2017 RESIDENTIAL SATISFACTION

Transcription

1 2017 RESIDENTIAL SATISFACTION 8/01/2017 Adams Electric Cooperative Survey Results Prepared by:

2 ADAMS ELECTRIC COOPERATIVE EXECUTIVE SUMMARY Following are the top-line findings based on the results of a telephone/online survey of 466 residential members of Adams Electric Cooperative conducted in April and May of 2017: Overall satisfaction with Adams Electric continues to be excellent among all respondents, with an overall mean rating of Although satisfaction is usually higher among phone respondents than online respondents, this is not the case among Adams members. In fact, the overall satisfaction mean rating is higher among online respondents, but the difference is not statistically significant. Ratings on all four of the American Customer Satisfaction Index (ACSI) measures are much higher than the Co-op Norms. The 2017 ACSI is 90 and retention estimate is 86%, both of which are higher than in The mean ratings for 16 of the 19 service attributes evaluated are approximately 4.50 or higher on a 5-point scale, which is considered excellent. Adams is rated highest on their employees being friendly and courteous. Eight of the attribute ratings have increased significantly since 2015 and none decreased significantly. Additionally, all of the comparable attributes are evaluated higher than the Co-op Norms. According to the key driver analysis, the strongest key driver of members overall satisfaction scores is the co-op s employees and member service provided. This means that increases/decreases in the attribute ratings in this area should cause a corresponding increase/decrease in overall satisfaction ratings. All six attributes included in this driver are evaluated as excellent with mean ratings above Forty-four percent of the members indicate they contacted the co-op in the past year and evaluations of that contact are high, with three in ten saying it was much better than expected. The next three key drivers of overall satisfaction are Electric Service, Rates and Fees, and Payments and Bills. These three drivers are of equal importance in regard to overall satisfaction. Most of the attributes in these areas are evaluated close to or above the 4.50 excellent level and none are below the good threshold of 4.0. One area where the co-op can focus is among the younger members. These members consistently give lower ratings for the performance attributes as well as overall satisfaction and the other ACSI measures. Younger members are also less likely to feel they are a member of the co-op, be engaged in the co-op and participate in co-op activities, regularly read Penn Lines magazine, and feel their rates are lower than at other electric companies in the region.

3 OBJECTIVES This residential member survey addresses but is not limited to the following informational objectives: Overall Satisfaction and ACSI: Assess how satisfied members are with Adams Electric and determine their American Customer Satisfaction Index (ACSI) and retention percentage. Performance Quality Attributes: Evaluate residential member perceptions of service quality on a variety of attributes (e.g., rates, billing, outages, problem resolution, etc.). Performance Quality Trends and Benchmarks: Compare the results to past studies to identify trends and benchmark the results against co-ops nationwide using NRECA s Co-op Norms Database. Prioritizing Improvement and Maintenance Efforts: Derive the key drivers of overall satisfaction and to what degree consumer needs are being met to help Adams prioritize any improvement efforts. Member Identity: Estimate the proportion of consumers who identify themselves as memberowners, member-customers, or just customers of the co-op. Member Engagement and MLI: The Member Loyalty Index (MLI) is a statistically significant and reliable measure of member engagement and loyalty. It measures a member s emotional attachment to his/her co-op. Increasing emotional attachment is the key to increasing member trust in the cooperative, member-owner identity, and willingness to take grassroots action on the co-op s behalf. Other: Explore other areas of specific interest to the co-op, including awareness of co-op programs offered to members, use of various communication methods, and preferences for how members prefer to receive information from the co-op. Member Demographics and Segmentation: Provide demographics of the residential membership base and identify differences in attitudes between segments. METHODOLOGY To help ensure a survey sample that is representative of all Adams Electric s residential members, age and other demographic information was purchased from Acxiom Corporation for each household served. This was then used to fill age quotas when completing phone interviews. For those households that matched by surname and address, a basic package of demographic data was appended to the file including age, income, and household size. Data were collected through telephone and online surveying. This is the first year that online surveying was added to the methodology. Telephone interviewers were thoroughly trained on the questionnaire prior to initiating the survey. On average, the telephone interviews lasted approximately 10.5 minutes.

