1. HELPING THE ELDERLY An Age-Old Battle David Bonar Delaware Public Advocate

2. Affordability  One wastewater utility allowed to increase rates from $75/month to $85/month (phased over two years)  Second largest water utility just filed for a 14% increase in rates (prior increase of more than 16% was approved summer 2012)  Increase in natural gas base rates added $5.34 per month to the average residential customer bill  Electric utility seeking monthly increase for average residential customer of $7.60 ($5.36 already in rates)  Same utility was granted a $22 million increase in January 2013, adding $4,49 to the average residential customer  Distribution rate increases exclude other approved increases (renewable portfolio compliance costs, AMI deployment costs, DR programs )

3. Essential Services  Elderly population more sensitive to extreme weather conditions  Electric and natural gas services are critical to health and safety of the elderly  Even brief periods without service can be harmful or fatal for elderly  Reluctance of many elderly to seek assistance

4. Consumer Advocate Response  Continue to advocate for lowest reasonable rates consistent with safe and reliable service  Work with assistance agencies to reach as many sensitive populations as possible  Do a better job of educating legislatures about impacts of various laws on utility rates  Focus outreach efforts on reaching isolated populations, especially regarding efficiency programs and new technologies

5. Final thoughts  Customers can no longer be looked at as just “ratepayers”  Not all elderly are on a “fixed income” and “technophobes” – stop coddling them  Many are able and willing – and have the financial means - to implement new technologies  Need to consider re-segmentation of customer groups to reflect realities of where we are today, not where we were many years ago