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“Growth in Water Utility CARW/LIRA Programs – February 2013 Update”

California Water AssociationLow-Income Oversight Board

February 27, 2013Burbank, CA

Presentation Overview

• Low-Income Data-Sharing: Program and Goals

• Results of Data-Sharing w/ Energy Utilities (by company)

• Increases in IOWC CARW/LIRA Participation

• IOWC Low-Income Conservation Programs

• Current Proceedings Affecting CARW/LIRA Programs

• Conclusions/Observations/Lessons Learned

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• 10 Class A Companies• 6 Class B Companies• 22 Class C Companies• 82 Class D Companies 120 Regulated Water IOUs

IOWCs in California

• Total Service Connections: 1.47 million out of 7.5 million total in the state (≈ 20%)

• Population Served: 5.6 million out of 37 million (≈15%)

• Class A Company Annual Revenues: $1.4 Billion− PG&E ($15b); SCE ($10.6b); Sempra ($7.2b)

• Customer Base: 81-90% residential

• Water Revenues from Res./Commercial Customers: 57% - 93% - most companies derive >80% of their revenues from their smaller customers

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Low-Income Data Sharing

Program Details•Data-sharing w/energy utilities•Hard matches automatically enroll in IOWC LIRA/CARW programs•Soft matches automatically enrolled upon verification

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Low-Income Data Sharing

Goals•Align energy and water IOU CARE/LIRA programs•Increase water utility LIRA/CARW penetration

Class A IOWC 2007 CARW/LIRA Rate: 16.1% Energy Utilities’ CARE 2008 Rate: 78.8%

•Long-term goal of achieving energy IOU penetration levels

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Low-Income Data Sharing Results

• Apple Valley Ranchos Water 168% increase in participation in LIRA Program Surcharge increase (recovery from non-LIRA qualifying customers

and other customer classes) - will remain at $0.55/month until next GRC (2015)

• California American Water 267% increase in participation Surcharge increase - TBD

• California Water Service 129% increase in participation Surcharge increase from $0.01 to $0.06 per Ccf Temporary surcharge:$0.0182/Ccf

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Low-Income Data Sharing Results

• Golden State Water 45% increase in participation in CARW Program Surcharge increase TBD (pending GRC application)

• Great Oaks Water 440% increase in participation in LIRA Program Surcharge increase $0.04/Ccf

• Park Water 334% increase in participation in LIRA Program Surcharge increase from $2.27/month to $0.00 to $6.65/month

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Low-Income Data Sharing Results

• San Gabriel Valley Water 66% increase in participation in CARW program Surcharge increase from $0.00 to $0.1297/Ccf (Fontana Water Co. Division

– effective when current GRC is completed) and (probably) from $0.00 to $0.0637/Ccf for the Los Angeles Division (in its next GRC)

• San Jose Water 200% increase in participation in WRAP Surcharge increase TBD

• Suburban Water 59% increase in participation in LIRA Program Surcharge decrease from $0.031/Ccf to $0.014/Ccf

• Valencia Water 378% increase in participation in LIRA Program Surcharge increase from $0.04/month to $0.91/month

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Increases in Participating Customers

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Current Penetration Increases2009 Current

•Apple Valley Ranchos Water: 6.9% 23.8%•California American Water: 14.5% 52.9%•California Water Service: 41.0% 94.3%•Golden State Water: 31.1% 76.0%•Great Oaks Water: 13.2% 72.9%•Park Water: 7.1% 36.2% •San Gabriel Valley Water: 25.9% 43.0%•San Jose Water: 19.9% 74.1%•Suburban Water: 5.5% 81.5%•Valencia Water: 6.5% 30.5%Methodology: Each company’s residential customer count was applied to its respective household eligibility percentage, as derived in the CPUC Div. of Water & Audits report, “Assessment of Water Utility Low-Income Assistance Programs” (October 2007; page 17), to derive an estimate of LIRA-eligible customers. The 2009 and 2012 LIRA customer totals were divided by the estimate of LIRA-eligible customers to calculate the penetration percentages above.

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LIRA Customers as % of Total Residential Customers

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Lessons Learned

• The information-sharing program has been successful – dramatic increases to date in water IOU LIRA programs

• The IT issues with the energy utilities were far more complex and difficult than originally contemplated

• LIRA/CARW eligibility criteria limits ability of water IOUs to achieve high penetration levels of energy IOUs

CPUC’s eligibility percentages derived from 2000, 2006 census data and encompass all residential citizens; water IOU participation limited to single-family dwellings, so eligibility universe should be limited to single-family dwellings

Primary eligibility based on customer participation in the energy CARE program; however, water companies solicit all residential customers

• Difficulty reconciling existing recertification procedures with the automatic enrollment from the data-exchange program

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