1. Customer Assistance Program

2. 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

3. 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.

4. 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%

5. 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

6. 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

7. 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

8. 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