© 2013 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY

2013 Electric Utility Business

Customer Satisfaction StudySM

Results Presentation

April 8, 2013

Chris Oberle

Senior Director

Energy Practice

© 2013 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY

2

2013 Study Overview

Online interviews completed in two waves

• April – June, 2012

• September – December, 2012

25,794 businesses surveyed

• $250 or more per month average electric bill amount

Targeted electric utilities serving more than 25,000 business customers each

Reporting results by brand

• 95 utility brands ranked

Region/Size Segment Reporting

Power Quality &

Reliability

25%

Billing & Payment

19%

Corporate

Citizenship

17%

Price

15%

Communications

14%

Customer

Service

10%

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SCL Has Stronger Brand Qualities

3

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SCL Has Posted Steady Increases In Business

Satisfaction Across Study Years

2009 2010 2011 2012 2013

1st Quartile

2nd Quartile

3rd Quartile

4th Quartile

4

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5

West Midsize Segment

Overall Customer Satisfaction Index

689

657

678

672

665

661

658

647

625

622

Seattle City Light

SMUD

Avista

Idaho Power

Snohomish County PUD

Tucson Electric Power

WEST MIDSIZE AVERAGE

NorthWestern Energy

PNM

El Paso Electric

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¹(Brand Index - WEST M IDSIZE AVERAGE Index) * Factor's Importance Weight.

Factor Gap Analysis

Ind

ex

Sc

ore

by WEST MIDSIZE AVERAGE

657 0.99

3.52

3.64

5.69

5.88

11.90 689

650

660

670

680

690

700

CustomerService

(10%)

Billing &Payment

(19%)

CorporateCitizenship

(17%)

Price

(15%)

Communications

(14%)

PowerQuality &

Reliability(25%)

Index Seattle

City

Light

WESTMIDSIZE

AVERAGEFactors1

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¹(Brand Index - WEST M IDSIZE AVERAGE Index) * Factor/Attribute's Importance Weight.

Attribute Gap Analysis¹

657-0.12-0.06-0.06-0.05-0.03-0.03-0.02+0.04+0.04+0.07+0.09+0.10+0.13+0.18+0.18+0.22+0.31+0.35+0.40+0.62

+0.82+1.01

+1.03+1.05

+1.12+1.20

+1.21+1.36

+1.37+1.49

+1.52+1.63

+1.68+1.72

+1.79+2.12

+2.24+2.26

+2.62689

WEST MIDSIZE AVERAGE

CCA3 Involvement in local charities and civic organizations

CSA15 ONLINE - Timeliness of resolving your problem, question, or request

CSA12 ONLINE - Appearance of the w ebsite

CSA7 REP - Courtesy of the representative

CSA16 ONLINE - Helpfulness of email representative

CSA3 ATRS - Clarity of information provided

CSA4 ATRS - Timeliness of resolving problem, question, or request

CSA1 ATRS - Ease of navigating phone menu prompts

CSA2 ATRS - Ease of understanding phone menu instructions

CSA9 REP - Representative's concern for needs

CSA8 REP - Know ledge of the representative

CSA14 ONLINE - Ease of navigating the w ebsite

CSA13 ONLINE - Clarity of the information provided

COMA8 Communication of topics or issues that are important to businesses

CCA5 Business leadership in local communities

CSA5 REP - Ease of navigating through phone system

BPA4 Ease of f inding payment due date

CSA6 REP - Promptness in speaking to a person

BPA1 Ease of f inding the exact amount to pay

BPA2 Usefulness of information on bill

BPA3 Amount of time given to pay bill

CCA4 Efforts to develop energy supply plans for the future

PA1 Availability of pricing options that meet needs

CCA2 Variety of energy eff iciency programs offered

COMA8 Communication of topics or issues that are important to businesses

PA2 Ease of understanding pricing options

PA4 Efforts of utility to help manage monthly usage

COMA6 Frequency of updates and notices of new developments

BPA5 Variety of methods to pay bill

PQRA4 Promptly restore pow er after outage

CCA1 Actions to take care of the environment

PQRA3 Avoid lenghty outages

COMA7 Variety of methods used to communicate changes/updates

COMA9 Efforts to get feedback from business customers

PQRA2 Avoid brief interruptions

PQRA1 Provide quality electric pow er

PA3 Fairness of pricing

PQRA6 Supply electricity during extreme temperatures

PQRA7 Provide accurate outage information

Seattle City Light

650 660 670 680 690 700

Index Score

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Key Management Metrics

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SCL’s Management Metric Performance Provides

Satisfaction Even Amidst Rate Increase

9

Price Index by Hearing About Rate Increases

Pri

ce

In

de

x

555

597

619 622

490

510

530

550

570

590

610

630

Heard about rate increase Did not hear about rate increase

Peer Set Seattle City Light

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10

West Midsize Segment

Number of Outage Information Points Provided by Utility

2.4

2.2

2.5

2.3

2.2

2.2

2.1

2.0

1.9

1.7

Idaho Power

Seattle City Light

PNM

Avista

SMUD

WEST MIDSIZE AVERAGE

Tucson Electric Power

NorthWestern Energy

El Paso Electric

Snohomish County PUD

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West Midsize Region – Restored Power After ETR

13%

3%

0%

9%

11%

12%

14%

17%

20%

21%

Tucson Electric Power

Seattle City Light

Idaho Power

SMUD

Avista

WEST MIDSIZE AVERAGE

Snohomish County PUD

NorthWestern Energy

PNM

El Paso Electric

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SCL Has High Awareness Of Energy Savings And

Environmental Programs

12

Seattle City Light

Percentage of Customer Awareness

% o

f C

us

tom

er

Aw

are

ne

ss

55%

34%

28%

41%

12%

59%

26%

18%

48%

10%

0%

10%

20%

30%

40%

50%

60%

Conservationand Efficiency

Programs

Charity Support EmployeeVolunteerism

Improve Impacton Environment

SeniorManagement

Contact

Peer Set Seattle City Light

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SCL Could Benefit Even More From Communicating Its

Economic Development Efforts

13

Aware Of Efforts To Help Local Economy

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14

Seattle City Light

Message Recall

33%

45%

54%

37% 38% 39%

2011 2012 2013

Utility Media

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15

West Midsize Segment Customers

Percentage Recall Communications from Utility

60%

54%

70%

67%

65%

62%

60%

57%

54%

52%

Snohomish County PUD

El Paso Electric

NorthWestern Energy

Avista

Idaho Power

WEST MIDSIZE AVERAGE

Tucson Electric Power

Seattle City Light

SMUD

PNM

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SCL Posts Lower First Contact Resolution

Metrics

Customer Service Metrics Seattle City Light

West Midsize

Region

# of IVR touches required 3.5 3.5

Placed on hold 81% 84%

Reported time on hold (minutes) 5.0 5.1

CSR had acct info ready 81% 86%

First call resolution 67% 72%

# of web clicks required 3.0 2.9

First online contact resolution 65% 72%

Seattle City Light Customer Service Metrics

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More Specialized Service Channels Have

Higher Customer Service Satisfaction

17

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Congratulations!