Safety Shutoffs and the Impact on Customer Satisfaction

Executive Insight Report

Safety Shutoffs and the Impact on Customer Satisfaction

November 2021

© 2021 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 2© 2021 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY

Welcome

Mark Spalinger

DirectorUtilities [email protected]

This report is a follow-up from the 2020 Executive Insight Report by Andrew Heath titled “California Public Safety Power Shutoffs and the Impact on Customer Satisfaction”. The data in this report is based on the J.D. Power 2021 Electric Utility Residential Customer Satisfaction Study and the 2020 Electric Utility Residential Customer Satisfaction Study. These studies focus on understanding the key areas that drive customer satisfaction within the electric utility industry.

For this report, J.D. Power analyzed the feedback from more than 170,000 electric residential customers who are serviced by electric utilities across the nation; and more specifically, over 12,000 residential customers in California.

The objectives of this special report are to:

• Provide an updated overview on Safety Shutoffs

• Understand residential customer experiences and satisfaction impact when safety shutoff events occur

• Identify lessons learned to help all electric utilities manage safety shutoff events

• Investigate changes since the initial surge of 2019 shutoffs reported in the prior insights report

Please feel free to contact the J.D. Power Utility Intelligence team with any questions.

Mark Spalinger

mailto:[email protected]


Safety Shutoff Overview

Customer Experiences

Impact on Satisfaction

Lessons Learned

Contents

This Executive Insight

Report describes the 2020

and 2021 safety shutoffs,

what customers

experienced, how this

impacted customer

satisfaction, and the

lessons learned both in

California and beyond

© 2021 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY 4

Fire season continues to start earlier

and end later each year creating

significant risks for utilities, especially

those in states that are increasingly

impacted by severe fire conditions.

According to the EPA, there are

many states across the nation that

are experiencing increases in the

number and severity of fires annually.

Western states are seeing increases

in acreage burned compared to

Eastern states with notable increases

year over year. It is becoming

increasingly evident that utilities in

fire-prone states need to intervene

more to manage their power systems

to ensure customer safety.

In some cases, this will result in a

safety shutoff where the transmission

and distribution systems are

proactively deenergized to prevent

starting or escalating a wildfire.

Since the beginning of the 2019 fire

season, utilities in the West have

done a better job of managing safety

shutoffs. Customers are reporting

declines in both the frequency and

length of these types of outages over

time. Moreover, customers are

reporting less dissatisfaction in areas

like California where multiple safety

shutoffs have occurred.

Executive SummaryThe impact on customer satisfaction of safety shutoff events

Proactive outreach has improved during

safety shutoffs. There is a 28% increase in

customers receiving a utility call, email, or text

message during an outage in the West compared

to 2019.

Utilities, especially in California, are

beginning to effectively manage

safety shutoff events through

increased proactive communications

and by addressing vegetation

management year-round to ensure

the education and safety of their

customers and to prevent starting or

escalating wildfires.

Ultimately, customers want to be

informed. When provided with any

information about an outage, or safety

shutoff, satisfaction increases. By

proactively communicating outage

information through a call, email, or

text message, utilities deliver

improved levels of satisfaction.

Continuing to proactively

communicate to customers about

outage risks and providing advanced

warnings about safety shutoff events

helps maintain higher levels of

satisfaction. There is still an

opportunity for utilities to increase

proactive contacts while looking to

improve less satisfying more

traditional channels such as TV, and

radio.

Satisfaction for customers of

California utilities was not significantly

impacted during the 2020 and 2021

fire seasons—and since a low in Q4

2019 when the earliest shutoff events

occurred—all large investor-owned

California utilities have improved in

satisfaction. This is in part due to the

increased management of safety

shutoffs as well as keeping the

customer informed.

As utilities throughout the nation

wrestle with issues associated with a

changing climate, they need to learn

lessons from the recent

improvements achieved by the

California utilities.


Fire Season Changes

Fire seasons are

becoming longer

and increasingly

more devastating

According to the EPA, many states across the nation are seeing an increase in fires, but it is most pronounced in the West. As illustrated, the western states highlighted in orange and red are seeing a large increase in not only the number of fires but also in the severity when compared to years past.

