True Blue Natural Gas - An Energy Blog from the American Gas Association AGA » Jim Linn

Recipe for Utility Customer Service Success

Jim Linn — Wed, 28 Apr 2010 14:34:05 +0000

Ingredients:

75 Speakers
65 Exhibitors
20 Sponsors
425 Attendees

Instructions:

Mix well at Midwest Airlines Center in Milwaukee, Wisconsin.

Yield:

425 energized utility customer service leaders prepared to take on the challenges of our day, equipped and enthusiastic!

Thanks to the generous hospitality of our host utility, We Energies, we started this year’s conference with a cookie and cookie book. For many years, We Energies has cared for and endeared itself to its customers through the provision of this holiday cookie book. So this warm, heartfelt gesture was the perfect way to begin three days of customer service education and networking.

Our first series of general sessions focused on the outcome of the federal stimulus package. We heard updates from the federal, state, and local levels. We also had updates on natural gas vehicles, plug-in hybrid vehicles and the smart grid. The next day focused on how utilities and other service industries are successfully using social media to interact with and serve their customers. Finally, we wrapped up with sessions on employee engagement, operational excellence and customer loyalty. Throughout the conference there were topical sessions on a variety of issued related to utility customer service.

In addition to the educational programming we had times for attendees to meet with industry partners and learn of new products and services to enhance the delivery of utility customer service. The exhibit hall included 65 partners offering such solutions. Plus we enjoyed a wonderful evening at the Milwaukee Ale House at the end of the conference to allow attendees and partners to share a meal and further develop industry connections in a less formal environment.

I’ve included some photos from the conference here. You can view more over at our flickr channel.

We’re planning to serve this recipe next year in Kansas City in April with many of the same ingredients plus a few new ones to spice things up a bit. One of the missing ingredients is you. We hope you’ll put this on your calendar and plan to join us.

Thank Goodness for Natural Gas

Jim Linn — Wed, 10 Feb 2010 04:03:44 +0000

A snow storm of historic proportions was forecast to begin Friday, February 5, 2010 in the Washington, D.C. Metropolitan area. As predicted, the snow began just before noon and continued through the day and evening. At some point in the middle of the night, the electric power to our neighborhood went out. We woke to a house that was 64 degrees and dropping. My first thought was how to keep my family warm. Fortunately our home has a natural gas fireplace.

Typically we start our fireplace with a remote control. With the power out, the remote control and the wall switch, which both run on electricity, were both inoperable. After a quick review of the manual, I opened the access panel and manually started the fireplace. Within minutes, the temperature of our family room rose to 65 degrees and by late morning it even reached 70 degrees which was very comfortable. This temperature was maintained for the rest of the day. Our home has an open first floor design which meant that the heat from the fireplace also kept our kitchen warm. In order to contain the heat we hung a sheet over the opening to our dining room and hall. During this time the temperature kept dropping in the second floor and reached as low as 50 degrees late in the afternoon.

Not only did natural gas keep us warm but we also enjoyed hot food. We manually lit the burners on our gas stove and cooked pancakes for breakfast. We grilled sandwiches for lunch, and we cooked green beans, pierogies and steak for dinner. And, we had plenty of hot water for washing dishes in the sink and hot showers all thanks to our natural gas hot water heater.

During this power outage many friends and neighbors headed to local hotels for safety. Unfortunately our neighborhood had not been plowed and getting out would have been difficult if not impossible. Without our natural gas service and appliances we would have had a quite cold and challenging experience. Instead, we enjoyed the warmth of our home and family while enjoying the comfort of cooked food and hot water.

Essential Utility Customer Service

Jim Linn — Tue, 02 Feb 2010 20:41:10 +0000

Where do gas and electric utility customer service leaders go for professional development? To the AGA/EEI Customer Service Conference and Exposition, of course!

