Report of Findings
CITY OF
PALO ALTO
Residential Electric Customer Satisfaction
UTILITIES
Study 2025
11 December 2025 Confidential & Proprietary
Table of Contents • PALM ALTO
Section One
Project Overview
Section Two
Key Study Findings
Section Three
Considerations
Section Four
About GreatBlue
Section Five
Aggregate Data
(Provided Separately)
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 2 Project Overview
Research Objectives Areas of Investigation
• GreatBlue Research was commissioned by the City of Palo Alto The 2025 CAU Residential Electric Customer Satisfaction Study Utilities (hereinafter "CAU") to conduct additional research leveraged a quantitative research methodology to address the following among its residential customers as part of a larger statewide areas of investigation:
research initiative involving municipal and investor-owned utilities in California. Overall satisfaction with CPAU
Reliability of electric service and outage management
• The primary goals of this research study were to assess customers' satisfaction with CPAU, compare those satisfaction • Customer service quality and responsiveness ratings with those of municipal (muni) and IOU customers across • Perceptions of electric rates and value received California, uncover perceptions of their utility, and explore their • Awareness and engagement with utility programs and services • Effectiveness of communication and level of trust in CPAU interest in various utility-related products and services. • The outcome of this research will enable CAU to a) more clearly understand customer satisfaction drivers and areas of concern, b) act on near-term opportunities for improvement and, c) create a strategic roadmap to enhance customer engagement,
satisfaction, and long-term trust.
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 3 Research Methodology Snapshot
Methodology No. of Questions Quality Assurance Sample
No. of Completes
Digital 86* Dual-level** Customer List
CPAU 2023: 400
CPAU 2025: 408
Target Research Dates
Muni 2025: 900 Margin of Error Confidence Level
Residential IOU 2025: 300
CPAU Electric +/- 4.8% 95% October 14-
Customers November 25, 2025
• This represents the total possible number of questions; not all respondents will answer all questions based on skip pattems and other instrument bias. ** Data quality personnel, in addition to a computer-aided interviewing platform, ensure the integrity of the data is accurate.
Final sample was weighted according to age, gender, and education. Demographic weighting targets were originally derived from and based on the U.S. Census Bureau, 2023 American Community Survey 1 year estimates.
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /4 Respondent Profile | Demographics
Age Gender
18 to 24 0.2%
25 to 34 | 3.9% Female 34.3%
35 to 44 5.6%
45 to 54 9.1%
Male 55.4%
55 to 64 | 18.9%
65 to 74 25.2%
75 or older 28.9% Prefer not to say 10.3%
Prefer not to say 8.1%
0% 50% 100% 0% 50% 100%
Education Ethnicity Rent or Own
Eighth grade or less _0.2% Caucasian 59.1%
Some high school 0.2% Rent 22.5%
Asian 17.2%
High school graduate or GED_ 1.2° Hispanic / Latino | 3.7% Technical school graduate 0.2°
Pacific Islander 0.5% Own 74.5%
American Indian or Alaskan Native 0.2%
College graduate 23.0%
Post-graduate or professional degree 66.2% Other 2.5%
Prefer not to say 2.9%
Prefer not to say | 3.9% Prefer not to say _ 19.6%
0% 100% 0% 100% 0% 50% 100%
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 5 Respondent Profile | Demographics
House Type People in Household Income
1 / just myself 25.2%
Single family home 64.7%
41.9% Low to Moderate
2 41.1%
Income
Apartment in
multifamily building 17.6%
with 3 or more units 3 14.2%
Condomium in 4 10.8%
multifamily building 11.0%
with 3 or more units
3.7% High Income 31.5%
Townhome 1 4.7%
6 1.0%
Apartment in 7 0.2%
multifamily building | 1.7%
with less than 3 units
Prefer not to 27.5%
8 or more 0.2% answer
Condomium in
multifamily building 0.2%
with less than 3 units Prefer not to say 2.7%
0% 50% 100% 0% 100% 0% 50% 100%
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /6
PALO ALTO
STILITIE
Key Study Findings
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /7 Key Study Findings
Key Satisfaction Metrics Emergency Response and Preparation • In 2025, CPAU respondents provided a higher average positive rating • Over three-quarters (77.9%) rated CPAU's outage response time as across eleven (11) organizational characteristics compared to 2023 (+3.5 acceptable, relatively on par with 2023 CPAU (75.5%) and muni findings percentage points), 2025 muni (+12.4 percentage points), 2025 IOU (+11.8 (78.8%). percentage points), and 2024 PPDS findings (+7.6 percentage points). • In 2025, only 27.7% feel CPAU is well prepared for emergencies (-24.1 • Over four-fifths of CPAU respondents (82.1%) provided positive ratings for percentage points compared to muni findings), although 51.7% were unsure. the NP+S (net positive score) and 75.7% had a high level of trust in CPAU. Communications • Over four-fifths of respondents (82.4%) said CPAU meets their • Email was the most preferred channel, far outpacing "direct mail" and "paper expectations "all" or "most of the time," which is significantly higher than bill inserts." 2025 muni (+7.1 percentage points) and 2025 IOU findings (+11.6 • Over three-quarters (78.4%) said the frequency of CPAU communications they percentage points). receive is "about right," which is fewer than in 2023 (-2.9 percentage points).
Rates and Affordability • Over two-thirds (68.1%) were satisfied with PAU's self-service digital tools, • More than seven-in-ten (71.8%) find CPAU's rates reasonable, more than significantly lower than satisfaction among all 2025 muni respondents (-9.8 in 2023 (+4.8 percentage points), and significantly more than muni (+7.4 percentage points) but higher than 2023 CPAU findings (+6.1 percentage percentage points) and IOU (+9.4 percentage points) respondents. points). • Over three-quarters of CAU respondents (76.0%) prefer their utility invest EVs, Electrification, and Solar in "keeping utility rates affordable." Of them, 35.2% would opt for "fewer • Nearly one-third (31.4%) are considering an EV; while cost, range, and battery investments in online tools for customers," and 24.5% would opt for "lower failures were the top barriers for those who are not considering one. investments in building electrification programs." • Interest in electrification products was strongest for heat pump water heaters Customer Service and induction stoves, while "up-front costs" limit adoption. • Over four-fifths (83.2%) were satisfied with their customer service • All low to moderate income CPAU respondents who own a single family home experience in 2025, on par with munis (83.6%) and higher than IOUs or townhome were willing to spend some amount of money to replace their gas (75.8%) and 2023 findings (74.6%). water heater with a heat pump alternative, with 31.5% willing to spend $500 to • Over one-half (54.7%) had issues resolved on first contact, less than $1,000 and 21.7% willing to spend $2,500 or more. underperforming compared to 2023 (-3.8 percentage points) and muni • Once again, all low to moderate income CPAU respondents who own a single findings (-3.6 percentage points), but outperforming IOU (+3.9 percentage family home or townhome were willing to spend some amount of money to points) results. replace their gas HVAC system with a heat pump alternative, with 33.7% willing • Respondents with first-contact resolution reported significantly to spend $1,000 to less than $2,000 and 27.2% willing to spend $5,000 to less higher satisfaction with customer service overall (98.9% compared than $7.000 to 64.4% of those who needed multiple contacts or were unsure). • Less than one-in-ten (7.1%) plan to install solar panels in the next year, while
9.5% plan to install a battery storage system in the future.
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /8
PALO ALTO
STILITIE
Key Metrics and Future Investments
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 9 Satisfaction | Organizational Characteristics PAL ALTO PALO In 2025, the average positive rating across organizational characteristics among CPAU respondents was 74.4%, with CPAU Muni IOU "providing consistent and reliable electric service to
2023 2025
customers." "restoring power in a reasonable amount of
time after an outage," and "being committed to green, Providing consistent and reliable electric service to 85.6% 88,5% 69.0% (-) 73.2% (-) 76.0% customers
renewable, or carbon-free energy" receiving over 80.0%
positive ratings. Furthermore, significantly more Restoring power in a reasonable amount of time after an 80.5% 84.0% 65.7% (-) 70.1% (-) 72.2% outage
respondents gave positive ratings for "maintaining modern and reliable infrastructure" compared to 2023 (+17.2 Being committed to green, renewable, or carbon-free
83.1% 83.6% 59.9% (-) 59.7% (-) -
energy
percentage points).