4 Telephone surveys were completed with a total of 300 residential members of Adams Electric between April 24 and May 4, 2017 with random sampling done proportionate to age and district. Of those contacted, 576 declined to participate, resulting in a response rate of 34%. Additionally, 136 of the phone numbers attempted were disconnected. An invitation was sent to a random sample of 1,009 members for whom Adams Electric has an address, with 2 returned as being undeliverable. A total of 166 surveys were completed online, resulting in a response rate of 16%. The online survey respondents are weighted to represent 25% of the total data. The margin of error at the 95% confidence level for the entire sample is plus or minus 4.5 percentage points. This means that a result of 50% in the survey may be between 45.5% and 54.5% in an infinite number of residential samples this size. ANALYSIS The graphics presented in this report are based on data collected from the current study and tracking results from four studies conducted between 2002 and The results of tracking surveys provide value by demonstrating when results remain consistent and indicating where there has been significant change over time. The co-op has experienced some recent events that are likely to have an impact on attitudes and satisfaction: 2017 is the final year of the co-op s first, four-year maintenance program for rights-of-way. This has resulted in a decrease in the number of tree-related outages. In February 2017, $2 million was returned to members through Ownership Rewards. Rates will not change in Effective January 1, 2017, a policy change was made in the procedures for a disconnect for nonpayment. Instead of a disconnect notice being left at the member s property, they will be sent a notice through a bill stuffer, with at least two attempts to contact the member by phone before the disconnection is done. Comparisons are also made to results from similar studies conducted by 79 co-ops among more than 75,000 residential members across the nation between January 2014 and December These Coop Norms are not taken from the universe of all cooperatives; rather these are co-ops who value, monitor and measure the satisfaction of their members and therefore represent higher performing coops, not all co-ops. Because previous studies were conducted as phone surveys, comparisons to previous years are made to just the phone respondents. Comparisons to the Co-op Norms are made to both phone and online respondents. Differences between member segments, such as differences by age or service tenure, are pointed out and characterized as being either statistically significant or not. When the term

5 significant is used, this refers to the certainty of a difference, not the magnitude or size of the difference. Significance is measured at the 95% confidence level, meaning that the difference is not likely a matter of chance (there is sufficient evidence to reject the null hypothesis of no difference). When evaluating the mean ratings in this report, on a 5-point scale a mean of 4.50 or above should be considered excellent and a mean between 4.00 and 4.49 is considered good. Means below 4.00 may be cause for concern and those below 3.75 indicate a need for improvement.

6 KEY FINDINGS Overall Satisfaction Overall Satisfaction and ACSI Overall satisfaction among Adams Electric s residential members is 10 - Very Satisfied 59% 67% 61% 50% excellent. The mean overall satisfaction rating is 9.26 and 80% give the top ratings of 9 or 10. Among phone respondents, the mean satisfaction rating in 2017 is significantly higher than the 2015 study. Overall, satisfaction is much higher than the Co-op Norms. Mean ratings among older members and longer-tenured members are significantly higher than younger members or newer members % 13% 19% 19% 14% 13% 14% 17% 3% 4% 4% 9% Phone Online Total Co-op Norms As with overall satisfaction, mean ratings for the other three ACSI measures are much higher than the Co-op Norms. It is typical in a mixed methodology study that phone respondents give significantly higher ratings than online respondents, 1-5 Not Satisfied 3% 2% 3% 6% but this is not the case for members of Adams Electric. In fact, online respondents give higher ratings for overall satisfaction and comparison to the ideal utility, but none of the differences are statistically significant. ACSI Mean Ratings By Method Overall Satisfaction Meeting Expectations Ideal Utility Likelihood of Choosing Phone Online Total Co-op Norms

7 As previously mentioned, the mean rating for overall satisfaction is significantly higher than the 2015 study. It is also higher for likelihood of choosing. All four ACSI measures are also significantly higher than in 2002 and Mean Ratings by Year Phone Respondents Only Likelihood of Choosing Overall Satisfaction 7.83 Comparison to Ideal Utility Lives Up To Expectations

8 Adams composite ACSI rating is 90, which is 3 points higher than the 2015 study, and the retention estimate is 86%, which is 2 percentage points higher. ACSI Score and Retention Percent ACSI Score Retention Percentage In the first quarter of 2017, 138 individual Touchstone Energy co-ops received an ACSI. Of those, 136 co-ops scored 90 or lower, which places Adams in the 99th percentile among these co-ops. Below are examples of ACSIs obtained through online surveying of panels of U.S. citizens. This national industry data is for the fourth quarter of 2016 and first quarter of Q4 2016/Q ACSI Q4 2016/Q Retention % Atmos Energy 80 Atmos Energy 79 Touchstone Energy 79 Sempra Energy 78 Sempra Energy 79 CenterPoint Energy 77 Largest Cooperatives 78 WEC Energy 76 CenterPoint Energy 78 Touchstone Energy 75 Consolidated Edison 77 Edison International 75 Southern 76 Consolidated Edison 75 Edison International 76 Dominion Resources 75 Dominion Resources 76 Largest Cooperatives 74 All Other IOUs 75 Largest IOUs 72 All Other Cooperatives 74 All Other IOUs 71 Largest IOUs 74 All Other Cooperatives 71 Largest Municipal Utilities 74 Largest Municipal Utilities 70 All Other Municipals 74 All Other Municipals 70 Duke Energy 71 Duke Energy 69 The American Customer Satisfaction Index (ACSI) is provided through Touchstone Energy. It is designed to provide a continuous update of residential consumer evaluations of the top electric, gas, and combination electric and gas energy utilities in the country. ACSI began operations in 1994 and updated results are published every quarter. The central ACSI component is the core customer satisfaction index. The index is a weighted average of three questions on a 0 to 100 scale: overall consumer satisfaction, meeting consumers expectations, and comparing one s own utility to an ideal utility. The second component of the ACSI measurements is the retention percentage, which is calculated using consumers ratings of their likelihood to stay with their cooperative if they had a choice. For a detailed analysis of the process, please consult the 2017 First Quarter ACSI report in Appendix C.

