HomeMy WebLinkAbout20170612Christie Direct.pdf
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY & GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: (509) 495-4316
FACSIMILE: (509) 495-8851
DAVID.MEYER@AVISTACORP.COM
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-17-01
OF AVISTA CORPORATION FOR THE ) CASE NO. AVU-G-17-01
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC ) DIRECT TESTIMONY
AND NATURAL GAS CUSTOMERS IN THE ) OF
STATE OF IDAHO ) KEVIN J. CHRISTIE
)
FOR AVISTA CORPORATION
(ELECTRIC AND NATURAL GAS)
Christie, Di 1
Avista Corporation
I. INTRODUCTION 1
Q. Please state your name, employer and business 2
address. 3
A. My name is Kevin Christie and I am employed as the
Vice President of Customer Solutions for Avista Utilities, at
1411 East Mission Avenue, Spokane, Washington.
Q. Would you briefly describe your educational 7
background and professional experience? 8
A. Yes. I graduated from Washington State University
with a Bachelor’s Degree in Business Administration with an
accounting emphasis. I have also attended the University of
Idaho Utility Executive Course and the Finance for Senior
Executives program at Harvard Business School.
I joined the Company in 2005 as the Manager of Natural Gas
Planning. In 2007, I was appointed the Director of Gas Supply,
then in 2012 I was appointed as the Senior Director of Finance.
In 2014 I was appointed to Senior Director of Customer Solutions
and in 2015 I was appointed to my current position of Vice
President of Customer Solutions.
Prior to joining Avista, I was employed by Gas Transmission
Northwest (GTN). I was employed by GTN from 2001 to 2005 and
was the Director of Pipeline Marketing and Development from
2003 to 2005 and the Director of Pricing and Business Analysis
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Avista Corporation
from 2001 to 2003. From 2000 to 2001, I was employed by PG&E
Corporation (PG&E) as the Manager of Finance and Assistant to
the SVP, Treasurer and CFO. Before joining PG&E, I was employed
by Pacific Gas Transmission Company (PGT) from 1994 to 2000.
While at PGT, I served in a number of roles including Manager,
Pricing and Business Analysis, and Director of Regulatory
Affairs. From 1990 to 1994, I was employed by Chevron USA.
Q. What is the scope of your testimony? 8
A. I will provide an overview of the Company’s Customer
Solutions organization, our Customer Service & support
programs, what we are doing to meet our evolving customer
expectations, and finally, Avista’s products and services 12
initiatives in Idaho.
A table of the contents for my testimony is as follows:
Description Page
I. Introduction 1
II. Overview of Avista’s Customer Solutions 3
III. Customer Service & Support Programs 5
IV. Meeting Customer Expectations 13
V. Products & Services Initiatives 19
Q. Are you sponsoring any exhibits in this proceeding? 21
A. No, I am not. 22
Christie, Di 3
Avista Corporation
II. OVERVIEW OF AVISTA’S CUSTOMER SOLUTIONS 1
Q. Please describe Avista Utilities’ Customer Solutions 2
organization. 3
A. Avista’s Customer Solutions organization is comprised 4
of customer-facing departments – i.e., those that work directly
with our customers. Our organization supports the Company’s 6
377,285 electric and 340,294 natural gas customers (as of
December 31, 2016) of which, 144,063 and 80,033 respectively,
were Idaho customers. As a department, our team is committed to
anticipating, developing, and implementing innovative and
engaging solutions that meet our customers’ needs and
expectations. In addition, we are continually monitoring
trends in the utility industry and non-utility industry in order
to be proactive in providing our customers with solutions they
may be interested in. Lastly, we have renewed and enhanced our
emphasis in creating a feedback loop with our customers. For
example, we have been testing our digital concepts with
customers in advance, have used a social media panel for testing
ideas, as well as, surveying customers on programs they have
participated in, like our small business energy efficiency
program.
