by: Roger Warehime, Director, Gas, Water, Energy Management & External Relations
I was recently asked a question that I have been asked a few times before: Why does OPU advertise? The reasoning behind the question is that OPU has no need to attract customers since we are the sole provider of electricity, water and natural gas within our service area. Although our total advertising budget, which also includes our monthly newsletter, is relatively small (0.1 % of total revenue), the question is a good one which deserves an answer.
While the majority of companies advertise to increase sales, OPU advertises to increase participation in our energy conservation programs. So you could say ironically that we advertise in order to reduce sales. We also advertise to educate our customers about safety and make them aware of other services we provide such as bill payment options, recycling of CFLs and holiday light strings, and trimming of tree branches that are interfering with power lines. We don’t spend money on “image ads” or sponsorship ads.
We are required by state law to achieve through our energy conservation programs a savings of 1.5 percent of our annual gas and electricity sales. In order to meet these requirements, we must promote our conservation programs to our customers. Advertising is one way we do this. We want people to be thinking about energy conservation before they purchase a new appliance, furnace, air conditioner or water heater.
In the area of safety, our advertising focuses on four messages:
- Keeping natural gas meters clear of ice and snow
- Recognizing the smell of natural gas, and what to do (and not do) when it is detected
- “Call before you dig” to prevent damage to underground utilities
- The dangers of carbon monoxide
We are required by law to conduct a survey once every three years to measure how well we are getting our safety messages out to our customers. We will be conducting this survey via phone again this year, so it is possible that you will be one of the randomly selected customers who receives a call.
One of the questions asked in the survey is to identify the name of your electricity and natural gas utility. In 2010, 100% of our customers surveyed correctly identified OPU as their electricity provider; this was an increase from 95% in 2007. Also in 2010, 96% of our customers surveyed correctly identified OPU as their natural gas provider; this was an increase from 81% in 2007. Communicating with our customers through advertising is one way we help make sure our customers know who to call when they have a problem with their utilities.
Eighty two percent of our customers surveyed reported that they had heard of “Call before you dig”, or “Gopher State One Call”. This is significantly higher than the national average of 53%. In all of the other safety message categories, our survey results were on par with national averages. It will be interesting to see if our 2013 survey results show improvement in how well we are getting these important messages out to our customers.
At OPU, we understand the public’s concern with a utility spending money on advertising. We will continue to advertise only in ways which benefit our customers by providing public awareness and education.