility consumers. The brand trust index is based upon 35 rating questions that relate to a suite of emotional attachment and management performance factors.

This year, Cogent has designated 44 utilities as 2017 Most Trusted Brands. This group of utilities scores 40 points higher on brand trust than their industry peers. As a result of the brand trust garnered among customers, Most Trusted Brand utilities experience a 7 percent improvement in support for rate increases and a 27 percent boost in positive customer comments than industry peers. Additionally, Most Trusted Brands are viewed by customers as better stock investments.

The following four tables show benchmark scoring among the utilities surveyed.

2017 Brand Trust Scoring by Benchmark Segments: EAST REGION

Service Type		Utility Brand		Brand Trust Score
Combination		NYSEG*		713
Combination		RG&E*		710
Combination		PSE&G*		698
Combination		BGE		692
Combination		Delmarva Power		683
Combination		National Grid		683
Combination		PECO Energy		674
Combination		ConEdison		672
Combination		Eversource		637
Electric		PPL Electric Utilities*		718
Electric		Duquesne Light Company*		700
Electric		Central Maine Power		687
Electric		West Penn Power		681
Electric		Penn Power		679
Electric		Penelec		673
Electric		Met-Ed		653
Electric		Potomac Edison		650
Electric		Appalachian Power		649
Electric		PSEG Long Island		645
Electric		Atlantic City Electric		644
Electric		Monongahela Power		625
Electric		Pepco		614
Electric		Jersey Central Power & Light		602
Natural Gas		New Jersey Natural Gas*		724
Natural Gas		National Fuel Gas*		722
Natural Gas		Peoples*		715
Natural Gas		UGI Utilities*		709
Natural Gas		Washington Gas*		709
Natural Gas		Philadelphia Gas Works*		708
Natural Gas		Columbia Gas - East		700
Natural Gas		South Jersey Gas Company		699
Natural Gas		Elizabethtown Gas		682

Score above 500 indicates positive level of brand trust

Performance index scores based upon a 1,000 maximum score and can be compared

* Most Trusted Brand designation is awarded to utilities that score in the top quartile, or achieve top two regional designation or are within 20-points of the top regional score.

2017 Brand Trust Scoring by Benchmark Segments: MIDWEST REGION

Service Type		Utility Brand		Brand Trust Score
Combination		MidAmerican Energy*		730
Combination		Consumers Energy*		708
Combination		Ameren Illinois		706
Combination		DTE Energy		704
Combination		NIPSCO		695
Combination		Alliant Energy		694
Combination		We Energies		694
Combination		Vectren		691
Combination		Xcel Energy – Midwest		691
Combination		Wisconsin Public Service		685
Combination		Duke Energy Midwest		684
Electric		ComEd*		702
Electric		Ohio Edison*		696
Electric		Dayton Power & Light		691
Electric		KCP&L		690
Electric		AEP Ohio		687
Electric		Indiana Michigan Power		680
Electric		Indianapolis Power & Light		671
Electric		OPPD		669
Electric		Ameren Missouri		665
Electric		The Illuminating Company		665
Electric		Toledo Edison		654
Electric		Westar Energy		637
Natural Gas		Atmos Energy – Midwest*		721
Natural Gas		Nicor Gas*		702
Natural Gas		Columbia Gas of Ohio*		701
Natural Gas		SEMCO Energy Gas Company		695
Natural Gas		Black Hills Energy		694
Natural Gas		CenterPoint Energy – Midwest		694
Natural Gas		Citizens Energy		692
Natural Gas		Laclede Gas		689
Natural Gas		Peoples Gas		680
Natural Gas		Missouri Gas Energy		679
Natural Gas		Dominion Energy Ohio		678
Natural Gas		Kansas Gas Service		678

Score above 500 indicates positive level of brand trust

Performance index scores based upon a 1,000 maximum score and can be compared

* Most Trusted Brand designation is awarded to utilities that score in the top quartile, or achieve top two regional designation or are within 20-points of the top regional score.