Utilities, especially those in fire prone states, are becoming increasingly responsible for managing their power systems to ensure customer safety. In some cases, this results in a safety shutoff where the transmission / distribution system is proactively deenergized to prevent starting or escalating a wildfire.

https://www.epa.gov/climate-indicators/climate-change-indicators-wildfires

Change in Annual Acres Burned by State (change from 1984-2001 vs. 2002-2018)

https://www.epa.gov/climate-indicators/climate-change-indicators-wildfires


Safety Shutoffs by Region

West region customers

are most impacted by

safety shutoffs

Customers in the West report more shutoff events in 2021 compared to the rest of the nation, 8%. However, this is down from a peak of 15%.

A shutoff event is becoming increasingly necessary to manage the integrity of the power system and the safety of customers.

When given the option, customers in other regions are also selecting fire or safety shutoff as the cause of longest outage but at a lesser percent than customers in the West. Formal public safety power shutoffs (PSPS) are mostly in California but given the choice some customers still select this option as the cause of their outage in other regions.

15%

8%

5%4%

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21

West Industry Average

Cause of Longest Outage by Region

East Midwest South West

Fire/safety shutoff 3% 3% 3% 8%

Thunderstorm 18% 18% 23% 7%

Wind or tornado 12% 9% 6% 10%

Scheduled utility work/infrastructure improvements 4% 4% 4% 9%

Hurricane 1% 0% 3% 0%

Ice or snowstorm 7% 7% 7% 4%

Percentage of Customers Reporting a Safety Shutoff


Outage Durations Declining

Customers in the

West report shorter

safety shutoffs

Down from 51 hours on average in Q1 2020 to 17 hours on average in Q3 2021, the West is doing a better job managing shutoff events. Other regions remain relatively stable in the events attributed to safety shutoffs.

One area of improvement in the West is proactive outreach during an outage. There is a 27% increase in customers receiving a utility call, email, or text message during an outage in the West from 2019 when some of the earliest safety shutoffs started.

Additionally, the West is showing the largest increase from 2019 for the attribute keeping you informed about an outage.

50.9

17.4

31.4 32.2

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21

West Other Regions

Length of Longest Outage During a Safety Shutoff Event

+0.35

+0.27

+0.26

+0.26

+0.20

West

Industry

Midwest

South

East

Attribute Rating Improvement 2019-2021 –

Keeping you informed about outage

19%

46%

19Q1

19Q2

19Q3

19Q4

20Q1

20Q2

20Q3

20Q4

21Q1

21Q2

21Q3

West Source of Outage Trend

– Proactive utility contact


State Performance

California continues to

have the majority of

customer reported

safety shutoffs

Not surprisingly, most safety shutoffs are in California. However, customers elsewhere in the West are now starting to report safety shutoffs as the cause of their most recent outage.

*Safety shutoff events mapped combining 2020 and 2021 Study data

West Safety Shutoffs by State

(2020+2021)

82%

4%

3%

3%

2%

3%

4%

California

Washington

Arizona

Nevada

Oregon

Colorado

Other states


Safety Shutoffs California Overview

California utilities

improve efforts in

managing safety

shutoffs

Electric customers in California are reporting fewer safety shutoff events year over year. Down from a high of 31% in Q1 2019 to 12% in 2021 Q3.

Additionally, the average length of safety shutoff events is lower year over year. The reported length declines by almost half in Q3 2021 to 11 hours on average compared to the high of 18 hours on average in 2020 Q1.

*Note – Additional response options were added in 2020 to capture Fire and Utility proactively turned off power for safety reasons for Cause of longest outage.

Percentage of Californians Experiencing a Safety Shutoff*

Average Length of Safety Shutoff in California (hours)*

21%

31%

26%

22%25%

11% 12%

24%

14%12% 12%

0%

5%

10%

15%

20%

25%

30%

35%

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

10.0

8.16.4

15.9

18.0

13.3

10.712.4 12.3

13.2

10.6

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021


West Satisfaction Impact of Safety Shutoffs

Satisfaction for

customers in the West

experiencing a safety

shutoff improves

In 2021, the gap between customers having perfect power (no brief or lengthy outage) has narrowed: Down from -103 index points in 2020 to -58 index points in 2021.

