1. NJ SHARES 2006 Evaluation October 26, 2006

2. 2 Evaluation Goals Characterize NJ SHARES grant recipients Characterize NJ SHARES grants Examine good faith payments Analyze post grant payment compliance

3. 3 Evaluation Data NJ SHARES database –2004 Grants (no demographics) –2005 Grants –Q1 2006 Grants Utility transaction data –2004 Q1 recipients –2005 Q1 recipients –2006 Q1 recipients

4. 4 Evaluation Data Utility Data –Atlantic City Electric –Elizabethtown Gas –New Jersey Natural Gas –PSE&G –South Jersey Gas

5. 5 2005 Grant Data Utility # Grants % of Grants Grant $ % of Grant $’s Atlantic City Electric3617%$103,1405% JCPL4108%$114,0406% NJNG1723%$42,2822% Elizabethtown3226%$76,3164% PSE&G3,74071%$1,576,03780% Rockland13<1%$3,075<1% SJG2625%$61,9093% TOTAL5,280100%$1,976,799100%

6. 6 2005/2006 Grant Data Q1 20052005Q1 2006 Electric Only1398%72915%33910% Gas Only1519%46910%41512% Electric and Gas1,33280%3,37470%2,67576% Electric Heat453%2595%1113% Total Households1,6674,8313,540

7. 7 2005 Grant Data CountyNumber Served Percent of Total CountyNumber Served Percent of Total Atlantic1603.3%Middlesex48210.0% Bergen3647.5%Monmouth1583.3% Burlington2395.0%Morris841.7% Camden3006.2%Ocean1543.2% Cape May310.6%Passaic4118.5% Cumberland571.2%Salem230.5% Essex82617.1%Somerset1763.6% Glouchester1252.6%Sussex481.0% Hudson53511.1%Union3507.2% Hunterdon90.2%Warren380.8% Mercer2615.4%TOTAL4,831100.0%

8. 8 2005 Grant Data Number of Household Members Contributing to Income None< 1% One76% Two21% Three or More3% Average Number 1.3

9. 9 2005 Grant Data Income Sources Employment88% Pension or Social Security12% Unemployment Compensation6% Disability5% Child Support4% Other Source3%

10. 10 2005 Grant Data Annual Household Income < $10,000<1% $10,000 -$20,00010% $20,000 - $30,00032% $30,000 - $40,00027% > $40,00030% Average Annual Income$35,530

11. 11 2005 Grant Data Household Poverty Level < 175%6% 176% - 200%27% 201% - 250%32% 251% - 300%17% > 300%19%

12. 12 2005 Grant Data Household Composition Under 6 Years Old28% 6 – 18 Years Old43% 18 - 60 Years Old92% > 60 Years Old7% Note: A household can be included in more than one category.

13. 13 2005 Grant Data Household Composition 5 or Younger28% 18 or Younger60% > 60 Years Old7% Note: A household can be included in more than one category.

14. 14 2005 Grant Data Household Poverty Level By Household Composition 18 or YoungerOver 60 < 175%7% 176% - 200%30%26% 201% - 250%33%31% 251% - 300%16% > 300%15%20%

15. 15 2005 Grant Data Number in Household 126% 230% 321% 414% 5+9% Average Size2.5

16. 16 2005 Grant Data Main Heating Fuel Natural Gas80% Electric14% Oil5% Propane<1% Other<1%

17. 17 2005 Grant Data Recipient Reported Bill Balance At Grant Application < $2504% $250 -$50021% $500 - $75024% $750 - $1,00017% > $1,00033%

18. 18 2005 Grant Data Recipient Reported Bill Balance At Grant Application By Percent of FPL <175%176-200%201-250%251-300%>300% < $2506%5%4% 3% $250 -$50026%21%23%19%18% $501 - $75020%24% 26%22% $751 - $1,00020%18%15%16%20% > $1,00028%32%33%35%36% Average$874$926$970$1019$1051

19. 19 2005 Grant Data Recipient Reported Bill Balance At Grant Application By Grant Type Electric Only$637 Gas Only$725 Electric and Gas$1093 Electric Heat$847 All Grants$976

20. 20 2005 Grant Data Collection Actions Pending at Grant Application Shut-Off Date Passed49% Shut-Off Date Not Passed28% Past Due Warning Notice21% Utility Shut-Off8% Note: Percentages do not sum to 100% because a household with grants for more than one utility may have two different collections actions.

