Working Together for Low Income Households Jackie Berger
Working Together for Low. Income Households Jackie Berger NEUAC Conference June 3, 2019
Overview Energy Burden Affordability Challenges & Solutions Bill Payment Assistance Programs Low-Income Energy Efficiency Performance Measurement 2
Energy Affordability Determinants Income Energy Costs Other Expenses Unemployment Energy Efficiency Housing Costs Health/Disability Shell Medical Costs Transportation Heating System Childcare Family Care Defacto Heating Elder Care Elderly Fixed Income Appliances Transportation to Work Behavior Vulnerable Individuals Medical Equipment 3
Energy Burden • Energy Burden: Measure of energy affordability • Does not factor in variability of other expenses 4
Energy Burden 2014 Residential Energy Burden Main Heat Fuel All Households Non-Low. Income Low-Income LIHEAPRecipient Individual Group Electric 9. 0% 2. 6% 3. 2% 2. 2% 18. 4% 8. 6% 17. 5% 10. 2% Gas 7. 5% 2. 9% 2. 3% 17. 3% 9. 8% 17. 7% 12. 1% All Fuels 8. 6% 3. 0% 3. 3% 2. 4% 18. 4% 10. 0% 18. 8% 13. 1% Source: LIHEAP Home Energy Notebook, FY 2014. 5
Affordable Energy Burden Moderate Shelter Burden • 30% of Income Median Low-Income Energy Costs • 20% of Shelter Costs Affordable Residential Energy Burden • 30%*20%=6% of Income 6
Severe Energy Burden Severe Shelter Burden • 50% of Income Median Low-Income Energy Costs • 20% of Shelter Costs Severe Residential Energy Burden • 50%*20%=10% of Income 7
Solutions to Energy Affordability Challenges High Energy • Energy Efficiency Usage • Bill Payment Low Income Assistance Other Challenges • Referrals • Housing, medical, etc. 8
Affordability Program Types Gross Bill $300 PIPP Fixed Credit Discount 60% discount $10, 000 income 9% = $900/12=$75 $10, 000 income 9%=$900 $1400 estimated bill $1400 -$900=$500/12=$42 Bill Subsidy $75 $225 $258 $42 $120 $180 9
Affordability Program Types Gross Bill PIPP Fixed Credit Discount 60% discount $10, 000 income 9% = $900/12=$75 $10, 000 income 9%=$900 $1400 estimated bill $1400 -$900=$500/12=$42 Bill Subsidy Initial $300 $75 $225 $258 $42 $120 $180 Rate Increase $360 $75 $285 $318 $42 $144 $216 Usage Reduction $240 $75 $165 $198 $42 $96 $144 10
Affordability Programs Comparison Discount • • Administrative simplicity Burden shared between customer and ratepayer Higher benefits may go to higher income households Cannot target final energy burden PIPP • • Percentage of Income Program Targets benefits to level of need Fixed monthly bill Implementation challenges Fixed Credit • Targets benefit to level of need • Does not achieve exact burden target • Implementation challenges 11
LIHEAP Impact Annual Household Income Pov. Level <50% 51%100% 101%150% 6% Energy Costs HH Size Min Max 1 2 3 4 5 $0 $0 $0 $6, 031 $8, 121 $10, 211 $12, 301 $14, 391 $12, 061 $16, 241 $20, 421 $24, 601 $28, 781 $6, 030 $8, 120 $10, 210 $12, 300 $14, 390 $12, 060 $16, 240 $20, 420 $24, 600 $28, 780 $18, 090 $24, 360 $30, 630 $36, 900 $43, 170 $0 $0 $362 $487 $613 $738 $863 $724 $974 $1, 225 $1, 476 $1, 727 $1, 085 $1, 462 $1, 838 $2, 214 $2, 590 LIHEAP Heating Grant Min Max Income $907 $918 $928 $939 $949 $377 $290 $224 $200 $200 $200 $200 $200 Net Energy Cost Net Energy Burden Min Max ($907) ($918) ($928) ($939) ($949) ($15) $197 $389 $538 $663 $524 $774 $1, 025 $1, 276 $1, 527 $885 $1, 262 $1, 638 $2, 014 $2, 390 0% 0% 0% 2% 4% 4% 5% 5% 5% 5% 5% 6% 12