9 Performance Quality Attributes Members were asked to evaluate 19 performance quality attributes related to member service, electric service, communication, billing, and cost. On all of the attributes measured, the mean ratings are well above 4.00, a good rating on a 5- point scale. Additionally, mean ratings for 16 attributes are approximately 4.50 or higher, which can be considered excellent. These include: Having friendly, courteous employees (4.77) Supporting the local community (4.73) Having convenient payment options (4.71) Having employees who are highly-trained and professional (4.70) Keeping longer outages to a minimum (4.70) Being easy to reach (4.68) Providing accurate, easy to understand bills (4.67) Resolving any issues or problems (4.66) Communicating with members and keeping them informed (4.65) Restoring power quickly after an outage (4.65) Keeping blinks, momentary outages to a minimum (4.64) Operating with concern for the environment (4.64) Delivering good value for the money (4.63) Having consumers best interests at heart (4.61) Showing personal interest in the consumers they serve (4.55) Helping members to be more efficient in their use of electricity (4.49) Conversely, the attribute on which Adams Electric is rated least well is keeping members informed on the status of outages (80% rating 4 or 5 ). This is an area that is often rated lower in cooperative satisfaction research and means often fall below the good threshold of However, with a mean rating of 4.22, this is not the case for Adams Electric. In fact, the mean rating is much higher than the Co-op Norms. Telephone respondents give higher ratings than do online respondents on all of the performance attributes, but most of the differences are not statistically significant.

10 Performance Quality Trends and Benchmarks Among phone respondents, eight of the attribute mean ratings have increased significantly from the 2015 residential study and none decreased. Additionally, just two attributes are significantly lower than in any of Adams previous studies having friendly, courteous employees and having employees who are highly-trained and professional are lower than in the 2012 study. The performance attributes that have increased significantly from 2015 include: Delivering good value for the money Having consumers best interests at heart Communicating with members and keeping them informed Keeping blinks, momentary outages to a minimum Keeping longer outages to a minimum Restoring power quickly after an outage Charging reasonable rates Charging reasonable service fees On all of the comparable attributes, mean ratings among Adams Electric members are higher than the Co-op Norms. The attributes with the greatest differences include: (Phone and Online Respondents) Adams Mean Co-op Norms Gap Charging reasonable service fees Charging reasonable rates Helping members to be more efficient in electric use Delivering good value for the money Having consumers best interests at heart Communicating with members, keeping them informed Supporting the local community Keeping members informed on the status of outages Resolving any issues or problems Having convenient payment options Operating with concern for the environment Restoring power quickly after an outage

11 Prioritizing Improvement and Maintenance Efforts The key drivers of overall satisfaction among residential members are: employees and member service, electric service, rates and fees, and payments and bills. Going forward, these are the areas that Adams Electric Cooperative should focus on most. Regression analysis was used to determine the key drivers of overall satisfaction. The scores are to be interpreted relative to each other. For example, since employees and member service has a score of 0.52 and electric service has a score of 0.23, we can say that members perceptions of the co-op s employees and the customer service they receive have more than twice the impact on overall satisfaction as their perceptions of their electric service. Attributes and factors not shown below are not significant drivers of overall satisfaction. More information on how the factors were formed and importance scores derived can be found in Appendix A. Key Drivers of Overall Satisfaction Employees and Member Service Having friendly, courteous employees Having employees who are highly-trained and professional Resolving any issues or problems Showing personal interest in the consumers they serve Having consumers' best interests at heart Communicating with members, keeping them informed Electric Service Keeping longer outages to a minimum Restoring power quickly after an outage Keeping blinks, momentary outages to a minimum Keeping members informed on the status of outages Rates and Fees Charging reasonable rates Charging reasonable service fees Payments and Bills Helping members to be more efficient in their use of electricity Having convenient payment options Providing accurate and easy to understand bills