21. 21 2005 Grant Data Reason for Grant Application Temporary Financial Crisis59% High Energy Costs28% Medical/Health7% Unemployment3% Other3%

22. 22 2005 Grant Data Detailed “Other” Reasons for Application: –Car trouble and repairs –Estimated meter readings –College expenses –Death in the family leading to loss of income-earner and/or high funeral costs –Unexpected home repairs (ex. roof, hot water heater, pipes) –Change in employment status –No longer covered by disability insurance or no more sick leave –High mortgages, child support, and insurance costs –Change in living situation (high cost of moving, change in marital status, etc.)

23. 23 2005 Grant Data Grant Amount < $2505% $25023% $250 - $50015% $50056% Average Total Grant$409

24. 24 2005 Grant Data Grant Amount, By Type of Grant Average< $250$250$250 - $500$500 Electric Only$24211%89%-- Gas Only$24211%89%-- Electric and Gas$4663%1%20%76% Electric Heat$4386%9%18%67%

25. 25 Utility Data Analysis Methodology Focused on Q1 2005 Grant Recipients Transaction Data from Participating Utilities Files Contain Payments, Charges, Account Balances Analyzed: –Existence of “Good Faith Payment” –Ratio of Payments Made to Charges Incurred at Key Intervals Used Q1 2004 and Q1 2006 Recipients as Comparison Groups

26. 26 Utility Data Analysis Sample Group Definitions Q1 2005 Recipient Treatment Group Q1 2004 Recipient Comparison Group Q1 2006 Recipient Comparison Group Accounts Included All Q1 2005 grant recipients Accounts receiving grants in Q1 2004 only and at no other time between 2004 and Q1 2006 Accounts receiving grants in Q1 2006 only and at no other time between 2004 and Q1 2006 Analysis Period Starts Month received grant1 year after grant1 year before grant Analysis Period Ends 1 year after grant2 years after grantMonth before grant Analysis Period Q1 2005 – Q1 2006

27. 27 Utility Data Analysis Good Faith Payments Sample Size Q1 2005Q1 2006 # Submitted1,7052,818 # Returned*1,3932,744 Insufficient Pre Grant Data44991 Available for Analysis9442,653 % of Total55%94% * Elizabethtown Gas Co. budget billing accounts were not counted.

28. 28 Utility Data Analysis Good Faith Payments Paid At Least $100 Towards Utility Bill In 90 Days Preceding Grant Q1 200595% Q1 200694%

29. 29 Utility Data Analysis Good Faith Payments Payments Made in 90 Days Prior to Grant Q1 2005Q1 2006 < $1005%6% $10011%8% $101 - $1509%7% $151 - $20010%9% $201 - $2507%6% $251 +59%64%

30. 30 Utility Data Analysis Good Faith Payments Payments Made In 90 Days Prior to Grant By Poverty Level - Q1 2005 <175%176-200%201-250%251-300%>300% < $1003%5%6%5%3% $10012%14%9%10%9% $101 - $15017%8%10%4%8% $151 - $20014%10% $201 - $2503%6% 10%7% $251 +51%57%59%61%63%

31. 31 Utility Data Analysis Good Faith Payments Payments Made In 90 Days Prior to Grant By Poverty Level - Q1 2006 <175%176-200%201-250%251-300%>300% < $10013%7%6% 5% $1007%11%7% 6% $101 - $1509%7% 5%6% $151 - $20011%9%12%7%6% $201 - $2506%7%6%7% $251 +56%59%62%67%70%

32. 32 Utility Data Analysis Good Faith Payments Number of Payments For Those Paying at Least $100 Mean Percentile 255075 Q1 20052.8223 Q1 20062.8224

