FILED MAR 15, 2016 DOCUMENT NO. 01397-16 FPSC - COMMISSION CLERK BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION DOCKET N0.160021-EI FLORIDA POWER & LIGHT COMPANY AND SUBSIDIARIES IN RE: PETITION FOR RATE INCREASE BY FLORIDA POWER & LIGHT COMPANY AND SUBSIDIARIES DIRECT TESTIMONY & EXHIBITS OF: MARLENE M. SANTOS 1 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION 2 FLORIDA POWER & LIGHT COMPANY 3 DIRECT TESTIMONY OF MARLENE M. SANTOS 4 DOCKET N0.160021-EI 5 MARCH 15, 2016 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1 TABLE OF CONTENTS 1 2 3 I. INTRODUCTION........................................................................................... 3 4 II. OVERVIEW OF CUSTOMER SERVICE .................................................. 7 5 III. CUSTOMER CARE CENTERS ................................................................... 9 6 IV. CUSTOMER SERVICE FIELD OPERATIONS ...................................... 13 7 v. DIGITAL EXPERIENCE ............................................................................ 15 8 VI. ECONOMIC ASSISTANCE FOR LOW-INCOME CUSTOMERS ....... 19 9 VII. COMPLAINT RESOLUTION .................................................................... 21 10 VIII. CUSTOMER SERVICE O&M EXPENSE ................................................ 23 11 12 13 14 15 16 17 18 19 20 21 22 2 I. 1 INTRODUCTION 2 3 Q. Please state your name and business address. 4 A. My name is Marlene M. Santos. My business address is 9250 W. Flagler Street, Miami, Florida 33174. 5 6 Q. By whom are you employed and what is your position? 7 A. I am employed by Florida Power & Light Company ("FPL" or the "Company") as Vice President of Customer Service. 8 9 Q. Please describe your duties and responsibilities in that position. 10 A. As Vice President of Customer Service for FPL, I have responsibility for 11 developing and implementing programs and services that enhance the level of 12 customer service provided to FPL's customers. 13 Q. describe your educational background and professional experience. 14 15 Please A. I have a Bachelor's Degree in Finance and a Master's Degree in Business 16 Administration from the University of Miami. I have been Vice President of 17 Customer Service since January 2005. Since joining FPL in 1981, I have held 18 numerous positions of increasing responsibility in several functional areas, 19 including Finance, Marketing, and Customer Service, and have participated in 20 various special projects as assistant to FPL's President. I joined Customer 21 Service in 1990 and have served as Manager of Marketing, Manager of 22 Commercial Services, Director of Revenue Recovery, and Director of 23 Customer Care. 24 3 1 Q. Are you sponsoring any exhibits in this case? 2 A. Yes. I am sponsoring the following exhibits: • 3 MMS-1 MFRs Sponsored and Co-sponsored by Marlene M. Santos 4 5 • MMS-2 FPL Customer Service Awards and Recognition 6 • MMS-3 2015 Customer Care Center Satisfaction Research 7 • MMS-4 2015 Field Organization Satisfaction Research 8 • MMS-5 Florida Public Service Commission Logged Complaints 9 Q. ("MFRs") in this case? 10 11 Are you sponsoring or co-sponsoring any Minimum Filing Requirements A. Yes. Exhibit MMS-1 contains a listing of the MFR schedules that I am . . sponsonng or co-sponsonng. 12 13 Q. What is the purpose of your testimony? 14 A. The purpose of my testimony is to describe how FPL provides outstanding service to our customers while maintaining low cost and efficient operations. 15 16 Q. Please summarize your testimony. 17 A. FPL is very proud of its employees' many efforts to provide outstanding 18 service to its customers. We have worked hard to control costs and ensure 19 that our operations continue to improve through investments that allow us to 20 serve our customers' needs efficiently. 21 22 FPL continues to be recognized nationally with several awards for outstanding 23 customer satisfaction and providing superior customer service. For example, 4 in 2015, FPL was honored as a "Utility Customer Champion" after ranking 2 first in the southeast region and second nationally for residential customers, 3 and fourth in the southeast and tenth nationally for business customers. This 4 recognition is for outstanding performance among the nation's leading 5 utilities, according to a survey of utility customers conducted by Market 6 Strategies International, a leading nationwide research firm. As I address in 7 more detail throughout my testimony, we have also received a number of 8 additional awards from other leading industry associations, further validating 9 the high level of FPL's customer service. A summary of recent customer 10 service industry awards and recognition is attached to my testimony as Exhibit 11 MMS-2. 