EAP Member Electric and Natural Gas Utilities AN OVERVIEW OF PA UTILITY CONSUMER SERVICES

Transcription

1 EAP Member Electric and Natural Gas Utilities AN OVERVIEW OF PA UTILITY CONSUMER SERVICES By Donna M. J. Clark General Counsel Energy Association of Pennsylvania PA PUC Advisory Council Meeting March 22, 2011

2 Energy Association of Pennsylvania A trade association formed by the investor-owned electric and natural gas utilities in PA. The voice of PA s energy utilities on policy issues before the General Assembly, the Public Utility Commission and other state agencies. Serves as a clearinghouse for information on best practices within the industries and sponsors educational conferences on operational and consumer issues. 2

3 EAP Member Companies Deliver electricity and natural gas to more than 8 million residential, commercial and industrial customers in Pennsylvania through complex infrastructures of wires and pipes. Sell the commodities of electricity and natural gas to customers who do not choose a competitive supplier. Help their customers to use energy wisely and lower their utility bills through conservation, energy efficiency, and weatherization. 3

4 EAP Member Companies Do NOT Own and operate either electric power plants or wells that produce natural gas. 4

5 Heating by Fuel Type in PA 52% of PA households heat with natural gas. 100% of these households need electricity to operate furnaces. 5

6 Utility Residential Customers Most utility residential customers pay their bills. For some, utility service is simply not affordable. The official U.S. poverty rate in 2009 (14.3%) was the highest poverty rate since One in seven Americans are living at or below the federal poverty level. For others, life circumstances (such as death or a family member or job loss) result in temporary bill payment problems. 6

7 Utility Customers Rights & Responsibilities Safe and reliable utility service Just and reasonable rates. Fair credit and security deposit policies. Ability to question and/or dispute your bill s accuracy or raise service complaints with the utility. Option to file a complaint with the PUC. 7

8 Utility Customers Rights & Responsibilities Pay bill on time. Provide utility with access to its meter. Give at least seven days advance notice before moving or discontinuing service Utility service unlike other essential items (i.e., housing, gasoline, groceries) is billed and paid for AFTER its use. 8

9 Utility Service in PA Regulated Electric & Gas While utilities are authorized to terminate service for failure to pay, termination is a last resort. There are numerous resources for customers to use when they have difficulties paying bills some taxpayer-funded, some ratepayer-funded, some utility-funded. Low-income customers of regulated electric and natural gas utilities are protected from termination from Dec. 1 through March 31 each year. 9

10 Home Heating Assistance in PA - LIHEAP A federally-funded program, administered by PA s Dept. of Public Welfare, that helps low-income people pay their heating bills through home heating energy assistance grants, crisis grants, and emergency weatherization/repair services. FY 2011 LIHEAP open/close dates* CASH COMPONENT: Open Nov. 1, 2010 Close March 31, 2011 CRISIS EXCEPTION: Open Nov. 1, 2010 Close Jan. 2, 2011 CRISIS COMPONENT: Open Jan. 3, 2011 Close March 31, 2011 LIHEAP Grant Amounts* CASH: Minimum $300 Maximum $1,000 CRISIS: Minimum $25 Maximum $400 Program Eligibility* 160% Federal Poverty Income Guidelines FY 2011 Budget Approximately $312 Million (Includes $30 million remaining from FY 2010) 10

11 Energy Assistance in PA - Utilities Add More $$ for Citizens in Need EAP member utilities resources and benefits to households with incomes less than 160% of FPIG are in addition to the funds provided by LIHEAP and help to maintain and increase energy assistance to low-income households: Weatherization (LIURP) Customer Assistance Programs (CAP) Arrearage forgiveness Reduced monthly payments Universal Service Programs Supplemental payments for repair/replacement of defective heating equipment or gas lines Cash payments towards energy bills Customer and employee donations towards cash payments 11

12 Utility Customers Need for Partnership Utility Universal Service Programs and Services DCED - Weatherization Programs Social Service Agencies, Churches, Etc. UTILITY CUSTOMER Utility Customer PA PUC Balances needs of utility and consumer DPW LIHEAP and Heat & Eat Non-Utility Hardship Funds e.g. Dollar Energy 12

13 Utility Universal Service Programs & Services Customer Assistance Programs (CAP) Reduced Bills, Arrearage Forgiveness Low Income Usage Reduction Program (LIURP) Weatherization, conservation, energy efficiency Act 129 Programs Weatherization, conservation, energy efficiency Utility Hardship Funds Emergency Cash Assistance CARES Extensive Network referrals to qualifying agencies and services Annual Prepare Now Campaign Payment Agreements Budget Billing Third Party Designee Vast Outreach and Education 13

