NSTAR Electric Company and Western Electric Company each d/b/a D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 1 of 29

Eversource Energy Brand Pulse Study October 2015

1 NSTAR Electric Company and Western Massachusetts Electric Company Background each d/b/a Eversource Energy D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 2 of 29

• The new Eversource brand launched in February 2015 – bringing together six legacy companies under one new brand with a single company mission to deliver reliable, affordable energy with superior customer service. • The new brand launched into a difficult business and public relations- related climate. – Energy rates increased with limited customer awareness or understanding of the root causes. – Customer phone calls flooded the call centers at a much higher rate than expected, resulting in long wait times. – The Eversource website experienced technical issues with customers being unable to log into their accounts to pay their bills. – Stories in the press regarding Eversource executive compensation fueled customer frustrations related to the rate increases.

• As a result, JD Power latest 2015 rankings reflected customer dissatisfaction with Eversource related to affordability and service – Eversource ranked in lower tiers relative to their peers in the market.

2 NSTAR Electric Company and Western Massachusetts Electric Company Study Objectives each d/b/a Eversource Energy D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 3 of 29

• Primary Objectives – Understand the impact of the recent rate increase on customer perceptions of Eversource – Gain insights on customers bill literacy and knowledge of Eversource’s role in supplying and delivering energy – Gauge awareness, knowledge and interest in Eversource’s role in developing solutions to increase supply of energy in

• Secondary Objectives – Track brand awareness/familiarity and favorability levels of Eversource brand. – Understand levels of satisfaction and track key brand attributes for Eversource and competitive set. – Dimensionalize the depth of understanding for the energy supply issue and the relationship to energy prices. – Other areas of exploration will include: Knowledge of competitive suppliers, sources of energy, understanding on how to reduce, awareness of specific projects/initiatives (e.g. Northern Pass, Access Northeast)

3 NSTAR Electric Company and Western Massachusetts Electric Company Methodology each d/b/a Eversource Energy D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 4 of 29

• Online quantitative study conducted with 800 electric customers in New England

Eversource Competitor State Customers Customers 137 75 Massachusetts 226 75 137 75 Maine -- 75 Total 500 300

• Recruiting criteria included adults 25+, responsible for paying the electric bill in the household.

• Study fielded on September 22-28th.

4 NSTAR Electric Company and Western Massachusetts Electric Company Key Takeaways each d/b/a Eversource Energy D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 5 of 29

• Since the launch in February, Eversource has successfully established a strong brand in the New England area…one that surpasses awareness levels of brands that have been in the market for years. • Eversource has also successfully shown progress in establishing credibility for key reliability and outage restoration attributes. • The negative sentiment around price, however, is clouding any positive perceptions of the Eversource brand. • While customers believe they understand the components of the bill, very few actually know or attribute the increase to the decline in the supply of energy. • Most are also not aware of the initiatives Eversource is working on to increase the supply of energy. – The primary role of an energy utility company appears to be narrowly perceived as one that only restores outages and distributes energy.

• A meaningful opportunity exists to broaden this perspective by positioning Eversource as the leader in devoting time, resources and expertise to reducing energy costs in New England.

5 Since the launch in February, Eversource has successfullyNSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy established a strong brand across New England D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 6 of 29 • Eversource brand awareness levels surpasses brands like National Grid that have been in the market for years.

Unaided Awareness Levels (Among All Residents of Each State)

Massachusetts Connecticut New Hampshire

Eversource 56% Eversource 55% Eversource 53%

Nstar/NU 39% United Illuminating 33% PSNH 38%

National 36% CL&P 31% Unitil 24% Grid

WEMCO 4% Nstar/NU 5% NH Electric Coop 11%

ConEdison 4% Direct Energy 4% National Grid 6%

Unitil 2% National Grid 1% Nstar NU 2%

Q7 When you think specifically of electric utility providers, which companies come to mind first? Q8 Although you may have mentioned them before, which of the following electric utility companies, 6 have you ever heard of? Please select all that apply. NSTAR Electric Company and Among Eversource customers, unaided awarenessWestern Massachusetts levels Electric are Company each d/b/a Eversource Energy even higher D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 7 of 29 Unaided Awareness Levels (Among Eversource Customers in Each State)

