Business News
J.D. Power and Associates Reports: Green Mountain Energy Company Ranks Highest in Customer Satisfaction with Texas Residential Electric Retail Providers in Inaugural Study
2008-08-13 08:00:00
Customers Subscribing to Green Power Pricing Plans Are More Satisfied,
Despite Paying Higher Prices
WESTLAKE VILLAGE, Calif., Aug. 13 /EMWNews/ -- Among electric retail
providers in Texas, Green Mountain Energy Company ranks highest in customer
satisfaction, according to the J.D. Power and Associates 2008 Texas
Residential Retail Electric Provider Customer Satisfaction Study(SM)
released today.
The inaugural study measures customer satisfaction with retail electric
providers in Texas by examining four key factors (listed in order of
importance): pricing, billing and payment, communications and customer
service. Starting in 2002, the Electric Reliability Council of Texas opened
portions of the residential electric utility market in the state to retail
competition. According to the Public Utility Commission of Texas, 42
percent of Texas residential customers were served by competitive retail
electric providers by the end of 2007, totaling approximately 5.1 million
households.
Green Mountain Energy Company achieves a score of 716 on a 1,000-point
scale and performs particularly well in three of the four factors: billing
and payment, communication and customer service. Stream Energy (687) and
Reliant Energy Retail (659) follow Green Mountain Energy Company in the
rankings. Stream Energy performs particularly well in the pricing factor.
"By providing superior levels of customer satisfaction, Green Mountain
Energy Company has also achieved notably high levels of customer advocacy
and loyalty," said Jeff Conklin, senior director of the energy and utility
practice at J.D. Power and Associates. "A high percentage of Green Mountain
Energy Company customers say that they would definitely recommend their
electric retailer to family and friends, and these customers also make many
more positive recommendations about their provider, compared with customers
of other electric retailers in Texas."
The study finds that customers who select a "green" pricing plan -- for
which electricity is produced using renewable resources such as solar, wind
or geothermal power -- report paying more for electric service, on average,
than do customers subscribing to other types of pricing plans. Customers
subscribing to green power plans report paying an average of $202 per
month, while customers on fixed price plans report spending $178 per month,
on average. Customers with variable price plans report paying an average of
$170 per month. However, green power customers are also more satisfied with
their electric service, on average. Overall satisfaction for customers on
green power plans averages 716, compared with satisfaction of fixed-price
plan subscribers (674) and variable-price plan subscribers (606).
The study also includes the following key findings:
-- Nearly one-half (43%) of customers say they initially signed up with
their retail electric provider more than four years ago.
-- Approximately 35 percent of respondents report that they switched
providers within the past 24 months.
-- Respondents who have switched providers within the past 24 months
are more satisfied (with satisfaction scores averaging 674) than customers
who have remained with their provider for more than four years (609).
The 2008 Texas Residential Retail Electric Provider Customer
Satisfaction Study is based on responses from more than 2,500 online
interviews conducted in June 2008 among residential customers of electric
retailers in Texas. For more information on Texas residential electric
retailer ratings, please visit JDPower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
a global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
For more information on car reviews and ratings, car insurance, health
insurance, cell phone ratings, and more, please visit JDPower.com. J.D.
Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading
global information services provider meeting worldwide needs in the
financial services, education and business information markets through
leading brands such as Standard & Poor's, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more than
280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional
information is available at http://www.mcgraw-hill.com.
J.D. Power and Associates Media Relations Contacts:
John Tews Syvetril Perryman
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
[email protected] [email protected]
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
Customer Satisfaction Index Ranking J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Green Mountain Energy Company 716 5
Stream Energy 687 4
Reliant Energy Retail 659 4
GEXA Energy Corporation 655 4
Direct Energy 648 3
Industry Average 638 3
First Choice Power 630 3
TXU Energy Company 606 2
CPL Retail Energy 558 2
Included in the study, but not ranked due to small sample size are:
Cirro Energy and Spark Energy.
Power Circle Ratings Legend:
5 - Among the best
4 - Better than most
3 - About average
2 - The rest
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