Washington State Low-Income Energy Needs Research

2007 Washington State Energy Assistance

Coordinators Conference

October 2, 2007

Jacqueline Berger, APPRISE

Study Goals

1. WA energy needs by utility

2. WA energy programs and energy prices

3. Updateable spreadsheet

4. Program recommendations

2

Presentation Overview

1. State Profile

2. WA Utilities

3. Detailed WA Analysis

4. Bill Payment Assistance Programs

5. Low-Income Energy Efficiency Programs

6. Energy Prices

7. Data Summary

8. Conclusion3

Washington Profile

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Data Source

• 2005 American Community Survey (ACS)

• 2006 Data were released in September 2007

• Areas with 65,000 or more available in ACS

• Estimates shown for utilities with more than 15,000 customers

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WA 2005 Profile

• Population: 6.1 million

• Households: 2.5 million

• Median income: $49,262

• Homeowners: 1.6 million

• Median housing burden: 22%

• Median rental burden: 28%

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WA Low-Income Households

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Poverty Group Number of Households

Percent of Households

Income ≤ 125% 353,335 14%

126% - 150% 98,927 4%

Income > 150% 2,000,283 82%

ALL HOUSEHOLDS 2,452,545 100%

Low-Income Energy Burden

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Poverty GroupEnergy

Burden>5%Energy

Burden>10%

# % # %

Income ≤ 125% 251,636 72% 158,004 46%

126% - 150% 51,371 52% 14,705 15%

WA Energy Assistance

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2005 Funding

(Millions)

LIHEAP $41.6

LIHEAP – Electric and Gas Assistance $36.6

IOU Energy Affordability Programs $12.9

Total Electric and Gas Assistance $49.5

Low-Income Energy Gap

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Poverty Group

Aggregate Low-

Income Energy Bill

Energy Gap

Energy Assistance

% of Gap Met by

Assistance

($Millions)

5% Need Standard

Income ≤ 125% $360 $217 $49.5 23%

Income ≤ 150% $472 $257 $49.5 19%

15% Need Standard

Income ≤ 125% $360 $96 $49.5 52%

Income ≤ 150% $472 $99 $49.5 50%

Low-Income Energy Usage

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# With High Bills

<125%

# With High Bills

<150%

Electric Baseload 62,003 82,628

Electric Heating 84,406 111,772

Gas Heating 6,397 9,317

Low-Income Energy Efficiency Programs

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2005 Funding (millions)

Households Served

(Estimate)

DOE WAP $4.6 1,840

LIHEAP $5.7 2,280

Energy Matchmaker $5.5 2,200

TOTAL $15.8 6,320

Other Indicators of Need

2005 WA NEADA Survey

• 188 LIHEAP Recipients

• 38% went without food for at least one day

• 36% went without medical or dental care

• 35% didn’t fill a prescription or took less than a full dose

• 32% reported that someone became sick because the home was too cold

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Other Indicators of Need

2005 WA NEADA Survey

• 81% reduced expenses for necessities

• 47% received shutoff notices

• 35% kept home at a temperature they felt was unsafe

• 27% used their kitchen stove for heat

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Other Indicators of Need

2005 WA NEADA Survey

• 15% had their electric service shut off

• 37% could not use their main source of heat

• 19% could not use their air conditioner

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Washington Utilities

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WA Utilities

Electric Investor Owned Gas Investor Owned

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WA Electric Utilities

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WA Electric Utilities

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WA Electric Utilities

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WA Electric Utilities

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Utility Type # Utilities # Customers % Customers

Investor-Owned 3 1,360,000 45%

PUD 21 1,031,797 34%

Municipal 15 444,751 15%

Cooperative 17 163,618 5%

WA Electric Utilities

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Utility Type Number of Customers

Mean Largest Smallest

Investor-Owned 453,333 1,040,000 124,000

PUD 49,133 300,176 3,000

Municipal 29,650 375,869 418

Cooperative 9,625 35,000 271

WA Gas Utilities

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Utility Type # Utilities # Customers % Customers