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Avista Corporation
Q. Please provide an overview of the departments within 1
the Customer Solutions organization that interact with our 2
customers. 3
A. The following are the primary departments that
interact with our customers:
Customer Service: The Customer Service department is the
primary interface between the Company and its customers.
See Section III for additional details.
9
Community Outreach and Energy Assistance: The Community
Outreach and Energy Assistance department is responsible
for delivering and administering energy assistance
programs that reduce the energy burden for our low income
and vulnerable customers. In addition, the department is
responsible for offering outreach and energy conservation
education to low-income customers. See Section III for
additional information about the support offered by this
department.
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Energy Efficiency: The Energy Efficiency department is
responsible for delivering the Company’s electric and
natural energy efficiency programs. Its primary goal is
to meet or exceed the annual kWh and therm savings goals
in both the Company’s Idaho and Washington jurisdictions.
In addition to delivering programs to reach the Company’s 25
savings goals, the Energy Efficiency department also
provides tools and education to help customers control
their energy costs and reduce their energy footprint.
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External Communications: The External Communications
department is responsible for customer communications and
for the Company’s external facing technologies, which 32
include the Company’s website and mobile applications.
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Products and Services: The Products and Services
department is responsible for delivering new products and
services that our customers desire. Through engagement
and customer research, the department is focused on
delivering solutions that meet our customers’ evolving
needs and expectations.
41
Christie, Di 5
Avista Corporation
III. CUSTOMER SERVICE & SUPPORT PROGRAMS 1
Q. Please describe Avista’s Customer Service department. 2
A. Avista’s Customer Service department is the primary
interface between the Company and its customers and includes
Meter Reading, Billing, Credit and Collections, and the Call
Center. In 2016, the Call Center answered 726,644 calls and
fielded 66,124 emails and electronic communications from
customers across the Company’s three jurisdictions: Idaho,
Oregon, and Washington. The Customer Service department is
comprised of approximately 220 employees that work in various
roles.
Avista’s Call Center employees are spread across three
different service centers located in Coeur d’Alene, Idaho, 13
Lewiston, Idaho, and Spokane, Washington. The three service
centers are networked together to operate as a single Call
Center supporting Avista’s customers. Each employee is trained
in their role to work with customer accounts or take phone calls
from customers in all three of the Company’s jurisdictions. All
customer phone calls come in through a single number, 1-800-
227-9187, and are answered by the next available
representative, regardless of the location they reside. Our
most recent 2016 year end Voice of the Customer (VOC) results,
as further described in Section IV below, show that 93% of our
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Avista Corporation
customers that had contact with Avista’s Call Center in our 1
Idaho, Oregon, and Washington operating divisions were
satisfied or very satisfied with the service they received.1 3
Q. What customer support programs does Avista provide 4
for its customers in Idaho? 5
A. Avista Utilities offers a number of programs for its
Idaho customers, such as Project Share for emergency assistance
to customers, a Customer Assistance Referral and Evaluation
Service (CARES) program, level pay plans, and payment
arrangements. Through these programs, the Company works to
ease the burden of energy costs for customers that have the
greatest need.
To assist our customers in their ability to pay, the
Company focuses on actions and programs in four primary areas:
1) advocacy for, and support of, assistance programs providing
direct financial assistance for payment of customers’ energy 16
bills; 2) low income and senior outreach programs; 3) energy
efficiency and energy conservation education; and 4) support of
community programs that increase customers’ ability to pay 19
basic costs of living.
1 For the 2016 Voice of the Customer results, 93% of customers that made
contact with Avista’s call center reported being very satisfied or satisfied
with the service they received, while 94% of customers that had contact with
Avista through the Call Center and/or work performed through an Avista
construction office reported being very satisfied or satisfied with the
service they received.
