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Municipal utilities boost
engagement with hyper -local
tactics
Published Feb. 12, 2024
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Small utility, big impact
Currently, there are nearly 2,000 municipal utilities (also known
as public power utilities) across the United States. With their
strong ties to the community, municipal utilities have myriad
opportunities for building long-term customer satisfaction.
Recent data illustrates that municipal utilities are seeing an uptick
in customer engagement. Questline Digital's 2023 Energy Utility
Benchmarks Report finds that municipal utilities achieved higher
engagement with their email communications compared to other
utility types, including investor -owned utilities (IOUs). In fact,
municipal utilities experienced the highest overall click -through
rate of all utility types at 3.4%.
For Elk River Municipal Utilities (ERMU), hyper -local initiatives
have had a significant impact on customer engagement. The utility
serves a population of about 28,000 customers (with 13,000
metered accounts) in Minnesota.
"I think the ability for Elk River to act locally allows customer
engagement to come more naturally to us," says Tony Mauren,
Governance and Communications Manager at Elk River Municipal
Utilities. "We have a clear market of people we serve, and we exist
solely at their discretion. That's why communicating our value to
customers is a top priority."
Out and about in the community
For municipal utilities, community involvement goes beyond
sponsorships and brand recognition. ERMU recently hosted an
open house event for Elk River residents to tour the new ERMU
Field Services Building.
The event featured live demonstrations and building tours, giving
customers a better understanding of what ERMU does and how the
new building will support the community.
"In a smaller town, we don't just sponsor events, we're actually
participating in them," says Jenny Foss, Communications and
Administrative Coordinator at Elk River Municipal Utilities.
"We're putting a face to our utility. It's incredibly important that
we're out in the community and engaging with customers."
Rochester Public Utilities (RPU), which serves over 57,00o electric
customers and 41,000 water customers in Rochester, Minnesota,
also makes community involvement a priority.
For the past 20 years, RPU has played a major role in the city's
annual Arbor Day Celebration in partnership with Rochester Parks
and Recreation, Maier Tree & Lawn and Sargent's Gardens. The
festival is the perfect opportunity to educate customers on
conservation and energy efficiency.
"Sustainability is a really big part of our community," says Patty
Hanson, Manager of Utility Programs & Services at Rochester
Public Utilities. "The City of Rochester has a Sustainability and
Resiliency Plan in place, and our utility has conservation programs
and sustainability goals. We're continuously out and about in the
community meeting with our customers and trade allies to achieve
these goals."
Community collaborations
As part of the local city government, municipal utilities naturally
have close relationships with various agencies and departments.
These connections are great opportunities for collaborations to
benefit the community and improve long-term customer
satisfaction.
RPU partners with natural gas provider Minnesota Energy
Resources on weatherization events at mobile home parks. They
hand out LED lightbulbs and educate customers on conservation
measures, how to read their energy and water bill, and more.
During the Neighborhood Energy Challenge, RPU provided free
attendance to the utility's "Saving Energy ioi" workshops, along
with free energy audits to low-income customers.
"We sent out multilingual postcards in Spanish, Somalian and
English to promote the event to low-income customers receiving
financial assistance," Hanson says. "We have a very diverse,
multicultural base in Rochester."
ERMU collaborated with the City of Elk River Housing and
Redevelopment Authority and the Tri-County Action Program
(Tri-CAP) to increase awareness of its Energy Assistance and
Weatherization Assistance Programs for residents facing financial
hardship.
Prior to the utility's involvement, the city's housing rehabilitation
loan program had a zero -percent participation rate. ERMU's
Communications team created an educational direct mailer to
reach customers who may qualify for the programs. The one -page
factsheet provided a quick snapshot of available programs,
eligibility requirements, how to apply and other valuable
information.
Following the direct mailer send, the City of Elk River received 17
inquiries (with four households participating in the HRA program)
in 2023. "We had a great response with the Home Improvement
Resources direct mailer," Foss says. "To date, this is the City's most
successful initiative for increasing awareness of the HRA loan
program while simultaneously bringing attention to assistance
available through Tri-CAP."
Educating customers on public power
One of the biggest challenges for municipal utilities is explaining
what they do, how they operate and the value they provide to
customers.
For RPU, educating customers about their various programs,
services and sustainability initiatives is a priority. For example, the
utility runs entertaining commercials called Tips From Tony on the
local TV station. RPU Communications Coordinator Tony Benson
educates customers on utility programs and timely seasonal
topics.
"We're public power — we are owned by the people of Rochester,"
Hanson says. "Engaging with our customers and educating them
on what we can offer as a public power utility goes a long way to
help us achieve our energy efficiency and sustainability goals."
Municipal utilities may be smaller in size, but they have a
tremendous impact on their communities. With their hyper -local
focus, engaging with customers is a balance of education,
community collaborations and impactful utility touchpoints.
"We don't answer to stakeholders — we answer to the community,"
Mauren says. "It's vital to communicate this distinction so
customers understand the benefits of public power. We regularly
communicate the value of being a public power utility and why it's
something to be proud of and excited about."