Each year customer service committee members gather to plan a conference of essential content for their peers. In 2010, the AGA/EEI Customer Service Conference and Exposition will be held April 11-14 in Milwaukee, home to We Energies, Integrys, Alliant Energy, Xcel and others. As with every conference, we have quite a line-up of programs and activities.

General sessions will be held in the mornings and geared toward broad utility customer service issues. This year we will have a review of the federal stimulus (ARRA) package from the federal (DOE), state (NASEO) and local perspectives. We will also discuss alternative transportation and smart grid (both gas and electric) and spend an entire morning on social media success in utilities and similar industries. The general sessions will wrap up with a morning on sensational customer service featuring Barbara Burke, author of The Napkin, The Melon and The Monkey on the topic of employee engagement. Check out the complete agenda and run down on the more than 20 breakout sessions where attendees can dig deep into functional area discussions.

Customer Service Executives (defined as vice president or equivalent) will enjoy an afternoon designed specifically for the executive level. These sessions are invitation only. Contact me directly for more information.

The conference prides itself on being held in a relevant exhibition hall where attendees can interact with companies providing the very latest customer service products and services. The exhibit hall is a great venue for networking and discussing sessions as they occur as well as shared experiences. The conference will culminate in a Tuesday evening social event at the Milwaukee Ale House.

If you are an AGA or EEI member and have never attended the Customer Service Conference, make this year your first. If you have joined us in the past don’t miss this year – the content is too rich to pass up. For those who join us every year, we cannot wait to see you in Milwaukee in April!

And, if you are a utility customer service partner, take a close look at the exhibitor and sponsor prospectus and join us for this event.

When Utility Bills are Unpaid We All Pay

Jim Linn — Fri, 18 Dec 2009 16:07:50 +0000

Did you ever consider what happens when some people are unable, unwilling, or simply don’t pay their utility bill? Ultimately we all pay. Utilities are companies that operate as businesses just like any other business, except that unlike many businesses they deliver their product first and then ask for payment later. That makes it even harder to recover their costs. Unpaid bills ultimately are just another cost of doing business. And, these costs are passed on to all paying utility customers.

In today’s economy, with high unemployment, home foreclosures and many people simply unable to make ends meet we are experiencing significant levels of unpaid utility bills. The industry refers to this as arrears, bad debt or uncollectible accounts. Recently we estimated that industry-wide there are $3.5 billion in unpaid utility bills, affecting more than 10 million U.S. households.

Many factors play into the issue of uncollectible accounts. In most cold weather localities utilities are required by law to provide electricity and natural gas from October through March, regardless of whether a customer pays his or her bill. During this time many customers get so far behind on their bills that they simply never get caught up. We also know that the utility bill is often the last bill to be paid monthly and if there isn’t enough money to pay all the bills it is the one that goes unpaid.

Utility companies work hard to identify those who should be able to pay their bills through data analysis known as “behavioral scoring.” This methodology helps the utility work with specific customers in ways to encourage payment. Additionally, some utilities report unpaid accounts to the credit bureaus, which can have an adverse affect on a customer’s credit. Ultimately, the best solution is increased personal financial responsibility. For example, discretionary spending on non-essentials should be curtailed so that bills for essential services, such as those utilities provide, can be paid.

LIHEAP Helps Customers Who Cannot Pay Their Utility Bill

For many people, paying their monthly bills is an ongoing challenge. Fortunately our nation is full of people who are willing to share the burden of those who are unable to pay. In many localities one way of helping those who cannot pay their energy bills is the local fuel fund. For example, in the Washington, D.C. area there is the Washington Area Fuel Fund. This fund is administered by the Salvation Army. Contributions are made by local individuals and companies, and funds are distributed to needy customers of the local natural gas and electric utilities. You can also visit the National Fuel Funds Network for information on similar programs.

Weatherization is an additional method of assisting low-income households. The recent federal stimulus provided $5 billion of low-income weatherization funds, which are used to increase insulation and in some cases provide higher efficiency furnaces and water heaters. These methods decrease the energy burden for low-income families.