Customers in the West experiencing a safety shutoff report lower Power Quality & Reliability satisfaction compared to all other outages.

Utility equipment failure remains the most dissatisfying form of an outage for customers in the West, 9 index points lower than a safety shutoff and -57 index points lower than all other outages.

709718

766

680696

753

Utility Equipment failure Safety Shutoff All other outages

West California

Safety Shutoff Power Quality & Reliability Satisfaction Comparison

Safety Shutoff Satisfaction Gap to Perfect Power – West

-117-103

-54

-110

-58 -53

-150.00

-130.00

-110.00

-90.00

-70.00

-50.00

-30.00

-10.00

Utility equipment failure Safety shutoff All other Outages

2020 2021


West Source of Outage Information

Proactive outage

information is highly

satisfying during a

safety shutoff

During a safety shutoff, most customers receive information from their utility proactively through a utility text, utility call, or utility email. This is also the most satisfying form of contact when safety shutoffs occur.

Providing proactive information about the shutoff to customers continues to be important in order to maintain higher levels of satisfaction.

Furthermore, customers who have personal contact or contact through digital channels report increased satisfaction compared to customers relying on traditional methods like TV, radio, or a neighbor.

741

782

747

701

760

742

728

711

Proactive utility contact(text, phone, email)

Personal contact(work crew, called utility,

emailed utility)

Electronic channels(website, mobile app,

social media)

Traditional(TV, radio, neighbor)

2020 Final 2021 YTD

Source of Outage Information Power Quality & Reliability Satisfaction by

Source of Information

72%

39%

58%

37%

73%

47%

58%

34%

Proactive utility contact(text, phone, email)

Personal contact(work crew, called utility,

emailed utility)

Electronic channels(website, mobile app,

social media)

Traditional(TV, radio, neighbor)

2020 Final 2021 YTD


Customer Satisfaction Impact of Safety Shutoffs

National satisfaction

remains stable over

the last 7 quarters of

fielding

Overall Satisfaction and Power Quality & Reliability Satisfaction stay consistent over the last 7 quarters.

Satisfaction for customers of California utilities was not significantly impacted during the 2020 and 2021 fire seasons.

Following a low in Q4 2019 when the earliest shutoff events occurred, all large California utilities have improved in Satisfaction. All investor-owned utilities have achieved higher levels of Satisfaction in every quarter since the lows associated with the 2019 safety shutoff season.

748758 755

743751 754

745

783792 785

771782 784

775

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21

Overall Customer Satisfaction Power Quality & Reliability Satisfaction

Overall Satisfaction and Power Quality & Reliability

Satisfaction Trends – National

699

712

651665 667

634

677

703 702687

673683

672

698

691

687 689

715 704729

756741

733724 714

745729 727 726 724 723733

754769

755747

764

742

743

Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21

Overall Customer Satisfaction Pacific Gas and Electric

San Diego Gas & Electric Southern California Edison

Overall Satisfaction Trends

Pacific Gas & Electric, San Diego Gas & Electric and Southern California Edison


Lessons Learned

Only when necessary. Mitigate the impact on the customer and ultimately

increase satisfaction by striving for shorter and less frequent outage events.01

02

03

04

Communicate. Communicate. Communicate. Customers are more

satisfied when provided with advanced notice and reason for the outage.

Especially when the outage is for preventative maintenance or upgrades,

customers are more understanding.

Maintain the system. Maintain the electric system through upgrades and

vegetation management to minimize fire risks and safety shutoffs.

Be Proactive. Proactively communicate to customers about risks, outages, and

provide as much information and advance warning as possible about safety shutoff

events.

Considering all

fires this year, they

did an excellent job

to keep electricity

flowing

Good service and

keeping us

informed of any

repair outages and

PSPS that are

possible

Provides reliable

power and notifies me

when an outage is

necessary due to

upgrade work or fire

danger.

They keep the

community safe

and informed

about problems

and different

situations

They alert me to

dangers I am not

even aware of, such

as increased brush

fire risks.

My electricity is almost

always on, and they

communicate about

outages that they know

of ahead of time.


Global OfficesContributors

Andrew Heath

Mark Spalinger

AMERICAS ASIA PACIFIC EUROPE

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Safety Shutoffs and the Impact on Customer Satisfaction

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