Massachusetts Connecticut New Hampshire

Eversource 70% Eversource 78% Eversource 72%

Nstar/NU 44% CL&P 30% National Grid 40%

National Grid 29% Nstar/NU 5% PSNH 3%

WEMCO 5% National Grid 1% Nstar NU 0%

7 Customers rate addressing power outages and deliveringNSTAR Electric Company reliable and Western Massachusetts Electric Company each d/b/a Eversource Energy service as the most important attributes of their utility D.P.U.company 15-122/15-123 Attachment AG-6-17(d) Page 8 of 29

Factors Most Important When Thinking About Your Electric Utility Company (Top 2 Box Important)

Addresses power outages in the best way possible 92%

Delivers reliable service (e.g., few outages) 91%

Is competitively priced 88%

Easy-to-understand billing 87%

Excellent customer service, answers questions quickly 87%

Is completely focused on meeting customer needs 87%

Provides helpful technical support 82%

Offers energy efficiency solutions to manage energy costs 81%

Communicates frequently with important information 74%

Offers a variety of ways of communicating 73%

Is a responsible member of the community 73%

Easy-to-use website 71%

Offers "green" renewable energy options 70%

Q15. Please indicate how important to you each of the following factors is when thinking specifically 8 about your electric utility company. Customers give Eversource’s strong reliability ratingsNSTAR Electricacross Company and Western Massachusetts Electric Company each d/b/a Eversource Energy New England reporting fewer outages in the past year D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 9 of 29

Reliability Have had an outage in the (Top Two Box) past 6-12 months

84% 82% 81% 81% 78% 80% 78% 76% 71% 66%

53% 47% 42% 40% 37% 35%

Total CT MA NH Total CT MA NH Eversource customer Competitor customer Eversource customer Competitor customer

Q11. How would you rate the reliability of your electric utility company? Q17. Have you had a power outage in the past 6-12 months? 9

Eversource has successfully shown progress in establishingNSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy credibility for key reliability and outage restoration attributesD.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 10 of 29

Attributes Most Important to Customers and How Utility Company Delivers On them (Top 2 Box Important) 92% 91% 88% 87% 87% 87%

82% 81%

74% 73% 73% 71% 70%

Price

Addresses power Delivers reliable Is competitively Easy-to-understand Excellent customer Focused on Helpful technical Energy efficiency Communicates Offers a variety of A responsible Easy-to-use Offers "green" outages in best way service (e.g., few priced billing service meeting customer support solutions to frequently with ways of member of the website renewable energy possible outages) needs manage costs important info communicating community options

Most Important Attributes Eversource customer Competitor customer

Q16. To what extent does your current electric utility company deliver on each of the following factors? 10 Pricing, however, is the most top-of-mind issue cloudingNSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy customer’s ability to rate Eversource higher on other attributesD.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 11 of 29

• Price tends to overshadow any positive attributes they credit to Eversource – Reliability: “I rarely have an outage, but they are overpriced.” “They are dependable but expensive.” – Outage restoration: “quick to restore outages when they happen - which is not often – but are very expensive” – Service: “haven’t had many problems with service, but they’re expensive”

Close to 60% of Eversource customers say their bill increased over the past year. That corresponds to the 62% who are either negative or neutral about the Eversource brand.