Ultimately the greatest contributor to households needing energy assistance is LIHEAP, the Low Income Home Energy Assistance Program. In 2008, thanks in great part to AGA’s efforts on Capitol Hill, Congress appropriated a record $5.1 billion for LIHEAP, but even with that level of funding we still find $3.5 billion in unpaid utility bills, due in great part to our stalled economy. It is clearly time to increase LIHEAP funding once again to ensure that needy households continue to have warm, safe homes.

Welcome to the new Washington Area Fuel Fund web site

Recap: 2009 AGA/EEI Customer Service Conference – Serving At-Risk Customers

Jim Linn — Tue, 14 Apr 2009 15:04:07 +0000

I just got back from the AGA/EEI Customer Service Conference and Exposition and it was a great success. The clear emphasis of this year’s conference was meeting the needs of at-risk customers. From the opening chairman’s remarks to the closing session, the theme was consistent.

Commissioner Katrina McMurrian, Florida Public Service Commission, at the podium during the Economic Crisis and its Impact on Customer Service panel. Also included in the panel were: John Caldwell, director, Economics EEI; Thomas Graham, president, Pepco Region; J.R. Kelly, Office of Public Counsel, Florida and member of the National Association of State Utility Consumer Advocates; and Tracey Parker, director, Government Relations, EEI.

AGA Chairman, Thomas E. Skains, shared the CEO perspective on the importance of good customer service and clearly articulated the need for a customer service mindset – especially in economically challenging times like the one we face today.

John Caldwell, an EEI economist, provided his perspective on how our economy reached the point it is at today and shared some thoughts on how long our present situation may last.

Throughout the conference, from breakout sessions to general sessions to informal networking, the buzz was on how to engage customers who are newly in danger of being unable to pay their utility bills. The final session profiled We Energies, Integrys and Kansas City Power and Light and their efforts to work with customers in order to keep their energy needs met while providing a means for the customer to cover their financial obligations through payment programs, grants, fuel funds and other creative programs.

The proceedings from the conference are available to attendees (you’ll need your login information) at www.eei.org/meetings-cs. Leave a comment below if you’d like to learn more about the event, or were actually there and want to share your thoughts on the experience.

Win-Win-Win Weatherization

Jim Linn — Tue, 07 Apr 2009 16:12:33 +0000

The emphasis on weatherization in the American Recovery and Reinvestment Act (ARRA) is a win-win-win for the U.S. economy in three areas: new jobs, energy relief to low-income households and decreased uncollectible accounts for utilities. The ARRA, commonly known as the stimulus package, includes $5 billion for weatherization, an increase from the previous level of only $227 million.

The task of weatherization starts with performing a home energy audit, then following up with one or more energy efficiency measures such as: duct sealing, insulation, window replacement, and even water heater replacement (like the tankless natural gas hot water heater photo in this article) and furnace replacement in some cases. It has been estimated that the weatherization funds in the stimulus package will create nearly 100,000 jobs initially as new energy auditors and contractors are needed to identify sources of energy loss and implement weatherization techniques to mitigate them. The development of these jobs will play a part in stimulating the economy.

Reducing the cost of energy for low income families is important. The average U.S. energy cost per home is roughly $2,000 per year. Weatherization can potentially reduce household energy consumption by at least 25%, putting roughly $500 annually back into the pockets of low-income families who need economic relief the most.

Utilities and every day rate payers also benefit from weatherization. In many cases, low-income families are simply unable to pay for their energy usage which impacts us all. For example, last year alone $5 billion in utility bills went unpaid, the expense of which ultimately is covered in the rates of paying customers.

So you see, things like weatherization can really pay off – both for low-income families and for those who are in more fortunate circumstances and for the economy at large.

Feel free to leave any of your weatherization tips or stories in the comments and be sure to visit our ARRA section on aga.org

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