Responding promptly to customer questions and
73.8% 78.6% 63.0% (-) 65.1% (-) 68.4%
complaints
Notably, CPAU ratings were significantly higher for ten (10) 73.8% 75.0% 62.4% (-) 66.0% (-) 66.8% Communicating with customers
of the eleven (11) characteristics compared to muni 2025 findings and for nine (9) of the eleven (11) compared to Maintaining modern and reliable infrastructure 55.5% (-) 72.7% 64.5% (-) 63.0% (-) 69.9% IOU 2025 ratings, and overperformed in all metrics Providing good service and value for the cost of 66.0% 69.1%
62.5% (-) 59.8% (-) 65.7%
compared to the 2024 PPDS national benchmark. As a electricity result, the utility achieved a higher average positive rating Offering innovative programs and services 63.3% 68.5% 57.4% (-) 62.6% 60.3% than each respective group (detailed comparisons bulleted Community involvement 65.5% 68.4% 57.6% (-) 56.0% (-) 63.9% below):
Being open and honest about company operations and 66.4% 66.3% 58.6% (-) 53.9% (-) 65.4% • Muni 2025: +12.4 percentage points policies
• IOU 2025: +11.8 percentage points
Helping customers use less electricity 66.6% 63.6% 61.3% 59.2% 59.2% • PPDS 2024: +7.6 percentage points
Average 70.9% 74.4% 62.0% (-) 62.6% (-) 66.8%
"Don't know" responses removed; Please note that PPDS and CPAU ratings are unweighted n=400 (CPAU 2023), n=408 (CPAU 2025), n=900 (Muni 2025), n=300 (IOU 2025), n=12,000 (National PPDS 2024) | forganizational characteristics]: Please rate PAU on the following characteristics using a scale of one to ten where one (1) means very poor and ten (10) means very good +/-) indicates statistical significance at a 95% confidence level compared to PAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /10 Satisfaction | Most Important Characteristics ALO ALTO
STILITIE
More than seven-in-ten CPAU respondents indicated
that "providing consistent and reliable electric service to customers" and "providing good service and value for Percentage Who Find Importance in Each Characteristic the cost of electricity" are important organizational
Providing consistent and reliable electric service to customers 74.3% characteristics to them as customers of CPAU.
Furthermore, these characteristics received the most Providing good service and value for the cost of electricity 71.3% positive ratings among respondents.
Restoring power in a reasonable amount of time after an outage 67.6% Of note, only 9.6% of respondents prioritized CPAU's
"community involvement." Maintaining modern and reliable infrastructure 59.6% Being committed to green, renewable, or carbon-free energy 45.3% Responding promptly to customer questions and complaints 42.6% Being open and honest about company operations and policies 33.8% Communicating with customers 28.4%
Helping customers use less electricity 26.0%
Offering innovative programs and services 18.9%
Community involvement 9.6%
0% 25% 50% 75% 100%
• CPAU (n=408)
(organizational_characteristics_importance): Among the characteristics you just rated, what are the most important to you as a customer of CPAU? (Select all that apply) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 11 Satisfaction | Trust and Net Positive Score PALT ALTO
Just over three-quarters of CPAU respondents reported high trust in their utility, which is significantly higher compared to 2023 (+6.7 percentage points), 2025 IOU findings (+14.9 percentage points), and 2025 muni findings (+9.6 percentage points). Furthermore, CPAU respondents provided an NP+S (net positive score) of 82.1%, which is also higher than IOU 2025 findings (+4.5 percentage points), but slightly lower than muni findings in 2025 (-2.0 percentage points).
Trust in Utility Net Positive Score
82.0%
69.0% (-) NP+S (advocate + loyal + 82.1%
High trust (7-10) • 75.7% satisfied)
60.8% (-) 84.1%
• 66.1% (-)
An advocate of CPAU
13.5% 67%32% (+)
/ 9.3%
Neutral (5-6) 223:3%
17.2% (+) A loyal customer
9.9% /
16.5% (+) 2.1% (
10.8% 56.8%
A satisfied customer I 53.4%
1 7.8% 41.0% (-)
Low trust (1-4) 1 38.8% (-
21.5% (+)
/ 16.7% (+) 13.3%
120%
A less than satisfied customer 19.1% (+)
6.8% 1 11.7%
| 7.1% 4.8%
Don't know / unsure / 0.5% (-) - 5.9%
Don't know / unsure 3.3%
0.7% (-) • 4.2%
25% 50% 75% 100% 25% 50% 75% 100%
• CPAU - 2023 (n=400) CPAU- 2025 (n=408) I IOU (n=300) • Muni (n=900) • CPAU - 2023 (n=400) • CPAU - 2025 (n=408) IOU (n=300) • Muni (n=900) (overall_trust]: How much do you trust CPAU? Please use a scale of one to ten where one (1) means you do not trust them at all and ten (10) means you trust them completely. inner which nana olown nacresennes uni relationshin wal +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 12 Satisfaction | Top Expectations PALISALTO
The top expectations among CAU respondents in 2025 remained affordability, reliability, and prompt responses to outages. Over four-fifths of CPAU respondents in 2025 reported their expectations are met "all" or "most of the time." which is higher than in 2023 (+2.9 percentage points) and significantly more compared to 2025 muni findings (+7.1 percentage points) and 2025 IOU findings (+11.6 percentage points).
Expectations Among CAU Respondents Frequency Expectations Are Met
56.8%
Affordable prices / fair pricing / cost 61.8% 7824%
51.1% (-) "All" or "most of the time"
savings 70.%%3% (+)
41.5% (-)
61.8%
55.6%
Reliable / consistent service 46.8% (-) All of the time
35.6% (-) 34.4% (+)
53.3% 54.3%
50.2% 56.9%
Prompt response to outages 38.4% (-) Most of the time 44.0% (-) • 26.4% (-) 40.9% (-)
35.5%
Problems solved quickly / fast service / 33.8% 113:2%
28.9% Some of the time
prompt service • 18.3% (5% (+)
26.5% (-
Good customer service / answer 1.8%
2%
questions / knowledgeable / properly Never
24.4%
trained staff 26.5%
3.3%
Proper billing / easy to understand bill / • 25%
Don't know / unsure 0.6% (-)
prompt processing
27.6% 2.4%
25% 50% 75% 100% 25% 50% 75% 100%
•CAU - 2023 (n=400) CAU - 2025 (n=408) IOU (n=300) • Muni (n=900) I CAU - 2023 (n=400) CAU - 2025 (n=408) • IOU (n=300) • Muni (n=900) Top 6 responses shown
(top_expectations]: Everyone has expectations of the service organizations they do business with over time. What are the top three expectations you have regarding the service you receive from PAU? (Select up to three responses) meeting_expectations]: Does CAU meet your expectations.. (/~) indicates staustical siannicance at a 95% confidence level compared to CPAU 2025 dats Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 13 Satisfaction | Perception of Rates PAID ALTO
More than seven-in-ten respondents indicated the rates they pay for their electric service are either "very" or "somewhat reasonable," which is more than in 2023 (+4.8 percentage points), and significantly more than all 2025 muni respondents (+7.4 percentage points) and IOU respondents (+9.4 percentage points).