12 13 Our outstanding customer service is achieved through continuous process 14 improvement in our operations. For example, FPL designs its customer care 15 centers to ensure customer inquiries are answered promptly and accurately. 16 We have developed a nationally-recognized Interactive Voice Response 17 ("IVR") system that provides customers with the option to complete their 18 interaction in a fully-automated manner for many general inquiries. At the 19 same time, the field operations group provides face-to-face services to both 20 residential and business customers and has been recognized nationally for 21 providing excellent customer service. FPL also is investing in a multi-year 22 plan to transform the digital customer experience utilizing a mobile-first 23 approach to keep pace with our customers' expectations. 5 Our focus on 1 continuous improvement is also evident in both our high customer satisfaction 2 and our nearly 80 percent improvement in FPSC logged complaints over the 3 last decade, as demonstrated in Exhibits MMS-3, MMS-4 and MMS-5. 4 5 We are particularly mindful of the low-income customers we serve, and FPL 6 employees work closely with social services agencies to assist customers in 7 need. In 2015, we coordinated nearly 97,000 assistance payments received 8 from numerous agencies, crediting low-income customers' electric bills by 9 approximately $24 million. FPL's many efforts to assist its most vulnerable 10 customers have received industry recognition as well. 11 12 My testimony also demonstrates that the outstanding performance in 13 Customer Service has been achieved while keeping our operating and 14 maintenance 15 Commission ("FPSC" or the "Commission") benchmark. 16 Service costs are reasonable and necessary and support FPL's mission to 17 continue providing outstanding service, while keeping FPL's typical bills low, 18 for great customer value. As described by FPL witness Cohen, FPL's typical 19 residential bills are lower than they were 10 years ago in 2006, approximately 20 20 percent lower than the Florida average, and about 30 percent lower than the 21 national average. ("O&M") expenses 22 23 6 below the Florida Public Service FPL's Customer II. 1 OVERVIEW OF CUSTOMER SERVICE 2 3 Q. Please provide an overview of the Customer Service organization. 4 A. FPL's Customer Service organization is responsible for developing and 5 executing policies, processes and systems related to contacts with our 6 customers. 7 operations, which is responsible for account management for large 8 commercial/industrial and governmental customers and other field-related 9 activities; complaint resolution; billing and payment processes; smart meter 10 network operations; development and implementation of FPL's Demand Side 11 Management programs; and credit and collections activities. 12 Q. 15 Has FPL been recognized for providing outstanding performance in the area of Customer Service? 13 14 This includes customer care centers; customer service field A. Yes. FPL is recognized as an industry leader in terms of customer service performance. 16 17 FPL was awarded the ServiceOne Award in 2013 for the tenth consecutive 18 year, an unprecedented achievement in our industry. The award is presented 19 by PA Consulting Group, a leading management, systems and technology 20 consulting firm with worldwide operations in more than 35 countries. The 21 ServiceOne Award recognizes utilities that provide exceptional service to 22 their customers as determined by a set of 26 objective measures of excellence 23 in customer service developed by a panel of industry experts. The year 2013 7 was the last year PA Consulting offered this benchmarking program. FPL 2 continues to access and utilize other industry data to benchmark its 3 performance, identify opportunities, and help ensure FPL remains cost- 4 competitive. 5 6 FPL has also received several awards specific to the different functional areas 7 of the Customer Service organization. For instance, as I discuss later, the field 8 operations group has been recognized within the electric utility industry, and 9 the call centers have distinguished themselves relative to not only the electric utility industry, but also other industries. 10 11 Q. recognition for overall outstanding customer satisfaction? 12 13 In addition to the Customer Service recognition above, has FPL received A. Yes. FPL has been recognized for outstanding customer satisfaction in 14 national surveys whose components include customer service, reliability, 15 communications, price, corporate citizenship and others. 