33. 33 Utility Data Analysis Payment Compliance 2005 Q1 Average Grant Coverage Pre Grant Balance$940 Grant$394 Post Grant Balance$546 Percent of Pre-Grant Balances Covered55%

34. 34 Utility Data Analysis Payment Compliance 2005 Q1 Grant Coverage Distribution Percentile 10%25%50%75%90% Pre Grant Balance$299$513$806$1224$1669 Grant$250 $500 Post Grant Balance$2$148$388$782$1209 Percent of Pre-Grant Balances Covered24%34%49%69%99%

35. 35 Utility Data Analysis Payment Compliance 2006 Q1 Average Grant Coverage Pre Grant Balance$1204 Grant$631 Post Grant Balance$565 Percent of Pre-Grant Balances Covered67%

36. 36 Utility Data Analysis Payment Compliance 2006 Q1 Grant Coverage Distribution Percentile 10%25%50%75%90% Pre Grant Balance$348$608$996$1587$2288 Grant$250$356$643$967$1000 Post Grant Balance$0$116$363$819$1366 Percent of Pre-Grant Balances Covered 34%44%59%80%100%

37. 37 Utility Data Analysis Payment Compliance Q1 2005Q1 2004Q1 2006 # Submitted1,7051,2492,818 # Returned1,3938262,744 Amount of Data Available for Analysis 3 Months1,2086581,869 6 Months1,1646301,814 9 Months1,0815841,748 12 Months9565211,670 % of Total56%42%59% * Elizabethtown Gas Co. budget billing accounts were not counted.

38. 38 Utility Data Analysis Payment Compliance Percent of Bills Paid Recipients With Full Year Of Data Q1 2005Q1 2004Q1 2006 Year Following Grant Receipt 2 Years After Grant Receipt 1 Year Before Grant Receipt < 50%3% 4% 50% - 75%13%9%21% 76% - 90%19%17%31% 91% - 99%24%20%22% 100%+40%52%23% Average95%100%87%

39. 39 Utility Data Analysis: Payment Compliance Results Average Percent of Bills Paid 3 Months6 Months 9 Months12 Months Q1 2005 Year Following Grant Receipt 106%110%100%95% Q1 2004 2 Years After Grant Receipt 114%117%106%100% Q1 2006 1 Year Before Grant Receipt 103%109%105%87%

40. 40 Utility Data Analysis: Payment Compliance Results Average Bill Balance Following Grant 3 Months6 Months 9 Months12Months Q1 2005 Year Following Grant Receipt $447$405$350$442$545 Q1 2004 2 Years After Grant Receipt $423$336$387$357$454 Q1 2006 1 Year Before Grant Receipt $388$387$313$338$671

41. 41 Utility Data Analysis Payment Compliance Segmentation Analysis Ending Balance < $100 Balance Declined Ending Balance > $100 Balance Increased # of Customers194305430 Annual Income$37,599$39,837$35,259 Pre-Grant Balance$693$1,308$826 Grant$373$435$403 Post-Grant Balance$320$873$423

42. 42 Utility Data Analysis Payment Compliance Segmentation Analysis Ending Balance < $100 Balance Declined Ending Balance > $100 Balance Increased # of Customers194305403 # of Payments10.310.58.7 % of Bills Paid110%105%79% Mean Ending Balance-$23$504$835

43. 43 Utility Data Analysis Payment Compliance Segmentation Analysis Ending Balance < $100 Balance Declined Ending Balance > $100 Balance Increased # of Customers 194305430 ≤175% FPL3%5% 176% - 200% FPL22%20%25% 201% - 250% FPL33%30%31% 251% - 300% FPL16%22%21% >300% FPL26%24%19%

44. 44 Utility Data Analysis USF/LIHEAP Receipt Received USF or LIHEAP in 12 Months Following Grant Receipt New Jersey Natural Gas7% PSE&G8% South Jersey Gas5% Elizabethtown2% Atlantic City Electric7% TOTAL7%