Water Utility Customers Cite Many More Quality Issues than EPA Reports Indicate, J.D. Power Finds

Water Utility Customers Cite Many More Quality Issues than EPA Reports Indicate, J.D. Power Finds

30% of Water Utility Customers Report Water Quality Problems, Including Bad Taste, Discoloration and Scaling/Hardness

COSTA MESA, Calif., May 9, 2018 /PRNewswire/ -- The Environmental Protection Agency's (EPA) Consumer Confidence Reports, which are produced by all community water utilities in the United States to measure the quality of their drinking water, may not be giving a complete picture of end-consumer water quality. According to the J.D. Power 2018 Water Utility Residential Customer Satisfaction Study,(SM) released today, 30% of residential water utility customers indicate they have water quality issues, a rate far higher than what has typically been reported in the Consumer Confidence Reports produced by local water authorities.

"While the mandated water quality reports produced by regional water authorities do a great job of measuring specific water quality issues, they are not telling the whole story when it comes to perceptions of the water that is coming out of customers' faucets," said Andrew Heath, Senior Director of the Utility Practice at J.D. Power. "Whether it's a serious problem like high lead or mineral counts, or a more subjective issue like bad taste or low pressure, a significant number of residential water utility customers are not happy with the product. Water utilities need to understand why customer views are not matching the views of the water utility and need to address these concerns."

Following are key findings of the 2018 study:

    --  Nearly one-third of customers report quality problems: Among the 30% of
        residential water utility customers who mention a quality problem, 12%
        cite low pressure; 11% cite bad taste; 8% cite scaling/water hardness;
        8% cite discoloration; 6% cite bad smell; and 4% cite high lead/mineral
        content.

    --  Wide variation in customer perceptions of water quality: Significant
        differences across the nation are found from the best water utilities
        having less than 20% of their customers indicating a problem with water
        quality to many utilities having more than 40% of their customers citing
        a water quality problem. One utility has more than half of its customers
        reporting a water quality problem.

    --  Water quality problems sink customer satisfaction: Customers who
        experience water quality problems have significantly lower delivery
        satisfaction scores than those who experience no problems. Bad taste and
        scaling/water hardness are associated with 143-point declines (on a
        1,000-point scale) in delivery satisfaction scores, while scaling/water
        hardness and bad smell are both associated with a 152-point decline.

    --  Communication is key when implementing upgrades: One of the most
        negative effects on satisfaction is a service interruption caused by
        pipeline work. Satisfaction scores are 42 points lower among those
        experiencing pipeline work-related service interruptions than those
        among customers who experience no interruptions. However, when customers
        have previously been made aware of water utility system upgrades,
        satisfaction scores are 58 points higher among those who experience no
        service interruptions.

    --  Frequent communication maximizes satisfaction: Customers who recall
        receiving four to five communications from their water utility have
        communications satisfaction scores that are 148 points higher than among
        those who do not recall receiving any direct communications.
    --  E-bill satisfaction higher than for paper bill: Billing and payment
        satisfaction among customers who receive their bill electronically is
        much higher than among those who receive a paper bill (796 vs. 758,
        respectively).

For more information, consumers concerned about water quality are encouraged to review the Consumer Confidence Report provided by their water utility at www.epa.gov/ccr.

Study Rankings by Region

The following utilities rank highest in customer satisfaction in their respective region:

    --  Midwest: Louisville Water and Saint Paul Regional Water Services (tie)
    --  Northeast: Boston Water and Sewer Commission and Monroe County Water
        Authority (tie)
    --  South: Gwinnett County
    --  West: Eastern Municipal Water District

The Water Utility Residential Customer Satisfaction Study, now in its third year, measures satisfaction among residential customers of 88 water utilities, delivering water to a population of at least 400,000 people and is reported in four geographic regions: Midwest, Northeast, South and West. Overall satisfaction is measured by examining 33 attributes within six factors (listed in order of importance): delivery; price; conservation; billing and payment; communications; and customer service.

