Although US$4.5 billion in government stimulus funds have been earmarked for the development of smart grid utility systems and infrastructure, awareness of the technology tends to be low among residential customers of electric utilities, according to J.D. Power and Associates. This raises a significant opportunity for utility providers, as customers who are aware of smart grid and smart meter technology are considerably more satisfied with their residential electric service than customers who are not aware.

According to the forthcoming J.D. Power and Associates 2010 Electric Utility Residential Customer Satisfaction Study, fewer than one in six residential customers say they are aware of actions taken by their utility to implement smart grid and smart meter technology. While overall awareness of utility actions to implement smart grid technology is relatively low, awareness has increased slightly during the past year, from 12% in July and August 2009 to 16% in April and May 2010.

However, when residential customers are aware of smart electricity technology and their utility's actions around it, overall satisfaction with the utility company increases notably. This presents an important opportunity for utility companies seeking to increase customer satisfaction, which often has significant bearing on rate-case decisions.

With residential smart grid technology currently in its infancy, utility companies have the ability to shape the perception and acceptance of smart meters and smart grids among consumers through proactive and appropriate communication. At the same time, utility providers that develop smart systems with customer satisfaction in mind may be able to get things right the first time, ultimately saving in long-term development and implementation costs.

The study finds that awareness of smart grid among electric utility customers varies widely among various states. Awareness of utility actions is relatively high among customers in California, Idaho, Georgia and Oregon, with approximately 28% of customers claiming some degree of familiarity. Awareness is particularly low among customers in Arkansas and Montana, with approximately 4% of customers in these states indicating they are aware of smart technology implementation.

For more information, visit JDPower.com.