12 Employees and Member Service The strongest key driver of overall satisfaction is Employees and Member Service. This is an area for which the co-op is evaluated as being excellent. The mean ratings for the six attributes making up this key driver, along with being easy to reach, are above the excellent threshold of 4.50 and higher than the Co-op Norms Mean Ratings Phone Online Total Co-op Norms Friendly, courteous employees Highly-trained, professional employees Resolving issues Showing personal interest in consumers Best interests at heart Communicating, keeping members informed Easy to reach

13 Comparing the phone respondents to past studies, resolving any issues or problems, having consumers best interests at heart, and communicating with members and keeping them informed are significantly higher than at least one previous study. Best interests at heart and communicating with members are higher than 2015 and resolving issues and best interests are higher than Although having friendly, courteous employees and having employees who are highly trained and professional are both evaluated significantly lower than the 2015 study, they remain well above the 4.50 excellent level. Mean Ratings by Year Phone Respondents Only Friendly, courteous employees Highly-trained, professional employees Easy to reach Resolving issues Communicating, keeping members informed Best interests at heart Showing personal interest in consumers

14 Contacted Adams Electric in Past Year Contact By Year Phone Respondents Only 45% 43% 44% 52% 67% 50% 56% 45% Phone Online Total Co-op Norms Forty-five percent say they contacted Adams Electric in the past year. This is significantly lower than both the 2002 and 2015 studies, among phone respondents. Members paying higher electric bills are significantly more likely than those paying lower bills to have contacted the co-op. Almost all of those who contacted the co-op in the past year say their expectations were met or exceeded. Forty-five percent say the contact was somewhat or much better than expected, which does not differ significantly from previous studies, although members in 2017 are significantly more likely to say their contact was much better than expected than they were in Contact Evaluation Much Better Somewhat Better 30% 30% 30% 29% 13% 21% 15% 17% Somewhat + Much Better Than Expected 50% 43% 37% 35% About What Expected 52% 44% 50% 48% (Phone) Worse 5% 4% 5% 6% Phone Online Total Co-op Norms

15 Almost half of those who contacted Adams Electric did so to report or get information on an outage. The vast majority of the contact was made over the phone. Contact evaluations are highest among those who needed general service or made contact by visiting the co-op s office. Reason for Most Recent Contact % of Those Who Contact % Evaluate Much Better Contact Method % of Those Who Contact % Evaluate Much Better Outage 49% 22% Phone 90% 30% Pay bill 8% 26% Office 7% 44% New install 6% 36% Website 4% 15% Gen service 6% 52% 1% NA Bill question 5% 13% Social media 0% NA

16 Electric Service Electric Service is the secondstrongest key driver of overall satisfaction. This is another area where the co-op receives very good ratings. Minimizing longer outages 2017 Mean Ratings Phone Online Total Co-op Norms The mean ratings for three of the four attributes that make up this key driver are above Additionally, all four are evaluated higher than the Co-op Norms. Although the lowest rated attribute in the study is included in this driver, keeping members informed on the status of outages is evaluated well above 4.0 so this is not cause for concern. Among phone respondents, ratings are significantly higher than in 2012 and 2015 for minimizing outages, both longer and momentary. Restoring power quickly after an outage is also significantly higher than the 2015 study. Restoring power quickly Minimizing blinks, momentary outages Keeping members informed on status of outages Mean Ratings by Year Phone Respondents Only Minimizing longer outages Minimizing blinks, momentary outages Restoring power quickly Keeping members informed on status of outages

17 Rates and Fees The next key driver of overall satisfaction is Rates and Fees. This is an area that includes two of the lowest rated attributes in the study, which is very typical in studies of this type. However, the mean ratings for both charging reasonable service fees and charging reasonable rates are well above 4.0 as well as the Co-op Norms. Additionally, among phone respondents, they are significantly higher than the 2015 study. Charging reasonable rates 2017 Mean Ratings Phone Online Total Co-op Norms Charging reasonable service fees Mean Ratings by Year Phone Respondents Only Charging reasonable rates Charging reasonable service fees

18 5 - Excellent Poor Value for the Money 6% 6% 6% 13% 0.3% 1% 1% 5% 21% 29% 23% 32% 50% 72% 64% 70% Phone (mean=4.65) Online (mean=4.56) Total (mean=4.63) Co-op Norms (mean=4.24) Members evaluate the value they receive for their money positively, with an overall mean rating of 4.63 on a 5-point scale. This is higher than the Co-op Norms and significantly higher than the 2002 and 2015 studies (among phone respondents). A regression analysis was also conducted to determine the key drivers of delivering good value for the money. As seen in the table below, it was found that five factors are significant drivers of value. Although the perception of the cost of electricity has the strongest impact by far on the value members feel they receive, it is not the only factor that enters into the value equation among members of Adams Electric Cooperative. Key Drivers of Value Rates and Fees 0.44 Employees and Member Service 0.34 Payments and Bills 0.29 Being Easy to Reach 0.21 Electric Service 0.12 Mean Value Rating By Year Phone Respondents Only