16 17 As I mentioned previously, FPL was honored in 2015 as a "Utility Customer 18 Champion" after ranking first in the southeast region and second nationally 19 for residential customers, and fourth in the southeast and tenth nationally for 20 business customers, according to a survey of utility customers conducted by 21 Market Strategies International, a leading nationwide research firm. 22 8 1 FPL's customer satisfaction for both residential and business customers is 2 among the highest in the region based on the average of the scores from JD 3 Power's 2015 Electric Utility Residential Customer Satisfaction Survey and 4 its 2016 Electric Utility Business Customer Satisfaction Survey. J.D. Power 5 and Associates is a global marketing information services that conducts 6 surveys of customer satisfaction, product quality, and buyer behavior for 7 various industries. 8 satisfaction study is shown on FPL witness Dewhurst Exhibit MD-3. The regional comparison of the JD Power customer 9 III. 10 CUSTOMER CARE CENTERS 11 12 Q. Please describe the operation of the customer care centers. 13 A. Our customer care centers are designed and are continuously enhanced using 14 state-of-the-art technology with the objective of ensuring that all customer 15 inquiries are answered promptly and accurately. There are several locations 16 and numerous remote agents that are configured to act as one virtual contact 17 center that handles inbound and outbound calls, as well as emails, letters and 18 faxes. 19 Q. the industry? 20 21 How do FPL's customer care centers compare with other call centers in A. In February 2016, FPL's customer care center was certified as a Center of 22 Excellence by BenchmarkPortal, 23 benchmarking, certification, training and consulting. The recognition is one 9 the global leader in call center 1 of the most prestigious awards in the customer service industry. It is awarded 2 only to select call centers that rank among the top 10 percent of the centers 3 surveyed. Participating centers are judged against a balanced scorecard of 4 metrics for efficiency and effectiveness. 5 6 In 20 15, BenchmarkPortal also ranked FPL for the third year in a row as 7 having one of the top call centers in North America. The ranking is the result 8 of the 2015 Top 100 Call Center Contest. FPL earned third place in the "large 9 centers" category. The competition compares the performance of call centers 10 throughout North America by evaluating their key metrics against industry 11 peers and ranks them based on efficiency and effectiveness. 12 13 FPL also received the Southeastern Electric Exchange ("SEE") Excellence 14 Award in 2014 for its Customer Experience Solution ("CES"). 15 Industry Excellence Awards program recognizes member companies for 16 successfully implementing projects that demonstrate innovation, improvement 17 and technical complexity. 18 comprehensive view of our customers' experience by integrating customer 19 service, reliability performance, smart grid data and other pertinent customer 20 information into a single dashboard. The tool provides our customer service 21 representatives with a greater understanding of customer needs and 22 experiences, giving a more personalized response to their inquiries. The SEE The CES was developed to provide a 23 10 1 Q. Please describe FPL's IVR system. 2 A. FPL continues to invest in its IVR system to enhance existing, and develop 3 new, applications that allow customers to easily conduct business through 4 self-service without the need to speak to a representative. Capabilities have 5 been created that provide interactive customer applications for connecting and 6 disconnecting service; power outage reporting; billing inquiries; bill payment; 7 payment extensions; reconnection of service; requesting duplicate bills; and 8 obtaining general information on many other services we provide. 9 10 Future enhancements will include speech recognition- allowing customers to 11 speak their request rather than pressing buttons on the phone. 12 important as the number of customers conducting business via mobile phones 13 continues to grow. 14 greater flexibility, presenting customers with more options. Customers will be 15 able to simply say what they want and complete their interactions much faster. 16 In 2015, business conducted through FPL's IVR self-service telephone 17 applications totaled nearly 14 million transactions. These transactions account 18 for almost 70 percent of all phone calls received by FPL. This is A speech recognition-enabled IVR will provide much 19 20 FPL's IVR achieved top 10 performance in the 2013 E Source Review of 21 North American Electric and Gas Company IVRs. The study is based on an 22 assessment of 96 utility IVRs. 23 features that residential customers want and expect to find on a utility IVR. Reviewers searched for and rated 10 key 11 1 The final score for each IVR is a combination of two factors based on 2 functionality and usability. 