2013 AARP SURVEY OF NEW JERSEY RESIDENTS AGE 45 AND OLDER ON THE COST AND QUALITY OF ELECTRIC UTILITY SERVICES
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1 2013 AARP SURVEY OF NEW JERSEY RESIDENTS AGE 45 AND OLDER ON THE COST AND QUALITY OF ELECTRIC UTILITY SERVICES JUNE 2013
2 2013 AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services METHODOLOGY This survey was commissioned by AARP New Jersey to gauge the opinions of residents age 45 and older on electric utility affordability, rate cases, and the role of the New Jersey Public Board of Utilities in protecting consumers. The interviews were conducted by Woelfel Research. The AARP New Jersey Utility Survey obtained telephone interviews with a sample of 800 respondents aged 45+ and older whose household pays an electricity bill. The survey was conducted from May 20 to June 2, The results from the study were weighted by age and gender. The margin of sampling error for the random sample of 800 is ±3.5. The RDD sample of 45+ New Jersey residents was drawn at random from the New Jersey adult population in telephone households. The telephone sample was provided by STS, Inc. according to WRI specifications. Sample was drawn using standard list-assisted random digit dialing or Weighted (Type B) (RDD) methodology. Active blocks of telephone numbers (area code + exchange + two-digit block number) were selected with probabilities in proportion to their share of listed telephone households; after selection, two more digits were added randomly to complete the number. This method guarantees coverage of every assigned phone number regardless of whether that number is directory listed, purposely unlisted, or too new to be listed. Sampled phone numbers were compared against business directories and matching numbers purged. Respondents were screened so as to include only those who were 45 and older and paid an electricity bill. The sample was weighted by age and gender. RESPONSE RATE/COOPERATION RATE/REFUSAL RATE 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 separately for the RDD sample and the boost sample. Response Rate Cooperation Rate Refusal Rate Source: AAPOR Outcome Rate Calculator Version 2.1 May AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 2
3 2013 AARP Survey of New Jersey Residents Age 45 and Older on Electric Utilities (n=800, Sampling Error=+/-3.5) S1. Our study is interested in the opinions of certain age groups. Could you please tell me your age as of your last birthday? [IN YEARS] [RECORD ACTUAL AGE AND USE THE AGE GROUPS BELOW TO KEEP TRACK OF HOW MANY RESPONDENTS WE ARE GETTING IN EACH GROUP] or older 16 S2. And just to confirm, are you a resident of New Jersey? Yes 100 No - S-3. Does your household pay an electricity bill to a utility provider? Base: Respondents Yes [CONTINUE] 100 No [TERMINATE] - Don t know/refused [THANK AND TERMINATE] - S-4 Do you use electricity, gas or both to heat and cool your home? Base: Respondents Electricity 20 Natural gas 6 Both electricity and natural gas AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 3
4 [ASK IF S-4 IS ELECTRICITY OR BOTH ELECTRICITY AND NATURAL GAS] S-5 From what company do you receive your electric bill DO NOT READ RECORD ANSWER] Base: Use Electricity N=751 Public Service Electric and Gas Company (PSE&G) 46 Jersey Central Power and Light Company (JCP&L) 30 Atlantic City Electric Company (ACE) 14 Rockland Electric Company 2 Other (specify) 5 [ASK IF S-4 IS NATURAL GAS OR BOTH ELECTRICITY AND NATURAL GAS] S-6 From what company do you receive your natural gas bill? [DO NOT READ RECORD ANSWER] Base: Use Natural Gas N=638 Public Service Electric & Gas (PSE&G) 52 Elizabethtown Gas 8 New Jersey Natural Gas 17 South Jersey Gas Company 11 Other (specify) 4 Not sure 7 Refused 1 Main Questionnaire Q1. How concerned are you about the costs of your electricity going up? Are you extremely concerned, very concerned, somewhat concerned, not very concerned or not at all concerned? Extremely concerned 21 Very concerned 25 Somewhat concerned 25 Not very concerned 15 Not at all concerned AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 4
5 Q2. Do you believe your state elected officials are doing enough to lower the cost of your electric bills? Yes 17 No 60 2 Q3. The New Jersey Board of Public Utilities regulates the rates and operations of New Jersey power distribution companies. How important is it for the New Jersey Board of Public Utilities to ensure that utility companies are doing the following before major storms? [Randomize Responses] a. Making sure trees are properly trimmed to prevent them from falling on power lines during storms Base: Respondents Extremely important 47 Very important 41 Somewhat important 8 Not that important 1 Not important at all <0.5 b. Ensure that real-time communication systems are in place Extremely important 49 Very important 39 Somewhat important 8 Not that important 1 Not important at all AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 5