Perceived Reasonableness of Rates
67.0% 71.8%
"Very" or "somewhat reasonable"
L62 40-4% (t)
213% 8%
Very reasonable _ 19.8%
• 28.5%
45.8%
48.0%
Somewhat reasonable 42.6%
| 36.0% (-)
16.0%
Somewhat unreasonable 112.7% 18,1% 4*237% (+)
8.5%
Very unreasonable 18.7% (+)
10.6%
8.5%
1 74%
Don't know / unsure
0.8% /-
11.2% (
0% 25% 50% 75% 100%
CPAU - 2023 (n=400) • CAU - 2025 (n=408) IOU(n=300) Muni (n=900) frates reasonable. woud you say the rates you pay for electrcity are. +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 14 Satisfaction | Future Investments • PALALTO
Over three-quarters of CPAU respondents in 2025 prefer their utility invest in "keeping utility rates affordable." However, over one-fifth of those who value this priority are "not willing to give up anything to reduce electricity rates." Of those who are willing to make trade-offs, 35.2% would opt for "fewer investments in online tools for customers," and 24.5% would opt for "lower investments in building electrification programs." Most Preferred Future Utility Investments Affordability Tradeoffs Top 5 Shown
Keeping utility rates affordable 76.0%
Fewer investments in online 35.2%
Improving reliability and reducing power 42.4% tools for customers outages
Investing in renewable energy sources 40.4% Lower investments in building 24.5% electrification programs
Upgrading infrastructure to better withstand 39.0%
wildfires and other extreme weather Slower transition to 23.5% renewable energy sources
Investing in battery storage and grid
29.7%
modernization
21.0%
Supporting the transition to electric vehicles
26.5%
(EVs) and EV charging stations
Expanding energy efficiency programs for Fewer improvements to 20.0% homes and businesses 26.0% customer service
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU (n=408) • CPAU (n=310)
Top 7 responses shown; No tracking data Only asked to those who answered "keeping utility rates affordable" in [most_important_investments); No tracking data nost_important_investments]: Which of the following investments listed below do you want CPAU to prioritize? (Select all that apply affordability tradeoffs): In order to keep electricity rates more affordable, which of the following cost saving measures would you be willing for CPAU to consider in the near future? (Select all that apply Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /15
PALM ALTO
Customer Service
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /16 Customer Service | Contact Reasons & Methods OPAL ALTO
Of the 161 respondents who interacted with CPAU in 2025, over four-fifths were either "very" or "somewhat satisfied" with their customer service experience, higher than in 2023 (+8.6 percentage points) and 2025 IOU findings (+7.4 percentage points), and on par with muni 2025 findings. The most common reason for contact in 2025 was to "ask for information about programs and rebates," and telephone was the most common contact method.
Satisfaction with Customer Service Experience Top Reasons for Contact CPAU
74.6%
"Very" or "somewhat satisfied" • 83.2% 2023 2025
75.8%
83.6% k for information ab
0.0% (-) 15.5%
39.8% (6) grams or rebat
Very satisfied • 54.0%
34.2% (6) Report an outage 21.2% 13.7%
• 49.7%
Question on bill (not a 14.4% 11.2%
34.7% complaint)
Somewhat satisfied 1 29.2%
41.7% (+) To pay bill 0.8% (-) 7.5%
I 34.0%
11.0% Top 4 shown; "Answer option not included in 2023
17.5°
Not very satisfied 14.3%
Top Contact Methods
10.2 11.0% CPAU
8.1%
Not at all satisfied 4.6% 2023 2025
6.1%
By telephone 81.4% (+) 57.8%
3.4%
Don't know / unsure 11.2% Emailed CPAU 4.2% (-) 24.8%
5.3% (+)
0.1% Visited the office or service
4.2% 5.6%
50% 75% 100% center
Had someone from PAU come 0.0% 3.1%
CPAU - 2023 (n=118) • CPAU - 2025 (n=161) IOU (n=120) • Muni (n=470) to my house Top 4 shown
customer service contact reason: What was the ourcose of the contact? customer service contact methodi: Which of the following methods did vou use to contact CPAU? (customer_service_satisfaction): How satisfied were you with your experience contacting CPAU? (t/-) indicates stausucar signicance at a 95% contidence lever compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /17 Customer Service | Satisfaction Ratings PANDALTO
ositive ratings across all four (4) customer service characteristics increased slightly year-over-year among CPAU respondents in 2025. Furthermore, 202 PAU findings exceeded 2025 lOU findings across all characteristics by a significant margin. CPAU findings in 2025 also exceeded 2025 muni finding across the board, and were significantly higher for "being courteous to you and treating you with respect" (+11.9 percentage points).
Positive Ratings (7-10) for Customer Service Characteristics 100%
85.9% 88.7%
78.0% 80.1%
74.5% 77.5% 76.8% (-) 74.0% 75.9%
73.2% 71.3% 71.6%
75%
65.6% (-)
60.0% (-) 56.5% (-)
53.7% (-)
50%
25%
0%
Understanding your Clearly explaining Being courteous to Speed or providing problem or need information related you and treating you with results in a to your issue you with respect reasonable amount
of time
• CPAU - 2023 (n=100) • CPAU - 2025 (n=141) I IOU (n=92) • Muni (n=336) Only asked to those who had an interaction with utility personnel or sentreceived an email or text message from their utility (es me enter series as a here are are i a l e or she performed i under important characteries. Please use a scale of one to ten where one (1) means very poor and ten (10) means very good.
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /18 Customer Service | Contact Resolution • PALM ALTO
Over one-half of CAU respondents had their issue taken care of on first contact with their utility, which is lower than in 2023 (-3.8 percentage points) anc 2025 muni findings (-3.6 percentage points), but higher than 2025 IOU findings (+3.9 percentage points). The most common reason prompting multiple contacts among CPAU respondents in 2025 was for a "billing issue." Contacts Needed to Resolve Issue Reasons Prompting Multiple Contacts
58.5%
Taken care of the 54.7%
first time 50.8% Muni
• 58.3% Base size 26 21 103
22.6%
23.0% 23.1% 7.9% 21.3%
It varies
22.0%
| 19.0% 15.4% 5.8% 16.1%
15.1%
Lack of resolution in previou 11.5% 1.6% 8.0%
Must have 16.1% contacts
repeated contact 20.5%
lew service setup
20.9% 7.7% 8.0% 19.4%
isconnectic
3.8%
Don't know / 6.2% Soner outage or reliability 7.7% 27.1% 14.2% unsure 6.7%
Other 23.1% 0.0% (-) 3.3% (-)
• 1.9% (-)
Don't know/unsure 3.8% 0.0% 0.0%
0% 25% 50% 75% 100%
Only asked to those who needed multiple contacts to resoive their issue.
No tracking data
• CPAU - 2023 (n=106) • CPAU - 2025 (n=161) • IOU(n=120) • Muni (n=470) [issue_resolution]: Generally, when you contact PAU, are things taken care of to your satisfaction the first time, or do you need to have repeated contact with them? [multi_contact_resolution]: For what reason did you require multiple points of contact with CPAU? (t/-) indicates stausucar siancance at a 95% contidence lever compared to CPAU 2V25 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 19 Customer Service | Contact Resolution PAID ALTO
Significantly more CPAU respondents who had their issue resolved on first contact provided positive ratings across all customer service representative characteristics and their overall satisfaction with their customer service experience compared to those who either needed multiple contacts, indicated "it varies," or were unsure.