3 every two years. At the time that this testimony was prepared, 2015 results 4 were not available. 5 Q. Does FPL measure customer satisfaction for customers who contact the customer care centers? 6 7 The E Source Review is typically performed A. Yes. Ongoing surveys are performed to measure overall satisfaction with the way calls are handled. 8 9 Q. Please describe the results of these surveys. 10 A. The surveys are conducted using a random selection process and are 11 performed on an ongoing basis. The surveys measure overall satisfaction with 12 the call, the ease of contacting FPL, satisfaction with the representative, and 13 satisfaction with the IVR. Customers score their overall satisfaction using a 14 seven point scale. 15 indicates the lowest satisfaction rating. In 2015, residential customers rated 16 their satisfaction a six or seven 85 percent of the time or higher across the four 17 measures, and business customers rated their satisfaction a six or seven 81 18 percent of the time or higher. 19 performance in these measures. Additionally, a key design of the surveys is to 20 provide a means of identifying improvement opportunities. FPL continuously 21 monitors the results of the surveys in order to identify those areas of concern 22 where we can proactively take action. 23 customer care center satisfaction research results are attached to my testimony Seven indicates the highest satisfaction rating and one These scores demonstrate FPL's strong 12 FPL's residential and business 1 as Exhibit MMS-3. 2 IV. 3 CUSTOMER SERVICE FIELD OPERATIONS 4 5 Q. 6 7 Please describe how FPL provides service through its field operations group. A. FPL provides services to customers through its field force of residential, and commercial/industrial 8 small/medium 9 representatives. This group of employees is dedicated to serving individual 10 customers at their horne or place of business. These services include on-site 11 personalized analysis of business or horne energy use, high bill investigations, 12 or investigation of any other concerns that a customer may have about their 13 account. Recognizing that our larger commercial/industrial and governmental 14 customers have a broader range of needs, FPL representatives provide a 15 personalized level of service to these customers. 16 manager serves as a single point of contact for all energy-related and customer 17 service issues for these large, complex energy users. A dedicated account 18 team supports the efforts of the account manager in the areas of reliability, 19 new construction, new energy technology, billing, energy efficiency, and 20 innovative solutions. 21 Q. 22 23 business, governmental, A dedicated account Does FPL measure customer satisfaction for customers who interact with the field organization? A. Yes. Similar to how we conduct surveys with customers that contact our care 13 1 centers, ongoing surveys are performed to measure satisfaction of residential 2 and business customers with the way field services are handled. Customers 3 score their overall satisfaction using a seven point scale. Seven indicates the 4 highest satisfaction rating, and one indicates the lowest satisfaction rating. 5 Survey results for business and residential customers have been exceptional. 6 For example, in 2015, business customers rated their satisfaction with the 7 account manager as a six or seven 99 percent of the time for governmental 8 customers and 97 percent of the time for major accounts customers. FPL's 9 field organization satisfaction research results are attached to my testimony as Exhibit MMS-4. 10 11 Q. Customer Service field operations? 12 13 Has FPL been recognized for outstanding performance in the area of A. Yes. Our business account management team has been recognized nationally 14 for its performance. FPL received the Edison Electric Institute ("EEl") 2015 15 National Key Accounts Executive Award for Outstanding Customer Service. 16 The award recognizes National Key Accounts executives who provide multi- 17 site organizations with customer service and assistance that goes above and 18 beyond expectations. 19 20 In 2014, FPL received the EEl National Key Accounts Award for outstanding 21 Customer Service. 