6 c. Ensure that the system infrastructure such as substation, switching stations and/or transmission stations are upgraded to withstand major storms Extremely important 55 Very important 36 Somewhat important 6 Not that important 1 Not important at all <0.5 d. Ensure that system infrastructure such as substation, switching stations and/or transmission stations are properly maintained Base: Respondents Extremely important 56 Very important 40 Somewhat important 4 Not that important <0.5 Not important at all <0.5 Q4. How important do you think it is for the New Jersey Board of Public Utilities to examine whether power companies are using money collected from customers through rates to maintain reliability and improve infrastructure? Extremely important 48 Very important 40 Somewhat important 8 Not that important 1 Not important at all AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 6
7 Q5. Public Service Electric & Gas (PSE&G) electric power company is requesting a rate increase of almost $4 billion over the next 10 years to mitigate against future storm damage. Jersey Central Power and Light Company (JCP&L) is requesting rate increases to recover costs associated with storm damage from Hurricane Irene and Superstorm Sandy. These rate increases would be in addition to other rate increases currently pending before the Board of Public Utilities or which may be requested in the future. Do you think the New Jersey Board of Public Utilities should evaluate the costs and benefit of the utility company proposals for such things as storm recovery and infrastructure improvements before utility rate increases are approved? Yes 94 No 4 Q6. When the utility companies are trying to recover storm costs, do you think that the costs should be recovered through new surcharges on consumer bills, or should there be a comprehensive review of all costs in a rate case? Base: Respondents Recover costs through new surcharges on consumer bills 6 A comprehensive review of all costs in a rate case 83 Both [DO NOT READ] 2 Neither [DO NOT READ] 3 Not sure [DO NOT READ] 6 Q7. How strongly do you agree or disagree that all customers should benefit from any rate increases they are asked to pay? Base: Respondents Strongly agree 58 Somewhat agree 22 Neither agree or disagree [DO NOT READ] 5 Somewhat disagree 4 Strongly disagree 6 Not sure [DO NOT READ] AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 7
8 Q8. Legislation is pending in the New Jersey legislature that could allow electric companies to receive automatic rate increases for infrastructure improvements every year before the New Jersey Board of Public Utilities has completed a full review of the proposal? Do you support or oppose legislation allowing electric companies to charge customers more without a full review of the proposal by the New Jersey Board of Public Utilities? Base: Respondents Strongly support 4 Somewhat support 3 Neither support or oppose [DO NOT READ] 1 Somewhat oppose 11 Strongly oppose 80 STORMS Q9. Several major storms have affected New Jersey residents in the past few years, including Hurricane Irene and Superstorm Sandy, causing widespread outages and damage to residential homes and businesses. Power company infrastructure such as substations, switching stations and transmission lines were also affected. How important is it to you that New Jersey policy makers put safeguards in place such as prudence reviews, audits and performance standards to ensure that customers are protected from excessive storm recovery costs? Extremely important 54 Very important 34 Somewhat important 8 Not that important 2 Not important at all AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 8
9 Q10.If utility companies could have taken steps, either before or during Superstorm Sandy to limit the extent of the damage and/or length of power outages, do you believe the utilities companies stockholders should be required to pay the related costs rather than consumers? Yes 69 No 17 4 PENALTIES FOR POOR PERFORMANCE Q11. Sometimes power outages occur when substations get flooded--substations regulate and distribute electrical power to homes and businesses. To avoid this, New Jersey policy makers are considering requiring electric public utilities to create and submit review strategies to the Board of Public Utilities. These review strategies would include setting performance standards which are measures of quality and reliability that the company must meet. If public utilities fail to meet these performance standards they will have to pay a penalty. If your utility company fails to meet these performance standards that would prevent substation flooding, do you think they should have to pay penalties? Yes 86 No 10 Not sure [DO NOT READ] 4 Q12. Do you support or oppose increasing the maximum penalty for a utility s failure to meet standards from the current $100 a day to up to $25,000 for each violation? Base: Respondents Strongly support 44 Somewhat support 20 Neither support or oppose [DO NOT READ] 9 Somewhat oppose 10 Strongly oppose 10 Not sure [DO NOT READ] AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 9
10 THIRD PARTY PROVIDERS Q13. In New Jersey consumers can shop for a power supplier. Recently a number of smaller thirdparty electricity companies have begun competing with more widely used utility providers. How important do you think it is for the New Jersey Board of Public Utilities to establish a consumer friendly website where consumers can compare rates and contract terms for all utility companies? Extremely important 41 Very important 31 Somewhat important 16 Not that important 3 Not important at all 6 Q14. How important do you think it is for the New Jersey Board of Public Utilities to provide stronger consumer protections that would safeguard customers from misleading marketing by utility providers? Extremely important 55 Very important 33 Somewhat important 8 Not that important 2 Not important at all 2 Demographics The following questions are for classification purposes only and will be kept entirely confidential. D1. RECORD RESPONDENT S GENDER. ASK ONLY IF ABSOLUTELY NECESSARY: To ensure it is recorded accurately, could you please state your gender? Male 46 Female AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 10