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Avista Corporation
Q. Please describe the recent results of Project Share. 1
A. Project Share is a community-funded program Avista
sponsors to provide emergency assistance to families and/or
individuals where Avista provides service. Avista customers
and shareholders help support the fund with voluntary
contributions that are distributed through local community
action agencies to customers in need. Grants are available to
those in need, without regard to their heating source, and the
customers are not required to be Avista electric or natural gas
customers. For the 2015/2016 program year, Avista Utilities’ 10
customers donated $293,009 on a system-wide basis, of which
$80,860 was available to Idaho Community Action Agencies. In
addition, the Company itself contributed $240,000, of which
$62,640 was available for the benefit of Idaho recipients.
During the 2015/2016 program year, 560 Avista customers in Idaho
received $144,736 from Project Share towards their electric or
natural gas bills. 17
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Avista Corporation
Q. What other tools does the Company offer to assist 1
customers in managing their bills? 2
A. In addition to the bill assistance available through
the Federal Low Income Home Energy Assistance Program (LIHEAP)2
and Project Share, the Company offers many billing options to
make it easier for customers to manager their bills. Choices
available to customers include Comfort Level Billing, flexible
payment plans or arrangements, and preferred due dates. One of
the goals of our Customer Service department is to provide tools
and options to customers to help them manage their bills before
they face a financial hardship or crisis. By accessing their
account online, customers can utilize our Bill Analyzer tool,
which helps them compare their usage to prior months or years,
as well as understand the key driving factors in any usage
increases, such as weather, billing days, rate changes, and
increased or decreased usage. Customers can also access our
Home Energy Analyzer tool, and complete a survey about their
2 The Low Income Home Energy Assistance Program (LIHEAP) is a federal program
established in 1981 and funded annually by Congress. These federal dollars
are released directly to states, territories, tribes and the District of
Columbia who use the funds to provide energy assistance to low-income
households. LIHEAP offers financial assistance to qualifying low-income
households to help them pay their home heating or cooling bills. Under
federal law, a household must have income below either 150 percent of the
federal poverty level or 60 percent of state median income level, whichever
is higher. However, states can set lower income thresholds if they choose
to.
Christie, Di 9
Avista Corporation
specific usage to help fine tune suggestions for energy savings
and management.
Q. How does the Company assist customers in managing 3
and/or reducing their energy usage? 4
A. Based on the Company’s experience, we know that
energy efficiency is the best tool available to help customers
manage their energy usage and costs. Avista offers over 30
energy efficiency programs, with some 300 individual energy
efficiency measures for customers to take advantage of. Energy
efficiency messaging, tips, and outreach are utilized to
heighten awareness and increase adoption of programs and
measures. The Energy Efficiency department is integral in the
delivery of this information through the support of community
events, energy fairs, and low-income and senior workshops to
inform customers about what programs are available to them.
Q. Is the Company proposing any changes to its low-16
income energy efficiency programs? 17
A. Avista continues to work with Commission Staff and
the Community Action Partnership Association (CAPAI), along
with their weatherization experts, on improving its low-income
weatherization and conservation education programs. While the
Company has not proposed an increase in low-income
weatherization funding as a part of this general rate case, we
Christie, Di 10
Avista Corporation
would be supportive of an increase in funding through Schedules
91 and 191 to support the continued effort toward achieving all
cost-effective energy savings.
Q. Please summarize Avista’s Customer Assistance 4
Referral and Evaluation Services (CARES) program. 5
A. In Idaho, Avista is currently working with 725
special needs and 55 life-support customers in the CARES
program. Specially-trained representatives provide referrals
to area agencies and churches for customers with special needs
for help with housing, utilities, medical assistance, etc. One
of the benefits we have in utilizing CARES representatives is
the ability to evaluate each customer, based on their specific
need, and to educate them on what assistance is available within
the community. A goal of the program is to enable customers to
manage not only their Avista bill, but other bills and needs as
well.
