Customer Assistance Program

Affordability of the DLC CAP Program Current program is a Percent of Budget program In 2017, the PUC ordered DLC to focus on making CAP more affordable for customers – particularly those in the lowest income tier Numbers outlined below reflect 2016 / 2017 figures for DLC and compare to the energy burden guidelines in the CAP Policy Statement, which is currently under review by the Commission

Proposed Percent of Income Payment Plan (PIPP) DLC collaborated with OCA and CAUSE-PA/PULP to propose the following PIPP structure: Income Tier Non-Electric Heat % of Income Payment Electric Heat % of Income Payment Up to 50% 3% 7% 50% to 100% 4% 8% 100% to 150% 5% 9% Zero Income Minimum Payment Customers with a 12-month average bill that is less than the prescribed PIPP payment will continue to pay the average payment. An account review will be conducted every 4 months to determine whether the customer will remain on the average payment or move to the PIPP amount. A reconciliation between actuals and the CAP budget payment will not be made in conjunction with the account review. If Actuals are lower than the prescribed CAP Payment Amount, the customer will be asked to pay Actuals.

DLC with Local Gas Companies Non-Electric Heat Residential Customers The proposed PIPP aligns well with the programs offered by the gas companies in the DLC service territory. The combined energy burden for non-electric heat customers is within the current guidelines provided via the Policy Statement, though this is currently under review. Tier DLC Columbia TOTAL Peoples Up to 50% 3% 7% 10% 8% 11% 50% to 100% 4% 7%* 9% 13% 100% to 150% 5% 9%* 14% 15% *Columbia has 2 tiers: 0-110% and 110%-150% CAP Policy Statement Guidelines Tier Low High Up to 50% 7% 13% 50% to 100% 11% 16% 100% to 150% 15% 17%

CAP Maximum Annual Discount DLC has traditionally had 2 CAP Maximum Annual Discount amounts: one for electric heating customers, and one for non-electric heating customers Consistent across all income tiers Greater CAP discounts given in lowest income tier causes these customers to reach the maximum first and revert to paying 100% of the budget bill Non-Electric Heat Previous Max: $1,500 Average Annual Deficiency Zero Income $743 Up to 50% $830 50% to 100% $491 100% to 150% $210 Electric Heat Previous Max: $1800 Average Annual Deficiency Zero Income $879 Up to 50% $1,039 50% to 100% $558 100% to 150% $80

CAP Maximum Annual Discount Tailoring to the Income Tiers in PIPP Set maximum discount amount for each income tier in each heating type Maximum should encourage energy conservation and be mindful of the expense to other ratepayers Proposed maximum discounts will result in ~5% of customers reaching the maximum discount Income Tier (% of FPL) Maximum Annual CAP Discount Non-Heating Customers Electric Heating Customers 0-50% $1,600 $2,350 51%-100% $1,400 $1,800 101%-150% $900 $1,300

Approved Change to DLC’s Percent of Budget CAP Previous Program: Percent of Budget CAP2020: Percent of Income Income (% FPL) Non-Electric Heating Electric Heating Up to 50% 30% 45% 51% - 100% 60% 65% 101 – 150% 85% 80% Income (% FPL) Non-Electric Heating Electric Heating Up to 50% 3% 7% 51% - 100% 4% 8% 101 – 150% 5% 9% CAP2018 Interim Program: Reduced Percent of Budget Income (% FPL) Non-Electric Heating Electric Heating Up to 50% 15% 25% 51% - 100% 40% 60% 101 – 150% 80% Also increased the Maximum Annual Discount to $1500 (up from $700) for non-electric heating customers in the Interim Program to accommodate larger discounts

The Path Forward Finalize on Bill Design Continue CC&B Functional & Technical (F&T) upgrade New CAP program to be developed concurrently with F&T upgrade; CAP will go-live in January 2020 Interim CAP solution (greater discounts) began March 28, 2018