2013 AARP SURVEY OF NEW JERSEY RESIDENTS AGE 45 AND OLDER ON THE COST AND QUALITY OF ELECTRIC UTILITY SERVICES. June 2013
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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 New Jersey Residents are concerned about the cost of their electricity going up.
3 Survey Highlights AARP conducted a telephone survey of residents age 45+ to find out their views on the cost and quality of electric utility services. Many (46%) of New Jersey voters age 45+ are concerned about the price for OF electricity. 60% of respondents do not think their state elected officials are doing enough to lower the cost of our electric bills. Only 17% of respondents think state elected officials are doing enough to lower electric bills. Residents age 45+ want utility companies to be held accountable for providing reliable service. 69% of respondents believe that 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, utility stockholders should be required to pay the related costs rather than consumers. Residents age 45+ support strong regulatory oversight. 83% of respondents want a comprehensive rate case review of storm related costs rather than recovery though new surcharges on consumer bills. 94% of residents age 45+ think the New Jersey Board of Public Utilities (BPU) should evaluate proposed infrastructure improvements before utility rates are approved. Most (88%) respondents believe it is extremely or very important that bill payer safeguards are in place including prudence reviews, audits and performance standards so excessive storm cost overruns are not passed on to consumers.
4 New Jersey residents age 45 and older are concerned about the cost of their electricity going up Extremely concerned 21% Not sure/rf 2% Not at all concerned 13% Not that concerned 15% Very concerned 25% Somewhat concerned 25% How concerned are you about the costs of your electricity going up? n=800
5 Survey respondents are represented in all four of New Jerseys electric distribution companies Electric Companies Used by Consumers n=751 Natural Gas Companies Used by Consumers n=638 PSE&G 46% PSE&G 52% JCP&L 30% New Jersey Natural 17% ACE 14% South Jersey Gas 11% Rockland Electric 2% Elizabethtown 8% Other 5% Not sure/rf 8% Not sure/rf 3% Other 4% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
6 New Jersey residents age 45 and older are in favor of, and think it is important that consumers are protected by the Board of Public Utilities Residents want the BPU to ensure that utility companies are adhering and held accountable to meeting performance and reliability standards. Residents also want the BPU to review cost and benefits before rates are increased and review proposals when rate increases are proposed. They feel that when the utility companies have not met performance standards, costs should not be defrayed to the customer, and the utility should have to pay penalties.
7 Large majorities of New Jersey residents believe it is extremely or very important that the BPU ensure that utility companies trim trees, upgrade and maintain infrastructures and have real time communication systems in place BEFORE major storms Extremely important Very important Somewhat important Not that/not at all important Ensure system infrastructure are properly maintained 56% 40% 4% Ensure that system infrastructure are upgraded 55% 36% 6% 2% Ensure real-time communications in place 49% 39% 8% 2% Properly trim trees 47% 41% 8% 2% 0% 20% 40% 60% 80% 100% How important is it for the New Jersey BPU to ensure that the utility companies are doing the following before a storm? n=800
8 When utility companies are trying to recover storm costs, the BPU should conduct a comprehensive rate case review There should be a review of all costs in a rate case 83% New surcharges on bills 6% Both 2% Neither 3% Not sure/rf 7% 0% 20% 40% 60% 80% 100% 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? n=800
9 Residents want to know that the New Jersey BPU is providing consumer protections, so that excessive costs are not being passed on to the consumers Important for New Jersey Policy Makers to Put Safeguards in Place to Protect Consumers From Excessive Storm Recovery Costs n=800 Should Stockholders be Required to Pay Related Storm Costs if Steps to Limit Storm Damage Were Not Taken n=800 Extremely important Very important Somewhat important Not that important 8% 2% 34% 54% Yes 69% Not sure/rf 15% Not important at all 1% No 17% Not sure/rf 2% 0% 20% 40% 60% 80% 100%