Q. Does the Company perform any other outreach to its 17
customers? 18
A. Yes. The following are examples of outreach programs
that are available to customers:
1. Senior and Low-Income Outreach: Avista has developed
specific outreach efforts to reach our more vulnerable
fixed and low-income customers (with special emphasis
on seniors and disabled customers) with bill payment
assistance and energy efficiency information that
emphasizes comfort and safety. Avista accomplishes this
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Avista Corporation
outreach mainly through Energy Workshops. During 2016,
16 workshops were conducted in Idaho reaching nearly
813 seniors and low-income individuals. All workshop
participants were given Home Energy Efficiency kits
along with tips for low-cost/no-cost ways to manage
energy use. Each kit contains energy-saving items such
as LED light bulbs, plastic window covering, draft
stoppers for exterior light switches and outlets, v-
seal for drafty doors and a polar fleece lap blanket.
The Company also conducts general outreach in
partnership with organizations that are in contact with
vulnerable individuals through resource fairs or in-
home services. General outreach partnerships reached
613 individuals through 10 activities in Idaho. Through
all of these venues, individuals are provided with
information to effectively manage their home energy use
and the Company’s bill assistance programs.
2. Senior Publications: Avista has created a one-page
advertisement that has been placed in senior resource
directories and targeted senior publications to reach
seniors with information about bill and payment options,
Avista CARES and energy assistance.
3. Energy Fairs: In 2016, Avista hosted one energy fair
in Cottonwood, Idaho, which reached 45 customers in the
rural community. The energy fair provided
demonstrations on energy efficiency and home
weatherization to limited income families and senior
citizens as well as provided an environment for
customers to learn about billing options and energy
assistance, while offering them tips and tools to use
to help manage their limited financial resources. The
following illustration shows customers receiving a
demonstration on how to use energy efficiency items they
received at the energy fairs. 36
Christie, Di 12
Avista Corporation
Illustration No. 1 – Fall 2016 Energy Fair 1
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4. Mobile Outreach Van: Avista offers many opportunities
throughout the year for customers to attend energy fairs
or workshops to learn more about energy assistance,
energy efficiency and the resources available to them.
But some of our more vulnerable customers have a hard
time getting to an event to access these resources. So
to ensure that we’re reaching as many customers who need 32
our help as we can, Avista created the Energy Resource
Team van. The van is fully loaded with energy
efficiency items such as rope caulk, V-seals door sweeps
and coil cleaners, as well as informational materials
about bill and payment options, assistance, safety, and
efficiency. In 2016, the van provided outreach efforts
to 2,051 individuals through 28 events throughout our
Idaho service territory, many of which were in
conjunction with the Second Harvest Food Bank mobile
food pantry. The following illustrations show Avista
employees working at outreach events with the mobile
outreach van. 44
Christie, Di 13
Avista Corporation
Illustration No. 2 and 3 – Mobile Outreach Van Event 1
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In total the Company reached 13,134 individuals through
143 low income and senior events in 2016 between Idaho and
Washington. In 2017, we have increased our goal and have a
target of connecting with at least 25,000 customers through the
low income and senior programs mentioned above, along with other
community engagement activities.
18
IV. MEETING CUSTOMER EXPECTATIONS 19
Q. Please describe how the Company measures customer 20
satisfaction, and how important it is to Avista. 21
A. Our customer satisfaction is very important to
Avista. One tool we use to measure satisfaction is by
conducting a quarterly survey we refer to as “Voice of the 24
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Avista Corporation
Customer” (VOC).3 The purpose of the VOC Survey is to measure
and track customer satisfaction for Avista Utilities’ “contact” 2
customers – i.e., customers who have had contact with Avista
through the Call Center and/or work performed through an Avista
construction office.
Customers are asked to rate the importance of several key
service attributes. They are then asked to rate Avista’s 7
performance with respect to the same attributes (time for
connection to a representative, representative being courteous
and friendly, representative being knowledgeable, being
informed of job status, leaving property in condition found,
etc.). Customers are also asked to rate their satisfaction
with the overall service received from Avista Utilities.
Customer verbatim comments are also captured and recorded.
Our most recent 2016 year end results show that 94% of our
customers in our Idaho, Oregon, and Washington operating
divisions were satisfied or very satisfied with the service
they received. This rating reflects a positive experience for
customers who have contacted Avista related to the overall
customer service they received.
