partners for affordable energy - energypa.org 21 2010 prtnrs for... · partners for affordable...

Partners for Affordable Energy

UGI Utilities Conservation DayOctober 21, 2010

Holiday Inn Grantville

Donna M. J. ClarkVice President & General CounselEnergy Association of Pennsylvania

“Partners for Affordable Energy”

2

Allegheny Power

Citizens’ Electric Company

Columbia Gas of PA

Duquesne Light Company

Equitable Gas Company

Metropolitan Edison Company

National Fuel Gas Distribution Corp.

PECO Energy Company

Peoples Natural Gas Company

Pennsylvania Electric Company

The Energy Association of Pennsylvaniarepresents the interests of its members*:

Pennsylvania Power Company

Philadelphia Gas Works

Pike County Light & Power Company

PPL Electric Utilities Corp.

UGI Central Penn Gas, Inc.

UGI Penn Natural Gas, Inc.

UGI Utilities, Inc. (Electric)

UGI Utilities (Gas)

Valley Energy, Inc.

Wellsboro Electric Company

* PA-regulated electric and natural gas distribution companies.

Disclaimer

The opinions presented in this presentation are my own and not those of the Energy Association of Pennsylvania or any EAP member

company.


3

1. Energy Assistance in Pennsylvania

2. Low Income Home Energy Assistance Program (LIHEAP)

3. Empowering the Low-Income Consumer through Conservation

Partners for Affordable EnergyUtilities, Non-Governmental Organizations

and Low-Income Consumers


4

Need for Greater PartnershipThe official U.S. poverty rate in 2009 (14.3%) was the highest poverty rate since 1994. One in seven Americans are living at or below the federal poverty level.


5

Energy Assistance

in Pennsylvania


6

• Utilities

• Federally-funded programs administered by the State

• Social Service Agencies, Fuel Funds, Community & Charitable Organizations

Energy Assistance in PA Public & Private Providers


7

• Customer Assistance Programs (CAP)

• Arrearage Forgiveness

• Low Income Usage Reduction Programs (LIURP)

• CARES

• Hardship Funds

• Budget Billing

• Reduced or waived reconnect fees and deposits

• Outreach, educational fairs, LIHEAP events and fairs

• Energy efficiency and conservation programs

• Network of non-government social service/community organizations to help customers locate resources to assist in bill payment and with other fundamental needs

Energy Assistance in PA Utility and Community Organization Partners

Utilities and non-government organizations employ an array of universal service programs and outreach efforts to assist low-income and payment troubled

consumers.


8

EAP Member Utility PartnersUniversal Service Programs

Customer Assistance Programs (CAP)

2009 CAP Spending A reduced payment arrangement based on ability to pay.

Customers must be at or below 150% federal poverty level.

With regular, on-time payments:

• Arrearage forgiveness over a specified period of time

• Protection against shutoff of service

$ 400,368,500

Source: PUC 2009 Report on Universal Service Programs & Collections Performance


9

EAP Member Utility PartnersUniversal Service Programs


Low Income Usage Reduction Program (LIURP)

2009 LIURP SpendingA PUC-mandated residential usage reduction program/weatherization to help low-income customers reduce their energy bills through conservation, to make bills more affordable.

Targeted to customers at or below 150% federal poverty level; Up to 20% between 150-200% of federal poverty level

Available to homeowners and renters, single family homes, mobile homes, small and large multi-family residences

$ 37,300,880


10

EAP Member Utility Partners

Universal Service Programs


CARES Programs

2009 CARES Costs

A service to help payment-troubled customers maximize their ability to pay utility bills.

Case Management

Maintaining a network of service providers

Referrals to other agencies

$ 3,143,448


11

EAP Member Utility Partners

Universal Service Programs


Hardship Funds

2009 Hardship Funds Disbursed

Utility company hardship funds provide critical-need cash assistance to help pay utility bills when all other resources have been exhausted.

