1. Helping Low-Income Clients: Beyond Energy Assistance Roger D. Colton Fisher, Sheehan & Colton Belmont, MA September 2004

2. The Earned Income Tax Credit w Country’s primary anti-poverty program. w Refundable tax credit (cash back). w Average refund: around $2,000. w 3-year retroactive refund application. w 1/3 used to pay for past-due utility bills. w Only 50 - 80% of eligible claim. w Potential for innovative CAA/fuel fund role.

3. Energy Prices and Food Stamps w “Excess shelter deduction” in Food Stamps. w Food Stamp eligibility based on “countable income.” Shelter expenses above 50% an income deduction. Shelter = rent/mortgage + utilities. w If income lower: Some qualify / Some qualify for more. w Important in times of increased gas/FO prices. w $3 reduction in income yields $2 in benefits. w Customers indifferent as to source of dollars.

4. HUD Utility Allowances w Section 8/Public Housing (tenant-paid utilities). w Electricity *** Heating/Cooling *** Water/Sewer w Year-round -- not seasonal w Revised HUD Public Housing Guidebook provisions. w Annual review of utility allowances. w Adjustment when “rates” change by 10% or more.

5. Affordable Housing w Insert “Energy Star” into RFP/specifications for affordable housing. w Use of CDBG funds for energy efficiency matching. w Section 108 loan provisions (CDBG borrowing).

6. The Capped Bill Program w Low-income arrears higher than non-LI. 24% vs. 12% / $300 vs. $100. w High winter bills exacerbate bad situation. 2000/2001 doubled arrears--never came down. w Impact of high winter bills on disconnects. More disconnects / Higher rate of disconnects. w Capped bill program as a response. Effectively “insurance” against price/weather.

7. Utility Rate Refunds w When utility money is not utility money. w Supplier refunds / rate refunds appropriate. w Refunds can come years after-the-fact. w LI mobility is 35%+: 2 - 2.5x total population. w Refunds returned to other than those who paid. w Refunds do not “belong” to current customers. w Concept of “cy pres” is established concept. w Kansas ad valorem tax refund/Colorado rate refunds.

8. For more information: roger@fsconline.com