making wap/utility partnerships smoother and more substantial jack laverty nisource/columbia gas of...
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Making WAP/Utility Partnerships
Smoother and More Substantial
Jack Laverty
NiSource/Columbia Gas of Ohio
NLIEC 2005 Conference
Phoenix, Arizona
June 16, 2005
19th Annual NLIEC ConferenceSlide 3
Creating/Maintaining the Partnership
• Political Management– Does a partnership currently exist?
– What are relationships like between the WAP group(s) and the utility?
• Are there any existing interfaces? Personal connections?
– What is the regulatory and political climate?• What is the state PUC’s view of Wx?
– What is the public and private reputation of the state (or local provider) WAP?
19th Annual NLIEC ConferenceSlide 4
Creating/Maintaining the Partnership
• Political Management– Relationships with the Media– Relations with stakeholders including locally-
elected officials (Senate and House), PUC, Consumer’s Counsel, county commsioners, etc.
• Open Houses and other organized media events
– Representation in regulatory proceedings• Be at the table; everyone else is
19th Annual NLIEC ConferenceSlide 5
Creating/Maintaining the Partnership
• Capacity– What is the public
and private perception of the state (or local) WAP as a potential partner?
– What is the capacity of the network to deliver services?
• Capacity Issues– History of Expertise– Training– Management/Operations– Data collection/evaluation– Quality Assurance– Standards– Customer Service/Marketing– Program Performance Metrics– Technology– Program Design
• The right ECMs
19th Annual NLIEC ConferenceSlide 6
Creating/Maintaining the Partnership
• Value– What value
would a partnership create for both the Utility and the service provider and other stakeholders?
• Value– Create Win-Win for all
parties• Benefits to all ratepayers
• Serve low income customers/constituents of Utility, Agency, Local Officials
– Save customers energy/$
• Reduce arrearages
• Reduce bad debt expenses
• PR opportunities various stakeholders
• Allow Utility to recover costs of program
19th Annual NLIEC ConferenceSlide 7
• “Friendly” regulatory/political environment• COH
– Mandated to provide RCS audits in 1984, partnered with WAP CBOs
– Moved to Low-Cost program in 1986– WarmChoice developed collaboratively in 1987
• WAP CBOs– History of successful program operations since 1979– Ohio was aggressive in all aspects of WAP development; staff who
had been involved in energy crisis programs since 1975– Engaged in political process– Large funding base, get 15%$ LIHEAP, active PIPP program– Willingness to change and evolve– Entrepreneurial focus
Case History
19th Annual NLIEC ConferenceSlide 8
COH Energy Assistance/Management Programs
• Low-Income Weatherization program
– Largest Gas Utility weatherization program in Ohio ($5,500,000/year)
19th Annual NLIEC ConferenceSlide 9
• Eligible Customers– 150% poverty level, HEAP/PIPP eligible– Rental properties require landlord (LL) contributions for
heating system replacements if LL not income eligible• Priority customers
– High usage– High arrearage
• NOT an emergency response program• Detailed inspection performed• Prescriptive list of WAP Retro-Tech/NEAT generated energy
conservation measures (ECMs) validated by independent HWAP and COH evaluations
19th Annual NLIEC ConferenceSlide 10
• Energy Conservation Measures (ECMs)– Attic and Sidewall Insulation
19th Annual NLIEC ConferenceSlide 11
• Energy Conservation Measures (ECMs), cont.– Floor, duct and water heater insulation
– Instrumented air and duct sealing (using a blower door)
19th Annual NLIEC ConferenceSlide 12
• Energy Conservation Measures (ECMs), cont.– Replacement (high efficiency) heating and water
heating systems for defective units
19th Annual NLIEC ConferenceSlide 13
• Energy Conservation Measures (ECMs)– Some repairs– Customer Education on energy use, payment
programs, arrearage forgiveness, health and safety issues
– Frequently partner with Ohio HWAP, EPP, HTF, CHIP, USDA Rural Development
– Use HWAP standards (WPS)• Enables consistency and ease of coordination
between HWAP and WarmChoice
19th Annual NLIEC ConferenceSlide 14
• Performance Metrics from Evaluations– Historical customers served
• 45,000
– Average investment per household• $3500 COH funds, can be higher when cost-shared
with HWAP
– Yearly ccfs saved (average per household)• 429 (30% reduction in use)
– $ saved• Varies with cost of gas; 1997 savings were
$200/year
19th Annual NLIEC ConferenceSlide 15
• Performance Metrics from 13 Evaluations– Impact arrearages, varies with cost of gas - $60
to $147– Persistence study
• Energy savings do not decline over time
– Non-energy benefits not counted, but:• Helps with homelessness prevention• Environmental (CO2)• Improved health and safety• Housing durability• Other
