Preventing Energy Insecurity Stability for the Most Vulnerable

Preventing Energy Insecurity: Stability for the Most Vulnerable Households Susan Corbin, Director Customer Assistance Division Corbin. S@Michigan. gov Building Michigan Communities May 1 st, 2018

Michigan Home Energy Affordability Gap Number of Households Federal Poverty Level Home Energy Burden Below 50% 33% 292, 413 50 -100% 18% 348, 047 100 -125% 12% 175, 660 125 -150% 179, 322 150 -185% 8% 247, 638 185 -200% 7% 102, 395 Adapted from Fisher, Sheehan, & Colton, Public Finance and General Economics, Home Energy Affordability Gap

Energy Assistance Resources in Michigan q. Low Income Energy Assistance in Michigan comes from two different resources: • Low Income Home Energy Assistance Program (LIHEAP)-Federal block grant o FY 17 -$157. 8 M • Low Income Energy Assistance Fund (LIEAF)-funded by electric rate payers and collected by participating utilities o FY 17 -$50 M

Energy Distribution in Michigan q. State Emergency Relief • Household must be at or below 150% FPL • Distributed through local DHHS offices • Funded by LIHEAP • FY 17 -amount distributed $28. 3 M, 58, 379 households assisted q. Home Heating Credit • Household must be at or below 110% of FPL • Filed between January and September • Funded by LIHEAP • FY 15, $43 M, 324, 100 claimants, average payment $133, FY 17 $66 M

Energy Distribution in Michigan q. Weatherization • Household must be at or below 200% of FPL • Funded by LIHEAP • FY 17 -amount allocated $5, 454, 883. 00 • FY 17 -1074 homes weatherized, combined LIHEAP and Department of Energy funds q. Michigan Energy Assistance Program (MEAP) • Households must be at or below 150% FPL • Assistance distributed through agencies around the State who provide services to help households move towards energy self-sufficiency • Funded by LIHEAP and LIEAF • FY 17 -$74 M in direct assistance, assisted 102, 213 households

MEAP Grantee Awards for 2018 Grant Number Grantee Name Total Award MAE-18 -01 Barry County United Way $ 217, 480 MAE-18 -02 Flat River Outreach Ministries $ 67, 765 MAE-18 -03 Michigan Community Action $ 11, 000 MAE-18 -04 Society of St. Vincent de Paul $ 6, 000 MAE-18 -05 Superior Watershed $ 3, 132, 770 MAE-18 -06 The Heat and Warmth Fund $ 14, 100, 270 MAE-18 -07 The Salvation Army $ 19, 551, 715 MAE-18 -08 True. North Community Services $ 23, 500, 000 MAE-18 -09 United Way Jackson $ 4, 000 MAE-18 -10 United Way SEM $ 6, 750, 000 $ 88, 320, 000

MEAP Is Assisting Michigan’s Most Vulnerable Customers - 2016 & 2017 40, 947 Household Demographics 30, 352 20, 124 2017 21, 262 16, 742 10, 791 At least one member age 60 or older 2016 12, 950 At least one member age 2 or younger *Households may fall into more than one category and not all households fall into one of these. 14, 363 At least one member age 3, 4, or 5 At least on member that is disabled

MEAP Is Assisting Michigan’s Most Vulnerable Customers - 2016 & 2017 Funds Spent by Poverty Level 45 43. 61 2016 43. 34 40 2017 Millions 35 30 According to the 2016 Federal Poverty Guidelines, a family of 3 at the 150% FPL could not exceed $20, 160 in earned and/ or unearned income a year. 25 20 17. 67 10 15. 43 10. 29 5 9. 75 6. 51 5. 44 0 Under 75% 75 -100% 101 -125% Federal Poverty Level (FPL) 126 -150%

MEAP Is Assisting Michigan’s Most Vulnerable Customers - 2016 & 2017 Utility Affordable Payment Plans Consumers Energy DTE Energy SEMCO Consumers Affordable Resource for Energy Program (CARE) Low-Income Self-Sufficiency Plan (LSP) Monthly Assistance Plan (MAP) Participation in CARE resulted in an average annual reduction from the previous year in gas usage of 1. 34% and electric usage of 8. 37%. The service disconnection rate for customers on the LSP program has been consistently low. In 2017, DTE reported only 0. 37% of enrolled households were shut off. During the 2017 program year, individuals who participated in the MAP program had an ontime bill payment rate of 84%.