Investor-Owned 4 1,264,558 99%

Municipal 2 10,000 <1%

Detailed WA Analysis

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Program Eligibility

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Program Eligibility

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Program Eligibility

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200 Island, San Juan, Skagit300 Chelan, Douglas, Kittitas, Okanogan400 Adams, Ferry, Grant, Lincoln, Pend Oreile, Stevens 700 Asotin, Columbia, Garfield, Walla Wall, Whitman

800 Benton, Franklin1100 Cowlitz, Klickitat, Skamania, Wahkiakum1500 Grays Harbor, Lewis, Pacific1600 Clallam, Jefferson, Mason

Heating Fuel

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Heating Fuel

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Heating Fuel

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Electric and Gas Burden

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Electric and Gas Burden

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Percent of Low-Income Households With Energy Burden Greater than 5% and 10%

Public Utilities

Electric and Gas Burden

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High Energy Use

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Vulnerable Households

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Vulnerable Households

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Single Parent Households

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Single Parent Households

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Foreign Language Households

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Foreign Language Households

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Foreign LanguageHouseholds

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Utility Low-Income Programs

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WA Low-Income Programs

• No statewide Universal Service Program

• No comprehensive package of utility-funded programs

• WUTC can approve a low-income program

• WUTC cannot direct a utility to create a low-income program

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WA Bill Assistance

Investor-Owned Utility Programs

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Low-Income Annual Credit

Low-Income Discount

Annual Funding

Avista Yes No $3,200,000 Cascade Natural Gas Yes No $900,000 Northwest Natural Gas No No $0 Pacific Power No Yes $300,000 Puget Sound Yes No $8,500,000

TOTAL$12,900,00

0 $ Per WA Low-Income HH $36.51

WA Bill AssistanceComparison to Other State

Affordability Funding

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Rank State Funds per Low-Income Household1 NJ $1812 PA $1553 OH $1544 CA $1415 NH $1026 DC $697 MI $578 NV $569 IL $5310 MD $5011 MA $4812 ME $3712 RI $3712 WA $37

WA Bill Assistance

Avista Low-Income Rate Assistance Program (LIRAP)

• Approved in 2001

• $3.2 million annual funding

• Fixed annual credit

• ~7,000 households served in 2006

• Eligibility: 125% of poverty, 175% for elderly

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WA Bill AssistanceAvista Low-Income Rate Assistance Program (LIRAP)

• $300 grant for seniors

• Low-income customer lump-sum payment similar to LIHEAP – max of $750

• Emergency assistance – max of $300

• Mean 2006 heat benefit: $410

• Mean 2006 Emergency benefit: $248

• Mean 2006 Senior benefit: $256

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WA Bill Assistance

Cascade Natural Gas

• 2006 Rate Case agreement

• ~$900,000 in funding in 2006

• Fixed annual credit

• Eligibility level – 150% of poverty

• Distributed by LIHEAP agencies

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WA Bill Assistance

Pacific Power and Light Low-Income Bill Assistance Program (LIBA)

