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Survey Questions - Edison Electric Institute

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Chapter 1: Customer Expectations<br />

Out of Sight, Out of Mind 2012<br />

Historically, consumer expectations and desires have helped guide the development of the electric utility<br />

industry, from its beginning in Thomas <strong>Edison</strong>’s workshop to the vast network of cables and wires that<br />

currently comprise the modern electrical grid. The creation of the electrical grid and the priorities of electric<br />

customers have shaped the development of the industry. Reliability of electrical service, public safety, cost<br />

of service, and electrical system aesthetics have presented challenges and opportunities for electric utilities as<br />

they have sought to balance customer expectations while providing reliable electrical service at a reasonable<br />

price.<br />

As a society, we are more digitally connected today than we could have comprehended 25 years ago. In the<br />

late 1980s, cell phones were big, bulky items that only a few people had and email was just starting to<br />

penetrate the business world as an effective form of communication. Today, most Americans have a cell<br />

phone, a personal computer, and many other handheld electronic devices. The Consumer Electronics<br />

Association notes that, in 2012, the average U.S. household owns 24 consumer electronic devices and this<br />

number has been growing annually. To give a perspective on this growth, the chart in Figure 1.1, Total Sales<br />

of Consumer Electronics, indicates that Americans have spent more than $169,000 million annually on<br />

consumer electronic devices each of the last five years.<br />

Billions<br />

$250<br />

$200<br />

$150<br />

$100<br />

$50<br />

$-­‐<br />

Figure 1.1 Total Sales of Consumer Electronics<br />

2008 2009 2010 2011 2012e 2013p<br />

e-estimated, p-projected<br />

Source - Consumer Electronics Association<br />

As the demand for electronic devices has increased, so has the consumer’s sensitivity to electric outages.<br />

These devices provide connectivity to information and communications that Americans expect to use for<br />

business and leisure. When that connectivity is broken, such as during a power outage, there is little<br />

tolerance for any prolonged outage duration.<br />

Because of this sensitivity, an ongoing topic of discussion in the utility-customer relationship is the desire for<br />

a more reliable electric system with fewer outages. Customers tend to think that if the electric system could<br />

be migrated from an overhead to an underground electrical infrastructure, the outage issue would be<br />

resolved. There are merits for making this transition, but there is significant cost involved to make it happen.<br />

In some cases, the desire for undergrounding is driven by utility needs; in other cases, it is a request<br />

<strong>Edison</strong> <strong>Electric</strong> <strong>Institute</strong> 1

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