Consumer perceptions of electric utilities: Insights from the Center for Analytics Research & Education Project in the United States

Abstract

The Environmental Protection Agency’s Clean Power Plan calls for government entities, business organizations and citizen groups to reduce use of “dirty energy” and related carbon pollution. Peak power consumption is associated with dirty energy sources. The Center for Analytics Research & Education (CARE) at Appalachian State University in Boone, North Carolina, is developing predictive models for peak energy spikes, so that corrective action can reduce power use. This study supports the CARE initiative and explores consumer perception of power providers. Results allow practitioners to influence peak power use reduction through targeted messaging in marketing and promotions campaigns. Factor analysis revealed the psychological dimensions “Good Citizen,” “Detrimental Citizen,” “Corporate Machine” and “Environmental Partner.” A 9-item Perception of Power Provider Scale was introduced. Correlated items with the greatest effect size were “My power company provides a bill for services that is easy to understand” with “I am pleased with the customer service provided by my power company.” It is suggested that power providers partner with university researchers to develop proprietary social science research. Results can be framed to craft a communication agenda that resonates with target customer groups. Developing a narrative that originates in a psychological understanding of consumer perception can affect change.