22 developed and/or maintained exceptional National Key Accounts programs 23 based on quality customer service. The award recognizes utility companies that have 14 1 In addition, FPL earned first place in the national 2014 E Source Gap and 2 Priority Benchmark survey of large business customers in recognition of their 3 satisfaction with the utility and the value provided by account representatives. 4 This survey is based on responses from more than 1,000 U.S. utility large 5 business customers. E Source provides independent research, advisory and 6 information services to utilities, major energy users, and other key players in 7 the retail energy marketplace. FPL received high scores in all categories, 8 including satisfaction with the utility and with their account representative. 9 V. 10 DIGITAL EXPERIENCE 11 12 Q. channel? 13 14 How is FPL improving the customer experience through the digital A. The Company understands that customers want an easy-to-use, With the rapid transformation of 15 straightforward digital experience. 16 technology, devices and new channels, customer expectations are increasing 17 at an accelerated rate. Based on research performed in 2013, FPL's customers 18 found FPL's online self-service offerings outdated and hard to use. 19 response to this feedback, in 2014 FPL invested in a multi-year plan to 20 transform the digital customer experience utilizing a mobile-first approach, as 21 nearly half of FPL's customers visit FPL.com from mobile devices and 22 tablets. The goal is to ensure the best experience for each customer's device 23 using responsive design for mobile, tablet and desktop. 15 In It also includes 1 personalized communication, which means delivering the right experience and 2 message based on customers' channel preference. 3 4 FPL already is seemg positive results from the initial digital expenence 5 improvements. The online registration process on FPL.com is the gateway to 6 self-service. Online customer registrations increased by 122 percent in 2015. 7 With FPL's new responsive, mobile-first approach, the number of customers 8 registering their accounts on mobile and tablet devices also increased by over 9 600 percent in 2015. 10 11 FPL.com received a Top 10 ranking in the E Source 2015 Review of 102 12 North American Electric and Gas Company Residential Websites. 13 addition, the 2015 Market Strategies International syndicated customer 14 satisfaction survey ranked FPL as the No. 1 large utility in the South region, 15 and in the top three nationwide for engaged customer relationships with our 16 digitally-enabled customers. 17 Q. Please elaborate on the services that FPL provides to its customers over the Internet. 18 19 In A. Customers can use FPL.com to complete most of the transactions available 20 through the IVR, such as updating account information; making billing 21 inquiries; requesting payment extensions; reporting power outages; checking 22 the status of an outage; reporting street light outages; viewing bills; paying 16 1 bills; ordering duplicate bills; enrolling in email billing and budget billing; 2 and connecting, disconnecting or transferring service. 3 4 Customers also can use FPL.com to manage their energy use by either taking 5 an Online Home Energy Survey or viewing the Energy Dashboard. 6 Energy Dashboard on FPL.com enables customers with smart meters to 7 monitor their energy use by the hour, day and month, dramatically expanding 8 their ability to manage their energy use. In 2015, customers accessed the 9 Energy Dashboard more than 3.5 million times. FPL continues to enhance 10 dashboard features and improve functionality. Recent enhancements include 11 providing FPL customers with a time-of-use rate feature allowing them to see 12 their energy usage during peak and off-peak hours; a Spanish language 13 version of the content pages on FPL.com; and a customer preference center, 14 where customers can choose their preferences among options for receiving 15 automated FPL communications. The 16 17 Business customers with smart meters have access to a secure, online 18 Business Energy Dashboard. In addition to providing a view of energy use by 19 the hour, day and month, energy use can be evaluated in some cases in 15- 20 minute intervals. With the Business Energy Dashboard, customers can 21 forecast and budget energy use; understand variables affecting their bill; easily 22 identify savings associated with efficiency upgrades and equipment 23 improvements; understand how temperature and humidity affect energy use 17 1 and bills; and group accounts to better understand and manage energy use 2 across sites. Recent enhancements to the Business Energy Dashboard include 3 tutorial videos for business customers and a more accurate bill projection 4 calculation tool. 5 Q. pace with customers' changing expectations. 