[VALUE] Don’t [VALUE] Know Decreased [VALUE] Negative Price of Electric Bill Perceptions of [VALUE] Over Past Year Eversource [VALUE] Stayed the [VALUE] (Eversource customers) (Eversource customers) Same Increased [VALUE] Neutral Positive

Q13. What is your perception of Eversource Energy? [Open End Text Box] 11 Q19. Over the past year, has the price of your electric bill increased, stayed about the same, or decreased? While most customers think they understand their energyNSTAR Electric Company bill, and Western Massachusetts Electric Company each d/b/a Eversource Energy they are unable to isolate what drives fluctuation in theD.P.U. monthly 15-122/15-123 Attachment AG-6-17(d) cost Page 12 of 29

Bill Literacy Percent of electric bill change Top 2 Box Agreement attribute to each

I understand why my electric bill 70% fluctuates from month-to-month [CATEGO I understand what I am charged RY NAME] 66% [CATEGO for on my electric bill 35% RY NAME] 33% I understand the different components of my electric bill 60%

32% I understand the difference between an energy manufacturer 59% and a distributor [CATEGO RY NAME]

Q24. Considering only the following, what percent of your electric bill change do you attribute to 12 each? Please total to 100%. Only 4% of customers attribute the increase in theirNSTAR bill Electric to Company a and Western Massachusetts Electric Company decrease in the region’s energy supply - many assigneach d/b/a profit Eversource Energy D.P.U. 15-122/15-123 motivations as the primary driver Attachment AG-6-17(d) Page 13 of 29

Primary Reason Electric Bill Increased Over Past Year

Eversource Competitor “They are trying to make Customer Customers more money for the stockholders.” To increase electric utility company's profits 42% 46% 35% “They want to make more money and cover the cost of a merger.” Increased household usage 16% 15% 17%

“There has been no change in consumption so I think Eversource is just Regulation changes 14% 14% 14% being greedy!”

I don't know 10% 11% 9%

Increase in region demand 8% 6% 13%

Decrease in region's supply 4% 3% 6%

Q18. Please indicate how much you agree or disagree with each of the following statements. Q23. f the following reasons, what do you think is the primary reason why your electric bill increased over the past 13 year? Please select one. The primary role of an energy utility company is narrowlyNSTAR Electric Company defined and Western Massachusetts Electric Company each d/b/a Eversource Energy as one that only restores outages and distributes energyD.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 14 of 29

Customer Perceptions of What Their Electric Utility Company Does

Fixes power outages 65%

Distributes energy 58%

Provides ways of reducing a household's energy bills 35% Only 1/3 believe their utility company Purchases energy from manufacturer on my behalf 30% provides them with ways of reducing Manufactures energy 21% their bills

I don't know 21%

Q31. Which of the following does your electric utility company do? Please select all that apply. 14 While only 30% have participated in energy efficiencyNSTAR programs, Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy when they participate they do find these programs veryD.P.U. valuable 15-122/15-123 Attachment AG-6-17(d) Page 15 of 29

Have Participated in Energy Efforts Made to Reduce Your Electric Bill Efficiency Programs 85%

30% Yes

70% 9% 11% No

Use less electricity Switch to renewable I have not tried to energy alternatives reduce my electric bill (e.g., solar panels, windmill)

How valuable did you find these programs?

Energy Efficiency 5% 9% 24% 33% 30% Programs Not At All Valuable 1 2 3 4 Very Valuable 5

Q25. Which of the following have you tried in order to reduce your electric bill? Please select all that apply. 15 Q26. Have you ever participated in energy efficiency programs? A very small percentage of customers are aware of NSTAREversource’s Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy efforts to increase the energy supply in the region D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 16 of 29

Unaided Aided Awareness Levels Among Eversource Customers Awareness 79% 5% Northern Pass 7% 3% New Hampshire 3% Massachusetts 0% Access Northeast 7% Connecticut 4%

26% 0.4% Kinder Morgan pipeline 18% 2%

18% None of the above 72% 91%

Q45. Have you heard of any of the following initiatives to increase the capacity of energy in our region? Note: Results for NH: Unaided awareness of Northern Pass is 16% 16 Increasing awareness of these initiatives has a significantNSTAR Electric Company impact and Western Massachusetts Electric Company each d/b/a Eversource Energy on customers perception of Eversource D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 17 of 29

Northern Pass: Access Northeast: Eversource has proposed the Northern Eversource Energy, National Grid and Spectra Pass project, which is a 192-mile Energy have partnered to expand 125 miles of transmission line that will bring affordable the existing Algonquin pipeline system. The energy from Canada to New England. project will deliver up to 1 billion cubic feet per Northern Pass will help meet the region’s day of natural gas, all or most of which will be increasing demand for power and provide used for electric generation, lowering the cost of electric rate relief to customers. manufacturing energy.

