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NEWS | MAY 4, 2022




INFLATION TURNS WATER INTO WHINE: CUSTOMER SATISFACTION WITH WATER UTILITIES
PLUNGES AS RATES SURGE, J.D. POWER FINDS



Average Monthly Bill Rises $5.73 during Past Two Years

The six-year streak of improving or flat customer satisfaction with residential
water utilities has come to an end. According to the J.D. Power 2022 U.S. Water
Utility Residential Customer Satisfaction Study, released today, the past
several years of goodwill earned through investment in water quality, proactive
customer communications and digital customer service channels have been washed
away by a significant increase in monthly bills.

“The timing couldn’t be worse,” said Andrew Heath, senior director of utilities
intelligence at J.D. Power. “The rate relief efforts put in place during the
pandemic have come to an end just as the forces of inflation have driven a
significant increase in the monthly bills of residential customers. Customer
satisfaction has declined in every factor of the study, as the average monthly
water utility bill in the U.S. is now up $5.73 from 2020—without a corresponding
increase in consumption. Utilities looking to combat this negative sentiment
really need to get serious about proactive customer communications and customer
service.”

Following are key findings of the 2022 study:

 * Customer satisfaction goes down the drain as prices rise: Overall customer
   satisfaction with residential water utilities is 731 (on a 1,000-point
   scale), down 6 points from last year’s study and ending six consecutive years
   of improving or flat satisfaction levels. The decline coincides with a $5.73
   increase in the average monthly bill amount vs. 2020. Importantly, that cost
   increase does not correspond with a significant increase in water usage that
   was seen in 2021 when a largely home-bound customer population was consuming
   more water than ever.
 * Declines observed in every factor: While customer satisfaction scores decline
   in every factor of the study this year, the declines are most pronounced in
   the areas of communications and price. Notably, among those customers who
   receive a bill, 35% say they recall hearing about a rate increase by their
   water utility.
 * Digital communications and customer service more important than ever: Overall
   satisfaction scores are highest (794) when customers recall receiving a
   proactive electronic communication from their water utility. Likewise, the
   number of customers using digital channels to access customer service
   increases 43% from 2019 and customer satisfaction is highest when interacting
   with customer service digitally.

Study Rankings

The study measures customer satisfaction with water utilities in eight
geographic regions. Highest-ranked utilities and scores, by region, are as
follows:

 * Midwest Large: Illinois American Water (773) (for a third consecutive year)
 * Midwest Midsize: Aqua (758)
 * Northeast Large: NYC Environmental Protection (763)
 * Northeast Midsize: Boston Water and Sewer Commission (762)
 * South Large: Miami-Dade County (766)
 * South Midsize: Orange County Utilities (794)
 * West Large: Seattle Public Utilities (766) (for a third consecutive year)
 * West Midsize: Irvine Ranch Water District (771)

The U.S. Water Utility Residential Customer Satisfaction Study, now in its
seventh year, measures satisfaction among residential customers of 90 water
utilities that deliver water to at least 400,000 customers and is reported in
four geographic regions and two size categories: Midwest Large, Midwest Midsize,
Northeast Large, Northeast Midsize, South Large, South Midsize, West Large and
West Midsize. Overall satisfaction is measured by examining 33 attributes in six
factors (listed in order of importance): quality and reliability; price;
conservation; billing and payment; communications; and customer service. The
study is based on the responses of 33,054 residential water utility customers
and was conducted in four waves from June 2021 through March 2022.

For more information about the U.S. Water Utility Residential Customer
Satisfaction Study, visit
https://www.jdpower.com/business/utilities/water-utility-residential-customer-satisfaction-study.

About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data
and analytics. A pioneer in the use of big data, artificial intelligence (AI)
and algorithmic modeling capabilities to understand consumer behavior, J.D.
Power has been delivering incisive industry intelligence on customer
interactions with brands and products for more than 50 years. The world's
leading businesses across major industries rely on J.D. Power to guide their
customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more
about the company’s business offerings, visit JDPower.com/business. The J.D.
Power auto shopping tool can be found at JDPower.com.

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



















Source: J.D. Power


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