• Approved in 2001

• $300,000 annual funding

• Per kWh discount – 3 different levels depending on household poverty level

• 2006 participation capped at 2,618

• Eligibility: 125% of poverty49

WA Bill Assistance

• Puget Sound Energy – HELP

• $8.5 million annual funding

• Fixed annual credit

• ~18,000 served in 2006

• Eligibility – 150% of poverty

• Maximum benefit of $750

• Mean 2006 electric benefit: $344

• Mean 2006 gas benefit: $44250

WA Bill Assistance

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PUD Customers Low-Income Senior DisabledBenton County PUD 45,000 No Yes YesChelan County PUD #1 41,000 No Yes YesClallam County PUD 28,444 No Yes YesClark Public Utilities 173,000 Yes Yes NoCowlitz PUD 47,400 No Yes NoDouglas County PUD 16,931 No No NoFerry County PUD 3,000 No Yes NoFranklin County PUD 20,000 No Yes YesGrant PUD 41,722 No No NoGrays Harbor PUD #1 41,517 No Yes YesKittitas County PUD 3,690 No No NoKlickitat PUD 11,250 Yes Yes NoLewis County PUD #1 30,000 No No NoMason County PUD #1 5,249 No No NoMason County PUD #3 31,914 No Yes YesOkanogan PUD 19,382 No No NoPacific PUD #2 16,487 No Yes YesPend Orielle PUD 8,500 No No NoSkamania County PUD 5,548 No Yes YesSnohomish County PUD 300,176 Yes Yes NoTacoma Public Utilities 141,587 No Yes Yes

Discounts

WA Bill Assistance

PUDs Bill Assistance Programs

• 14 of 21 PUDs offer discount programs

• 3 offer general low-income discount programs

• 9 offer only senior/disabled discount

• 2 offer only senior discount

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WA Bill Assistance

PUDs Bill Assistance Programs

• Maximum discount ranges from 15% - 60%

• Maximum discount ranges from $100 to $300

• 17 also offer Hardship Funds

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WA Bill Assistance

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Low-Income Senior DisabledRichland, City of Municipal 21,020 No Yes YesSeattle City Light Municipal 375,869 Yes Yes YesInland Power & Light Cooperative 35,000 No No NoPeninsula Light Cooperative 29,147 No Yes Yes

DiscountsCustomers

Electric Municipal and CooperativesBill Payment Assistance Programs

WA Bill Assistance

Municipal Electric Bill Discount Programs

• 8 of 16 municipal electric utilities offer bill discount programs

• 7 restricted to elderly or disabled low-income

• 1 restricted to elderly low-income

• 3 have Hardship Funds

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WA Bill Assistance

Cooperative Electric Bill Discount Programs

• 3 of 17 cooperatives offer bill discount programs

• 2 restricted to elderly or disabled low-income

• 1 restricted to elderly low-income

• 6 have Hardship Funds

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WA Bill Assistance

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Percent of Low-Income Customers In Service Area

With Bill Assistance

Electric 74%

Gas 76%

WA Efficiency Programs

Energy Matchmaker Program

• Funded at $5.5 million in 2005

• Began in 1987

• State funds matched by utilities and other sources

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WA Efficiency FundingComparison to Other State

Efficiency Funding

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Rank StateEfficiency Funding Per Low-Income Household

1 Wisconsin $104.99 2 Massachusetts $31.69 3 California $25.01 4 Pennsylvania $24.77 5 New Jersey $23.46 6 Oregon $20.90 7 Washington $15.37 8 New York $10.99 9 Michigan $10.00

10 Ohio $9.08

Utility Prices

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Electric Prices

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WA Electric Prices

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400 kWh 800 kWh 1200 kWhLowest Price 2.29¢ $9.16 $18.32 $27.48Highest Price 7.86¢ $31.44 $62.88 $94.32Average Price

5.96¢ $23.84 $47.68 $71.52

Electric Price Variability

Gas Prices

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Data Summary

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Summary

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<125%Electric

HeatBurden > 5%

High Baseload Use

High Electric Heat Use

WA 14% 72% 71% 68% 38%

Chelan 21% 78% 67% 100% 88%

Clark 12% 73% 83% 62% 21%

VulnerableSingle Family

Non-English Spanish

LI Program

kWh Price

WA 67% 23% 24% 13% Yes 6.50¢

Chelan 74% 21% 23% 21% No 2.97¢

Clark 74% 22% 21% 7% Yes 7.86¢

Summary• Diverse electric supply• No statewide program• Limited ratepayer funded affordability

programs• Moderate ratepayer funded efficiency programs• Variability in electric prices• Diverse need for affordability and efficiency

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