Ratepayer Contributions (2009 - $3,027,925)

Utility & Shareholder Contributions (2009 - $3,941,568)

$ 7,594,830


12

$242,994,688$276,202,870

$400,775,675

$446,088,212

$364,491,464

$327,351,088

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

2004 2005 2006 2007 2008 2009

EAP Major Member Utility PartnersUniversal Service Program Costs

Source: PA PUC Report on Universal Service Programs & Collections Performance – Various Years

Total Universal Service Program Costs include: CAP Shortfall, CAP Arrearage Forgiveness, CAP Administration, LIURP Spending, CARES costs (where applicable) and Hardship Fund contributions

% Change 2004 to 2009

84% Increase

As a point of reference … Record $331 Million

LIHEAP federal funding for FY 2008-09


13

Resources

EEI’s interactive database of utility programs for low income electric utility customers – Bill Assistance, Community Outreach, Economic Development, Energy Efficiency, Other, Special Rates, Weatherization … BY STATE and BY UTILITY.

• Utility web sites

• PA PUC www.puc.state.pa.us

• AGA www.aga.org

• EEI www.eei.org


14

Low Income Home Energy Assistance Program (LIHEAP)


15

PA LIHEAP

LIHEAP is a federal block grant program that provides financial assistance to low and fixed-income individuals

for fuel and utility bills, and low-cost weatherization and energy-related home repairs.

• Administered by Dept. of Public Welfare

• Federal funding - fluctuates each year

• Customers must meet program eligibility requirements, but need not have an unpaid bill to receive home heating energy assistance

• Annual State Plan – Sets forth LIHEAP program components and eligibility - vary from year-to-year


16

PA LIHEAP - Partnership

Utilities and EAP work with DPW, PUC, DCED, consumer advocates, legislators, fuel funds, community agencies and other energy vendors to assure that the LIHEAP program is fairly and equitably distributed among all PA low-income households, regardless of fuel, as required by federal law.

Fuel Oil

23%

Electricity

18%

Utility Gas

52%

Utility Gas

Propane

Electricity

Fuel Oil

Coal, Wood,OtherSolar

No Fuel

52%of PA households heat with natural gas.

100%of these households need electricity to operate their furnaces.


17

PA LIHEAPWinter Moratorium Impacts Receipt of LIHEAP

Crisis Grants for Utility Customers

• Low-income customers of regulated electric and natural gas utilities are protected from termination from Dec. 1 through March 31 each year.

• 66 PA.C.S.A §1406(g) directs that a recipient of a utility termination notice must immediately qualify for a LIHEAP Crisis Grant.

• Spring Termination Notices dated February 1 or later


18

PA LIHEAP State Plan Changes

Program CHANGES in FY 2009-10• Crisis Exception Program created• PROMISe (administration system to process crisis grants)

• Only one crisis grant (later changed)• Grant amounts• Late-program supplemental Payments• Unused funding remaining at end of program year

• June - $53.9 million• Summer - $50 to $27 million • September $18 million; plus $6.8 million emergency

contingency funds

Program CHANGES for FY 2010-11 • Directive for applying cash grants to CAP

customers’ accounts• Federal income guidelines 160% • Grant amounts• Early supplemental payments


19

PA LIHEAP State Plan FY 2010-11

Program open/close dates*

CASH COMPONENT:Open Nov. 1, 2010

Close March 31, 2011

CRISIS EXCEPTION:Open Nov. 1, 2010Close Jan. 2, 2011

CRISIS COMPONENT:Open Jan. 3, 2011

Close March 31, 2011

Grant Amounts*

CASH: Minimum $300

Maximum $1,000

CRISIS:Minimum $25Maximum $400

Program Eligibility*

160% Federal Poverty Income Guidelines

* Subject to change depending on funding received


20

PA LIHEAP FY 2010-11 State Plan Changes Application of

Cash Grants to CAP Accounts

Public utilities that operate Customer Assistance Programs (CAP) must now apply a LIHEAP cash as follows:

• to resolve any past due CAP payments, • to the current CAP payment, and • any remaining funds will be credited to future CAP payments.

CAP payment is defined as the amount the customer is required to pay under the terms of a utility’s CAP agreement.

Increases CAP program costs to BOTH CAP customers and to all non-CAP residential customers.

Fails to encourage conservation!


