Clean Energy for the Energy Capital of the United States: Houston Light & Power Customers Voice Strong Opinions in Deliberative Poll

Customers in the city of Houston, Texas, told their utility company that they want more clean energy — and that they are willing to pay for it. Houston Light & Power Company, which provides electric service to most of the Houston metropolitan area, gathered a statistically representative sample of their customers for a town meeting on January 30 and 31, 1998 and provided them an opportunity to discuss electric utility issues among themselves and with industry experts. The process is known as a “Deliberative Poll” and was developed by Prof. Jim Fishkin of the University of Texas. The more than 200 HL&P customers offered their considered opinions on a range of issues. Highlights of the results include:

Protecting the environment was a major concern of customers — running a statistical dead heat with “receiving electricity at lowest cost.” Some 30% of customers said that “protect[ing] the environment from pollution that could be created when electricity is generated” was the most important goal relating to energy. While 33% of customers said that lowest cost was “most important,” that number actual fell as a result of deliberations. Before the town meeting, lowest cost was ranked first by 42% of the customers, and the environment was ranked most important by 23%.

When asked about specific issues HL&P might consider in planning for the Houston area’s future needs for electricity, renewable energy and energy efficiency were the strongest customer preferences. On a scale of 0 to 10, with 10 representing “most important,” customers assigned values of 8.1 to renewable energy and 8.3 to energy efficiency, as compared with values of 6.8 for using fossil fuels and 5.4 to purchasing power from other providers. On a percentage basis, the results were even more compelling. Fully 78% of HL&P’s customers said developing renewable energy was the option the company should pursue first (58%) or second (20%). Some 71% of customers said efficiency should be the first (20%) or second (51%) option pursued.

After hearing the facts about the electricity business and discussing their options, customers also said clearly that they are willing to pay for clean energy. Before the event, the median willingness to pay for renewable energy and energy efficiency was $0. After deliberation, the median numbers rose dramatically — to $6.50 per month for renewable energy and $3.00 per month for energy efficiency. Customers reported average winter electric bills of $87.50/month and average summer electric bills of $165.00/month. When queried about new services the company might consider offering, HL&P’s customers were strongly consistent with their stated preferences. Customers assigned “likely to use” values to various service options. The option to purchase some of their electricity from renewable sources rated as 7.9 out of 10, where 10 represents “very likely to use.” On average, customers expressed a willingness to pay $5.00/month for receiving 25% of their electricity from renewable sources. The options to have a solar system installed on their roof (7.4) or to have energy efficiency improvements financed out of energy savings (7.5) also scored high with customers.

In yet another powerful set of responses, customers directly commented on how satisfied they were with HL&P’s current service offerings and efforts. After deliberation, 64% of customers said that the company should offer many more (28%) or somewhat more (36%) energy efficiency programs (pre-deliberation values were 22% and 26%, respectively).

The message on renewable energy programs was particularly strong. After deliberation, 76% of customers said HL&P needs to use much more (53%) or somewhat more (23%) renewable energy (pre-deliberation values were 33% and 18%, respectively).

Customers’ concerns matched their preferences well. Some 77% of customers believe that global warming is a very serious or somewhat serious problem, and 81% believe the same about air pollution in their area.

“The Deliberative Polling process and this Town Meeting shatter the myth that real people don’t care about where their electricity comes from,” said Karl R