Key Customer Service Metrics by Number of Contacts Needed to Resolve Issue Overall Satisfaction w/
Customer Service Representative Ratings Customer Service 100% 95.1% (+) 94.9% (+) 97.5% (+) 95.1% (+) 98.9% (+)
76.7%
75%
64.4%
60.0%
54.2% 50.0%
50%
25%
0%
Understanding you Explaining things you Being courteous to you Speed or providing you How satisfied were you roblem or need needed to know about and treating you with with results in with your experience your problem respect reasonable amount of contacting PAU? CPAU - Taken care of the first time (n=81) • CPAU - "Must have repeated contact, "it varies," and "don't know / unsure" (n=60) (t/-) indicates statistical significance at a 95% confidence level compared to those who needed multiple contacts to resolve their issue Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /20 Customer Service | Field Service A PALO ALTO
Out of the 62 CAU respondents who had a field service interaction in 2025, over nine-in-ten were either "very" or "somewhat satisfied" with the experience, significantly higher than 2023 findings (+12.5 percentage points), and higher than all IOU (+1.9 percentage points) and muni respondents (+5.4 percentage points) in 2025. The most common reason for contact in 2025 was for a "meter reading." Satisfaction with Field Service Experience
82.1% (- 95.2%
"Very" or "somewhat satisfied" 93.3%
| 89.8%
| 63.5%
66.1% Top Reasons for Visit
Very satisfied
1 55,%% 2023 2025
19.2%
• 29.0% CPAU CPAU
Somewhat satisfied 32.6%
| 33.9% Meter reading 19.2% 14.5%
9.6% Connect service 13.5% 11.3%
Not very satisfied • 3.2%
1 6. 7% .7% Service problem 9.6% 9.7%
Routine check 5.8% 8.1%
6%
Not at all satisfied 0,0% Disconnect service 0.0%
4.8%
2.8%
Top 5 shown
5.8%
10.0%
Don't know / unsure 0.0%
| 0.6%
Win 25% 50% 75% 100%
• 2023 - CPAU (n=52) • 2025 - CPAU (n=62) | IOU (n=42) • Muni (n=343) [field_service_contact_reason]: What was the purpose of the visit? (Meld_service_satisfaction]: How satisfied were you with the service provided by the field representative? (+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 21
PALLO ALTO
Emergency Response and Preparation
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 22 Emergencies | Response PAL ALTO
Over three-quarters of respondents indicated CAU's outage response time is "very" or "somewhat acceptable," which is slightly higher than in 2023 (+2.4 percentage points) and on par with muni 2025 findings, but lower than 2025 IOU findings (-2.2 percentage points). Further, over one-quarter of respondents believed CAU is well prepared to handle emergencies, which is significantly fewer than all muni respondents (-24.1 percentage points) and IOU respondents in 2025 (-19.6 percentage points). Notably, over half of respondents were unsure of PAU's emergency preparedness.
Perceived Timeliness of Outage Restoration Perceived Utility Emergency Preparedness
75.5% 24.5%
79%
"Very" or "somewhat acceptable" 80.1% • 27.7%
78.8% Well prepared (7-10)
47.3% (+)
38.5% 151.8% (+)
43.4%
Very acceptable 34.6%
139.7% 13.5%
37.0% 12.7%
34.6% Neutral (5-6)
Somewhat acceptable | 22.0% (+)
1 39.25.6% (+) 19.9% (+)
3.7%% (+) 12.5% (+)
Not very acceptable 1 7.8%
• 10.2% *) Not well prepared (1-4)
25.0% (+)
12.0% 24.5% (+)
Not at all acceptable
| 5.5% (+) 49.5%
15.0% 51.7%
16.4% Don't know / unsure
Don't know / unsure 14.0% (-) 5.7% (-)
5.5% -) 3.8% (-)
50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2023 (n=400) CAU - 2025 (n=408) IOU (n=300) • Muni (n=900) • CPAU - 2023 (n=400) • CPAU - 2025 (n=408) • IOU (n=300) • Muni (n=900) [outage_restoration]: Overall, how acceptable do you find the time it takes CPAU to restore power after an outage? (emergency_preparedness]: How prepared do you feel PAU is to handle emergencies such as wildfires, earthquakes or extreme heat? Please use a scale of one to ten where one (1) is not at all prepared and ten (10) is extremely well prepared. / indicates stasical signance al a so% concence ever compared to ta 202 cal Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 23 Emergencies | Communication PALM ALTO
Over three-fifths of CPAU respondents found their utility's communication during power outages to be either "very" or "somewhat acceptable," significantly lower than muni (-15.0 percentage points) and IOU findings (-14.6 percentage points) in 2025, but higher than 2023 findings (+5.9 percentage points).
However, it is important to note that approximately one-quarter of CPAU respondents in 2025 were unsure of their satisfaction, implying they may not have had a recent outage.
Satisfaction with Outage Communication
"Very" or "somewhat 573% 63.2%
acceptable" - 782% 2)
19.3% (.)
Very acceptable - 28.4%
3333%37.4% (+)
- 34.838.0%
Somewhat acceptable
• 40.8% 1-5% (+)
15.5% (+)
Not very acceptable 18.3%
13.9% (+
12.5% (+)
6.0%
3.70%
Not at all acceptable 3.8%
14.2%
21.3%4.8%
Don't know / unsure
151% (.)
0% 25% 50% 75% 100%
CPAU - 2023 (n=400) | CPAU - 2025 (n=408) | IOU (n=300) • Muni (n=900) outage communication satisfaction): How acceptable do you find the communication you receive from CPAU during a power outage? +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 24 Emergencies | Communication O PATTALIO
The channel most frequently ranked at number one for emergency notifications was "automated text," followed by "email" and "automated call." These three channels were also the most commonly ranked options, overall, with 82.7% having "automated text" in their top three, followed by 61.8% for "email" and
34.7% for "automated call."
Notification Channels Ranked by Preference
CPAU - 2023 | 1: 0.5% 3: 1.5%
Radio
CPAU - 2025 2: 1.2% 3: 1.5%
CPAU - 2023 71.4% 12.8% 3.3%
Automated Text
CPAU - 2025 59.6% 17.4% 5.7%
CPAU - 2023 5.8% 15.8% 7.3%
Automated Call
CPAU - 2025 10.4% 13.4% 10.9%
CPAU - 2023 14.3% 38.4% 17.6%
Email
CPAU - 2025 19.1% 23.8% 18.9%
CPAU - 2023 4.3% 14.6% 1: 2.3%
Utility Website
CPAU - 2025 6.7% 9.4% 1: 1.2%
PAU - 2023 1: 0.5% 2: 2.0% 3: 2.3%
Social Media
CPAU - 2025 1: 0.5% 2: 1.7% 3: 1.0%
CPAU - 2023 1: 0.3% 2: 0.5% 3: 1.5%
TV CPAU - 2025 |
1: 0.5% 2: 1.1% 3: 4.3%
0% 25% 50% 75% 100%
1112 3
n=400 (CPAU 2023); n=408 (CPAU 2025); This question was not required to answer (outage_communication_preferred_method): What is your preferred method of notification for outages and other emergency management notifications? Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /25 Preparation | Future Electric Supply PALT ALTO
Over one-half of respondents were confident in CAU's ability to maintain an adequate electric supply over the next five years, which is lower than 2025 muni findings (-3.6 percentage points) but higher than 2025 IOU findings (+2.0 percentage points). However, over one-quarter were unsure of their confidence in the electric supply.
Confidence in Electric Supply Over the Next 5 Years
56.9%
High confidence (7-10) 54.9%
60.5%
10.0%
Neutral (5-6) 20.7% (+)
19.3% (+)
6.6%
Low confidence (1-4) 19.3% (+)
17.6% (+)
26.5%
Don't know / unsure 5.1% (-)
2.7% (-)
0% 25% 50% 75% 100%
• CPAU - 2025 (n=408) | IOU (n=300) • Muni (n=900)
No tracking data
(future_electric supply]: How confident are you that PAU will be able to maintain an adequate supply of electricity over the next 5 years, that is until 2030? Please use a scale of one to ten where one (1) is not at all confident and ten (10) is extremely confident.
(+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 26 Preparation | Future Electric Supply O PAL ALTO
Backup Power Sources in the Home Generator Fuel Source
15.3% (-)
Have a backup power source Gasoline 66.7%
21.1%
7.3%
Battery storage
10.0% Propane 9.5%
2.3% (-)
Backup generator
5.1%
Diesel 4.8%
Uninterrupted power supply 6.8%
(UPS) units) 9.3%
82.8% Other 4.8%
None
77.9%
2.0%
Don't know / unsure 14.3%
Don't know / unsure 1.0%
25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2023 (n=400) • CPAU - 2025 (n=408) • CPAU - 2025 (n=21) Only asked to those who have a backup generator; No tracking data [backup_power_source]: When you have an electric power outage, do you have one of the following backup power sources? enerator_fuel_source] What fuel source does your backup generator run on! -/_) indicates statistical sianificence at a 95% confidence level compgred to CPAL 2025 da Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /27
PAID ALTO
Communication and Digital Tools
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 28 Communication | Preferred Methods • PALO ALO ALT O
In 2025, the most preferred communcation channel remained "email" by a significant margin, followed by "direct mail" and "paper bill inserts." Preferences Regarding Communication Channels
63.8%
Email 57.8%
Mailings / direct mail 1 02.0%
Paper bill inserts 0.0%.