19 Higher Lower About the same Adams Electric s Rates Compared to Other Electric Companies in Region 7% 7% 7% 13% 17% 8% 15% 10% 16% 37% 37% 37% Phone Online Total Co-op Norms Members continue to mostly be unaware of how their rates compare to other electric companies in the region. Compared to the Co-op Norms, Adams members are more likely to feel their rates are lower than other companies and less likely to feel they are about the same, higher, or to be unaware. Among phone respondents, members in 2017 are significantly more likely than those in 2002 to feel their rates are lower and less likely to say they are about the same. Those more satisfied with the co-op, older members, longer-tenured members, those paying lower electric bills, those living in larger households, and those without children in the home are significantly more likely than their individual counterparts to think their rates are lower. Not aware 48% 41% 47% 54% Not Aware Lower About the Same Higher 48% 43% 45% 48% 38% 37% 37% 19% 17% 12% 10% 8% 7% 8% 7% (Phone)

20 Payments and Bills The final key driver of overall satisfaction is Payments and Bills. This is another area in which attributes are evaluated at the excellent level. Additionally, all three attributes are higher than the Co-op Norms. Among phone respondents, mean ratings have not changed significantly from previous studies. Helping members be more efficient in electric use Convenient payment options 2017 Mean Ratings Phone Online Total Co-op Norms Accurate, understandable bills Mean Ratings by Year Phone Respondents Only Convenient payment options Accurate, understandable bills Helping members be more efficient in electric use

21 Social Responsibility Social Responsibility is not a key driver of overall satisfaction but is another area where the attributes are rated as being excellent. In addition to mean ratings above 4.50, both attributes are higher than the Co-op Norms. Additionally, supporting the local community is evaluated significantly higher than in 2002 among phone respondents Mean Ratings Phone Online Total Co-op Norms 4.66 Environmental concern Community support Mean Ratings by Year Phone Respondents Only 4.76 Average 4.68 number of blinks Average number of longer outages Community support Environmental concern (Phone)

22 Communication More than eight in ten members say they read all or part of Penn Lines and 77% regularly use a computer or smartphone with internet access. Not surprisingly, older members are significantly more likely to say they regularly read all or part of Penn Lines, while younger members are significantly more likely to say they use the internet, social media, co-op website, and SmartHub. Those who are more satisfied with the co-op, those with longer service tenure, those living with at least one other person, homeowners, married members, and those with more formal education are also significantly more likely than their counterparts to read Penn Lines. Newer members, those paying higher electric bills, those with children in the home, and more affluent members are significantly more likely than their counterparts to use the internet, social media, co-op website, and SmartHub. Online respondents are also significantly more likely than phone respondents to use these, along with having communicated with the co-op by in the past year. Regularly read all/part of Penn Lines magazine Communication Media Used 85% 85% 83% 85% Use computer or smartphone with internet access 78% 72% 77% 95% Use social media on regular basis 38% 44% 47% 63% Visited co-op website in past year* 25% 35% 40% 66% Used SmartHub in past year Communicated with Adams by in past year* 3% 6% 13% 13% 18% 27% 32% 75% Phone 2017 Online 2017 Total Among phone respondents, members are significantly less likely to use social media and/or SmartHub compared to the 2015 study. Communicating with the co-op by and visiting the co-op website are not comparable to 2015 because in 2017 respondents were asked in the past year while in 2015 they were asked if they had ever done these.

23 Nearly three-quarters say they prefer to get information about Adams Electric meetings, products and services, and member benefits in print. Phone respondents, older members, longer-tenured members, those paying lower electric bills, and less affluent members are significantly more likely than their counterparts to prefer communications in print, such as direct mail, bill inserts, newsletters, or Penn Lines. Comparing phone respondents to the 2015 study, members are significantly more likely to prefer print and less likely to prefer . Preference For Receiving Information About Adams Electric In print 49% 73% 73% 81% By 18% 12% 19% 39% 2015 Over phone or in person 4% 4% 1% 3% 2017 Phone 2017 Online 2017 Total Through co-op website or social media 3% 1% 6% 3% Communication Use/Preferences By Age Under Use computer/smartphone for internet 90% 84% 80% 68% Use social media 67% 52% 39% 31% Communicated with Adams by in past year 8% 5% 9% 3% Visited co-op website in past year 55% 34% 33% 26% Visited SmartHub in past year 43% 31% 35% 25% Regularly read all/part of Penn Lines magazine 65% 87% 88% 94% Prefer print information 61% 75% 78% 77% Prefer ed information 37% 14% 16% 13%

