SURVEY-IN-BRIEF 2012 SURVEY OF DISTRICT OF COLUMBIA RESIDENTS AGE 50 AND OLDER ABOUT UTILITIES

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1 2012 SURVEY OF DISTRICT OF COLUMBIA RESIDENTS AGE 50 AND OLDER ABOUT UTILITIES AARP s District of Columbia State Office in response to its commitment to ensure affordable electric rates and consumer protections for all residents commissioned this survey to explore the views of 50+ residents regarding utility affordability, smart meters, power restoration following storms and consumer protections. These results are based on a telephone survey of District of Columbia residents age 50+ fielded March 15 to March 23, A total of 800 interviews were completed yielding a margin of error of ±3.5 percent. A detailed methodology is on page 2, and a weighted, annotated survey of responses begins on page 3. SURVEY-IN-BRIEF 1 One-half of District of Columbia residents 50+ are concerned about the rising costs of heating and cooling their homes and nearly the same percentage think they are currently paying too much for electricity. 50 percent say they are extremely or very concerned about the rising costs of heating and cooling their homes; and another 24 percent say they are somewhat concerned. In fact, only 23 percent say they are not very or not at all concerned. 43 percent say it is at least somewhat difficult to pay their electric and gas bill. 48 percent say they are paying too much for electricity. 51 percent say the District of Columbia government is not doing enough to help people affected by rising electricity costs. Nor do they believe that the interests of residential utility customers are represented and taken into consideration when rate increases are proposed. Pepco has installed smart meters in all homes in the District of Columbia. With smart meters, Pepco can remotely connect or disconnect service. Currently, Pepco cannot remotely disconnect service for non-payment. This is overwhelmingly supported by the District of Columbia residents. Most residents (65%) are aware that smart meters haven been installed in District of Columbia homes. Three-fourths (78%) somewhat or strongly oppose the utility company disconnecting service without a home visit to notify the customer. Now that the smart meters have been installed, Pepco can offer pricing plans which typically charge higher rates for electricity used during peak usage times. District of Columbia residents age 50+ oppose making time of use rate plans mandatory. 58 percent somewhat or strongly oppose making time of use rate plans mandatory. 24 percent strongly or somewhat support time of use rate plans mandatory. Pepco has asked for a $39.7 million rate increase, plus an additional surcharge on electric bills to improve reliability and to replace aging technology. Most District of Columbia residents age 50+ oppose this proposed increase and surcharge. 64 percent of respondents say they somewhat or strongly oppose a rate increase along with the additional surcharge. 21 percent of residents support a rate increase along with the additional surcharge.

2 METHODOLOGY The AARP Utility Survey was conducted as a telephone survey among 50+ residents in the District of Columbia. The survey examined public opinion about utility rates and services in the District of Columbia. The interviews were conducted in English by Precision Opinion from March 15 to March 23, The sample was weighted by residents age 50+. The margin of error for the random sample of 800 for the District of Columbia is +/-3.5%. Response, Cooperation, and Refusal Rates The response rate for this study was measured using AAPOR s response rate 3 method. The cooperation rate was measured using AAPOR s cooperation rate 3 method. The refusal rate was measured using AAPOR s refusal rate 3 method. The table below contains these rates. Response Rate Cooperation Rate Refusal Rate 40.2% 91%.044% Source: AAPOR Outcome Rate Calculator Version 2.1 May

3 2011 SURVEY OF DISTRICT OF COLUMBIA RESIDENTS AGE 50 AND OLDER ABOUT UTILITIES (N=800 Sampling Error = ± 3.5 percent) 1. How concerned are you about costs of heating and cooling your home going up? Are you [READ ANSWERS]? Extremely concerned 22% Very concerned 28% Somewhat concerned 24% Not very concerned 13% Not at all concerned 10% Not sure [DO NOT READ] 2% 2. Thinking about the amount you pay for electricity, is this amount too little, about right, or too much? Too little 1% About right 40% Too much 48% Not sure [DO NOT READ] 10% Refused [DO NOT READ] <.5% 3. Thinking of your current household finances, how difficult is it for you to pay your electric bill? Is it extremely difficult, very difficult, somewhat difficult, not very difficult, or not at all difficult? Extremely difficult 6% Very difficult 10% Somewhat difficult 27% Not very difficult 26% Not at all difficult 28% Not sure [DO NOT READ] 2% 4. Do you believe the District of Columbia government is doing enough to help people affected by rising electric costs? Yes 17% No 51% Not sure [DO NOT READ] 31% 3

4 5. When rate increases are proposed for electricity, do you believe the interests of residential utility customers like yourself are represented and taken into consideration? Yes 27% No 55% Not sure [DO NOT READ] 18% Refused [DO NOT READ] <.5% 6. Pepco has asked for a $39.7 million rate increase, plus an additional surcharge to your electric bill. This translates to an average of $5 extra a month on your electric bill. Pepco says that the increase in your electric bill will be used to improve reliability and to replace aging technology. Do you support or oppose this rate increase with the additional surcharge? Is that strongly or somewhat? Strongly support 7% Somewhat support 14% Neither support or oppose 8% Somewhat oppose 16% Strongly oppose 48% Not sure [DO NOT READ] 6% Refused [DO NOT READ <.5% 7. The electric company has installed a new type of meter called a smart meter in all District of Columbia residences. A smart meter is a new technology that tracks electricity use based on the time you use it. Smart meters also communicate wirelessly with your electric company. Are you aware that smart meters are being installed in Washington, DC? Yes 65% No 33% Not sure [DO NOT READ] 2% Refused [DO NOT READ] 0% 8. An additional function of the new smart meter is that the electric company can remotely connect or disconnect service. Currently, the company cannot remotely disconnect service for nonpayment. A representative must come to your home and notify you. Do you support or oppose the electricity company disconnecting service for non-payment without a home visit to notify the customer? Is that strongly or somewhat support or oppose disconnecting service for non-payment without a home visit to notify the customer? 4 Strongly support 7% Somewhat support 7% Neither support or oppose 4% Somewhat oppose 12% Strongly oppose 66% Not sure [DO NOT READ] 3% Refused [DO NOT READ <.5%