3 The Voice of the Customer survey is conducted by an independent third-
party.
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Avista Corporation
The VOC results from 2008 through 2016 are shown in Chart
No. 1 below. What these historical results represent is
Avista’s long history of a culture of service. We understand
that good customer service is complex and requires awareness
and attention to a host of factors that contribute to the
overall service experience of our customers. It is for this
reason that we are proud that our annual VOC results have
remained consistently high and our expectation is that this
trend will continue in the future.
Chart No. 1 – Historical VOC Results
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Q. Are customer expectations changing?
A. Yes, customer expectations are constantly changing
and the quality and nature of our service must evolve over time
to keep up with those expectations. The most rapidly changing
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Avista Corporation
expectations are related to advancements in mobile and other
personal technology devices and applications, increased
proactive communications, and self-service options. As the
demographic makeup of our customer base becomes younger, our
customers are comparing us to the likes of Amazon or Apple,
such that they expect a digitized experience that is personal
to their individual preferences. These changing expectations
will require us to better understand our customers and their
varying needs and expectations. 9
Q. What is the Company doing to meet its customers’ 10
changing expectations? 11
A. We are continuously engaged in the very granular and
evolving work of assessing our customers’ expectations and 13
evaluating our capabilities and performance in meeting them.
From a technology perspective, we have been making enhancements
to meet the changing customer expectations. In early 2015, the
Company launched new customer information and work management
systems. These new platforms provide the foundation for future
technologies, such as self-service online and mobile
applications. In November 2015 we launched our new outage
information tools known as our Outage Center, a mere two weeks
before a severe wind storm, the most devastating storm the
Company has experienced in its history, hit our service
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Avista Corporation
territory. The new outage information center allows customers
to report outages, and allows Avista to provide real time
updates and alerts (via emails or text messages) to customers
about outages in their area and can be accessed at
www.avistautilities.com from a computer, tablet, or smart
phone.
The next phase of the outage information center, released
in June 2016, was a mobile application (“App”) that customers 8
are able to download to their smartphone. The Avista Outage
App has similar functionality to the storm center, but offers
a more personal experience by keeping record of the customer’s 11
account information via user authentication. Through the App
customers can quickly report outages, view the outage map, and
access important information, including proactive outage
alerts. Illustration No. 4 below provides an illustration of
Avista’s Outage App. 16
Christie, Di 18
Avista Corporation
Illustration No. 4 – Avista Outage App 1
In February 2017, the Company launched a new payment
experience as part of its overall website replacement effort.
The new experience provides for easier self-service through the
Company’s website from a computer or mobile site from a smart 16
phone. The new payment process is simpler and mobile friendly.
In addition, residential customers are now able to pay through
any payment channel using any method they choose without a per-
transaction fee. The full replacement of the customer website
is expected to be completed in phases throughout 2017. Lastly,
work is also underway for additional self-service functionality
on Avista’s mobile App. Future plans include the ability for
a customer to access their account just as they would on the
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Avista Corporation
website, view their bill, and make payments. In addition to
the mobile App, we will be offering a variety of bill payment
alerts and the ability to pay by text.
4
V. PRODUCTS AND SERVICES INIATIVES 5
Q. Please provide an overview of Avista Utilities’ 6
products and services initiatives. 7
A. As mentioned above, customer expectations are
constantly changing and we know that customers have come to
expect more from their utility than simply the electricity and
natural gas that we deliver. In concert with changing customer
expectations, energy related technologies, such as solar and
electric vehicles, are increasingly of interest to customers as
they improve in functionality and decrease in cost. These
trends are creating more choices for customers regarding how
they receive, use, and manage their energy and Avista is working
to continually develop products and services that enable more
choices for our customers. For these reasons we have a team
focused on delivering new products and services that our
customers are interested in.