48% 46%

25% 24% 20% 18%

5% 6% 4% 4%

Perception Perception Perception Perception Perception Perception Declines Stays the Improves Declines Stays the Improves Same Same

Q46A&B How does knowing the above change your perception of Eversource Energy? 17 Customers want to have more control in their relationshipNSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy with Eversource D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 18 of 29 • Customers want to feel empowered to better manage their own energy – Customers are looking to Eversource to provide guidance around how to use less energy – They want to know what options they have for sourcing their electricity – And they want an easier to understand bill

18 Customers tend to contact Eversource primarily forNSTAR outage Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy restoration and billing D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 19 of 29

Types of inquiries With Eversource Energy Customer Service Level of Satisfaction (top 2 Box)

Have had no inquiries 49% N/A

Outage restoration 27% 62%

Billing 25% 56%

Energy efficiency 10% 65% Satisfaction rates New service 9% 70% highest for Safety issues 5% 70% New Service and Safety Issues

Q35. Which of the following types of inquiries have you had with Eversource Energy customer service? Q36. How satisfied were you with the quality in which the following inquiries were addressed? 19 When they have questions, most tend to contact EversourceNSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy by phone versus go online D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 20 of 29

Types of inquiries With Eversource Energy Customer Service Level of Satisfaction (top 2 Box)

Telephone 59% 64%

Website 24% 69%

Mail 12% 63%

Email 11% 65%

Satisfaction Social media 2% 78% rates highest for Social Media Interactions

Q38. How have you interacted with Eversource Energy customer service for your inquiries? Q39. How satisfied were you the following types of interaction used to resolve your inquiry? 20 Almost 2/3rds have visited the website primarily to NSTARpay Electric their Company and Western Massachusetts Electric Company each d/b/a Eversource Energy bill D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 21 of 29 Have Visited Eversource Energy Website Reason for Website Visit 71%

[VAL UE] No [VAL 20% 19% UE] 13% Yes 7% 4%

Bill pay Learn ways Get Report Safety New to save information power information service energy on a power outage outage Able to Find What You Need on Level of Satisfaction with Website Visit Eversource.com (Top 2 Box)

[VAL UE] No 79% 76% 64% 64% 82% 86%

Bill pay Learn Get Report Safety New ways to informat power informat service [VAL UE] save ion on a outage ion energy power Yes outage

Q40. Have you ever visited the Eversource.com website? Q41. What did you do when you visited Eversource.com? Q42. How satisfied were you with your experience on Eversource.com for the following? 21 Q43. Are you able to find everything you need at Eversource.com? Open ended responses on Eversource’s Website andNSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy Service are mixed D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 22 of 29 Website • There is no clear perspective on the website. Some love it while others find it difficult to use. – They took over from NStar, seems to service a wider area, their website is difficult to use…. No way to track outages on website. – I think overall their website is not as easy to use and pay your bills. – Wish they kept the name NStar but other than that they have been a good service provider an I love the online billing and website.

Service • For most, service is a positive part of the experience – They are trying to stay on top of all issues reported and any up grades tree trimming for the this up coming winter. – Good service but high rates. – Consistent great service – I'm happy with the service, in general, but sick of the high bills. – I perceive them to be an excellent energy company that provides reliable service. – CL&P switched to Eversource a few months ago, so far their customer service is polite and will work with you.