24 Member Identity and Loyalty Sixty-two percent have member identity, viewing themselves as a member-owner or both a memberowner and a customer. Those more satisfied with Adams overall, older members, longer-tenured members, those living with at least one other person, homeowners, married members, and those with more formal education are significantly more likely than their individual counterparts to have member identity. Members give more positive evaluations than do those who view themselves as customers on all of the performance attributes as well as overall satisfaction and the other ACSI measures with all but one of the differences being statistically significant. Members are also significantly more likely to: View Self as Customer View Self as Member/Owner View Self as Both Total Member Identity Member Identity 22% 13% 20% 11% 35% 33% 35% 48% 40% 51% 42% 40% Phone Online Total Co-op Norms 62% 64% 62% 51% Think their rates are lower than at other electric companies in the region Regularly read Penn Lines magazine Participate in co-op activities Be aware of programs offered by Adams Electric Be highly engaged with the co-op and be willing to take action on the co-op s behalf, especially contacting their legislator and/or becoming actively involved in a campaign to fight legislation Among phone respondents, member identity has not changed significantly from the 2015 study but remains significantly lower than in % 70% 59% 62% Some level of member identity (Phone)

25 Participation in Co-op Events in Past Three Years Multiple Responses Possible Received patronage capital credit check Voted in co-op election Attended annual meeting Attended spring zone meeting None of these 7% 6% 7% 4% 5% 4% 21% 18% 20% 34% 45% 37% Phone Online Total 75% 74% 75% Three-quarters of the members say they have received an Ownership Rewards patronage capital credit check from Adams Electric in the past three years, which is significantly higher than in the 2015 study but remains lower than 2002 and Just over one-third say they have voted in a co-op election in the past three years, but few have attended an annual meeting (7%) and/or March zone meeting (4%). Meeting attendance has decreased significantly from the 2012 study. In addition to those who feel like a member of the co-op, member segments that are significantly more likely than their counterparts to participate in co-op activities include older members, longer-tenured members, those living with at least one other person, homeowners, and those with more formal education. Participation in Co-op Events in Past Three Years 85% 87% 67% 75% Received capital credit check Voted in co-op election 35% 13% 30% 12% 8% 36% 28% 9% 5% 34% 21% 7% 4% None of these Attended annual meeting Attended spring zone meeting

26 Familiar With Co-op Programs Multiple Responses Possible U-Shift, U-Save load management program 54% 58% 55% Round Up for Project Helping Hand member assistance program 49% 51% 57% Discounts available through Co-op Connections card program 46% 50% 47% Co-op Owners for Political Action or Co-op Vote campaign None of these 26% 26% 26% 25% 22% 24% Phone Online Total Three-quarters of the members indicate being familiar with at least one of the tested co-op programs. Familiarity is highest for U-Shift, U-Save load management program; Round Up for Project Helping Hand member assistance program; and discounts available through the Co-op Connections card program. Familiarity is lowest for Co-op Owners for Political Action or Co-op Vote campaign. Although not all of the individual differences are statistically significant, member segments that tend to be more familiar with the programs include those with member identity, older members, longertenured members, those living with at least one other person, and married members. Just one of these programs has been tested in a previous study familiarity with U-Shift, U-Save has decreased significantly since However, the question was asked somewhat differently in 2015 with respondents being asked if they were familiar with the program and how that program works.

27 Actions Willing to Take if Co-ops Threatened by Pending Legislation Multiple Responses Possible Sign a petition Call, write, or legislator Attend meeting to find out more Become actively involved in campaign to fight legislation None of these Don't know 13% 7% 12% 6% 5% 6% 21% 13% 19% 49% 48% 49% 51% 40% 48% Phone Online Total 71% 73% 71% The majority of members say they would be willing to take some type of action if electric cooperatives were threatened by pending legislation. Most often, members say they would be willing to sign a petition. Approximately one-fifth say they would be willing to become actively involved in a campaign to fight the legislation. Those with member identity and those more satisfied with the co-op overall tend to be more likely than customers or those less satisfied to say they would take action although not all of the differences are significant. Usually approve of Adams' policies and procedures Level of Agreement With Loyalty Statements (Mean agreement on 10-point scale) Have a good relationship with Adams Proud to be associated with Adams Think of Adams as long-term ally Overall, members express strong loyalty and commitment to their co-op, with more than 55% giving the top rating of 10 and mean ratings well above 8.50 for all four loyalty statements. Agreement with these statements is highly correlated with satisfaction, member identity, and willingness to take action if co-ops were threatened by some pending legislation. Older members (55 or older) agree significantly more strongly than do younger members. Longer-tenured members also tend to have higher agreement than newer members, but differences aren t always significant.

