Avangrid Reports Significant Gains in Customer Service Metrics Across its Utilities

Rhea-AI Summary

Avangrid (NYSE: AGR) has reported significant improvements in customer service metrics across its utilities in Maine, New York, and Connecticut. Key highlights include:

- Central Maine Power (CMP) exceeded Maine PUC performance standards in 2023, with 99.9% of bills issued accurately and on time.

- New York State Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E) surpassed PSC targets, answering over 85% of calls within 30 seconds in late 2023.

- United Illuminating (UI), Southern Connecticut Gas (SCG), and Connecticut Natural Gas (CNG) are exceeding PURA targets, with customer satisfaction rates above 87% in July 2024.

These improvements are attributed to increased staffing, expanded digital tools, and significant investments in workforce and technology.

Positive

• Exceeded performance standards set by regulatory authorities across multiple states
• Improved customer service metrics, including bill accuracy and call response times
• Increased customer satisfaction rates in Connecticut utilities
• Reduced customer complaints per 100,000 customers in Connecticut operations
• Significant investments in workforce and technology to enhance customer service

Negative

• None.

Insights

Customer Service Expert

Avangrid's improved customer service metrics across its utilities demonstrate a significant positive shift in operational efficiency and customer satisfaction. The company's focus on increasing staffing and expanding digital tools has yielded impressive results:

• Central Maine Power (CMP) achieved 99.9% accuracy in bill issuance and 85% of calls answered within 30 seconds.
• NYSEG and RG&E exceeded their 70% target for calls answered within 30 seconds, reaching 85.2% and 86.5% respectively.
• Connecticut utilities UI, SCG and CNG are outperforming customer satisfaction targets, with 87-90% of customers reporting satisfaction with customer service interactions.

These improvements indicate a strategic investment in customer-centric operations, likely leading to enhanced brand loyalty and potentially reduced operational costs in the long term. However, sustaining these gains will require ongoing commitment and adaptation to evolving customer needs.

Utility Industry Analyst

Avangrid's customer service improvements are noteworthy in the utility sector, where customer satisfaction often lags behind other industries. The company's proactive approach in setting and exceeding regulatory benchmarks across multiple states demonstrates a commitment to operational excellence that could yield several benefits:

• Regulatory goodwill: Exceeding mandated service levels may lead to more favorable regulatory outcomes in future rate cases or infrastructure investments.
• Cost efficiency: Improved digital tools and call center performance can reduce operational costs over time.
• Competitive advantage: In states with retail choice, superior customer service can be a differentiator for customer retention and acquisition.

However, investors should note that these improvements likely required significant upfront investments, which may impact short-term profitability. The long-term payoff in customer loyalty and operational efficiency could outweigh these costs, positioning Avangrid favorably in the evolving utility landscape.

Highlights key leadership teams charged with continuing forward progress

ORANGE, Conn.--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and a member of the Iberdrola Group, announced today improved customer service metrics across its operating companies in Maine, New York and Connecticut.

Avangrid's Vice Presidents of Customer Service with Avangrid CEO Pedro Azagra. (Left to right: Tracey Pelella, Linda Ball, Pedro Azagra, and Christine Alexander) (Photo: Business Wire)

“We are making significant improvements in our customer experience and our customers are taking notice,” said Pedro Azagra, Avangrid CEO. “Over the last few years, we’ve increased staffing and expanded how our customers can interact with us by putting a greater emphasis on digital tools. We remain committed to innovation and excellence, and are excited about the future. By listening to our customers and adapting to their needs, we aim to build stronger, more meaningful relationships. This is just the beginning of our journey towards setting new standards in customer satisfaction.”

In Maine, Central Maine Power (CMP) recently filed its first-ever Service Quality Index (SQI) Report Card with the Maine Public Utilities Commission. The report card outlines how, in 2023, CMP exceeded MPUC performance standards, which accounted for service performance data collected outside major weather events like Hurricane Lee and the December 18 windstorm. It consists of three components: customer service performance, electric service reliability, and environment and community. Among the achievements outlined are how, in 2023, CMP exceeded Maine PUC service standards with 99.9% of bills issued accurately within 10 days of the planned billing date and 99.3% of bills based on actual meter reads. More than 85% of calls were answered within 30 seconds or less. This success continues today. So far in 2024, CMP has sent 4.6 million bills on time and accurately, representing 99.9% of bills the company has sent this year.

In New York, New York State Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E) have reduced their call center wait times for customers and recently reported that in the final six months of 2023, both companies well exceeded the target of 70% of calls answered within 30 seconds set by the Public Service Commission (PSC). At NYSEG, 85.2% of customer calls were answered within 30 seconds in the final six months of 2023 and RG&E saw 86.5% of customer calls answered within 30 seconds over the same time frame. This increased efficiency through enhanced customer service has led to improved overall satisfaction scores—NYSEG and RG&E accomplished an 88% and 85% contact satisfaction rate, respectively, at the close of 2023. Achieving call center efficiencies is the result of significant investments in workforce and technology to better serve our customers.

In Connecticut, United Illuminating (UI), Southern Connecticut Gas (SCG) and Connecticut Natural Gas (CNG) are pacing well ahead of targets set in collaboration with the Public Utilities Regulatory Authority (PURA). In July 2024, 87% of UI customers, 87% of SCG customers, and 90% of CNG customers reported they were satisfied with the contact they had with the company’s customer service representative, above the target of 83% and well above the 2023 year-end results of 75% for UI and CNG and 76% for SCG. The companies are also trending below the target of under 7.90 customer complaints per 100,000 customers for 2024, with only 3.53 complaints for July year-to-date for UI customers and 3.35 for SCG customers. CNG in particular has seen dramatic improvement in this metric: in July 2023 year-to-date, the company had received 8.49 customer complaints per 100,000 customers, compared to only 3.52 in July 2024 year-to-date. Ensuring the nearly 750,000 customers of Avangrid’s Connecticut companies are well-served by an efficient, knowledgeable customer contact center is a key priority for leadership, reflected by the significant investments the companies have asked PURA to allow them to make.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $46 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240830620977/en/

Media:

Sarah Warren

sarah.warren@avangrid.com

585-794-9253

Source: AVANGRID, Inc.

FAQ

What customer service improvements has Avangrid (AGR) reported in 2024?

Avangrid (AGR) reported significant improvements in customer service metrics across its utilities in Maine, New York, and Connecticut. This includes exceeding performance standards, improved bill accuracy, faster call response times, and increased customer satisfaction rates.

How did Central Maine Power (CMP) perform in its 2023 Service Quality Index Report Card?

In 2023, CMP exceeded Maine PUC performance standards with 99.9% of bills issued accurately within 10 days of the planned billing date and 99.3% of bills based on actual meter reads. Over 85% of calls were answered within 30 seconds or less.

What improvements did NYSEG and RG&E report for their call center performance in 2023?

In the final six months of 2023, NYSEG answered 85.2% of customer calls within 30 seconds, while RG&E answered 86.5% of calls within 30 seconds. Both exceeded the PSC target of 70% and achieved contact satisfaction rates of 88% and 85% respectively.

How are Avangrid's Connecticut utilities performing in customer satisfaction in 2024?

In July 2024, UI, SCG, and CNG reported customer satisfaction rates of 87%, 87%, and 90% respectively, exceeding the target of 83%. They are also trending below the target for customer complaints, with significant improvements noted for CNG.