CUSTOMER ASSISTANCE PROGRAM PUBLIC WORKSHOP. 15 May 2017

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1 CUSTOMER ASSISTANCE PROGRAM PUBLIC WORKSHOP 15 May 2017

2 AGENDA Introductions Section 1: Background Section 2: A Review of Water Utility Best Practice Section 3: SWNY Data & Findings Section 4: Program Options Section 5: Input, Feedback, and Discussion 2

DAVID SAYERS Project Manager One Penn Center, Suite 1690, 1617 JFK Boulevard, Philadelphia, PA 19103 +1 913.458.6722 P +1 609.947.4161 M SayersDA@BV.

3 DAVID SAYERS Project Manager One Penn Center, Suite 1690, 1617 JFK Boulevard, Philadelphia, PA P M SayersDA@BV.com Black & Veatch Team PRABHA KUMAR Director 489 Fifth Avenue, 14th Floor, New York, NY P M KumarPN@BV.com ANDREW CHASTAIN-HOWLEY, PG, MCSM Summit Avenue, Suite 400, Fort Worth, TX (817) M Chastain-howleya@bv.com Learn more at bv.com.

4 SWNY Conservation Program Section 1 Background Existing Customer Assistance Programs Water Cost Perspectives PSC Requirements for Low Income Plans: Discount Plan Rebate Program / Direct Install

5 SUEZ New York Water Conservation Program Designed with stakeholder input Five year program approved by PSC Jan Comprehensive program: Rebates on efficient fixtures and appliances Water efficiency assessments Collaboration with energy utility Education & outreach Conservation oriented rates Public roll out June 2017 Black & Veatch Management Consulting, LLC 5

6 PSC Requirements for Low Income Programs Suez Water New York Inc. is directed to file its proposed low income discount plan within nine (9) months of the issuance of this order. Suez Water New York Inc. is directed to file its proposed low income rebate program, as described in this order, within six (6) months after this order is issued. Analysis of direct install is a component of this program Order issued 1/24/17 Black & Veatch Management Consulting, LLC 6

7 Suezcares.org Black & Veatch Management Consulting, LLC 7

SUEZ Cares How does a customer receive assistance? 1. Customer account is overdue 2. Good faith payment of at least $20 has been made in the last 90 days 3.

8 SUEZ Cares How does a customer receive assistance? 1. Customer account is overdue 2. Good faith payment of at least $20 has been made in the last 90 days 3. Customer of record completes SUEZ Cares application 4. Third party verification of program eligibility / financial hardship 5. Verify customer has not received a SUEZ Cares grant in the past year 6. SUEZ Cares pays the overdue amount up to $100. Black & Veatch Management Consulting, LLC 8

9 Water & Other Utility Costs Black & Veatch Management Consulting, LLC 9

10 Section 2 A review of Water Utility Best Practice Water Industry Research Types of Assistance Programs Findings from Industry Surveys

11 Key Studies for Water Utility Assistance Programs Water Research Foundation AWWA EPA Black & Veatch Management Consulting, LLC

12 Types of Customers Assisted (Based on EPA Review of 795 Utilities) (Based on EPA Review of 795 Utilities) Black & Veatch Management Consulting, LLC 12

13 Types of Customers Assistance Programs Customer assistance programs becoming more common Multiple types of assistance: 1. Bill Discount 2. Flexible Terms (SUEZ budget billing and deferred payment agreement) 3. Temporary Assistance (SUEZ Cares) 4. Water Efficiency 5. Lifeline Rate Black & Veatch 13

14 Types of Customer Assistance Programs (Based on EPA Review of 795 Utilities) Black & Veatch 14

15 Low Income Assistance Programs Findings from review of 228 utilities with active programs (2016) Discount Programs: Provides direct financial assistance Reduces a customer s bill, usually long term. 20% of surveyed utilities have a low income focused program - many programs have unspecified benefits Reduction (e.g. 50%) or elimination of the fixed fee, or service charge, is the most typical defined benefit Some programs focus on seniors, or disabled only, not all low income Black & Veatch 15

16 Low Income Assistance Programs Findings from review of 228 utilities with active programs (2016) Rebate / Direct Install Programs: 4% of surveyed utilities had a Water Efficiency program focused on Low Income The most typical low income water efficiency program is a direct install program, no examples of enhanced rebate levels for low income customers. Studies show that, on average, low income use less water than higher income Black & Veatch 16

17 Key Findings of the Research Literature According to the Water Research Foundation, low income households are three times more likely to have their water and/or sewer service disconnected than other households (WRF 2010) Water Utilities should partner with social service providers to avoid excessive internal administrative burden Financial assistance programs are a positive first step What else can be done to shrink the bill? Plan Do Check - Act: Continuous improvement Low income community can be hard to reach by the water utility: the water bill is often the first utility bill to be incorporated in rental payments Black & Veatch 17

18 Section 3 SWNY Data & Findings Estimating Low Income Population Estimating Low Income SUEZ Customers Existing Low Income Programs: Orange & Rockland Utilities Rockland County DSS

How Many Potential Low Income Customers? U.S. Census National average: 15.5% pop. / 11.3% families. Rockland County: 14.6% of population with poverty status / 10.