10.5% (+)
10.0%
Online bill inserts • 6.4% (+)
| 3.8%
Text message 4.4%
CPAU's website 3.3%
Mobile app 1 22%
Social Media (e g , Facebook, X) 1 0500
- 0:2%
Newspaper 0.2%
0.5%
Other 2 0.5%
2.0%
NA / don't care to receive information • 1.7%
25% 50% 75% 100%
| 2023 - CPAU (n=400) 2025 - CPAU (n=408)
"Paner hil incere" an 'oniine hil ingpIe" WArP ROdArAS Answer antione ın 202% preferred_communication_method]: Please indicate how you would prefer to receive information about CPAU? +/-) indicstes statistical sianificance at a 95% confidence level comogred to CPAU 2025 dn Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Repoduction. Slide / 29 Communication | Frequency & Preferred Info ALO ALTC
Over three-quarters of CPAU repondents in 2025 believe the frequency of communications from their utility is "about right," while 6.4% believe it is "not enough." Among CPAU repondents, the most desired topics of information were those that would help inform customers on "what CPAU is doing to maintain infrastructure." information on "rebates and incentives," and "what CPAU is doing to prepare for emergencies like wildfires and earthquakes." Frequency of Communications is... Desired Topics
55.8%
5.5% What CPAU is doing to maintain infrastructure 49.8% Not enough 0.0% (-)
6.4% Rebates and incentives 1 43.9%
What CPAU is doing to prepare for emergen... 1 44.0%
81.3% 38.2%
About right 32.5%
Understanding your bill and rates / 32.8%
78.4%
30.5%
How to use less energy 30.1%
4.8%
How to sign up for power outage notifications 35.8% (+) Too much 1 25.2%
5.1% 9.5%
Other • 8.3%
8.5% Don't know / unsure 8.0%
Don't know / unsure - 7.4%
10.0% Not applicable - don't care to receive inform... 1 7.3% • 5.9%
0% 25% 50% 75% 100% 25% 50% 75% 100%
CPAU - 2023 (n=400) | CPAU - 2025 (n=408) | CPAU - 2023 (n=400) • CPAU - 2025 (n=408) "Rebates and incentives" was added as an answer option in 2025 (communication_frequency]: How would you describe the frequency at which you receive information from CPAU? (communication tonics!: What tonics do you want to receive more information on from CPAU? (Sefect all that apply) +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Repoduction. Slide / 30 Communication | Water Heater Failure I PALOALTO
early three-fifths of CAU respondents indicated they would most likely look for immediate replacement intormation trom a "plumber or contractor" if th ater heater failed, while 34.8% would search online and 25.5% would look on the "City of Palo Alto Utilities websit Where would you most likely look for immediate replacement information if your water heater failed unexpectedly?
Plumber or contractor 57.6%
Online search 34.8%
City of Palo Alto Utilities website 25.5%
Retail store 19.9%
Family / friends or word of mouth 15.9%
Social media or community forums 5.4%
Other 11.3%
0% 25% 50% 75% 100%
• CPAU (n=408)
No tracking data
(water_heater_failure]: if your water heater failed unexpectedly, where would you most likely look for immediate replacement information? (Select all that apply) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 31 Communication | Digital Tools ALO ALT
early four-fifths of CPAU respondents in 2025 indicated self-service digital options are "very" or "somewhat important," in line with IOU and muni findings, but slightly lower than 2023 findings (-2.4 percentage points). Over two-thirds of CPAU respondents indicated they were "very" or "somewhat satisfied" with their utility's self-service digital options, which is significantly lower than among all muni respondents in 2025 (-9.8 percentage points), but on par with 2025 IOU findings and higher than 2023 findings (+6.1 percentage points).
Importance of Self-Service Digital Options Satisfaction with Self-Service Digital Options "Very" or "somewhat 17,03%
"Very" or "somewhat satisfied"
important"
76.8%
42.3% (+) 21.0%
Very important 34.1% Very satisfied 26.7%
38. 8% 326%9.8% (+)
42.0% (+)
38.0% 41.0%
43.9% 41.4%
Somewhat important 8.5% Somewhat satisfied 7 20
34.8% (- 38.1
11.8% 11.0%
14.2% 8.3%
Not very important 10.6% Somewhat dissatisfied 7.0% (
13.8% 12 3% (-
5.3%
59% 34%
Not at all important 9.7% Very dissatisfied 7.8% (+)
5.8% 75.2%
2.3% 1 20.1%
Don't know / unsure Don't know / unsure 84% (-)
3.6% 1 4.7% (-)
25% 50% 75% 100% 0% 25% 50% 75% 100%
CPAU - 2023 (n=400) CPAU- 2025 (n=408) • IOU (n=300) • Muni (n=900) • CPAU - 2023 (n=400) • CPAU - 2025 (n=408) | IOU (n=300) • Muni (n=900) self service importance]: How important are self-service digital options (website, e-mail, text) that give you the ability to get general needs and questions taken care of without the need to speak to a live representative? self_service_satisfaction): Thinking about any self-service digital needs (website, e-mail, text) you may have from PAU, how satisfied would you say you are with the ability to get general needs and questions taken care of without the need to speak to a live (+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 32
PALO ALTO
UTILITIES
Electric Vehicles
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /33 EV | Adoptions and Barriers PALO
SALIALTO
More than three-out-of-ten CPAU respondents in 2025 are considering purchasing an electric vehicle (EV) at some point in the future, which is significantly fewer than in 2023(-15.9 percentage points). Despite this, the rate of ownership remained relatively consistent at 32.4% in 2025. Among those who are not planning to purchase an EV, "higher initial cost to purchase," "limited range," and "battery failure / replacement" were the top barriers to doing so.
Electric Vehicle Adoption Timeline Electric Vehicle Barriers
47.3% (+) Higher initial cost to purchase - 32491-5%
Purchase consideration in general
31.4% - 31.1%439%
Limited range / distance per charge
4.8% Battery failure / replacement 0,0% (-)
Within the next year • 3.9% • 284% 439% (+)
27.8% (+) Long charge time • 23.0%
Within the next five years 1 23.0%%.7*%
16.2% Low availability of charging stations
14.8% Lack of charging at my residence / unable to install a charger 70,0% () 17.6% Beyond the next five years 11.3%
Reliability 9,3%9%
10.3% (-) 12.20
Never / I am not planning to purchase Low availability of electric vehicle options • 8.10 | 18.1% 4.9%
I don't know enough about electric vehicles 810
I already own an electric vehicle or 30.0%
plug-in hybrid vehicle Speed / acceleration of the vehicle 24%
32.4%
43.9%
| 12.5% (-) Other 43.2%
Don't know / unsure
18.1% None / nothing 41%
25% 50% 75% 100% 0% 25% 50%
CPAU - 2023 (n=400) CPAU - 2025 (n=408) • CPAU - 2023 (n=41) • CPAU - 2025 (n=74) Only asked to those who are not planning on purchasing an EV; "Battery failure / replacement" was a new option in 2025 ev_purchase_timeline]: When do you anticipate purchasing an electric vehicle or plug-in hybrid vehicle in the future? ev barriers]: Why are you not considering purchasing an electric vehicle or plug-in hybrid vehicle in the future? (Select all that apply +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data l Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 34 EV | Charging Station Location A PALO ALTO
Chargers on thi co ply, pond apreported tony at rech mare are me at me ay to archane an i pur had an to mer audies. to chargers at or near their residence
Impact of Public Charging Stations on EV Purchase Impact of Charging Stations At or Near Likelihood Residence on EV Purchase Likelihood
"Much more" or "somewhat "Much more" or "somewhat 49.8%
37.3%
more likely" more likely"
Just as likely 31.4% Just as ikay to eric vei a 22.8%
"Somewhat less" or "much less 9.3%
9.6% *Somewhat less" or much kely
likely"
Don't know / unsure 21.8% Don't know / unsure 18.1%
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2025 (n=408) • CPAU - 2025 (n=408)
[ev_influence_community_charger]: How would the availability of more public electric vehicle charging stations in your community influence your likelihood to purchase an electric vehicle or additional electric vehicles in the future? ev_influence_workplace_charger]: How would electric vehicle charging stations installed at your place of work influence your likelihood to purchase an electric vehicle or additional electric vehicles in the future? (+/-) indicates statistical sianificence at a 95% confidence level compgred to CPAU 2025 dat- Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 35 EV | Charging Option Preferences PAID ALTO
In 2025, seven-in-ten of those interested in purchasing an EV or who already own one indicated they would prefer a Level 2 charger, while 11.2% would prefer a Level 1 charger. Furthermore, nearly three-fifths reported being "very" or "somewhat likely" to install a low-powered level 2 charger if it meant a reduced need to perform costly electric system upgrades, which is more than in 2023 (+3.7 percentage points).