28 Member Loyalty Index The Member Loyalty Index (MLI) is a statistically significant and reliable measure of member engagement and loyalty. It measures a member s emotional attachment to his/her co-op. Increasing emotional attachment is the key to increasing member trust in the cooperative, member-owner identity, and willingness to take grassroots action on the co-op s behalf. The Member Loyalty Index consists of the following four measures which survey participants are asked on a likert-type agreement scale. These four measures are then collated into one index on a 10 to 100 scale. I usually approve of Adams Electric s policies and procedures I feel I have a good relationship with Adams Electric I think of Adams Electric as a long-term ally I am proud to be associated with Adams Electric Not Engaged Somewhat Engaged Engaged Highly Engaged MLI Scale Adams Electric: 90 As shown on the scale above, an index of 70 or higher indicates that members are engaged. Adams s indexed score is 90, revealing a high level of loyalty and engagement among members. In fact, as shown in the pie graph to the right, 51% of the members give the top rating of 10 strongly agree for all four statements listed above. Fully Engaged (100) 51% Not Engaged 5% Somewhat Engaged 6% Engaged 26% Highly Engaged 13%

29 Actions Willing to Take if Co-ops Threatened By Pending Legislation Sign a petition sent to you Call, write or your legislator Attend a meeting to find out more Become actively involved in campaign None of these Members who are highly or fully engaged are significantly more likely than are those somewhat or not engaged to contact their legislator and/or become actively involved in a campaign to fight the legislation if electric cooperatives were threatened by some pending legislation. As indicated previously, fully half of the members (194 respondents) give the highest agreement rating of 10 for all four statements, which translates to an MLI of 100. Following is a profile of these members in contrast with those who are not engaged or somewhat engaged (MLI of 70 or lower). Profile of Members with MLI = 100 Profile of Members with MLI <= 70 Mean satisfaction = 9.69 Mean satisfaction = % Mean likelihood to choose = 9.88 Mean likelihood to choose = % 9% 13% 20% 24% 39% 41% 43% 39% 55% 52% 68% 63% Highly Engaged (MLI = ) Engaged (MLI = 71-90) Somewhat/Not Engaged (MLI = 10-70) 77% Evaluate all service attributes significantly higher Evaluate all service attributes significantly lower 71% have Member Identity 41% have Member Identity 48% think their rates are lower 23% think their rates are about the same Significantly more familiar with programs offered by the co-op with the exception of U-Shift, U-Save Significantly less familiar with programs offered by the co-op with the exception of U-Shift, U-Save 71% use a computer/smartphone for internet access 85% use a computer/smartphone for internet access 39% use social media 57% use social media 90% regularly read all/part of Penn Lines 70% regularly read all/part of Penn Lines 68% are age 55 or older 50% are age 55 or older

30 Regression and factor analyses were used to determine the key drivers of the Member Loyalty Index among the service attributes evaluated in the study. The scores are to be interpreted relative to each other. For example, since employees and member service has a score of 0.57 and electric service has a score of 0.21, we can say that members perceptions of the co-op s Key Drivers of MLI Employees and Member Service 0.57 employees and the customer service they receive have Payments and Bills 0.31 almost three times the impact on their loyalty and Community Support 0.26 engagement as their perceptions of their electric service. Attributes and factors not shown are not significant Rates and Fees 0.21 drivers of the MLI. Electric Service 0.21 Member segments that have a higher MLI than their counterparts are shown in the table below, along with the mean MLI for each. An asterisk indicates that the difference is not statistically significant. Segment (significantly higher MLI) Mean MLI Segment (significantly lower MLI) Mean MLI 55 or older 92 Under 55 years of age 87 Served 20+ years 91* Served less than 20 years 89* Very satisfied Satisfaction 8 or lower 74 Member Identity (view self as member-owner or both) 93 View self as customer or unaware served by a co-op 85