21

PA LIHEAP Leveraging Incentive Program

EAP member utilities’ resources and benefits to households with incomes less than 160% of FPIG are used to leverage

additional funds for PA’s LIHEAP program and help to maintain and increase benefits to low-income households

• Weatherization • Arrearage Forgiveness• Waiver of late payment fees• Waiver of security deposits• Waiver of reconnection fees• Reduced monthly payments• Supplemental payments for repair/replacement of defective heating equipment or gas lines• Cash payments towards energy bills• Customer and employee donations towards cash payments


22

$170,884,800

$124,615,952

$156,522,662

$136,929,369

$149,178,893

$218,377,127

$168,907,901

$200,483,330

$331,032,970 $315,356,983

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

FY 20

00-20

01FY

2001

-2002

FY 20

02-20

03FY

2003

-2004

FY 20

04-20

05FY

2005

-2006

FY 20

06-20

07

FY 20

07-08

FY 20

08-09

FY

2009

-10FY 2005-06 includes a

one-time State supplemental grant of

$19,300,000

PA LIHEAP - Federal FundingFederal LIHEAP funding fluctuates each year

No guarantees from year to year

Permanent state funding source is needed!


23

Resources

• LIHEAP Clearinghouse http://liheap.ncat.org


• U.S. Dept. of Health & Human Services http://www.acf.hhs.gov


24

Empowering theLow-Income Customer through Conservation


25

Energy Conservation Benefits

• Improved and safer living conditions

• Cleaner and healthier environment

• Greater control over fluctuating energy prices

• Save money

• Reduce dependency on foreign oil


26

Energy Conservation Low-Income Households

• Low-income households with high energy bill arrearages and high energy consumption are targeted for weatherization and conservation services by utility LIURP programs and government-administered programs such as WAP.

• Low-income housing often has a higher potential for energy efficiency improvements because of age and condition of homes.


27


Safer, Healthier, More Comfortable Homes

• Safer heating systems - reduced use of unsafe and inefficient heating sources

• Homes warmer in winter, cooler in summer, less drafty

• Reduced illness and absenteeism from school and work

• Dollars freed-up through conservation can be used for other purposes and, in the case of assistance dollars, other households in need.


28


Reduced Energy Bills

• Families receiving weatherization services see their annual energy bills reduced by an average of about $437, depending on fuel prices.

• Because the energy improvements that make up weatherization services are long lived, the savings add up over time to substantial benefits for weatherization clients and their communities, and the nation as a whole.

(U.S. Dept. of Energy)


29


Reduced Arrearages

• Of those households with energy bill arrearages, 40 percent reduce their arrearage following weatherization services.

(Long Term Study of Pennsylvania’s Low Income Usage Reduction Program –January 2009, prepared by Consumer Services Information Systems Project – Penn State University)


30


Reduced Consumption

• 69% of LIURP households reduce their energy consumption following weatherization treatments, with an average reduction of 16.5%.

•31% of LIURP households experience no change in energy consumption or increase energy consumption following weatherization. Known as “rebound” or “take-back effect”, increases may be attributable to increased comfort level in home following repair, particularly for electric base-load repair or furnace maintenance (rather than replacement).

(Long Term Study of Pennsylvania’s Low Income Usage Reduction Program –January 2009, prepared by Consumer Services Information Systems Project – Penn State University)


31


Weatherization and Conservation helps-t-r-e-t-c-h limited assistance funding

Assistance Dollars = $100Un-weatherized homes not

practicing conservation

Assistance Dollars = $100Homes weatherized and practicing conservation


32


Weatherization Assistance Program

ARRA Weatherization Assistance Program

Utility Low-Income Usage Reduction Programs

Utility Act 129 Programs

Utility and Community Customer Education Programs


33

Resources

• EAP Member Reference Manual … for identifying program-specific criteria (i.e., program eligibility requirements, applicable weatherization and conservation measures, etc.) for each major EAP member company along with each respective program’s contact … available on PA PUC web site

• PA state web site www.turnsealsave.org

• PA Weatherization Assistance www.newpa.com


• U.S. Dept. of Energy www.energysavers.gov


34

Questions?


35

Contact:Donna M. J. Clark

Vice President & General CounselEnergy Association of Pennsylvania

800 N. Third StreetHarrisburg, PA 17102

Tel: 717.901.0631Email: [email protected]

partners for affordable energy - energypa.org 21 2010 prtnrs for... · partners for affordable...

Documents