Low Income Utility Working Group Bill Discount Overview. October 17, 2018
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1 Low Income Utility Working Group Bill Discount Overview October 17, 2018
2 PacifiCorp s Bill Discount Programs California Alternate Rates for Energy (CARE) program provides a 20% discount on monthly bills. Utah Home Energy Lifeline Program (HELP) applies a monthly credit of $12.60 plus a $10.00 lifeline credit when applicable. Washington Low Income Bill Assistance (LIBA) offers a three tiered discount per kwh over 600 kwh, with the largest credit available to households with the lowest income. Programs were implemented to decrease monthly billings and increase participants ability to pay.
3 California Alternate Rates for Energy (CARE) Program Implemented through a Legislative Bill in Households can enroll directly to Pacific Power by completing and signing a one page form. Eligibility based on 200% of federal poverty guidelines. An estimated 39% of residential customers qualify to participate. There is no maximum participation number, we are working towards enrolling 90% of eligible. 11,477 households participating as of December 31, 2017 which is 84.6% of estimated eligible. Expenses totaled $96,119 for administrative costs (outreach = $58k, agency certification = $11k, and internal costs = $27k) and $3,903,947 covered CARE discounts. The CARE surcharge collected to cover costs is cents/kwh ($5.52 for monthly usage of 850 kwh). The average annual benefit in 2017 was $344.
4 Participants have been required to re-certify as income eligible every 2 years. Recently an order was issued by the CPUC allowing fixed income households to recertify every 4 years. CARE Application
5 Utah Home Energy Lifeline Assistance Program Developed through a merger commitment in Households enroll through their HEAT/LIHEAP agencies who determine income eligibility. Eligibility is based on 150% of federal poverty guidelines. 21,429 households participating as of December 31, With about 794k residential customers, approximately 2.7% participate. Expenses in 2017 totaled $25,443 for admin. costs (agency certification = $21k and internal costs = $4k) and $3,448,640 covered HELP discounts. The HELP surcharge collected to cover costs is 16 cents per month on residential accounts, collections ranges from 6 cents to $5.50 on commercial accounts and $50 per month on large service accounts. Very few homes in Utah have electric heat and/or electric water heat so the $12.60 credit is a larger portion of the monthly bill than may be anticipated. On average it is 15%, or 27% with the lifeline credit. Participants must re-certify as eligible annually.
6 Washington Low Income Bill Assistance Program Developed through a merger commitment in Participants enroll through their local agencies that administer LIHEAP. There are 3 discount tiers, with a discount applied to each kwh over 600: 0-75% of Federal Poverty Level = cents/kwh % of Federal Poverty Level = cents/kwh % of Federal Poverty Level = cents/kwh Initially credits were applied in the heating months (Nov Apr) only, but now are available 12 months of the year. There is an annual enrollment cap, in the 2018/2019 program year this totals 4,910. Expenses in 2017 totaled $471,723 for administrative costs (agency certification = $399k, promotion = $62k and internal costs = $11k) and $2,234,652 covered LIBA discounts. The LIBA surcharge collected to cover costs is 74 cents per month on residential accounts, collections range from 13 cents to $37.89 on commercial accounts and $ per month on large service accounts. Participants are required to recertify either annually or every other year, in 2018/2019 a total of 1,227 enrollments can be in place for 2 years and 3,683 for 1 year. The average annual benefit realized by participants prior to extending credits into summer months was $470.
7 Varied guidelines are in place. Income Eligibility Persons in CA LIHEAP CA CARE UT LIHEAP/HELP WA LIHEAP WA LIBA Household 60% SMI 200% FPL 150% FPL 125% FPL 150% FPL 1 $ 25,176 $ 32,920 $ 18,210 $ 15,175 $ 18,210 2 $ 32,922 $ 32,920 $ 24,690 $ 20,575 $ 24,690 3 $ 40,669 $ 41,560 $ 31,170 $ 25,975 $ 31,170 4 $ 48,415 $ 50,200 $ 37,650 $ 31,375 $ 37,650 5 $ 56,161 $ 58,840 $ 44,130 $ 36,775 $ 44,130 6 $ 63,908 $ 67,480 $ 50,610 $ 42,175 $ 50,610 add $/each additional $ 1,452 $ 8,640 $ 6,480 $ 5,400 $ 6,480
8 Additional Thoughts Programs are easy to explain to customers and are well received. The bill discounts have been relatively easy to administer. There are varied components ordered by commissions on program design related to enrollment (enrollment periods, enrollment caps, self-certification). Surcharges to cover program costs are varied. They are affected by the number of customers eligible and enrolled, administrative requirements, and the discount provided.
9 Becky Eberle Pacific Power Low Income Program Manager
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