11 D2. What is your current marital status? Are you.. [READ EACH ANSWER CATEGORY]? Base: Respondents Married 62 Not married, living with your partner or significant other 2 Separated 1 Divorced 6 Widowed 15 Or are you currently single and never married 10 Not sure [DO NOT READ] <0.5 Refused [DO NOT READ] 4 D3. [IF D2 = 1 ASK: Are you or your spouse currently a member of A-A-R-P? IF D2 = 2 ASK: Are you or your partner currently a member of AARP? OTHERWISE ASK Are you currently a member of AARP? ] Yes 45 No 53 D4. What is the highest level of education that you completed? [READ EACH ANSWER CATEGORY] Base: Respondents 0 to 12 th grade, but with no diploma 3 High school graduate or equivalent 22 Post high school education, but with no degree 9 2 year degree 11 4 year degree 27 Post graduate study, but with no degree 6 Graduate or professional degree AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 11
12 D5. Which of the following best describes your current employment status? [READ EACH ANSWER CATEGORY] Base: Respondents Self-employed full-time 5 Self-employed part-time 2 Employed full-time 31 Employed part-time 10 Retired and not working at all 36 Unemployed and looking for work 5 Or are you not in the labor force for other reasons 8 Not sure [DO NOT READ] <0.5 Refused [DO NOT READ] 2 D6. Do you own or rent your primary residence? Base: Respondents Own 86 Rent 11 Refused [DO NOT READ] 2 D7. What type of home is your primary residence? Base: Respondents Single family home 80 Mobile home 1 Town home or duplex 6 Apartment 5 Condominium or co-op 5 Other, please specify: [DO NOT READ] 1 Not sure [DO NOT READ] <0.5 Refused [DO NOT READ] 2 D8. Are you of Hispanic, Spanish, or Latino origin or descent? Yes 4 No 93 Not sure [DO NOT READ] <0.5 Refused [DO NOT READ] AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 12
13 D9. What is your race? Are you.[read EACH ANSWER CATEGORY]? Base: Respondents White or Caucasian 84 Black or African American 7 Native American or Alaskan Native <0.5 Asian 2 Native Hawaiian or other Pacific Islander <0.5 Or are you some other race? [Please specify] 1 Refused [DO NOT READ] 5 D10. Thinking about your state elections for New Jersey Governor and Legislators in the last 10 years, which of the following best describes your voting behavior? Would you say you vote always, most of the time, about half of the time, seldom, or would you say you never vote? Always 62 Most of the time 24 About half of the time 5 Seldom 3 Never 4 Refused [DO NOT READ] 2 D11. Do you consider yourself to be a. [INTERVIEWER READ AND RANDOMIZE EACH ANSWER CATEGORY] Democrat 30 Republican 21 Independent 31 Other 9 Refused [DO NOT READ] AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 13
14 D12. How would you characterize your political views? Would you say you are.[read AND RANDOMIZE EACH ANSWER CATEGORY]? Conservative 30 Moderate 33 Liberal 16 None of the above 13 Not sure [DO NOT READ] 3 Refused [DO NOT READ] 6 D13. What is your 5-digit zip code? D14. 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 includes your household s income before taxes in Was it.[read EACH ANSWER CATEGORY]? Base: Respondents Less than $20,000 6 $20,000 but less than $40, $40,000 but less than $60, $60,000 but less than $75,000 9 $75,000 but less than $125, $125,000 but less than $150,000 7 $150,000 but less than $200,000 5 $200,000 or more 6 DON T KNOW / NOT SURE 5 REFUSED AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 14
15 AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. We advocate for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services. A trusted source for lifestyle tips, news and educational information, AARP produces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin; AARP TV & Radio; AARP Books; and AARP en Español, a Spanish-language website addressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. AARP Foundation is an affiliated charity of AARP that is working to win back opportunity for struggling Americans 50+ by being a force for change on the most serious issues they face today: housing, hunger, income and isolation. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at 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. Research and Strategic Analysis For more information about this survey, please contact Cassandra Burton at: or ccantave@aarp.org 2013 AARP Survey of New Jersey Residents Age 45 and Older on the Cost and Quality of Electric Utility Services Page 15
2013 AARP SURVEY OF NEW JERSEY RESIDENTS AGE 45 AND OLDER ON THE COST AND QUALITY OF ELECTRIC UTILITY SERVICES. June 2013
2013 AARP SURVEY OF NEW JERSEY RESIDENTS AGE 45 AND OLDER ON THE COST AND QUALITY OF ELECTRIC UTILITY SERVICES June 2013 New Jersey Residents are concerned about the cost of their electricity going up.
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