6 7 Please describe how FPL's social media program has evolved to keep A. The use of social media for customer interactions has achieved mainstream 8 status and has expanded exponentially over the past two years. With the rise 9 in social media usage in recent years, FPL has seen a small portion of its 10 customer base contacting us for account-related service through these 11 channels. In late 2014, FPL standardized social media technology across the 12 Company, allowing FPL to improve the level of service provided to customers 13 through social media. 14 experience, social media allows FPL to communicate with its customers about 15 programs and services that can benefit them. FPL has more than 103,000 16 followers on its Facebook and Twitter pages. FPL uses these channels to 17 inform customers about reliability updates in their area and changes that could 18 impact their bill. FPL also publishes a monthly "Ask the Energy Expert" blog 19 that addresses common energy efficiency questions and provides tips on how 20 to save money. Beyond offering customers a personalized service 21 22 In the event of an emergency or major storm, FPL has built a social media 23 rapid response team responsible for proactively distributing (or "posting") 18 1 information so it reaches as many stakeholders as possible, engages with 2 customers who have questions, and analyzes social media conversations to 3 make sure the messages are received. When an event like a major storm 4 occurs, social media activity may become a central point of communication 5 throughout the progression of the event. 6 7 FPL's social media program has been recognized in the industry. In 2014, E 8 Source conducted a survey of 57 utility companies, and FPL's social media 9 program ranked number four for having exceptionally engaging content and good customer communication and customer service. 10 11 12 VI. ECONOMIC ASSISTANCE FOR LOW-INCOME CUSTOMERS 13 14 Q. Please discuss the energy affordability initiatives for payment assistance. 15 A. FPL's ASSIST program helps eligible customers by facilitating emergency 16 payment assistance, including the Low Income Home Energy Assistance 17 Program (LIHEAP), through state and community action agencies and 18 nonprofits, as well as social service and faith-based organizations. The 19 program includes a network of nearly 850 partners in Florida who determine if 20 customers are eligible for assistance. The program also helps disburse the 21 assistance funds. 22 23 FPL has sponsored the FPL Care To Share® Program smce 1994. This 19 1 program combines donations from customers, NextEra Energy employees and 2 NextEra Energy shareholders, and has provided an average of $1.4 million 3 annually over the past 10 years to customers in need. The funds are 4 administered similarly to LIHEAP funds, through partner agencies that 5 receive funds from FPL and handle the complete intake and qualification 6 process. 7 8 FPL employees work closely with the agencies to assist low-income 9 customers while resources are allocated and secured for them. In 2015, low- 10 income customers received nearly 94,000 assistance payments from numerous 11 agencies, representing over $24 million credited toward their electric bills. 12 Q. to customers? 13 14 What other initiatives has FPL worked on to increase payment assistance A. FPL leads several other initiatives with a focus on growing available energy 15 assistance resources, including identification of new funding sources. FPL 16 was a co-founder of the Coalition for Affordable Energy for All, in 17 partnership with Entergy, TXU Energy, Atmos Energy, Arizona Public 18 Service, Tucson Electric Power, Centerpoint Energy, and other utilities. 19 These partners work together to influence congressional funding and the 20 methodology for administering the federal LIHEAP Program. Costs for such 21 efforts are recorded below the line and thus not included in this base rate 22 request. 23 20 1 To ensure that customers in need are aware of the availability of assistance 2 funds, we provide customers with the contact information of local social 3 services agencies that partner with FPL's ASSIST program. We provide a 4 specific agency name and phone number to customers in need on FPL's 5 website based on the customer's ZIP code. 6 representatives also have access to information at the ZIP code level, and offer 7 the same information to callers when appropriate. Our Customer Care 8 9 FPL's many efforts to assist its most vulnerable customers were recognized in 10 2013 with the National Fuel Funds Network Corporate Excellence Award, 11 which recognizes outstanding corporate achievement in supporting low- 12 income customers. 