Center for the Advancement of Energy Markets and Navigant Consulting Announce Multiclient Study of Customer Service Quality Standards for Utilities.

Business Editors

CHICAGO--(BUSINESS WIRE)--July 31, 2003

The Center for the Advancement of Energy Markets and Navigant Consulting today announced a multiclient study on utility customer service quality standards. The study, entitled The Business Case for Customer Service Quality Standards in the Utilities Industry, will examine the controversial questions regarding why, how, and the extent to which energy utilities and retailers should measure and report customer service quality to regulatory entities; whether regulated service standards are the best surrogates for ensuring customer value; and who benefits from such standards.

This study will assist utilities, marketers and outsourcing firms in preparing their positions relative to negotiated service quality measurement and reporting requirements. The study is particularly timely in light of current discussions underway within the National Association of Regulatory Utility Commissioners (NARUC) to adopt call center service quality reporting guidelines for utilities.

Specifically, the study will provide participants with a report that:

-- Examines current trends in utility customer service

performance measurement and regulated service quality

standards;

-- Explores how service standards may either inhibit or encourage

the development of competitive retail markets;

-- Models the financial implications of achieving various service

level targets - including existing and proposed standards of

utility regulatory entities - and the impacts on utilities and

utility customers;

-- Draws upon highly relevant lessons of experience learned by

other industries, such as telecommunications;

-- Explores alternative, innovative approaches for measuring and

reporting customer service quality performance, with a focus

on establishing the most relevant surrogates for customer

service quality, under binding and non-binding frameworks; and

-- Defines possible transition strategies that would streamline

the utility's regulatory burden while providing regulators

with a meaningful window into the quality of service being

provided.

This study is open to energy utilities, retailers and outsourcing service providers who have a stake in customer service quality regulation. Eight utilities have already confirmed their participation in this timely study. The current sponsors include electricity and gas utilities ranging from some of the largest to mid-sized companies from various geographic regions.

For more information or to participate in the study, please contact Peter Shaw, Director in Navigant Consulting's Retail Operations practice, at 215.832.4429 ([e-mail]) or Jamie Wimberly, President of the Center for the Advancement of Energy Markets, at 202.483.4443 ([e-mail]).

About The Center for the Advancement of Energy Markets

The Center for the Advancement of Energy Markets (CAEM, pronounced kay-em, www.caem.org) is a non-profit, independent think tank founded in 1999 to promote market-oriented solutions to the challenges that confront the energy industry, other network industries, and the nation. CAEM's expertise covers the entire energy market, but with a particular focus on electricity and natural gas, both wholesale and retail. CAEM also promotes network policies and business practices in other industries that interface with the energy industry, including telecommunications and water. CAEM is not a trade association, a consulting firm, or a lobbying group. CAEM is primarily a think tank developing intellectual capital for moving toward new public policies and regulation, new business models, and new technologies driven by competitive energy markets.

About Navigant Consulting

Navigant Consulting, Inc. (NYSE:NCI) is a specialized independent consulting firm providing litigation, financial, restructuring, energy and operational consulting services to government agencies, legal counsel and large companies facing the challenges of uncertainty, risk, distress and significant change. The Company focuses on industries undergoing substantial regulatory or structural change and on the issues driving these transformations. "Navigant" is a service mark of Navigant International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc. and NCI's use of "Navigant" is made under license from Navigant International, Inc. More information about Navigant Consulting can be found at www.navigantconsulting.com.