1. Washington State Low-Income Energy Needs Research 2007 Washington State Energy Assistance Coordinators Conference October 2, 2007 Jacqueline Berger, APPRISE

2. Study Goals 1.WA energy needs by utility 2.WA energy programs and energy prices 3.Updateable spreadsheet 4.Program recommendations 2

3. Presentation Overview 1.State Profile 2.WA Utilities 3.Detailed WA Analysis 4.Bill Payment Assistance Programs 5.Low-Income Energy Efficiency Programs 6.Energy Prices 7.Data Summary 8.Conclusion 3

4. Washington Profile 4

5. Data Source 2005 American Community Survey (ACS) 2006 Data were released in September 2007 Areas with 65,000 or more available in ACS Estimates shown for utilities with more than 15,000 customers 5

6. WA 2005 Profile Population: 6.1 million Households: 2.5 million Median income: $49,262 Homeowners: 1.6 million Median housing burden: 22% Median rental burden: 28% 6

7. WA Low-Income Households 7 Poverty GroupNumber of Households Percent of Households Income ≤ 125%353,33514% 126% - 150%98,9274% Income > 150%2,000,28382% ALL HOUSEHOLDS2,452,545100%

8. Low-Income Energy Burden 8 Poverty Group Energy Burden>5% Energy Burden>10% #%#% Income ≤ 125%251,63672%158,00446% 126% - 150%51,37152%14,70515%

9. WA Energy Assistance 9 2005 Funding (Millions) LIHEAP$41.6 LIHEAP – Electric and Gas Assistance$36.6 IOU Energy Affordability Programs$12.9 Total Electric and Gas Assistance$49.5

10. Low-Income Energy Gap 10 Poverty Group Aggregate Low- Income Energy Bill Energy Gap Energy Assistance % of Gap Met by Assistance ($Millions) 5% Need Standard Income ≤ 125%$360$217$49.523% Income ≤ 150%$472$257$49.519% 15% Need Standard Income ≤ 125%$360$96$49.552% Income ≤ 150%$472$99$49.550%

11. Low-Income Energy Usage 11 # With High Bills <125% # With High Bills <150% Electric Baseload62,00382,628 Electric Heating84,406111,772 Gas Heating6,3979,317

12. Low-Income Energy Efficiency Programs 12 2005 Funding (millions) Households Served (Estimate) DOE WAP$4.61,840 LIHEAP$5.72,280 Energy Matchmaker$5.52,200 TOTAL$15.86,320

13. Other Indicators of Need 2005 WA NEADA Survey 188 LIHEAP Recipients 38% went without food for at least one day 36% went without medical or dental care 35% didn’t fill a prescription or took less than a full dose 32% reported that someone became sick because the home was too cold 13

14. Other Indicators of Need 2005 WA NEADA Survey 81% reduced expenses for necessities 47% received shutoff notices 35% kept home at a temperature they felt was unsafe 27% used their kitchen stove for heat 14

15. Other Indicators of Need 2005 WA NEADA Survey 15% had their electric service shut off 37% could not use their main source of heat 19% could not use their air conditioner 15

16. Washington Utilities 16

17. WA Utilities Electric Investor OwnedGas Investor Owned 17

18. WA Electric Utilities 18

19. WA Electric Utilities 19

20. WA Electric Utilities 20

21. WA Electric Utilities 21 Utility Type# Utilities# Customers% Customers Investor-Owned31,360,00045% PUD211,031,79734% Municipal15444,75115% Cooperative17163,6185%

22. WA Electric Utilities 22 Utility TypeNumber of Customers Mean LargestSmallest Investor-Owned 453,3331,040,000124,000 PUD 49,133300,1763,000 Municipal 29,650375,869418 Cooperative 9,62535,000271

23. WA Gas Utilities 23 Utility Type# Utilities# Customers% Customers Investor-Owned41,264,55899% Municipal210,000<1%

24. Detailed WA Analysis 24

25. Program Eligibility 25

26. Program Eligibility 26

27. Program Eligibility 27 200Island, San Juan, Skagit 300Chelan, Douglas, Kittitas, Okanogan 400Adams, Ferry, Grant, Lincoln, Pend Oreile, Stevens 700Asotin, Columbia, Garfield, Walla Wall, Whitman 800Benton, Franklin 1100Cowlitz, Klickitat, Skamania, Wahkiakum 1500Grays Harbor, Lewis, Pacific 1600Clallam, Jefferson, Mason

28. Heating Fuel 28

29. Heating Fuel 29

30. Heating Fuel 30

31. Electric and Gas Burden 31

32. Electric and Gas Burden 32 Percent of Low-Income Households With Energy Burden Greater than 5% and 10% Public Utilities

33. Electric and Gas Burden 33

34. High Energy Use 34

35. Vulnerable Households 35

36. Vulnerable Households 36

37. Single Parent Households 37

38. Single Parent Households 38

39. Foreign Language Households 39

40. Foreign Language Households 40

41. Foreign Language Households 41

42. Utility Low-Income Programs 42

43. WA Low-Income Programs No statewide Universal Service Program No comprehensive package of utility- funded programs WUTC can approve a low-income program WUTC cannot direct a utility to create a low-income program 43