Utility Consumer Protections in Michigan Consumer Standards and Billing Practices for Electric and Natural Gas Service q. Winter Protection Programs/Shut Off Protection Programs q. Senior Citizens q. Eligible Military Households q. Medical Emergency Holds q. Critical Care Customers Consumer information is available at www. michigan. gov/mpsc

Other Michigan Resources 1 -800 -292 -9555 www. michigan. gov/mpsc www. mi 211. org www. coalitiontokeepmichiganwarm. org

Consumers Energy CARE Program BMCC, Lansing | May 1, 2018 Consumers Affordable Resource for Energy CARING FOR MICHIGAN COMMUNITIES. THAT’S OUR PROMISE.

Consumers Energy • Michigan’s largest utility • Principal subsidiary of CMS Energy (NYSE: CMS) • Founded in 1886 and headquartered in Jackson, MI • Provides natural gas and electricity to 6. 7 million of Michigan’s 10 million residents • Serves all 68 of the state’s Lower Peninsula counties • Regulated by the Michigan Public Service Commission (MPSC)

Poverty & Business Impact • 1 in 7 live in poverty • 17% of families with children Michigan Leaguefor Public Policy, Sept. 2017 What does poverty mean for Consumers Energy? • • • We serve 8 of the 10 highest poverty counties in Michigan 400, 000 (15% residential base) are “income-qualified” (150% FPL or less) 130, 000 enroll in income-qualified payment arrangements / protection plans 200, 000 households receive some form of bill assistance annually Of these, 25, 000 (14%) seniors and critical care 400, 000 Consumers Energy customers live inpoverty.

Distribution of Poverty Highest Percentage and Concentrations of Low Income Populations below Federal Poverty Consumers Energy Residential Customers Roscommon 22. 6% 5, 195 customers Clare 22. 1% 4, 693 customers 31 Isabella 26. 7% 5, 868 customers 26 Lake 23. 4% 623 customers Number of Counties Oscoda 20. 9% 1, 201 customers Saginaw 22. 2% 18, 147 customers Mecosta 20. 9% 3, 008 customers 12 10 2 4% to 7. 9% Oakland 41, 668 customers 2 8% to 11. 9% 12% to 15. 9% 16% to 19. 9% 20% to 23. 9% Population below the Federal Poverty Level (%) Not just urban. Macomb 28, 880 customers Kalamazoo 20, 564 customers 0 0% to 3. 9% Genesee 34, 739 customers Kent 31, 696 customers 24% & Above Ingham 18, 253 customers Wayne 24. 2% 23, 781 customers Consumers Energy serves 8 of the 10 most impoverished Michigan counties

Assistance Programs Emergency, Senior, & Income Qualified Programs Call 2 -1 -1. United Way’s Get Help line – the connector State-managed programs: • Home Heating Credit (Treasury) - prior year subsidy • State Emergency Relief (DHS) - past-due notice • Federal and State Earned Income Credits (EITC) Other-agency programs (MEAP): THAW, Salvation Army, Community Action, CARE and others with state grants Company Programs: • Shut-Off Protection: Seniors (65+), Winter Protection Plan, Shut-Off Protection Plan, Third-party Notification, Medical Emergency Protection, Active Military Duty • Rate discounts: Seniors & Income-Qualified • Income-Qualified Weatherization: Helping Neighbors • Special programs: People. Care, Gatekeeper, Homeless Shelter Discount Program Caring for the Michigan Communities we serve. That’s Our Promise to Michigan.

Collaborative enrollment model Statewide service territory Meaningful assistance October 2017 – September 2018 20, 000 customer enrollments In collaboration with: Since 2013 – currently in our 5 th program year. Funded by State of Michigan (MEAP) grant Eligibility: 150% FPL, no theft/fraud, past due balance, single metered. Summary of Provisions: • • 30 -50% CARE credit on monthly energy charges Arrearage forgiveness as reward for consistent pay Free in-home weatherization through Helping Neighbors (priority gas and combo customers) Assistanceagency to support energy account management and other self-sufficiency services Learn more at: Consumers. Energy. com/care Bridging Energy Assistance w/ Energy Efficiency & Making energy more affordable.