22

Bill inserts and emails are the preferred method of NSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy communication with their utility company D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 23 of 29

Communication Preferences

Eversource Competitor customer customer Bill inserts 51% 48% 57% Emails 45% 47% 41%

Website 26% 26% 27%

Newspaper 16% 14% 19% 14% 17% Automated phone calls 8% 6% 12% Print Ads 8% 9% 7% Social media (e.g., twitter) 7% 6% 9% Radio 7% 6% 7% Online press releases 5% 4% 7% Community forums 3% 2% 3% Webinars 1% 1% 2%

Q47. How do you prefer to hear updates from your electric utility company? 23 Most prefer to hear from their utility company once NSTARa month Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy or every few months D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 24 of 29

Communications Preferences

Total2 Eversource customer Competitor customer

35% 31% 31%32% 29% 30%

21% 19% 17%

9%9% 7% 5% 5% 5% 4% 4% 3% 1% 1% 2%

Every day Every week Every month Every few months Every 6 months Once a year Never

Q48. Outside of your monthly electric bill, how often do you want to hear from your electric utility company? 24 NSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy Backup D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 25 of 29

25 NSTAR Electric Company and Western Massachusetts Electric Company each d/b/a Eversource Energy Demographics D.P.U. 15-122/15-123 Attachment AG-6-17(d) Household Income Page 26 of 29

Eversource Competitor Total Customers Customers Less Than $25,000 11% 9% 15% $25,000 to $49,999 21% 20% 24% $50,000 to $74,999 25% 25% 23% $75,000 to $99,999 18% 20% 15% $100,000 to $199,999 21% 23% 19% $200,000 + 3% 2% 4%

Education Eversource Competitor Total Customers Customers Some high school or less 2% 2% 2% Completed high school 19% 16% 23% Trade or technical school 6% 6% 8% Some college or Associates degree 27% 27% 28% Completed college 29% 33% 23% Graduate degree 17% 17% 17%

Q49. What is your annual household income range? Q50. What is the highest level of education you have completed? 26 No consistent theme on customers top of mind reasonsNSTAR Electric for Company and Western Massachusetts Electric Company each d/b/a Eversource Energy changes in their bill D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 27 of 29 Change in Electric Bill over the Past Year

55% (All Customers)

40%

5% 3%

Increased Stayed about the Decreased Don't know Because distribution same I got solar panels. costs have risen. Eversource took over PSNH. Because the cost to produce the I read a few ideas sent by CL&P product has increased. for reducing my energy use and Because the summer was so hot and overall costs. These methods my AC went up. have worked. Because of the Eversource merger. My AC broke. Bill was much lower without AC. Because of the cost of natural gas. Rates have lowered. I do not know. I guess the company is making more profit. No Idea.

Q19. Over the past year, has the price of your electric bill increased, stayed about the same, or decreased? Q20. Why do you think your electric bill increased over the past year? 27 Q21. Why do you think your electric bill decreased over the past year? Customers do not have a clear understanding of the differencesNSTAR Electric Company between and Western Massachusetts Electric Company each d/b/a Eversource Energy manufacturers and distributors of energy D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 28 of 29

Awareness of Energy Companies

Viridian SolarCity Constellation NRG Home Granite ENH Energy Corporation Energy Solar State Solar Power

Manufactures energy 24% 34% 33% 26% 22% 22%

Distributes energy 31% 24% 31% 15% 17% 25%

Purchases energy from 26% 13% 28% 19% 11% 25% manufacturer on my behalf Provides ways of reducing a 29% 43% 18% 43% 31% 20% household's energy bills

Fixes power outages 10% 13% 13% 6% 8% 11%

I don't know 29% 28% 31% 34% 56% 36%

Q51. Have you heard of any of the following energy companies? Please select all that apply. 28 NSTAR Electric Company and Most people correctly identify Eversource EnergyWestern Massachusettsas a new Electric Company each d/b/a Eversource Energy name for an existing company D.P.U. 15-122/15-123 Attachment AG-6-17(d) Page 29 of 29

Which of the following statements best describes Eversource Energy?

New company name for several existing companies that merged into one 63%

Existing national company that purchased 37% several existing local utility companies

Q14. Which of the following statements best describes Eversource Energy? 29