Preferred EV Charging Options Likelihood to Install a Low-Powered Level 2 Charger
53.6%
11.3% "Very" or "somewhat likely"
Level 1 charger 57.3%
11.2%
27.1%
Very likely
27.3%
67.0%
Level 2 charger 26.6%
70.0% Somewhat likely
| 30.0%
22.7%
3.9%
Somewhat unlikely
Neither 15.8%
5.4%
11.1%
Not at all likely
17.8% 12.7%
Don't know / unsure 12.6%
13.5% Dont know/unsure 14.2%
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
CPAU - 2023 (n=309) CAU - 2025 (n=260) I CPAU - 2023 (n=207) • CPAU - 2025 (n=260) Only asked to those who are planning to purchase, or who already own, an EV Only asked to those who are planning to purchase, or who already own, an EV breferredev charge]: If you currently own an electric vehicle or were to purchase one in the future, which of the following charging options would you prefer? evel_2_charger): If you could install an efficient low-powered Level 2 EV charger at your home that may take longer to charge your vehicle but reduce the need for the utility to perform electric system upgrades that could be costly to you, would you accept tha option versus a faster charging system?
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 36 EV | Charging Option Preferences A PALM ALTO
Nearly nine-in-ten reported being "very" or "somewhat likely" to participate in an off-peak charging incentive program, if offered, which is higher than in 2023 (+2.8 percentage points).
Off-Peak Charging Incentives
84.5%
"Very" or "somewhat likely"
87.3%
65.0%
Very likely
69.6%
19.4%
Somewhat likely
17.7%
4.2%
Somewhat unlikely
3.8%
4.2%
Not at all likely
4.6%
7.1%
Don't know / unsure
4.2%
0% 25% 50% 75% 100%
• CPAU - 2023 (n=309) | CPAU - 2025 (n=260)
Only asked to those who are planning to purchase, or who already own, an EV Le charle of pate i to likely no the su be to charge an electric vehicle outside of peak hours ir your utty provided incentives such as a il redit or tower ratos during that time period? This would mean not charging your vehicle in the morning during the Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /37
PAID ALTO
Electrification
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 38 Electrification | Familiarity & Support
ver four-fifths of CAU respondents in 2025 were either "very" or "somewhat familiar" with the concept of home electrification, which is up slightly fro
8.3% in 2023. Furthermore, nearly three-quarters of respondents in 2025 either "strongly" or "somewhat support" CPAU's electrification investment, whic is 5.3 percentage points higher than in 2023.
Familiarity with Home Electrification Concept Support for Electrification Investment
78.3% 67.0%
"Very" or "somewhat familiar" "Strongly" or "somewhat support"
81.6% 72.3%
38.8% (-) 36.5%
Very familiar Strongly support
46.8% | 31.4%
39.5% 30.5% (-)
Somewhat familiar Somewhat support
34.8% 40.9%
9.5% 9.0%
Somewhat unfamiliar Somewhat oppose
6.1% 9.8%
8.3% 9.3%
Very unfamiliar Strongly oppose
8.3% 10.0%
4.0% 14.8% (+)
Don't know / unsure Don't know / unsure
3.9% 7.8%
50% 75% 100% 0% 25% 50% 75% 100%
CPAU - 2023 (n=400) CPAU- 2025 (n=408) • CPAU - 2023 (n=400) CPAU - 2025 (n=408) (electrification_familiarity): Prior to this survey, how familiar were you with the concept of home electrification? [electrification_support): How strongly do you support your local electric utility investing in electrification? (t/-) indicates stausucar siancance at a 95% confidence lever compared to CPAU 2V25 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 39 Electrification | Perception PALISALTO
Significantly fewer CPAU respondents in 2025 agreed that "electrification will help me reduce my environmental impact and conserve energy" (-11.3 percentage points) and that "electrification will improve the health of myself and those around me by reducing emissions from burning gas, a fossil fuel" (-11.1 percentage points). Furthermore, slightly fewer agreed that "electrification will help me save money on my electric bill" (-3.4 percentage points).
Agreement with Electrification Statements
20.3%
Electrification will help me save money on my electric bill
16.9%
59.3% (+)
Electrification will help me reduce my environmental
impact and conserve energy
48.0%
55.0% (+)
Electrification will improve the health of myself and those around me by reducing emissions from burning gas, a
fossil fuel 43.9%
25% 50% 75% 100%
CPAU - 2023 (n=400) CPAU - 2025 (n=408)
(electrification_agreement): Below is a list of statements regarding electrification. For each, please state your agreement using a scale of one to ten where one (1) Is "strongly agree" and ten (10) is "strongly disagree." Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 40 Electrification | Considerations & Barriers A PALMALTO
building / home barriers."
Electrification Products Considered Barriers to Adoption
22.5%
Heat pump water heater Up-front costs / too expensive 39.7%
25.0%
16.8% _ong payback times / lov
Induction stove 22.8%
21.1% eturn on investmer
Ducted Heat Pump HVAC 20.3%
Whole-building / home barriers 21.8%
system 15.7%
14.3%
Electric oven/stove top Higher utility bills 17.2%
13.2%
11.0%
Electric panel upgrade Power outages and disruptions 15.2%
13.0%
10.5%
Electric clothes dryer I don't own a home 12.5%
11.8%
25% 50% 0% 25% 50%
| CPAU - 2023 (n=400) • CPAU - 2025 (n=408) • CPAU - 2025 (n=408) Top 6 shown Top 6 shown; No tracking data
(electrification_products_considered): Electrification is the process of switching fossil-fuel powered appliances such as gas water heaters and gas furnaces to electric-powered equipment. Which of the following are you considering to increase the level of electrification within your home? (Select all that apply) [electrification_barriers): Which of the following barriers, if any, have made it difficult for you to switch appliances, heating and cooling systems, and other energy uses in your home to electric-powered equipment? (Select all that apply) (/-) indicates staustcar sionmicance al a 95% contidence level compared to CPAU 2025 dats Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /41 Electrification | Differences Between Income Groups PALALTO Significantly fewer low to moderate income CPAU respondents provided positive ratings for CPAU's ability to "offer innovative programs and services" compared to high income respondents (+15.7 percentage points). Furthermore, significantly fewer low to moderate income respondents plan to purchase an EV in the future or install solar panels in the next year.
Program and Service Ratings and Likelihood to Purchase by Income Positive Ratings of 7-10 on a Already own an EV or
10-Point Scale Plug-In Hybrid Already Have Solar Panels Installed 100%
80.2%
75%
64.5% (-)
50% 44.8%
25% 21.5% (-) 20.8%
9.2% (-)
0%
Offering innovative When do you anticipate How likely are you to programs and services purchasing an electric install solar panels on vehicle or plug-in hybrid your roof in the next 12
vehicle in the future? months?
