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What Consumers Want





Report Summary

Report on Consumer Attitudes about Conservation and Renewable Resources
by Edward G. Ferguson

Introduction
If Northwest utilities are to maintain consumer loyalty, it is important that they understand the wishes of their consumers regardless of the outcome of deregulation. Getting a clearer picture of consumer attitudes can help a utility begin to formulate a more effective marketing strategy.

The information in this report can help utilities and others in the region think about ways to market power. It is a step in a process that starts by telling us there is a substantial market and public support for conservation and renewable resources. From there comes exploration of ways to show consumers that they are being heard.

BPA hopes that this report will stimulate thinking and further exchange on the role consumers' attitudes can play in future policy making and business direction.

Background
BPA is aware that a variety of research has been produced over the years on consumers' attitudes about conservation and renewables, but it could not find where this information has been captured in one report. So, BPA's Energy Efficiency group decided to assume that task. Gene Ferguson, a conservation specialist in Energy Efficiency did the research and prepared the report. It is a comprehensive study of surveys, town hall meetings, and focus groups conducted in the region and elsewhere. It covers literature for the 1990s and includes research by a number of Northwest utilities.

BPA Connection
BPA wants to act in ways that reflect the values of the region, and the major reason that we undertook the study was to understand better what the consumers in this region value with regard to utility involvement in conservation and renewables. There is no specific decision or action that was anticipated to be driven by this study's conclusions, but rather, any decision that pertains to BPA's possible involvement in energy efficiency or renewables activity will be influenced by our understandings reached in this study.

Key Findings
  • The literature shows that a large number of consumers support utility investments in conservation and renewable resources. They want their utility to actively acquire clean resources. They would be willing to pay more to ensure their utility does this.
    Example 1:
    Survey of those who support Environmental Issues or Good Utility Environmental Practices
      Percentage
    Sacamento Public Utility District 87% (in favor or being environmentally friendly, and were also 98% willing to pay)
    Public Power (RKS survey) National 52% (ranked first in list of attributes ahead of low cost at 31%)
    Western Montana G&T 61% (agreed that utility should acquire resources with a positive or neutral environmental effect first)
    Seattle (Washington statewide survey) 73% (reported that environmentallt responsible power generation that protects salmon habitat was either important or vary important)
    *Survey conducted by the authors using information from surveys cited in this paper.


    Example 2:
    Survey Results Regarding Willingness to Pay Extra for Clean Energy Resources
      Percentage willing to pay more Amounts or Range
    Cambridge report, National
    (Reported by Farhar)
    60% $6 to more than $21 per month
    Sacramento Utility District 95% 5% to +20%
    SWEPCO 84% $1 to +$10
    WTU 87% $1 to +$10
    CPL 86% $1 to +$10
    EWEB 56% $1 to +$10
    CARES 66% $1 every two months
    (same CARES study) 58% $3 every two months
    (same CARES study 52% $5 every two months
    Orcas Power and Light 55% 50% more
    North Dakota 72% Something more (45 said $6-$10)
    Ravalli 22% yes, 26% maybe Willing to pay 10% more
    *Information from surveys cited in this paper.
  • Northwest consumer attitudes are consistent with those nationwide, although conservation support is somewhat stronger in the Northwest in terms of relative standing with renewables. Nationwide, support is slightly stronger for utility investments in renewable resources than in conservation. But taken together, both environmentally benign resource options were favored over thermal resources by significant majorities nationally and in the region.
  • Some surveys asked consumers how green resources should be paid for. Should they be optional products or should the cost be put into rates where everyone would pay. A strong majority supported rate-basing conservation. It is reasonable to assume that people see renewables and conservation as beneficial to everyone and therefore, everyone should pay. If everyone pays then more green resources can be acquired at less cost to any one consumer.
  • Studies showed that attitudes about green resources change markedly in proportion to information consumers receive. The more education and information they have, the more consumers favor such resources.
  • Younger people and women are most likely to support renewables and conservation. In addition, people with higher incomes and more education are more likely to support these resources. There was general support among all groups for either continuing or increasing low-income programs.


Example 1:
Question 1: If you were sure the money you spent for electrical energy was paying for clean alternative sources of power, ...how willing would you be to pay approximately 10 percent more on your power bill?
AGE 18-29 30-39 40-49 50-64 65+
Very Willing 29% 38% 32% 27% 26%
Somewhat willing 50% 35% 36% 32% 29%
Not very willing 7% 12% 15% 14% 13%
Not at all willing 12% 13% 15% 21% 26%
(Don't know) 2% 2% 2% 6% 5%
Total Willing 79% 73% 68% 59% 55%
Total unwilling 18% 26% 30% 35% 40%
*Taken from CEERT Study, Fairbanks, Naslin, Kaullin & Associates, (1996) Table 60.


Example 2:
Question 2: If you were sure the money you spent for electrical energy was paying for clean alternative sources of power, ...how willing would you be to pay approximately 10 percent more on your power bill?
Gender M F
Very willing 28% 32%
Somewhat willing 34% 38%
Not very willing 13% 11%
Not at all willing 21% 15%
(Don't know) 4% 4%
Total willing 62% 70%
Total unwilling 34% 26%
*Taken from CEERT Study, Fairbanks, Naslin, Kaullin & Associates, (1996) Table 60.

  
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