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More electric utilities adopt pre-pay programs, Chartwell reports

ATLANTA – July 12, 2011 – Led by the nation’s electric cooperatives, more utilities than ever are offering prepaid electricity service, industry research firm Chartwell says in Prepaid Metering 2011, the latest report issued as part of Chartwell’s Smart Grid Service.

But prepay service isn’t just limited to member-owned utilities, the report notes. Nine percent of the 130 survey respondents, including cooperatives, municipals and investor-owned utilities, report offering some level of prepaid electricity service to customers, Chartwell found.

Chartwell believes that advanced metering infrastructure (AMI) initiatives are driving increased interest in prepayment service. The depressed economy also is a factor, coupled with mandates for many utilities to reduce energy usage. Utilities tell Chartwell there is often a marked decrease in energy consumption and a higher level of engagement with customers on prepay programs. Utilities with prepay service also note a positive impact on revenue write-offs.

Though more utilities are offering prepay electricity service, it remains to be seen how much the service will expand industry-wide in coming years. Chartwell also found significantly fewer utilities than in year’s past planning or considering implementation of prepay programs.

Prepaid Metering 2011 covers a number of issues around prepay service, including:

·         Viable statistics on energy reduction and credit and collection benefits;

·         Drawbacks and obstacles to more utilities implementing; and

·         The promise of new technologies.

Prepaid Metering 2011 is available to Chartwell Smart Grid Service and Premier members. For information about this research or how to become a member, visit www.chartwellinc.com. Utilities can contact Doris Yon at dyon@chartwellinc.com; smart grid vendors and suppliers should contact Lisa Hartley at lhartley@chartwellinc.com.

ABOUT CHARTWELL INC.
Based in Atlanta, Chartwell is a specialized information provider that helps utilities improve their customer experience and ultimately customer satisfaction. Chartwell publishes case studies, quantitative research and industry data, and hosts conferences and other events for utility professionals. For more information, visit www.chartwellinc.com.

CONTACT
Dennis Smith
404.237.9099 ext. 31
dsmith@chartwellinc.com