5 9. Now that smart meters are installed, utility companies may be able to offer pricing plans which typically charge higher rates for electricity used during peak usage times. Some say a time of use rate plan lets customers better understand the real cost of their electricity and shift usage to lower cost hours, while others say that time of use rate plans could make electricity less affordable for older people and others who do not have flexibility to shift their energy needs to off peak hours. Do you support or oppose making time of use rate plans mandatory for consumers? Do you support or oppose making time of use rate plans mandatory for consumers? Is that strongly or somewhat? 10. In 2011, did you suffer any power outages at your residence? Yes 55% No 40% Not sure [DO NOT READ] 4% 11. On January 27, 2011, a winter storm cut off power to many households in the District of Columbia. Did your household lose power during this storm or did any of your friends or family members lose power during this storm? Yes, my household lost power 31% Yes, family and friends I know lost power 42% No, my household nor any family or friends I 32% know lost power Not sure [DO NOT READ] 11% 12. How would you rate your electric company s ability to keep your power on? Would you say it was [READ ALL OPTIONS] Excellent 14% Very good 21% Good 31% Fair 21% Poor 10% Not sure 2% Refused 1% 13. How would you rate your electric company in terms of their customer service? Would you say it was [READ ALL OPTIONS] Excellent 9% Very good 14% Good 36% Fair 21% Poor 10% Not sure 8% Refused 1% 5

6 About You Our final set of questions is for classification purposes only and will be kept entirely confidential d1. What is your age as of your last birthday? Specify Age [DO NOT READ AGE CATEGORIES] % % % Refused 3% d2. Are you male or female Male 44% Female 56% d3. Do you own or rent your primary residence? Own 70% Rent 27% Refused [DO NOT READ] 3% d4. What type of home is your primary residence? Single family home 55% Mobile home 0% Town home or duplex 11% Apartment 22% Condominium or co-op 8% Other, please specify: 4% d5. Which of the following best describes your current employment status? [READ ANSWERS] Self-employed full-time 7% Self-employed part-time 4% Employed full-time 23% Employed part-time 5% Retired and not working at all 46% Unemployed and looking for work 4% Not in the labor force for other reasons 7% Not sure [DO NOT READ] <.5% Refused [DO NOT READ] 4% 6

7 d6. What is the highest level of education that you completed? [READ ANSWERS] 0-12 th grade (no diploma) 10% High school graduate (or equivalent) 14% Post-high school education (no degree) 9% 2-year college degree 10% 4-year college degree 17% Post-graduate study (no degree) 9% Graduate or professional degree(s) 26% d7. What is your current marital status? [READ ANSWERS] Married 37% Living with your partner or significant other 2% Separated 2% Divorced 11% Widowed 17% Currently single and never married 24% Refused [DO NOT READ] 7% d8. IF D7=MARRIED, ASK Are you or your spouse currently a member of A-A-R-P? IF D7= PARTNER OR SIGNIFICANT OTHER, ASK Are you or your partner or significant other currently a member of A-A-R-P? IF D6=something else, ASK Are you currently a member of A-A-R-P? Yes 55% No 40% Not sure [DO NOT READ] 1% d9a. Thinking about who lives in your household, do you currently? Have any children under age 18 living with you Yes 13% No 82% Not sure [DO NOT READ] <.5% d9b. Thinking about who lives in your household, do you currently? Have any children 18 and older living with you Yes 19% No 76% Not sure [DO NOT READ] <.5% 7

8 d9c. Thinking about who lives in your household, do you currently? Have any children away at college Yes 9% No 86% Not sure [DO NOT READ] <.5% d10. What is your zip code? d11. Are you of Hispanic, Spanish, or Latino origin or descent? Yes 2% No 90% Not sure [DO NOT READ] 1% Refused [DO NOT READ] 7% d12. What is your race? [READ ANSWERS] White or Caucasian 30% Black or African American 55% American Indian or Alaska Native 1% Hawaiian/Pacific Islander <.5% Asian <.5% Other 4% Not sure [DO NOT READ] 1% Refused [DO NOT READ] 9% d13. We realize income is a private matter and so rather than ask you anything specific about your income, I d like to ask you to please stop me when I get to the category that your includes your household s income before taxes in Was it.[read EACH ANSWER CATEGORY]? Less than $10,000 10% $10,000 to less than $20,000 8% $20,000 to less than $30,000 7% $30,000 to less than $40,000 8% $40,000 to less than $50,000 5% $50,000 to less than $60,000 5% $60,000 to less than $75,000 5% $75,000 to less than $100,000 6% $100,000 to less than $150,000 9% $150,000 to less than $200,000 5% $200,000 or more 6% Not sure [DO NOT READ] 4% Refused [DO NOT READ] 23% 8

9 AARP is a nonprofit, nonpartisan organization with a membership that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with nearly 35 million readers; AARP Bulletin, the go-to news source for AARP's millions of members and Americans 50+; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. State Research brings the right knowledge at the right time to our state and national partners in support of their efforts to improve the lives of people age 50+. State Research consultants provide strategic insights and actionable research to attain measurable state and national outcomes. The views expressed herein are for information, debate, and discussion, and do not necessarily represent official policies of AARP. AARP Research and Strategic Analysis For more information, please contact Cassandra Burton at: or ccantave@aarp.org 9