14 Customer Assistance Programs A reduced payment schedule based on customer s ability to pay. Percent of income or reduced rate. Income eligibility: at or below 150% federal poverty level. Deposits and restoration charges generally reduced or waived With regular, on-time payments: Arrearages forgiven over a specified period of time Protection against shutoff of service Utility programs expanding, costs increasing. Cost for program paid by other residential ratepayers. Need to engage CAP customers regarding energy efficiency and conservation CAP Programs - Over $400,000,000 From 2004 to 2009, CAP program costs have increased 80% for electric utilities and 108% for gas utilities 14

15 Low-Income Usage Reduction A PUC-mandated residential usage reduction/weatherization program to help low-income customers reduce energy bills through conservation, making bills more affordable. Targeted to customers at or below 150% federal poverty level. Up to 20% of funds used for customers between % of federal poverty level. Available to homeowners and renters, single family homes, mobile homes, small and large multi-family residences LIURP Programs - Over $37,000,000 15

16 Act 129 Programs Mandated reduction of consumer electricity usage and peak demand through EDC Energy Efficiency and Conservation Programs. Enacted October 15, Electric utilities with 100,000 customers Sets goals for reducing energy consumption and demand Reduce energy consumption and demand 1% by May 2011 and 3% by May 2013; and Reduce peak demand 4.5% by May Requires implementation of Energy Efficiency and Conservation (EE&C) Plans EE&C plans must include specific energy efficiency measures for households at or below 150% of FPIG. The number of measures must be proportionate to those households share of the total energy usage in the service territory and in addition to existing LIURP. 16

17 Utility Hardship Funds Utility company hardship funds provide critical-need cash assistance to help pay utility bills when all other resources have been exhausted. Ratepayer Contributions. Utility & Shareholder Contributions Ratepayer Contributions - Over $3,000, Utility/Shareholder Contributions Over $3,900,000 17

18 CARES Services to help payment-troubled customers maximize their ability to pay utility bills. Case Management. Network of service providers. Referrals to other agencies Over $3,000,000 18

19 Other Programs and Services Utilities employ an array of other services to assist their low-income and payment troubled customers. Key CONTACT YOUR UTILITY Payment agreements. Energy efficiency and conservation. Budget billing. Third-party designees. Assistance in completing LIHEAP applications. Educational events and fairs/partner with Community Organizations. 19

20 Empowering the Consumer through Energy Conservation Improved and safer living conditions. Cleaner and healthier environment. Greater control over fluctuating energy prices. Saves money. Reduces dependency on foreign oil. 20

21 Empowering the Consumer through Energy Conservation Low-income households with high energy bill arrearages and high energy consumption are targeted for weatherization and conservation services by utility LIURP programs and government-administered programs such as DCED s Weatherization Assistance Program. Low-income housing often has a higher potential for energy efficiency improvements because of age and condition of homes. 21

22 Empowering the Consumer through Energy Conservation Safer, Healthier, More Comfortable Homes Safer heating systems - reduced use of unsafe and inefficient heating sources. Homes warmer in winter, cooler in summer, less drafty. Reduced illness and absenteeism from school and work. Dollars freed-up through conservation can be used for other purposes and, in the case of assistance dollars, other households in need. 22

23 Empowering the Consumer through Energy Conservation Reduced Energy Bills Families receiving weatherization services see their annual energy bills reduced by an average of about $437, depending on fuel prices. Because the energy improvements that make up weatherization services are long lived, the savings add up over time to substantial benefits for weatherization clients and their communities, and the nation as a whole. (U.S. Dept. of Energy) 23

24 Empowering the Consumer through Energy Conservation Reduced Arrearages Of those households with energy bill arrearages, 40% reduce their arrearage following weatherization services. (Long Term Study of Pennsylvania s Low Income Usage Reduction Program January 2009, prepared by Consumer Services Information Systems Project Penn State University) 24

25 Empowering the Consumer through Energy Conservation Reduced Consumption 69% of LIURP households reduce their energy consumption following weatherization treatments, with an average reduction of 16.5%. 31% of LIURP households experience no change in energy consumption or increase energy consumption following weatherization. Known as rebound or takeback effect, increases may be attributable to increased comfort level in home following repair, particularly for electric base-load repair or furnace maintenance (rather than replacement). (Long Term Study of Pennsylvania s Low Income Usage Reduction Program January 2009, prepared by Consumer Services Information Systems Project Penn State University) 25

26 Empowering the Consumer through Energy Conservation Weatherization and conservation help s-t-r-e-t-c-h limited assistance funding Assistance Dollars = $100 Un-weatherized homes not practicing conservation Assistance Dollars = $100 Homes weatherized and practicing conservation 26

27 Thank you. Energy Association of Pennsylvania 800 North 3 rd Street, Suite 205 Harrisburg, PA (717)