44. WA Bill Assistance Investor-Owned Utility Programs 44 Low-Income Annual Credit Low-Income Discount Annual Funding AvistaYesNo$3,200,000 Cascade Natural GasYesNo$900,000 Northwest Natural GasNo $0 Pacific PowerNoYes$300,000 Puget SoundYesNo$8,500,000 TOTAL$12,900,000 $ Per WA Low-Income HH$36.51

45. WA Bill Assistance Comparison to Other State Affordability Funding 45 RankStateFunds per Low-Income Household 1NJ$181 2PA$155 3OH$154 4CA$141 5NH$102 6DC$69 7MI$57 8NV$56 9IL$53 10MD$50 11MA$48 12ME$37 12RI$37 12WA$37

46. WA Bill Assistance Avista Low-Income Rate Assistance Program (LIRAP) Approved in 2001 $3.2 million annual funding Fixed annual credit ~7,000 households served in 2006 Eligibility: 125% of poverty, 175% for elderly 46

47. WA Bill Assistance Avista Low-Income Rate Assistance Program (LIRAP) $300 grant for seniors Low-income customer lump-sum payment similar to LIHEAP – max of $750 Emergency assistance – max of $300 Mean 2006 heat benefit: $410 Mean 2006 Emergency benefit: $248 Mean 2006 Senior benefit: $256 47

48. WA Bill Assistance Cascade Natural Gas 2006 Rate Case agreement ~$900,000 in funding in 2006 Fixed annual credit Eligibility level – 150% of poverty Distributed by LIHEAP agencies 48

49. WA Bill Assistance Pacific Power and Light Low-Income Bill Assistance Program (LIBA) Approved in 2001 $300,000 annual funding Per kWh discount – 3 different levels depending on household poverty level 2006 participation capped at 2,618 Eligibility: 125% of poverty 49

50. WA Bill Assistance Puget Sound Energy – HELP $8.5 million annual funding Fixed annual credit ~18,000 served in 2006 Eligibility – 150% of poverty Maximum benefit of $750 Mean 2006 electric benefit: $344 Mean 2006 gas benefit: $442 50

51. WA Bill Assistance 51

52. WA Bill Assistance PUDs Bill Assistance Programs 14 of 21 PUDs offer discount programs 3 offer general low-income discount programs 9 offer only senior/disabled discount 2 offer only senior discount 52

53. WA Bill Assistance PUDs Bill Assistance Programs Maximum discount ranges from 15% - 60% Maximum discount ranges from $100 to $300 17 also offer Hardship Funds 53

54. WA Bill Assistance 54 Electric Municipal and Cooperatives Bill Payment Assistance Programs

55. WA Bill Assistance Municipal Electric Bill Discount Programs 8 of 16 municipal electric utilities offer bill discount programs 7 restricted to elderly or disabled low- income 1 restricted to elderly low-income 3 have Hardship Funds 55

56. WA Bill Assistance Cooperative Electric Bill Discount Programs 3 of 17 cooperatives offer bill discount programs 2 restricted to elderly or disabled low- income 1 restricted to elderly low-income 6 have Hardship Funds 56

57. WA Bill Assistance 57 Percent of Low-Income Customers In Service Area With Bill Assistance Electric74% Gas76%

58. WA Efficiency Programs Energy Matchmaker Program Funded at $5.5 million in 2005 Began in 1987 State funds matched by utilities and other sources 58

59. WA Efficiency Funding Comparison to Other State Efficiency Funding 59 RankState Efficiency Funding Per Low-Income Household 1Wisconsin$104.99 2Massachusetts$31.69 3California$25.01 4Pennsylvania$24.77 5New Jersey$23.46 6Oregon$20.90 7Washington$15.37 8New York$10.99 9Michigan$10.00 10Ohio$9.08

60. Utility Prices 60

61. Electric Prices 61

62. WA Electric Prices 62 400 kWh800 kWh1200 kWh Lowest Price2.29¢$9.16$18.32$27.48 Highest Price7.86¢$31.44$62.88$94.32 Average Price5.96¢$23.84$47.68$71.52 Electric Price Variability

63. Gas Prices 63

64. Data Summary 64

65. Summary 65 <125% Electric Heat Burden > 5% High Baseload Use High Electric Heat Use WA14%72%71%68%38% Chelan21%78%67%100%88% Clark12%73%83%62%21% Vulnerable Single Family Non- EnglishSpanish LI Program kWh Price WA67%23%24%13%Yes6.50¢ Chelan74%21%23%21%No2.97¢ Clark74%22%21%7%Yes7.86¢

66. Summary Diverse electric supply No statewide program Limited ratepayer funded affordability programs Moderate ratepayer funded efficiency programs Variability in electric prices Diverse need for affordability and efficiency 66