Just the other day, someone asked me a question that raises the hair on the back of my neck, "Why do vertically integrated electric utilities with defined service areas even care about Customer Satisfaction?"

My angst at the question comes from having worked hard to answer it for more than 10 years and frustration at the fact that it continues to be asked. Still, it always poses an opportunity.

I start with the basics. In my case, I work for the Arizona Public Service Corporation and in my mind that name implies and requires that we perform Customer Service as a fundamental responsibility of doing business. Granted, Customer Service doesn't always translate to Customer Satisfaction and if there is one great learning that I've had in the last decade, it's how so many other variables affect satisfaction and loyalty.

Second, stuff happens. The East coast is tormented by horrific ice storms, hurricanes blitz the Southern coastal areas and here in Arizona, monsoons blow through that would be called tornadoes in any other geography. During those trying times, our industry works hard to handle the crisis, restore power, and keep customers informed at the same time. Still, if we've cultivated a certain amount of goodwill through strong customer satisfaction, our jobs are easier and the outcomes are better too.

Perhaps one of the stronger arguments that resonates with the financial types down the hall is that JD Power and Standard and Poors are both subsidiaries of McGraw-Hill. In one of their press releases, they said "J. D. Power (data) will enhance our other business information platforms."  I translate that as customer satisfaction data being used in the calculation of ratings. That is important not only as it affects our cost of capital but it ultimately affects the price of a kilowatt hour - something customers care a great deal about.

Finally, we've seen how difficult it can be to accomplish a regulatory agenda in today's environment. There are numerous recent examples of utilities receiving a less than desired rate of return and one might argue, less than needed to operate. There are other examples of commissions rejecting new programs and of after-implementation scrutiny of programs. This becomes circular once again as the sensational publicity surrounding any one of those requests is never a positive contribution to customer satisfaction.

But if we believe it is difficult to advance our business with our regulators during a time when our customers are satisfied with our service, imagine what it would be like to try getting things done without it.