19 How Many Potential Low Income Customers? U.S. Census National average: 15.5% pop. / 11.3% families. Rockland County: 14.6% of population with poverty status / 10.3% of families. Key Challenge: Many low income individuals are renters and not direct customers (i.e., account holders) A common challenge for utilities, especially water 19

20 Defining Low Income NY HEAP Benefit Guidelines HEAP: Home Energy Assistance Program Household Size Maximum Gross Monthly Income Maximum Gross Annual Income 1 $2,300 $27,600 2 $3,007 $36,084 3 $3,715 $44,580 4 $4,423 $53,076 5 $5,130 $61,560 6 $5,838 $70,056 7 $5,971 $71,652 8 $6,103 $73,236 9 $6,236 $74, $6,369 $76, $6,671 $80,052 Each additional Add $520 20

21 Low Income Data Sources Census (ACS 2015) Poverty Status: 10.3% (~9,000*) Public Assistance / HEAP: 1.9% (1,700*) Food Stamps: 11.0% (9,800*) Orange & Rockland ~5,500 (excluding Nyack, Suffern) Rockland Co. DSS ~700 HEAP; ~4,200 Temporary Assistance; 23 Emergency Water Assistance *Assumes 90% of the County is served 21

22 Using Census Data to Estimate Potential Low Income Population & Customers 1. Income Levels 2. Assistance Program / HEAP Recipients 3. Food Stamp Recipients 22

23 Median Household Income

24 Public Assistance / HEAP

25 Food Stamps

26 Estimating How Many Low Income Families Receive a SUEZ Bill? Not all Low Income customers will receive a water bill as many will be renters. These customers will be hard to reach for SUEZ. Black & Veatch conducted a review of low income housing in Rockland County 51 Low Income housing apartment complexes Approximately 4,200 apartments HUD / Section 8 Elderly Disabled 26

27 Low Income Multi-family Apartments

28 Section 4 Program Options Discount Plan Rebate Program / Direct Install

29 Discount Plan Bill decrease made by the Company Elimination, or reduction, of the service (meter) charge is a practical and typical approach based on a review of water utility programs SWNY Service charge (5/8 meter): $11.57 per month Represents 19% of a 9ccf bill Represents 32% of a 5ccf bill 29

30 Discount Plan Potential (Estimated) Costs of a Discount Plan Program Cost Eligibility Criteria Estimated Customers Monthly Credit Per Month Per Year HEAP only 700 $11.57 $ 8,009 $ 97,188 ORU / (HEAP or SNAP or Temporary Assistance) 5,500 $11.57 $ 63,635 $ 763,620 Low Income / Census 8,700 $11.57 $ 100,659 $ 1,207,908 30

31 Low Income Rebate Program Conservation and efficiency focused What is the possibility for enhanced rebates and incentives? Possible options: Increase rebate levels Direct install option Included in existing conservation rebate targets, not in addition. 31

32 Evaluating Enhanced Rebates / Incentives Water savings closely linked to usage rates (persons per household) Savings scenarios for one high efficiency toilet replacement: Average SWNY Family 1 (survey data) Family 2 (survey data) Residents Number of Toilets in the home Savings / Day (per toilet) Est. Water Savings / Year 5,597 26,582 2,954 Est. $ Savings / Year $ $ $

33 Evaluating Enhanced Rebates / Incentives Dec 2015, SWNY surveyed 1,535 customers 19% of survey responses indicated household income under $50,000: Household Income Under $50,000 SWNY Average Under to 44 years 45 to 64 years 65 or older Persons Per 3.07 N/A Number of Bathrooms 2.43 N/A

34 Direct Install Program Evaluation Green Plumbers Work with utilities to provide direct install services 34

35 Evaluating Enhanced Rebates / Incentives Direct install costs: ~$300 (1 toilet, 1 showerhead, 1 aerator) Current incentive for above: $90 Estimated Costs / Savings: Estimated Customers Direct Install Cost* Total Cost Estimated Water Saving Gallon / Day 1,000 $300 $ 300,000 35,407 2,000 $300 $ 600,000 70,814 3,000 $300 $ 900, ,211 * Assumes 1 toilet, 1 showerhead, 1 aerator 35

36 ORU & SUEZ Joint Marketplace Marketplace will offer instant rebates to all customers This may appeal to low income customers as the instant rebate means less up-front cost 36

Implementation Considerations Data exchange with Rockland County Department of Social Services SUEZ Billing system adjustments Coordination with Orange & Rockland Utilities Program communications

37 Implementation Considerations Data exchange with Rockland County Department of Social Services SUEZ Billing system adjustments Coordination with Orange & Rockland Utilities Program communications Stakeholder engagement Reaching non-english speakers Water Research Foundation Project 4557 (due mid-2017): Customer Assistance Programs for Multi-family Residential and other Hard-to-Reach Customers 37

38 Next Steps / Timeline Stakeholder Meetings: May 15 (initial meeting) June 22 (review draft report) Prepare Final Report Submit to PSC on or before July 24th Await decision 38

39 Section 5 Feedback & Discussion

Creative Opportunities for the Funding of Water Industry Customer Assistance Programs (CAPs)

Creative Opportunities for the Funding of Water Industry Customer Assistance Programs (CAPs) Robert Chambers, Principal Black & Veatch Management Consulting, LLC Presentation Outline Energy Industry Lessons