13 VII. 14 COMPLAINT RESOLUTION 15 16 Q. How does FPL handle customer complaints? 17 A. FPL's goal is to ensure that every customer is satisfied with the handling of 18 their inquiry. While it is not realistic to expect 100 percent satisfaction, we 19 have developed a process that is designed to maximize the opportunity to 20 successfully address customers' concerns. Customers who contact the care 21 center and want their inquiry escalated are offered the option of speaking with 22 a care center account supervisor. 23 employees with more experience and broader authority who are dedicated to 21 Account supervisors are a group of 1 resolving customer issues quickly and efficiently. They are able to resolve the 2 majority of calls directly. 3 department outside of the care center, the customer is provided the department 4 name to which their matter is being referred, as well as a timeframe in which 5 the appropriate representative will contact the customer for resolution. 6 Additionally, the customer is given the care center account supervisor's name 7 and telephone number in the event they need further assistance. A ticket for 8 follow-up is then created, and the matter is monitored for completion in a 9 timely manner. However, if the call requires follow-up with a 10 11 In the event that a customer complaint is not resolved, the customer may 12 choose to contact the FPSC. As part of our complaint handling process, FPL 13 participates in the Transfer-Connect and Email processes established by the 14 FPSC to help resolve disputes between regulated companies and their 15 customers as quickly, effectively, and inexpensively as possible. 16 processes involve transferring the customer call or email directly from the 17 FPSC to a specialized group of FPL customer advocates for expedited 18 handling, if the customer agrees. 19 Q. How has the number of FPL customer contacts with the FPSC changed in recent years? 20 21 These A. When looking at the complaints that are recorded as "logged" in the FPSC 22 Consumer Activity Report, FPL has shown a reduction in complaints of nearly 23 80 percent per 1,000 customers over the last decade. 22 FPL recorded 0.03 1 complaints per 1,000 customers in 2015, compared to 0.16 complaints per 2 1,000 customers in 2006. 3 Florida Public Service Commission Logged Complaints, which is a summary 4 of logged complaint data per 1,000 customers for FPL from 2006 through 5 2015 and for the five Florida investor-owned utilities for 2015. 6 shows that in 2015, FPL had the second lowest level of logged complaints 7 when compared to the other utilities. Logged complaints related to electric 8 service, which are a subset of the total logged complaints described above, are 9 addressed in more detail in the direct testimony of FPL witness Miranda. Attached to my testimony is Exhibit MMS-5, The data 10 VIII. CUSTOMER SERVICE O&M EXPENSE 11 12 13 Q. Please provide an overview of Customer Service's O&M expenses. 14 A. Customer Service O&M is driven by several key activities including billing, 15 payment processing, customer care, credit and collections, and various field 16 and support activities to serve our customers. In addition to these activities, 17 uncollectible expense is a cost driver for Customer Service O&M. 18 19 20 21 22 23 1 Q. How do the Customer Accounts, Customer Service, and Sales functional 2 areas' O&M expenses for the 2017 Test Year compare to the 3 Commission's O&M benchmarks (MFR C-41, O&M Benchmark 4 Variance by Function)? 5 A. The Customer Accounts, Customer Service, and Sales 2017 Test Year O&M 6 expenses are below the Commission's O&M benchmark thresholds for each 7 functional area. 8 Q. How do the Customer Accounts, Customer Service, and Sales functional 9 areas' O&M expenses for the 2018 Subsequent Year compare to the 10 Commission's O&M benchmarks (MFR C-41, O&M Benchmark 11 Variance by Function)? 12 A. The Customer Accounts, Customer Service, and Sales 2018 Subsequent Year 13 O&M expenses are below the Commission's O&M benchmark thresholds for 14 each functional area. 15 Q. Does this conclude your direct testimony? 16 A. Yes. 24 DocketNo. 160021-EI MFRs Sponsored and Co-Sponsored by Marlene M. Santos Exhibit MMS-1, Page 1 of 1 Florida Power & Light Company MFRs SPONSORED AND CO-SPONSORED BY MARLENE M. SANTOS C-11 UNCOLLECTIBLE ACCOUNTS F-09 PUBLIC NOTICE D-06 E-07 E-13b Prior Test Subsequent Year Adjustment Test Subsequent Year Adjustment Test Subsequent Year Adjustment CUSTOMER DEPOSITS DEVELOPMENT OF SERVICE CHARGES REVENUE BY RATE SCHEDULE- SERVICE CHARGES Docket No. 160021-EI FPL C ustomer Service Awards and Recognition Exhibit MMS-2, Page 1 of 2 FPL Customer Service Awards and Recognition 2016 Our customer care center was certified as a Center of Excellence by BenchmarkPortal, the internationally-recognized customer contact research organization. » The recognition is one of the most prestigious awards in the customer service industry and is awarded to call centers that rank in the top ten percent of the call centers surveyed and are judged against a balanced scorecard of metrics for efficiency and effectiveness. 