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SolarGMPSUSTAINABILITY REPORT 2008 SECTION 6:
Customers and Community
At the core of our brand is reliability. Reliability is crucial to supporting our communities and ensuring that our tagline, "On. Every Day" remains authentic. In the past, it has been a challenge to overcome the public's perception of what an electric utility can be. We believe that with reliability, affordable rates, giving back to communities, and investing in technology, we have truly enhanced our image in the minds of Vermonters and solidified our brand.
The cost of electricity is a major factor for the economic health of our Vermont communities. Electric rates in New England are among the highest in the country, but Green Mountain Power's overall rates rank lowest among New England's 16 large investor-owned utilities. According to our CEO Mary Powell, "Other utilities across New England have experienced large rate increases because of rising fossil fuel costs. Our exposure to the volatility of the fossil fuel market has been minimal."
Average Residential Rates of New England Large Investor-owned Utilities
Our rates have a direct economic effect on our residential customers, in that the size of their electricity bill affects the amount of disposable income they have to spend in the local market. The following figure shows how Green Mountain Power's residential rates compare with the other large investor-owned utilities in New England.
Also, the reliability of our service also has positive indirect economic impacts. If reliability were not as strong as it is, it could affect businesses' decisions to locate or remain in Vermont.
Reliability and Retail Sales Stats
We have committed to all of our stakeholders to continuously improve on reducing the frequency and duration of outages. Our results for 2008 with respect to System Average Interruption Frequency Index (SAIFI) and Customer Average Interruption Duration Index (CAIDI) are shown below. SAIFI is the ratio of the total number of customer power interruptions to the total number of customers served. In general, the higher the SAIFI number, the less the reliability. CAIDI is a ratio of the total amount of time customers' power was interrupted to the total number of customer interruptions (in other words, the average outage duration). The higher the CAIDI number, the less the reliability.
Our reliability this year was challenged largely by tree-related incidents. However, the CAIDI number decreased which means that the average power outage duration was less than last year. So there may have been more outages, but we were quick in responding to them.
The Company did well with respect to its service quality standards in 2008, although we did have some challenges, as shown below.
Service Quality Performance Index
[4] The baseline is based on negotiations with DPS.
Our call abandonment rate was due largely to many weather-related outages that occurred during normal business hours. Because outage calls take priority over other calls, customers calling for credit and billing questions had to wait more than a minute. The outage calls also affected the percent of calls answered in 20 seconds.
We exceeded the benchmark in safety due to one major injury and three separate repetitive motion injuries that were treated with surgery. We have put significant emphasis and effort into promoting a safety culture at Green Mountain Power, and have increased that effort since the injury mentioned above.
Technology Improvements to Enhance Reliability
- Our new Geographic Information System (GIS) provides a database of our full electrical system and is combined with geographic and visual information. It provides a detailed, complex map of our system infrastructure upon which we develop and design improvements and updates to the system.
- Responder, our Outage Management System, allows Green Mountain Power to more accurately and quickly respond to large scale power outage events by aggregating customer calls into predicted and grouped outages. Responder also stores data for future reporting that will lead to identification of important reliability improvement projects. These two integrated systems are the foundation for future planned technology enhancements such as integrating our SCADA and SmartGrid technology with the outage management system, and allowing customers to view detailed outages via the web.
Customer Contact Survey Results - 2008
The following survey results (through the third quarter 2008) were prepared by RKS Research & Consulting after surveying customers who had contact with Green Mountain Power. Overall, customers were completely/somewhat satisfied.
Customer Issues Survey Results - 2008
Telephone surveys were also conducted among a cross section of residential customers, whether or not they had contact with the Company, throughout the year by RKS, which gave us statistically valid indications of overall customer satisfaction, as well as customers' opinions on our energy strategy. The results from the 3rd quarter 2008 are summarized below:
- Overall Satisfaction with GMP: 81% very satisfied (as compared with 69% very satisfied in 3rd quarter 2007) - this level of satisfaction is high by historical standards.
- Amount of Trust in GMP: 81% great deal of trust (63% in 3rd quarter 2007) - this level of trust represents a historic high.
- Value (money spent on GMP for electric service): 66% excellent value (51% in 3rd quarter 2007) - this level of value is very high by historical standards.
- Price: 43% Price is High (38% Price is High in 3rd quarter 2007) - historical data indicates that people are no more critical than they have been in the past.
The results of the energy strategy questions posed during the telephone interviews appear throughout this Sustainability Report, in the most pertinent sections. PR5
Supporting Local Environmental Research (SO1)
The following is a list of some of the initiatives that Green Mountain Power has been supporting because we believe they may have significant environmental benefits to Vermont and its communities:
- Funding micro-hydro projects (e.g., City of Barre)
- Supporting the "Vermont Solar and Small Wind Incentive Program" to encourage photovoltaic, solar hot water, and small-scale wind installations in our service territory.
- Supporting the University of Vermont's research into the effects of plug-in hybrids on the local electrical system.
Also, our partnership with VEC and Kingdom Community Wind represents a large commitment to Vermont communities. The Lowell Mountain wind farm project is employing Vermonters to conduct environmental and economic assessments, and, if we move forward, will generate local construction, operations and maintenance jobs in the future. Overall, the project will represent a local investment of approximately $80 to $125 million dollars. Also, Kingdom Community Wind expects to pay hundreds of thousands of dollars annually to Vermont's education fund and to the local community budgets.
Ralph Nading Hill Writing Contest
As a way of supporting the arts community in Vermont, Green Mountain Power and Vermont Life co-sponsor the Ralph Nading Hill Writing Contest each year. The contest is open to any student or resident of Vermont and the winning entry is published in Vermont Life magazine. In 2008, Leif Tillotson won the prize with his winning essay, entitled "Earl's Barn." The piece describes how an old barn in Bakersfield played a central role in Mr. Tillotson's youth, and the loss he felt when it burned down: "Sadly, I never took a photo of Earl's barn. It is still with me, though, when I smell hay on a summer day and find my thoughts back in the haymow, handling hay bales that were half the size of my childish stature."
The literary prize is named for the late Ralph Nading Hill, Jr., a Vermont historian and writer and long-time member of Green Mountain Power's Board of Directors. 2008 was the 20th year the literary prize has been awarded. The Ralph Nading Hill literary prize is now considered by Vermont writers to be one of the state's premier literary prizes.
SECTION 1: PERFORMANCE OVERVIEW
SECTION 2: OUR MATERIAL ISSUES
SECTION 3: THE
SUSTAINABILITY OF OUR POWER PROFILE
SECTION 4: RESOURCE USE AND
OPERATIONS
SECTION 5: EMPLOYER
SECTION 6: CUSTOMERS AND COMMUNITY
SECTION 7: FINANCIAL
SECTION 8: COMPANY FACTS & FIGURES
SECTION 9: GLOBAL REPORTING INITIATIVE (GRI) SUMMARY
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