For more information about the Water Utility Residential Customer Satisfaction, visit http://www.jdpower.com/resource/us-water-utility-residential-customer-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2018059.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Study Rankings


    Customer Satisfaction Index
     Ranking

    (Based on a 1,000-point scale)


    Midwest Region


    Louisville Water                                730

    Saint Paul Regional Water
     Services                                       730

    Missouri American Water                         729

    City of Minneapolis                             728

    Illinois American Water                         726

    Indiana American Water                          726

    Metropolitan Utilities District

           (Omaha)                                  721

    Aqua-Midwest                                    717

    Greater Cincinnati Water Works                  716

    Citizens Energy Group                           715

    Milwaukee Water Works                           706

    Midwest Region Average                          702

    City of Columbus                                700

    Detroit Water Sewerage Dept                     686

    KC Water Services                               677

    City of Chicago                                 675

    City of Cleveland                               658


    Northeast Region


    Boston Water and Sewer

           Commission                               735

    Monroe County Water Authority                   735

    Aqua-Northeast                                  733

    NYC Environment Protection                      730

    Aquarion Water Company                          722

    New Jersey American Water                       722

    Regional Water Authority

           (Connecticut)                            711

    WSSC                                            709

    Northeast Region Average                        709

    Suffolk County                                  708

    New York American Water                         707

    DC Water                                        706

    Pennsylvania American Water                     705

    Philadelphia Water Department                   703

    Suez (United Water)                             690

    Erie County Water Authority                     669

    City of Baltimore                               628

    PGH20                                           605

Study Rankings


    Customer Satisfaction Index
     Ranking

    (Based on a 1,000-point scale)


    South Region


    Gwinnett County                                757

    Orlando Utilities Commission
     (OUC)                                         756

    The Cobb County Water System                   755

    Miami-Dade County                              751

    Aqua-South                                     749

    Baton Rouge Water Company                      738

    San Antonio Water System                       731

    Fairfax Water                                  728

    City of Raleigh                                724

    Orange County Government Florida               724

    Charlotte Water                                722

    JEA                                            722

    City of Dallas                                 721

    Metro Water Services (Nashville)               720

    City of Oklahoma City                          717

    Manatee County                                 716

    South Region Average                           716

    El Paso Water Utilities                        715

    Jefferson Parish                               715

    Palm Beach County                              715

    City of Tampa                                  714

    City of Newport News                           712

    City of Fort Worth                             708

    City of Virginia Beach                         702

    City of Houston                                697

    MLGW                                           694

    Austin Water                                   690

    Tulsa Water                                    680

    City of Atlanta                                675

    Pinellas County                                675

    DeKalb County                                  642

    Birmingham Water Works                         639

Study Rankings


    Customer Satisfaction Index Ranking

    (Based on a 1,000-point scale)


    West Region


    Eastern Municipal Water District                  741

    Long Beach Water Dept                             737

    Colorado Springs Utilities                        734

    Denver Water                                      734

    SFPUC                                             730

    Golden State Water Company                        724

    Anaheim Public Utilities                          723

    Las Vegas Valley Water District                   720

    Board of Water Supply (Honolulu)                  718

    East Bay Municipal Utility District               716

    San Gabriel Valley Water Company                  715

    California Water Service                          712

    Portland Water Bureau                             712

    Seattle Public Utilities                          712

    Mesa Water Resources                              706

    West Region Average                               706

    California American Water                         705

    City of Phoenix                                   705

    Tucson Water                                      694

    L.A. Dept. of Water & Power                       693

    City of Sacramento                                688

    Water Utility Authority

           (Albuquerque)                              688

    San Jose Water Company                            685

    City of San Diego                                 666

    City of Fresno                                    661

Media Relations Contacts

Geno Effler; Costa Mesa, Calif.; 714-621-6224; media.relations@jdpa.com
John Roderick; St. James, N.Y.; 631-584-2200; john@jroderick.com

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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