Rate Case Messaging: The Character/Competency Conundrum March 23, 2016 Presented by Brooke Goggans Director, Client Services Hahn Public
Rate Requests vs. Rate Approvals 2 2016 | Hahn Public Communications
Fact vs. Feature Messaging 3 Fact Message: Concrete and speak to verifiable characteristics of an increase “DWP officials said the department needs to increase water revenue by $230 million over five years to repair infrastructure.” – Los Angeles Utility, 2015 2016 | Hahn Public Communications
Utilities vs. Opposition 4 Feature Message: Speak to values that consumers derive from their relationships to the utility; security, satisfaction, convenience “…the increased monthly fees are necessary to cover infrastructure costs with higher fixed charges, preventing the cost for grid upkeep from being shifted to customers who do not have their own distributed generation…” Northern Indiana Public Service Company, 2015. 2016 | Hahn Public Communications
Character vs. Competency Messaging 5 Character Message: Attacks the character of the utility being greedy or corrupt “…the utility company is an enemy to all who are impoverished…” Memphis Utility, 2015 2016 | Hahn Public Communications
Character vs. Competency 6 Competency Message: Attacks the ability to perform the job; inefficient and wasteful “A filing this week called IPL, ‘misguided’ and ‘mismanaged,’ saying the company has spent too much on paying its investors and not enough on fixing its crumbling infrastructure that has threatened people’s safety downtown.” Indianapolis Power and Light, 2015 2016 | Hahn Public Communications
About the Study 7 Surveyed 800 Customers: Electric, Water and Gas 350 different utilities represented Tested 13 messages Majority homeowners 35 40 25 Diverse ethnicities, education levels 2016 | Hahn Public Communications
Messages – Seven Fact Messages 8 • Part of your utility payment supports use of renewable energy (solar, Strengths wind, geothermal, etc.) and reclaimed water. • Part of your payments support water, light and heat for low-income and fixed-income people in your community. Our employees work hard every day to deliver on our promise of reliable • energy/water and quality service. We’re among the best performing utilities in the country with the highest • customer satisfaction. • We give back to the community by contributing to local charities and community events. • We aim to wait as long as possible between rate increases, even if those are larger (or) we aim to raise rates in small increments on a regular basis. Your bills may seem high to you, but people with other providers pay • more. 2016 | Hahn Public Communications
Messages – Five Feature Messages 9 • Safety is out highest priority and governs every decision we make. Strengths • You can save money in the future with our trips and tools to help you reduce consumption and conserve. • Technology in the utility industry is changing rapidly and we need to invest in our system so you can benefit from those changes. • Without increasing rates, we can’t guarantee you’ll have water, power or gas when you need it most. Your utility payments help support the recruitment of new employers • and better-paying jobs to our community 2016 | Hahn Public Communications
Least Persuasive 10 2016 | Hahn Public Communications
Most Persuasive 11 2016 | Hahn Public Communications
12 Key Takeaways 2016 | Hahn Public Communications
Communication Strategy Recommendations 13 Double-Down on Evidence Based Messaging: • Reduce abstract messaging about safety and reliability • Use highly specific messages: “Replacing six new poles/pipes on Main Street in front of the Jones’ home. Work will take approximately six days to complete and will cause minimum disruption to traffic.’ Empower a Third Party Messenger: • Eliminate use of utility employee • Create blue-ribbon panel: Community leaders, neighborhood representatives, applicable skill set (engineers, accountants) 2016 | Hahn Public Communications
Communication Sequence Recommendations 14 1.) Roll-Out Messenger Group – Blue Ribbon Panel 2.) Proven Track Record - Promise made, promise kept 3.) Validation of needs – Confirm project needs/repairs 4.) Validation of request – Confirm cost, timeline estimates 2016 | Hahn Public Communications
15 HahnPublic.com/utilites 2016 | Hahn Public Communications
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