I 2025 - CPAU - Low to Moderate Income (n=121) •| 2025 - CPAU - High Income (n=86) (t/-) indicates statistical significance at a 95% confidence level compared to the higher income bracket Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 42 Electrification | Heat Pump Water Heater PALMALTO
Despite fewer actively investing in solar or EVs, all low to moderate income CAU respondents who own a single family home or townhome were willing to spend some amount of money to replace their gas water heater with a heat pump alternative, with 31.5% willing to spend $500 to less than $1,000 and
21.7% willing to spend $2,500 or more. Over one-quarter of high income respondents were unwilling to pay for a water heater replacement; however, 41.8% are willing to spend $500 to less than $2,000.
Amount Willing to Spend to Replace Gas Water Heater Amount Willing to Spend to Replace Gas Water Heater Low to Moderate Income High Income
$2,500 or more 21.7% $4,000 or more 6.1%
$2,000 to less than $2,500 10.9% $3,000 to less than $4,000 6.1% $1,500 to less than $2,000 18.5% $2,000 to less than $3,000 9.2% $1,000 to less than $1,500 17.4% $1,000 to less than $2,000 19.4% $500 to less than $1,000 31.5% $500 to less than $1,000 22.4% $1 to less than $500 0.0% $1 to less than $500 9.2%
SO / not willing to pay 0.0% $0 / not willing to pay 27.6% Don't know / unsure 0.0% Don't know / unsure 0.0%
25% 50% 0% 25% 50%
• CPAU - 2025 (n=92) • CPAU - 2025 (n=98)
(water_heater_replacement): if replacing a typical gas water heater costs around $3,000, how much more would you be willing to spend, in addition to the $3,000, to replace your current gas water heater with a heat pump water heater? (Only asked to those kno on s once tamiy home or stowmomen
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 43 Electrification | Heat Pump HVAC PAID ALTO
Once again, all low to moderate income CAU respondents who own a single family home or townhome were willing to spend some amount of money to replace their gas HVAC system with a heat pump alternative, with 33.7% willing to spend $1,000 to less than $2,000 and 27.2% willing to spend $5,000 to less than $7,000. Over one-quarter of high income respondents were unwilling to pay for an HVAC replacement; however, 21.4% are willing to spend $1 to less than $2,000 and 18.4% are willing to spend $4,000 to less than $6.000.
Amount Willing to Spend to Replace Gas HVAC Amount Willing to Spend to Replace Gas HVAC Low to Moderate Income High Income
$9,000 or more 14.1% $10,000 or more 8.2%
$7,000 to less than $9,000 5.4% $8,000 to less than $10,000 6.1% $5,000 to less than $7,000 27.2%
$6,000 to less than $8,000 7.1%
$3,000 to less than $5,000 12.0%
$4,000 to less than $6,000 18.4%
$2,000 to less than $3,000 7.6%
$2,000 to less than $4,000 11.2%
$1,000 to less than $2,000 33.7%
$1 to less than $1,000 $1 to less than $2,000 21.4%
0.0%
$0/ not willing to pay 0.0% $o/ not willing to pay 27.6% Don't know /unsure 0.0% Don't know / unsure 0.0%
25% 50% 0% 25% 50%
• CPAU - 2025 (n=92) • CPAU - 2025 (n=98)
THWAC replacement: If replacing a typical gas furnace cost around 59,200, how much would you be willing to spend to replace your current gas heating system with a heat pump HVAC system? (Only asked to those who own a single family home or a Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 44 Electrification | Loan Preferences • PALT ALTO
Increa of bot permon ur enore, ore, nest made ate stares one pretered to pater to on allen the end a Biliar lie bill
13.9% of high income respondents were unsure of their preference.
Loan Preference for Heat Pump Water Heater
50.0%
Maximum utility bill increase of $50/month
50.0%
35.7% (+) i
Maximum utility bill increase of $30/month
13.9%
7.1%
Maximum utility bill increase of $20/month
• 2.8%
2.4%
Maximum utility bill increase of $10/month 11.1%
2.4%
No utility bill increase
5.6%
2.4%
Other
_ 2.8%
0.0% (-)
Don't know / unsure
13.9%
0% 25% 50% 75% 100%
Low to Moderate Income - CPAU - 2025 (n=42) • High Income - CPAU - 2025 (n=36) Only asked to those who indicated a loan would increase their likelihood to purchase a heat pump water heater interest_loan_water_heater]: What option would you prefer for a no interest loan paid directly on your monthly utility bill? (Only asked to those who own a single family home or a townhome) (* interestes statisticar signate eat a a could ne prever coma are to sungroups Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 45 Electrification | Loan Preferences PAID ALTO
Over one-half of low to moderate income respondents who expressed interest in a no interest loan to finance a heat pump HVAC installation preferred a maximum utility bill increase of $50 per month. Furthermore, over one-half of high income respondents preferred a maximum utility bill increase of $100 per month.
Loan Preference for Heat Pump HVAC Loan Preference for Heat Pump HVAC Low to Moderate Income High Income
Maximum utility bill increase of $50/month 56.8% Maximum utility bill increase of $100/month 52.6% Maximum utility bill increase of $40/month 13.6% Maximum utility bill increase of 80/month 5.3% Maximum utility bill increase of $30/month 18.2% Maximum utility bill increase of S60/month 10.5% Maximum utility bill increase of $20/month 2.3% Maximum utility bill increase of S40/month 13.2% Maximum utility bill increase of $10/month 2.3% Maximum utility bill increase of $20/month 10.5% No utility bill increase 6.8% No utility bill increase 0.0% Other 0.0% Other 5.3%
Don't know / unsure 0.0% Dont know/ unsure 2.6%
0% 25% 50% 75% 100% 25% 50% 75% 100%
• CPAU - 2025 (n=44) • CPAU - 2025 (n=38)
Only asked to those who indicated a loan would increase their likelihood to purchase a heat pump HVAC Only asked to those who indicated a loan would increase their likelihood to purchase a heat pump HVAC o interest Joan HVACI: What option would you prefer for a no interest loan paid directly on your monthly utility bill? (Only asked to those who own a single family home or a townhome +/- indicates statistical significance at a 95% confidence level compared to subgroup Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 46 Electrification | Assistance • PALO O ALTO
When asked what assistance would be most helpful in installing a heat pump system, the three most common responses among low to moderate income respondents were "upfront rebates," "information and guidance, ," and "no interest loans paid through my utility bill," while the most common responses among high income respondents were "upfront rebates." "help finding a contractor" and "information and quidance." Most Helpful Assistance to Install Heat Pump System
30.4%
Upfront rebates
36.7%
23.9% (+)
Low monthly payments with no upfront cost
12.2%
29.3%
No interest loans paid through my utility bill
19.4%
30.4%
Information and guidance 26.5%
25.0%
Help finding a contractor
| 29.6%
33.7%
I'm not interested in installing a heat pump right now
34.7%
8.7%
Don't know / unsure
11.2%
0% 25% 50% 75% 100%
• Low to Moderate Income - CPAU - 2025 (n=92) High Income -CAU - 2025 (n=98) heat_pump_installation_assistance): What type of assistance would most help you install a heat pump system? (Select all that apply) (Only asked to those who own a single family home or a townhome) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 47
PANDALTO
Solar
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 48 Solar | Solar Panels and Battery Storage
Nearly one-fifth of respondents in 2025 indicated they already have solar panels installed, while another 7.1% indicated they are "very" or "somewhat likely" to install solar panels in the next year. Nearly one-tenth of CPAU respondents indicated they are "very" or "somewhat likely" to install a battery storage system at their home in the future, while only 0.5% have one already. Notably, nearly three-fifths of respondents in 2025 were "not at all likely to install" either solar panels or battery storage systems.