A description of some of the products and service
initiatives already launched include the following:
HVAC Filter Replacement Program: This program is designed
to educate customers on the value of replacing filters,
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Avista Corporation
and offer choices to customers to make it more convenient
for them to remember to replace their filters. In addition
to extending the life of a furnace, replacing the furnace
filter helps to maintain the expected operating
performance of the furnace. This program was launched in
August of 2015, and it is available to all Avista customers
in Idaho, Oregon, and Washington. Through the filter
program, customers have three convenience options: 1)
Receiving an e-mail reminder from Avista on a periodic
basis to replace their filter, 2) receiving an e-mail
reminder with promotional codes from manufacturers and
vendors for discounts on filter purchases, and 3) the
opportunity to order filters directly from a vendor, for
delivery to their home or business on a schedule chosen by
the customer. To date, 2,954 customers have signed up for
one of the three options in this program on a system-wide
basis.4
Rooftop Solar Estimator: In mid-2015 Avista launched a
rooftop solar estimator on www.avistautilities.com. The
solar estimator tool provides a 20-year financial analysis
for customers that allows them to compare their options
for rooftop solar and make a more fully informed decision
as to whether rooftop solar makes sense for them or not.
In order to use the tool a customer enters their address
and finds their location on a map, then enters their
building type (residential or commercial), and average
energy usage. The tool then calculates a personalized
solar estimate for the customer, which includes a
recommended solar system sized for their roof, their
estimated annual savings or cost, and a financial analysis
of the costs and benefits of installing rooftop solar.
Since being launched approximately 3,400 customers have
used the rooftop solar estimator between Idaho and
Washington.
Find an HVAC Contractor Feature on 37
www.avistautilities.com: In March 2016, the Company
launched a new feature on its website for customers across
all of its jurisdictions to locate an HVAC contractor in
their area. Customers frequently ask our field personnel
4 To date, on a system-wide basis, 1,413 customers have requested an email
reminder without coupons, 1,390 customers requested email reminders with
coupons and 151 customer have signed up to receive filters direct from the
vendor.
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Avista Corporation
and Customer Service Representatives if they can recommend
an HVAC contractor for maintenance, repair, or replacement
of their HVAC system. Avista partnered with the Northwest
HVAC/R Association to provide referrals for qualified
equipment contractors. The tool allows customers to enter
their zip code and category of work needed, then they will
be provided with up to three equipment contractors that
serve their area. Through April 2017, an average of 670
people have accessed the Find an HVAC Contractor Feature
webpage per month.
Q. What product and service initiatives are currently 12
being explored as potential offerings to our customers? 13
A. We are continually evaluating new products and
services that our customers may be interested in. One example
of a program that is currently being evaluated is the Avista
Home Energy Marketplace.
Avista Home Energy Marketplace: The platform, provided by
a third-party company named Enervee, will allow Avista
residential customers an upgraded online Marketplace to
help them find and purchase energy-saving electronics and
appliances by way of comparing a product’s energy
efficiency, product popularity and price worthiness, based
on industry standards, against all models available on the
market.5 By providing details on each product’s energy 25
usage, (based on Avista’s rate structure) and costs, the
marketplace will make it easier for customers to make their
purchases, conserve energy and contribute to a clean,
sustainable environment. Enervee data shows that customers
that shop on the marketplace tend to buy equipment that is
approximately 15% more energy efficient than equipment
purchased through other methods. Avista customers can
create account profiles for saved searches, get price
alerts, and access Avista energy efficiency product
5 Enervee is the world’s first energy-smart data and commerce platform that
connects utilities, retailers, manufacturers and governments through
integrated product rankings and recommendations. Through its extensive SaaS
platform, Enervee provides the most up-to-date market information to help
utilities empower their customers to make energy-smart buying decisions.
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Avista Corporation
rebates. Customers will be able to access the Marketplace
on their desktop computers or on their mobile devices. The
Avista Home Energy Marketplace is expected to be launched
mid-2017. An example of what the Marketplace may look like
is shown in the following illustration.
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Illustration No. 5 – Sample Avista Home Energy Marketplace 7
Landing Page 8
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Q. Does this conclude your pre-filed direct testimony? 19
A. Yes.