Embed Size (px)
Citation preview
Why Implement a Program?
• Indiana, unlike other states, is without a safety net program
• Indiana relies solely on Federal LIHEAP funding which has not responded to rising prices, and extreme temperature changes
• According to census information more Indiana low-income customers are struggling with “ability to pay”– Last year Indiana had the 3rd highest poverty increase
nationally (14% increase)
• This program is a proactive solution when customers are struggling at conclusion of winter moratorium
Program Objectives
• Further assist existing low income customers• Easy to administer with EAP application process• Address affordability by lowering monthly bills
based upon income • Increase weatherization funding• Encourages conservation
Program Partners
• Vectren Energy Delivery • Citizens Gas• FSSA• Office of Utility Consumer Counselor• Manufacturing and Health Providing Customers • Citizens Action Coalition
Program Details • 2 year pilot beginning January ‘05
• Benefits EAP approved customers at or below 125% of poverty
• 9%, 18% or 24% discount for Citizens Gas customers based on EAP benefit matrix
• 15%, 26% or 32% discount for Vectren Energy customers based on EAP benefit matrix
• Crisis and other assistance applied in addition to the discount
Universal Service Program Benefit Chart
Matrix Points Citizens Gas Discount Vectren Discount
1-12 9% 15%
13-15 18% 26%
16-20 24% 32%
Estimated Households to be Assisted by USP
Citizens Avg Bill Reduction Households
Tier #1 9% 3,682 Tier #2 18% 9,555
Tier #3 24% 2,765
Vectren Avg Bill Reduction Households
Tier #1 15% 4,606 Tier #2 26% 15,549 Tier #3 32% 3,319
Citizens Gas Calculation of Customer Benefits
Example of Less EAP Less USP % Total USP Average Annual Bill Benefit Discount Benefit Annual Bill
Tier #1 $1,000 $171 $ 90 (9%) $261 $739 Tier #2 $1,000 $210 $ 180 (18%) $390 $610Tier #3 $1,000 $245 $ 240 (24%) $485 $515
Average Annual bill is only an example Other assistance is applied in addition to EAP and USP benefits
Vectren Calculation of Customer Benefits
Example of Less EAP Less USP % Total USP Average
Annual Bill Benefit Discount Benefit Annual Bill
Tier #1 $1,000 $171 $ 150 (15%) $321 $679
Tier #2 $1,000 $210 $ 260 (26%) $470 $530
Tier #3 $1,000 $245 $ 320 (32%) $565 $435
Average Annual bill is only an example. Other assistance is applied in addition to EAP and USP benefits
Citizens Gas USP/EAP 2004-2005 Program Year 1
• $ 4.5 million in EAP and USP assistance provided from 11/04 through 09/28/05
• 2004-2005 LIHEAP program enrollment comparable to prior year
– 14,456 customers approved for EAP
• USP provided benefits in the amount of $1.3 million YTD (projected year end benefit of $2.1 million)
Citizens Gas – USP Funded Weatherization
• $500,000 for each program year• Low-income customers - LIHEAP guidelines
– Both home owners and rental properties – Households with gas consumption greater than 120%
average annual gas usage
• Community Action of Greater Indianapolis (CAGI) contracts the weatherization work
• Targeting 175 Homes– 100 homes currently in all stages of the process (i.e.
identification; audit; in progress; or completed)
• Conservation and weatherization education session conducted by Indiana Community Action Association (INCAA)
Citizens Gas Early Results
• 100 homes in various stages of weatherization work
• 71% of EAP customers still on service with an average bill of $52, comparable to non USP customers.
• Comparative data for 2003-2004 heating season is not available
Vectren USP/EAP 2004-2005 Program Year 1
• $ 10,059,019 in EAP and USP assistance provided from 11/04 through 9/05
• 2004-2005 LIHEAP program enrollment has increased to prior year
– 24,200 customers approved for EAP
• USP provided benefits in the amount of $3.5 million YTD (projected year end benefit of $5.3 million)
Vectren – USP Funded Weatherization
• Approximately 1,395 Vectren customers were weatherized using federal and state funding last year.
• $200,000 from the USP fund will aid approximately 75 homes identified as candidates for weatherization in 2005.
• INCAA coordinates program funding and data collection for participating community action agencies throughout the state.
• Criteria used to identify weatherization candidates• Consumed 30% more energy than the average
customer• Customer owns and resides in the dwelling• Received LIHEAP assistance in the previous year• Income within 125% of federal poverty guidelines
Vectren’s Early Results
• 25 homes in various stages of weatherization work
• 81% of EAP customers still on service
• Comparative data for 2003-2004 heating season is not available