2017 Brand Trust Scoring by Benchmark Segments: SOUTH REGION

Service Type		Utility Brand		Brand Trust Score
Combination		CPS Energy*		698
Combination		Louisville Gas & Electric *		690
Combination		SCE&G*		690
Combination		MLGW		657
Electric		Georgia Power*		738
Electric		Florida Power & Light*		724
Electric		Kentucky Utilities*		717
Electric		OG&E*		710
Electric		OUC		708
Electric		JEA		705
Electric		Entergy		702
Electric		Nashville Electric Service		701
Electric		Public Service Company of Oklahoma		700
Electric		Gulf Power		697
Electric		Xcel Energy – South		695
Electric		Southwestern Electric Power Company		687
Electric		Dominion Energy Virginia		683
Electric		Duke Energy Carolinas		683
Electric		El Paso Electric		678
Electric		TECO Tampa Electric		677
Electric		Alabama Power		665
Electric		Duke Energy Florida		659
Electric		Austin Energy		657
Electric		Mississippi Power		656
Electric		Duke Energy Progress		653
Electric		Kentucky Power		600
Natural Gas		TECO Peoples Gas*		777
Natural Gas		Piedmont Natural Gas*		748
Natural Gas		CenterPoint Energy – South*		734
Natural Gas		PSNC Energy*		732
Natural Gas		Alagasco*		729
Natural Gas		Virginia Natural Gas*		727
Natural Gas		Columbia Gas – South*		720
Natural Gas		Oklahoma Natural Gas*		716
Natural Gas		Atmos Energy – South		712
Natural Gas		Texas Gas Service		705

Score above 500 indicates positive level of brand trust

Performance index scores based upon a 1,000 maximum score and can be compared

* Most Trusted Brand designation is awarded to utilities that score in the top quartile, or achieve top two regional designation or are within 20-points of the top regional score.

2017 Brand Trust Scoring by Benchmark Segments: WEST REGION

Service Type		Utility Brand		Brand Trust Score
Combination		Xcel Energy – West*		699
Combination		SDG&E*		692
Combination		Avista		672
Combination		Puget Sound Energy		669
Combination		PG&E		656
Combination		NorthWestern Energy		655
Electric		SMUD*		744
Electric		Idaho Power*		729
Electric		Salt River Project*		726
Electric		Seattle City Light*		716
Electric		Pacific Power		703
Electric		Tucson Electric Power		701
Electric		APS		695
Electric		Rocky Mountain Power		691
Electric		Portland General Electric		685
Electric		Southern California Edison		685
Electric		Los Angeles Department of Water and Power		653
Electric		NV Energy		652
Electric		PNM		632
Natural Gas		Questar Gas*		743
Natural Gas		Cascade Natural Gas*		742
Natural Gas		SoCalGas*		738
Natural Gas		NW Natural*		733
Natural Gas		Southwest Gas*		726
Natural Gas		Intermountain Gas Company		711
Natural Gas		New Mexico Gas Company		706

Score above 500 indicates positive level of brand trust

Performance index scores based upon a 1,000 maximum score and can be compared

* Most Trusted Brand designation is awarded to utilities that score in the top quartile, or achieve top two regional designation or are within 20-points of the top regional score.

About the Utility Trusted Brand & Customer Engagement: Residential report

Cogent Reports conducted surveys among 59,823 residential electric, natural gas and combination utility customers of the 130 largest US utility companies (based on residential customer counts). The sample design uses US census data and strict quotas to ensure a demographically balanced sample of each evaluated utility’s customers based on age, gender, income, race and ethnicity. Utilities within the same region and of the same type (e.g., electric-only providers) are given equal weight in order to balance the influence of each utility’s customers on survey results. Market Strategies will supply the exact wording of any survey questions upon request.

About Market Strategies International

Market Strategies International is a leading provider of research and consulting services to utility management, trusted by the world’s most successful organizations to help them thrive. We blend primary research with data from our syndicated, benchmarking and self-funded studies to provide clients with exceptional research insight that helps solve their challenges. Our research specialties include brand, communications, CX, product development and segmentation. Our syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and monitor their brand within the competitive landscape. Founded in 1989, Market Strategies is one of the largest market research firms in the world. Read Market Strategies’ blog at FreshMR, and follow us on Facebook, Twitter and LinkedIn.

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