2015 Named a "Utility Customer Champion" for outstanding performance among the nation's leading utilities by Market Strategies International, a leading nationwide research firm. » Residential customers ranked FPL No. 1 in the southeast and No. 2 nationally. . MARKETSTRATEG I ES » Business customers ranked FPL No. 4 in the southeast and No. 10 nationally. Named one of the top call centers in North America for the third year in a row by BenchmarkPortal. » FPL ranked third in the large centers category of the Top 100 Call Center Contest. which compares the performance of contact centers by evaluating their key metrics against industry peers. FPL.com received a Top 10 ranking in the Review of North American Electric and Gas Company Residential Websites conducted by E Source, the leading utility consulting services organization. » The review analyzes website features on both computers and mobile devices that are important to residential customers. Received the National Key Accounts Executive Award for Outstanding Customer Service from the Edison Electric Institute, the association that represents U.S. investor-owned electric companies. » The award recognizes National Key Accounts executives who provide multi-site organizations with customer service and assistance that goes above and beyond expectations. EEI Docket No. 160021-EI FPL Customer Service Awards and Recognition Exhibit MMS-2, Page 2 of2 2014 Ranked No. 1 in the large business customer satisfaction survey conducted by E Source. » Results are based on responses from more than 1,000 North American utility customers. Received the National Key Accounts Award for Outstanding Customer Service from t he Edison Electric Institute. » The award recognizes utility companies that have developed and/or maintained exceptional National Key Accounts programs based on quality customer seNice. Received the Southeastern Electric Exchange Excellence Award for Customer Experience Solution dashboard. » Tool developed to provide greater understanding of customer needs to provide more personalized responses to inquiries. EEI ........¥,. INOUSUY g.rrrllt nr" A W A R D 2013 Received the ServiceOne Award for outstanding customer service for unprecedented tenth consecutive year. » Award presented by worldwide consulting firm PA Consulting based on criteria that cover typical utility customer service operations. » Program was discontinued by PA Consulting after 2013. Achieved top 10 performance for Interactive Voice Response (IVA) system from E Source. » Study based on assessment of features that residential customers want and expect to find on a utility IVA. » The study is typically performed every two years and 2015 results are not available. Received Corporate Excellence Award from the National Fuel Funds Network, the nonprofit organization that works to raise and distribute utility assistance funding to low-income customers. » The award recognizes outstanding corporate achievement in supporting low-income customers. ServlceOne B\ Docket No. 160021-EI 2015 Customer Care Center Satisfaction Research Exhibit MMS -3, Page 1 of 1 2015 Customer Care Center Satisfaction Research The satisfaction score is the percent of customers rating the area being measured as a six or seven on a seven point scale. Seven indicates the highest level of satisfaction. Residential Customers C/) a: w :a 0 ~ .... ::::Ja: oo ..J(O ~<( Z<( ww O a: (jj <( W<( !DC) u.z o- 40% 1-< zo:: w () 0:: 20% w a.. Oo/o Small/Medium Business Major Accounts National Accounts Governmental Accounts Residential Customers - Satisfaction with the Field Representative 100% (/) 0:: w ., .. ~ :2 .... 80% (/) :::lo:: oo -' u.u 0.15 5~ 0 a: 0.16 0.10 0.06 UJ ID ~ ::> 0.05 z 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Logged Complaints for Florida Investor Owned Utilities January- December 2015 0.30 (j) 0.25 0.26 1-Ul za: 5~ o..o ~~-oUl u=> u.u oo 0 a:o UJ~ IDa: ~UJ 0.20 0.18 0.15 0.10 0 .12 :>a.. z 0.05 0.00 0.02 Gulf Power Company Florida Power & Light Company Tampa Electric Light Company Duke Energy Florida SOURCE: FPSC Monthly Consumer Activity Report 15·Day Logged (Number of Complaints); FERC Form 1 (Number of Customers) Florida Public Utilities Company