Overall satisfaction with electric utility companies has increased in 2008, marking the first time since 2005 that the industry has improved, according to the J.D. Power and Associates 2008 Electric Utility Residential Customer Satisfaction Study released today.

The study measures customer satisfaction with electric utility companies by examining six key factors: power quality and reliability; price; billing and payment; corporate citizenship; communications; and customer service.

The study finds that customer satisfaction with utility companies in 2008 is 614 points on a 1,000-point scale -- up 8 points from 2007. The increase is primarily driven by improvements in the customer service, and billing and payment factors. Customers are increasingly using alternative payment methods -- such as automatic deductions from bank accounts and online payments -- which yield higher satisfaction scores, on average, compared with traditional mailing methods.

Additionally, the study finds that the average monthly bill amount for residential utility customers has remained somewhat flat since 2007, increasing by only 2 percent in 2008 to an average of $138.

"Stability in pricing may also play a role in increased satisfaction across the industry, in addition to customer service and billing and payment improvements," said Alan Destribats, vice president of the energy and utility practice at J.D. Power and Associates. "With consumers already dealing with high gasoline prices and other concerns about the economy, utility customers may simply be relieved that their utility costs have not yet been impacted as dramatically."

The study ranks large and midsize utility companies in four geographic regions: East, Midwest, South and West. Companies in the midsize utility segments serve between 125,000 and 499,999 residential customers, while companies in the large utility segment serve 500,000 or more residential customers.

East Region

Among large utilities in the East region, Central Maine Power ranks highest. Following in the segment rankings are PPL Electric Utilities, and Public Service Electric and Gas, respectively.

In the East Region midsize utility segment, Southern Maryland Electric Cooperative ranks highest, followed by Public Service of New Hampshire and Atlantic City Electric, respectively.

Midwest Region

MidAmerican Energy leads among large utility companies in the Midwest region. We Energies follows MidAmerican Energy, while Xcel Energy-Midwest ranks third in the segment.

Omaha Public Power District ranks highest among midsize utility companies in the Midwest. Louisville Gas & Electric follows Omaha Public Power District in the segment, while Kentucky Utilities closely follows Louisville Gas & Electric to rank third.

South Region

Among large utility companies in the South region, Alabama Power ranks highest. CPS Energy and Progress Energy Carolinas, respectively, closely follow Alabama Power.

Jackson EMC ranks highest among midsize utility companies in the South region, followed by Santee Cooper and Clay Electric Cooperative, respectively.

West Region

Salt River Project ranks highest in the West region large utility segment, followed by Sacramento Municipal Utility District. Portland General Electric ranks third in the segment.

Clark Public Utilities leads among midsize utility companies in the West region, followed by Colorado Springs Utilities and Tacoma Power, respectively.

The 2008 Electric Utility Residential Customer Satisfaction Study is based on responses from 35,588 online interviews conducted from March through May 2008 among residential customers of the 120 largest electric utility brands across the United States. For more information on electric utility ratings, please visit http://www.jdpower.com/homes/ratings/electric-utility-residential.