31 Member Demographics and Segmentation Sixty-one percent of the responding members are age 55 or older, 44% live alone or with one other person, 71% are married, and 93% own their home. Demographically, Adams s membership in 2017 is similar to Compared to the Co-op Norms, Adams members are younger and longer-tenured Total 2017 Online 2017 Phone 2015 (Phone) Co-op Norms Younger than 45 20% 13% 22% 20% 18% 45 to 54 19% 16% 20% 25% 16% 55 to 64 26% 30% 25% 27% 25% 65 or Older 35% 41% 34% 29% 41% 2 Years or Less Tenure 12% 13% 12% 11% 15% 3-9 Years Tenure 17% 14% 19% 20% 25% 10 Years Tenure or More 70% 74% 69% 69% 60% 1 or 2 People in Home 44% Children in Home 37% Married 71% Homeowner 93% College Degree 30% Income < $50,000 35% Demographics Purchased From Acxiom 51% 38% 32% 26% Average Monthly Electric Bill 37% 37% 39% 36% 17% 19% 16% 13% 15% 12% 7% 5% 2017 (Phone) $100 or less $101 - $150 $151 - $199 $200 or more

32 Older members and longer-tenured members are significantly more satisfied than are younger members or newer members. These are also the member segments that tend to give higher performance attribute ratings, although not all of the differences are statistically significant. Mean Ratings by Age Less affluent members and those paying lower electric bills evaluate charging reasonable rates significantly higher than do more affluent members or those paying higher electric bills. What is interesting is that these differences are not also seen for charging reasonable service fees. In addition to generally giving higher satisfaction and performance ratings, older members are significantly more likely than younger members to: Feel their rates are lower than other electric companies in the region Regularly read all/part of the monthly magazine Prefer printed information about Adams Electric Have member identity and engagement Participate in co-op events Younger than to and older Overall Satisfaction Meeting Expectations Ideal Utility Likelihood of Choosing Be familiar with co-op programs, especially discounts available through the Co-op Connections card program and the Round Up for Project Helping Hand member assistance program Conversely, younger members are significantly more likely than older members to: Use a computer or smartphone with internet access, use social media, visit the co-op s website, and use SmartHub Prefer information about Adams Electric through

33 Members in Gettysburg give the highest ratings for their overall satisfaction while those in York are most likely to choose Adams if given the choice. However, none of the differences between districts are statistically significant. There is just one significant difference in the performance attribute ratings between districts: members in Shippensburg give higher ratings for resolving any issues or problems than do those in York. Other differences between counties include: Members in Gettysburg and York are significantly more likely than those in Shippensburg to feel their rates are lower than other electric companies in the region while those in Shippensburg are significantly more likely to feel their rates are higher. Although the majority of members in each of the districts prefer printed information about Adams, those in Gettysburg and York are significantly more likely than those in Shippensburg to prefer information through . Members in Shippensburg and York are significantly more likely than those in Gettysburg to indicate they have received an Ownership Rewards patronage capital check from the co-op. Those in Gettysburg are significantly more likely than those in York to say they are familiar with Co-op Owners for Political Action or Co-ops Vote campaign. Overall Satisfaction Meeting Expectations Ideal Utility Likelihood of Choosing Mean Ratings by District Gettysburg Shippensburg York

34 Factor Analysis Factor analysis was used to reduce the many service attributes rated in the survey to a core set of issues. This analysis shows how consumers unconsciously think about or group the many different performance attributes. Four factors were found and named Employees and Member Service, Electric Service, Payments and Bills, and Rates and Fees. The performance quality attributes that make up each factor are listed below in order of the performance attribute most related to the factor down to the attribute least related to the factor. Employees and Member Service Factor Having friendly, courteous employees Having employees who are highly-trained and professional Resolving any issues or problems Showing personal interest in the consumers they serve Having consumers best interests at heart Communicating with members and keeping them informed Electric Service Factor Keeping longer outages to a minimum Restoring power quickly after an outage Keeping blinks and momentary outages to a minimum Keeping members informed on the status of outages Payments and Bills Factor Helping members to be more efficient in their use of electricity Having convenient payment options Providing accurate and easy to understand bills Rates and Fees Factor Charging reasonable rates Charging reasonable service fees The following attributes are not included in the factors found because they are not highly correlated with other attributes: Supporting the local community Operating with concern for the environment Being easy to reach

35 Key Driver Analysis To help determine where expectations are and are not being met for co-op members, we calculate importance scores for the factors and attributes. The importance scores were derived using the beta scores from a regression of the factors and attributes on overall satisfaction. What we are looking for is significance. If a factor or attribute is positively significant, it has a positive relationship with satisfaction. If the factor/attribute receives a high rating, overall satisfaction also receives a high rating. That is, the more a factor or attribute influences overall satisfaction, the higher its importance score. Factors and attributes that are found to be significant in the regression are labeled as key drivers of overall satisfaction and shown in the figure. Separate analyses were done to find the key drivers of value and loyalty (MLI) among residential members of Adams Electric Cooperative. Rather than regressing the factors and attributes on overall satisfaction, they were regressed on the attribute delivering good value for the money and the Member Loyalty Index. The key drivers of value are shown in a separate figure.