19th Annual NLIEC ConferenceSlide 16
• What makes it smooth(er)?• Existing, proven CBO network willing to work together and
with Utility to provide meaningful services
• Mostly the same customer eligibility criteria– WAP Prioritization issue – regulatory: High Use, High Arrears
• Moved to same wx. standards, same ECMs allowed
• Simple fee for service payment system based on collaboratively developed price list
• Move from Stand-Alone only to Stand-Alone and Cost-Share program
• CBOs experienced with data collection and reporting
• Utility staff hired from WAP network
19th Annual NLIEC ConferenceSlide 17
• What makes it smooth(er)?• Shared WAP/Utility customer service goals (2 for 1)
– Stand-alone and cost-share jobs
• Fee for service
– Prices list for HVAC/Wx/Repair measures
– Management and Operations Fees (overhead)
• Formalized training/certification process (OWTC) in place since 1980
• WAP allows sharing of equipment on cost-share jobs
• WAP allows integrated inventory system with monthly reimbursement for materials used in Utility program
– Need to ensure hours are not charged to both programs
19th Annual NLIEC ConferenceSlide 18
• What makes it smooth(er)?• Marriage of WAP prioritization and Commission
mandated eligibility criteria
• Flexibility: COH allowed HVAC and DHW replacements before WAP
• COH QA approach– Look for success
– Look for opportunities to improve product and customer service
• Advance and special purchase funds
19th Annual NLIEC ConferenceSlide 19
• What makes it more substantial?– CBOs engage in the evaluation process– CBOs technically proficient and open to new ideas
• HVAC installation and testing and blower door diagnostics mandated before WAP
• House Pressure/Duct Diagnostics, Infrared
– PR and relationships• CBOs hold open houses for elected and other officials• Customer ed can improve awareness of company actions• COH/CBO Quarterly and annual meetings
– Open communications, willing to listen to each other’s needs
– Flexibility – exceptions for unusual situations
19th Annual NLIEC ConferenceSlide 20
• What makes it more substantial?– Large % of Utility HVAC replacements lower
WAP H&S costs, allowing more units to be served via WAP or H&S to be available to customers using other fuel sources
– Synergistic relationship between WAP/Utility Programs
• Allows for dealing with high cost jobs, but still have to “manage your portfolio”
– Won Governor’s Award for Excellence in Energy Efficiency
19th Annual NLIEC ConferenceSlide 21
COH Low-Income Program MatrixProgram/Service Funding
SourcesFunding Amount
Services Provided Estimated Households
Served
Administrator Provider Benefits
Weatherization COH Base Rates ($.017/mcf)
$5,090,000 1300 Average benefits: Reduces PIPP Shortfall by $244 per customer; non PIPP customers see bills lowered by $244
COH Shareholder funds ($500K per year for 5 years starting 2004)
$500,000 150 Anticipated reduction of gas usage of 30%
Home Weatherization Assistance Program (HWAP)
US Departments of Energy/Health and Human Services
$7,187,682 HVAC Repair/Replace, Insulation, Air Sealing
1769 Ohio Department of Development
Community-based Organizations
Anticipated reduction of gas usage of 21% (1994 study)
Bill Payment Assistance and Reconnection Percentage of Income Payment Plan (PIPP)
Surcharge $.08.mcf
$15,152,700 Bill Payment Assistance
32,000 PUCO and Columbia Gas of Ohio
Columbia Gas Phone Centers and Community Action Agencies
Customer can maintain gas service by paying 10% of their gross income
COH Customer Donations
$258,200 Customers can maintain or establish gas service
COH Shareholder Contributions
$129,100 Reduces disconnect/reconnect cost for all ratepayers
COH Bad Debt Tracker
$137,500 688 COH
Special Emergency Assistance Program
COH Base Rates ($.0034/mcf)
$897,450 4,600 COH, Citizens Energy
Customers can maintain or establish gas service
HeatShare Fuel Funds Total
$1,284,750 6,800
Home Energy Assistance Program (HEAP)
US Department of Health and Human Services
$12,452,457 Bill payment assistance; reconnect funds
75,173 Ohio Department of Development
Community-based Organizations
Makes energy more affordable, allows customers to maintain service, reduces arrearage carrying costs for all ratepayers
EHEAP US Department of Health and Human Services
$2,789,850 25,701
Total Energy Assistance
$44,594,939 150,381 Units of assistance
Some customers get one or more services
Summary by Funding Source
Base Rates & Surcharge
$21,140,150
Customer Donations
$258,200
WarmChoice Weatherization Service
HVAC Repair/Replace, Insulation, Air Sealing
Columbia Gas of Ohio
Salvation Army
Community-based Organizations and private contractors
Funds for reconnection and bill assistance
2,200 COH
HeatShare - Bill Payment Assistance