Where we’ve come – Successes • • Provides long term, proactive assistance before crisis Leverages customer accountability, goal setting, and partnership Growth from 12 K to 20, 000 customer program At least 10% of participants each year also receive energy efficiency • Wide-scale company awareness, interest, & employee engagement CARE Performance 5 -year Similarcustomers on IQCARE demonstrates delivery: plans (Oct 2013 -Apr 2018)highly effective averageassistancepayment Success rates 85% 3 -5% Disconnection rates <5% 22%

Where we’ve come – Challenges & Opportunities Income-Qualified Customers 400, 000 CARE @ 20, 000 = 10% assisted households • Not appropriate to all customers • Complex intake processes and revalidation requirements • Competition in the “marketplace” of options • Coordination with agency partners & funds Managing program to • Administratively tedious: budget Compliance Reporting Energy Assistance @ 200, 000 households = 50% of total need • Uncertainty of future funding – LIHEAP • Integration with new modes of customer communication • Integration with new metering technology

Measuring Success “Energy self-sufficiency” is the goal. Measuring the success of pilot participants: Reduce disconnects Increase on-time monthly payments Reduce requests for other energy assistance Reduce usage (especially for participants in-home weatherization services) Increase customer satisfaction From Poverty to Possibility. Definedin Michigan Legislation(PA 615 of 2012 and PA 95 of 2013). receiving

CARE Program Supports Usage & Financial Awareness Household Financial Situation Over Past Year CARE Program Impact Your Energy Awareness No impact on energy awareness 8% Somewhat worse 23% Much worse 6% Much better 7% Somewhat better 23% 71% Yes, more aware of energy usage habits Q. 19 Has participating in the CARE Programmade you more aware of how your energy usage habits impact your monthly bill? 92% About the same 41% Q. 20 Compared to one year ago, would you say your household’s financial situation is…

CARE Program Helps Manage Current Monthly Budget No 23% Yes 77% Q. 21 Did your participation in the CARE Programhelp you identify ways to manageyour household’s budget? 77% of CARE participants say the program helped them manage their current budget

CARE Program Helps Manage Future Energy Bills Q. 22 After graduating from the CARE Program with your past balance fully resolved, how manageable do you think your future energy bills will be for your household? Do you think they will be. . . Somewhat Unmanageable 24% Neither 15% Very Unmanageable 7% Very Manageable 11% 54% Somewhat manageable 43% 54% of CARE participants feel future energy bills will be “manageable” going forward

Customer Success Stories “Now, being on your program, I can get a little more groceries, and I am very grateful for this. Life is so hard and you have made it easierfor us. ”

“CARE came at a time in our lives when we found ourselves in a situation we never expected… “We feel that we should be able to manage in the upcoming year, and this will allow another family to benefit. ”

“A vision should be judged by the clarity of its values not the clarity of its implementation path. ” - Donnella Meadows

QUESTIONS?

THANK YOU! Whitney Skeans Customer Assistance Manager Strategy | Low-Income Programs (517)740 -6574 whitney. skeans@cmsenergy. com 17 VISIT US ONLINE AT: Consumers. Energy. com/assista nce

THE SALVATION ARMY FOR BMCC, LANSING MAY 1, 2018 Angie Sterner Director of Energy Assistance Services, The Salvation Army Michigan

About The Salvation Army

Energy Assistance Options Bill Payment Assistance Affordable Payment Plan Case Management

The Salvation Army 16/17 Grant Year • Served 14, 304 households with $11, 485, 579 • Made payments to 2, 014 energy providers on behalf of low income customers • 96% of customer served received household budgeting • 98% of customers served received energy education

The Salvation Army 16/17 Grant Year Affordable Payment Plans • Enrolled 3, 347 Customers Case Management • Enrolled 208 Customers

Bill Payment Assistance Centralized Call Center Past Due, Shut off status, Disconnected, Stated need for Deliverable In Person Appointments Phone Appointments

Bill Payment Assistance Other TSA Programs Budgeting Applicant Community Referals Energy Education

DTE LSP • History • Participated in enrollments on behalf DTE Energy (LSP) starting in FY 14 • Piloted Affordable Payment Plan for DTE Energy customers from Salvation Army’s MEAP grant FY 16 • Participating in enrollments and administering payment for LSP program FY 18

DTE LSP • Program Logistics • At or below 150% FPL • Set payment plan amount based on income and usage • Arrearage forgiven with every 3 successful customer payments • Multi-year program • Apply online or in person • Follow up from TSA after enrollment • Assistance available if payment is missed

Consumers Energy CARE • History • Participated in enrollments on behalf of Consumers Energy (CARE) starting in FY 14 • Piloted Affordable Payment Plan for Consumers Energy customers from Salvation Army’s MEAP grant FY 17 • Participating in enrollments and administering payment for CARE program FY 18

Consumers Energy CARE • Program Logistics • At or below 150% FPL • Discounted monthly payment based on season • 50% November – March • 30% April – October • Arrearage forgiven quarterly • Multi-year program • Apply online or in person • Follow up from TSA after enrollment • Assistance available if payment is missed

Questions

Contact Angie Sterner Director, Energy Assistance Services The Salvation Army-WMNI DHQ p: 616 -485 -2726 e: angela_sterner@usc. salvationarmy. org