10 New Jersey residents age 45 and older do not believe their state elected officials are doing enough to lower the cost of their electric bills 100% 80% 60% 60% 40% 20% 17% 23% 0% Yes No Not sure/rf Do you believe your state elected officials are doing enough to lower the cost of your electric bills? n=800
11 Residents believe that all utility customers should benefit from any rate increases Strongly agree 58% Somewhat agree 22% Neither agree or disagree Somewhat disagree 5% 4% Strongly disagree 6% Not sure/rf 6% 0% 20% 40% 60% 80% 100% How strongly do you agree or disagree that all customers should benefit from any rate increases they are asked to pay? n=800
12 Residents think it is important for the New Jersey BPU to examine whether or not electric companies are using the money collected in rate increases to improve infrastructure and maintain reliability Extremely important 48% Not sure/rf 2% Not important at all 1% Very important 40% Somewhat important 8% Not that important 1% How important do you think it is for the New Jersey BPU to examine whether power companies are using money collected from customers through rates to maintain reliability and improve infrastructure? n=800
13 New Jersey consumers want the New Jersey BPU to evaluate the costs and benefits of utility company proposals before utility rate increases are approved 100% 80% 94% 60% 40% 20% 4% 3% 0% Yes No Not sure/rf 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? n=800
14 Utility companies should be held accountable when performance standards are not met Should Utility Companies be Fined if Performance Standards Are Not Met? n=800 Support/Opposition for Increasing Maximum Penalty from $100 a day to $25,000 per Violation n=800 Strongly support 44% Somewhat support 20% Yes 86% No 10% Neither support or oppose Somewhat oppose 9% 10% Stongly oppose 10% Not sure/ RF 5% Not sure/rf 9% 0% 20% 40% 60% 80% 100%
15 New Jersey residents want stronger customer protections and safeguards when it comes to third-party power suppliers Important for New Jersey BPU to Establish a Consumer Friendly Website Where Consumers can Compare Utility Rates and Contract Terms n=800 Extremely important 41% Extremely important Important for New Jersey BPU to Provide Stronger Consumer Protections to Safeguard Consumers From Misleading Marketing By Utility Providers n=800 55% Very important 31% Very important 33% Somewhat important 16% Somewhat important 8% Not that important 3% Not that important 2% Not important at all 6% Not important at all 2% Not sure/rf 3% Not sure/rf 3% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
16 More than half of survey respondents were age Most were also homeowners and lived in single family homes.
17 Respondent Demographics (n=800) Age Employment % Employed, full-time 31% % Employed, part-time 10% % Retired % Education K-12 grade, no diploma 3% Ownership of Primary Residence High school graduate/ged 22% Own 86% Post-high school, no degree 9% Rent 11% 2-year college degree 11% 4-year college degree 27% Type of Primary Residence Post-graduate study, no degree 6% Single family home 80% Graduate or professional degree 20% Mobile home 1% Town home or duplex 6% Income Apartment 5% Less than $20,000 6% Condominium or co-op 5% $20,000 to $39,999 11% $40,000 to $54,999 11% Gender $60,000 to $74,999 9% Male 46% $75,000 to $124,999 20% Female 54% $125,000 or more 18% Marital Status Hispanic Origin 4% Married 62 Not married, living with partner 2 Race Separated 1 White or Caucasian 84% Divorced 6 Black or African-American 7% Widowed 15 American Indian or Alaskan Native <0.5% Never married 10 Asian 2% Native Hawaiian or Pacific Islander <0.5%
18 Methodology 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. Cooperation rate Refusal rate 77% 19% Source: AAPOR Outcome Rate Calculator Version 2.1 May 2003
19 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.
20 Contact Information For more information, please contact Doug Johnston, AARP Govt. Affairs Manager, at or or Ev Liebman, Assoc. State Director, at or For more information about the survey, please contact Cassandra Burton, Research Advisor, at or
2013 AARP SURVEY OF NEW JERSEY RESIDENTS AGE 45 AND OLDER ON THE COST AND QUALITY OF ELECTRIC UTILITY SERVICES
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