Interest in Installing Solar Panels Interest in Installing Battery Storage Systems
10.8% 15.9% (+)
"Very" or "somewhat likely" "Very" or "somewhat likely"
7.1% 9.5%
3.2%
3.0% Very likely 1.9%
Very likely 1 2.2%
12.7% (+)
7.8% Somewhat likely | 7.6%
Somewhat likely
4.9%
15.1%
Somewhat unlikely
8.3% I 12.0%
Somewhat unlikely 7.8%
Not at all likely 47.7% (-)
52.8% | 59.4%
Not at all likely | 57.1% 19.9%
Don't know / unsure | 18.5%
14.3%
Don't know / unsure I have already installed a battery storage 0.8%
11.0%
system 0.5%
I have already installed solar 14.0% I plan to get an electric vehicle with bi- 0.5% panels 16.9% directional charging_0.0%
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2023 (n=400) CAU - 2025 (n=408) • CPAU - 2023 (n=371) • CPAU - 2025 (n=367) [solar_interest]: How likely are you to install solar panels on your roof in the next 12 months? battery_storage_interest]: How likely are you to install a battery storage system at your home? (+/) indicates statistical sianificance at a 95% confidence level compgred to CPAU 2025 dat- Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 49
PALM ALTO
Energy Efficiency Programs
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 50 Programs | Awareness O PALO ALTO
Awareness of Electrification Rebates and Incentives Awareness of Electrification Rebates and Incentives Among Those Interested in the Following Products:
100%
Yes (Aware) 33.6%
75%
No (Unaware) 43.9%
50%
34.3%
29.7%
Don't know / unsure 22.5% Battery
25% Electric
Storage 20.7%
(n=40) Solar Vehicle
Panels (n=52)
0% 25% 50% 75% 100%
(n=24)
• 2025 - CPAU (n=408) 0%
Yes (Aware)
No tracking data
electrification_rebate_awareness]: Are you aware of CPAU's energy efficiency rebate and incentive programs to lower customers' blis? +/-) indicates statistical sianificance at a 95% confidence level compgred to CPAL 2025 dan Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /51 Programs | Utilization PATALIO
a positive impact on the perception of the utility.
Utilization of Electrification Rebates and Incentives Positive Ratings for Utility's "Ability to Help Customers Use Less Electricity" by Utilization
100%
Yes (Have used a 32.1%
rebate/program) 82.1% (+)
75%
61.5%
No (Have not used a
58.4%
rebate/program) 50%
25%
Don't know / unsure 9.5%
0%
Helping customers use less electricity - Positive (7-10) 0% 25% 50% 75% 100%
• CPAU - 2025 (n=137) I CAU No (Have noted a ra albar grogram 3-5 No tracking data
e rebate utilization]: Have you ever received rebates or incentives from one of CPAU's programs / indicates statistical significance at a 95% confidence level compared to CPAU 2025 da Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 52 Programs | Awareness O PALO ALTO
Full-Service Heat Pump Water Heater Program" had the highest rate of familiarity among the four (4) listed programs, with over one-half of CPAL Bacp progra hine majority fresponde the fated the became aware tough lity blender Program" had the lowest rate of familiarity at 38.2%. Fo Familiarity with the Following Programs How did you become aware of these programs? Full-Service Heat Pump Water Utility bill insert 58.5%
55.9%
Heater Program
News article 7.9%
Home Electrification Rebates 43.6%
Word of mouth (family, friend, 5.9%
neighbor)
Home Electrification
Assessment and Expert 40.2%
Consultation Web search 3.6%
Emergency Replacement Heat 38.2%
Pump Water Heater Program Community event 3.2%
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2025 (n=408) • CPAU - 2025 (n=253)
No tracking data Top 5 shown; No tracking data
Theat_pump_awareness): How would you describe your familiarity with each of the following programs currently offered by the City of Palo Alto? Please use a scale of one to four where one (1) is very familiar and four (4) is not at all familiar. [heat_pump_info _source): How did you become aware of these programs? (/-) indicates stausical sionnicance al a 95% confidence level compared to CPAU 2025 dats Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /53 Programs | Utilization PAID ALTO
The "Full-Service Heat Pump Water Heater Program" had the highest participation rate at 25.9%, and "Home Electrification Rebates" had the highest expected future participation rate at 24.7%. Notably, roughly 30.0% or more of respondents were unsure of their intention to participate in the "Home Electrification Rebates," the "Emergency Replacement Heat Pump Water Heater Program," or the "Home Electrification Assessment and Expert Consultation."
Participation in Heat Pump Programs
Home Electrification Rebates 24.7% 29.8% 11.2% 34.3%
Home Electrification Assessment 15.9% 39.0% 15.2% 29.9% and Expert Consultation
Emergency Replacement Heat
14.7% 46.8% 7.1% 31.4%
Pump Water Heater Program
Full-Service Heat Pump Water 11.8% 38.6% 25.9% 23.7%
Heater Program
0% 25% 50% 75% 100%
• Yes, plan to participate (n=178) • No, do not plan to participate (n=178) Already participated (n=178) Dont know / unsure (n=178) Only asked to those who are aware of a heat pump program; No tracking data (heat_pump_participation): Did you participate, or do you plan to participate in this program in the future? Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 54
PALO ALTO
UTILITIES
Considerations
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 55 Considerations
Electrification First-Contact Resolution
Respondents of both income groups show a willingness to pay for replacement of gas water Although CPAU continues to outperform muni and IOU utilities in multiple customer service heaters and HVAC systems in exchange for heat pump alternatives, yet low to moderate metrics, the decline in first-contact resolution compared to 2023, combined with billing issues income respondents rely more on rebates, guidance, and financing support to make the being the most common driver of repeated contacts, presents a meaningful opportunity for transition feasible. High income respondents, meanwhile, place greater value on contractor operational improvement. Given that customers who resolve their issue on the first contact tend access and convenience. Leveraging this segmentation can help CAU boost adoption rates, to provide higher satisfaction ratings, strengthening the workflow around billing inquiries can especially for water heater and HVAC replacements, where customers already demonstrate help protect CAU's strong service reputation. Enhancing this process may also reduce substantial interest. customer friction during more complex interactions tied to electrification upgrades, rebates, and installation coordination.
Actionable Recommendations
• Develop income-specific messaging pathways for heat pump water heater and HVAC Actionable Recommendations replacement programs that reflect the motivations, financial constraints, and support • If not already in practice, implement a standardized billing resolution workflow that needs of each group. provides clear decision trees for frontline representatives, ensuring consistency across • Offer simplified "guided installation pathways," including contractor recommendations staff and reducing the need for escalation or follow-up calls. and step-by-step support, for high-income customers who prioritize convenience and • Continue to expand representatives' access to real-time account information (e.g., trusted installation partners. usage patterns, pending adjustments, payment history, rebate status) to enable • Promote no-interest, on-bill financing options more prominently to low to moderate quicker issue diagnosis and on-the-spot resolution. customers, emphasizing preferred payment increases of $30-$50 per month (with • Introduce a "Rapid Resolution Review" for repeat billing contacts, identifying common higher flexibility for HVAC installations). failure points such as unclear bill language, difficulty navigating online account tools, or • Enhance outreach during key replacement moments, including emergency delayed processing. replacements, with clearer, faster messaging on available rebates and financing • Integrate proactive digital tools, such as estimated bill explanations or usage trend options. visualizations, to help customers self-diagnose issues before contacting support, reducing call volume and complexity.
Additional Research Opportunity:
Conduct additional surveying to determine the most effective combinations of incentives, Additional Research Opportunity:
financing structures, and support services that maximize adoption of heat pump water heaters Conduct a post-contact survey specifically targeting customers who contacted CPAU about and HVAC systems among each income segment. This study would help CAU quantify which billing issues. The study would identify:
combinations produce the highest likelihood of electrification adoption. • Which billing issues most frequently require multiple interactions • Where customers felt the process stalled
• The clarity of explanations given by representatives
• Satisfaction differences between phone and digital self-service pathways Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 56
PALO ALTO
UTILITIES
About GreatBlue
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 57 Harnessing the Power of Data
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