Arrearage Forgiveness • • Reduction of past due arrearages over time Often full, on-time payments are required May promote bill payment Customer understanding? 13
Low-Income Energy Efficiency Increase Savings by … Target high usage homes that need major measures Identify, prioritize, and install appropriate measures Ensure that weatherization staff do high quality work 14
Treating High Usage Across Program Analysis Seven low-income electric efficiency program evaluations over past eight years. Seven low-income gas efficiency program evaluations over past four years. 15
Savings by Pre-Treatment Usage 700 2013 -2015 Job Savings by Pre-Treatment Usage 629 600 500 410 400 Savings (ccf) 301 300 222 200 159 245 313 308 412 419 345 252 172 100 0 <1, 000 1, 001 - 1, 101 - 1, 201 - 1, 301 - 1, 401 - 1, 501 - 1, 601 - 1, 701 - 1, 801 - 1, 901 - 2, 001 - 2, 201+ 1, 100 1, 200 1, 300 1, 400 1, 500 1, 600 1, 700 1, 800 1, 900 2, 000 2, 200 Pre-Treatment Usage (ccf) 16
Install Major Measures Electric Heating Jobs - % Saved Number of Major Measures 19, 0% 20% Gas Heating Jobs - % Saved Number of Major Measures 18% 15, 9% 16% 15% 14% 13, 2% 12, 4% 12% 9, 6% 10% 8, 8% 8% 4, 5% 5% 6% 4% -0, 3% 0% None 1 2 3 4 -5 2% 3, 9% 3, 5% 1 2 1, 1% 0% -5% None 3 4 5 -6 17
Installation Quality 2013 -2015 Job Savings by Contractor 500 433 450 400 350 300 Savings 250 (ccf) 200 201 245 257 226 233 75 90 102 83 275 294 296 96 77 310 336 150 100 50 0 108 103 101 74 28 Contractor Code 18
Performance Measurement Steps • How do you write a policy that: • Targets households with high energy usage, • Ensures that the program installs major measures, • AND puts a high premium on installation quality? • How do you write a policy that: • Targets the most affordable energy burden with available funding, • Takes account of the LIHEAP interaction, • AND incentivizes customers to pay remaining bill? • The answer is … 19
Performance Measurement Steps Program Statistics Assess Energy Savings Refine Assess Inspection Results Pilot Changes Assess Inputs and Outputs Quality Control Hold Contractors Accountable 20
Types of Measures More difficult to obtain data Inputs • • • Staff Hours Equipment Supplies Outputs • • • # Applied # Enrolled % Vulnerable $ in Benefits # Referred Outcomes • • • Bill Reduction Burden Reduction Technical Reference Manual Savings Estimate Impacts • • • % Paid Bill % Terminated % Energy Saved More powerful information 21
Performance Measurement Repeat Compare Results Over Time Refine Program Assess What is Working 22
Recommendations Energy Burden • Measure of Affordability • Other Factors to Consider Target Solutions to Specific Problems • Income • Energy Usage • Other Consider LIHEAP Impact • May Skew Targeted Outcomes • Need to Consider LIHEAP for Equitable Outcomes Low-Income Energy Efficiency • Target High Users • Install Major Measures • Assess Installation Quality Performance Measurement • Assess Inputs and Outputs • Refine Programs • Repeat Over Time 23
Contact Jackie Berger APPRISE 32 Nassau Street, Suite 200 Princeton, NJ 08540 609 -252 -8009 jackie-berger@appriseinc. org www. appriseinc. org 24
- Slides: 24