1. Energy Insecurity: Lessons from the RECS and SIPP Ferit Ucar David Carroll 2012 National Energy and Utility Affordability Conference June 12, 2012

2. Introduction Home Energy Notebook Special Studies –FY 2008 – LIHEAP Energy Insecurity Study Based on 2005 RECS questions –FY 2009 –SIPP Study of Energy Affordability Based on 2005 Adult Well-Being Module Analysis of Income Dynamics and Assets 2009 RECS 2

3. Outline Introduction 2005 RECS Findings –Levels and Types of Energy Insecurity –Factors Related to Energy Insecurity 2005 SIPP Findings –Analysis of Assets and Income Dynamics 2009 RECS Preliminary Findings 3

4. 2005 RECS Heating Interruptions 4 Reason for Space Heating Disruption Number of Low Income Households with Space Heating Disruption Percent of All Low Income Households Inability to pay for the repair of broken heating system 1,581,2334.4% Inability to pay for bulk fuel delivery 300,2840.8% Inability to pay for electric service 1,671,6364.7% Inability to pay for natural gas service 621,9561.7% Disruption due to any reason 3,265,5639.1%

5. 2005 RECS Cooling Interruptions 5 Reason for Air Conditioning Disruption Number of Low Income Households with Air Conditioning Disruption Percent of All Low Income Households Inability to pay for the repair of broken air conditioner 1,427,5094.0% Inability to pay for electric service 1,240,2783.5% Disruption due to any reason 2,507,5477.0%

6. 2005 RECS Self-Reports on Impacts of Energy Assistance 6 Reason for Heating Interruption Number of Low Income Households with Interruption Number of Low Income Households Energy Assistance Restored Heating Percent of All Low Income Households Energy Assistance Restored Heating Inability to pay for the repair of broken heating system 1,581,233176,30111% Inability to pay for bulk fuel delivery 300,284103,64635% Inability to pay for electric service 1,671,636322,07719% Inability to pay for natural gas service 621,956126,03420%

7. 2005 RECS Financial Dimension of Energy Insecurity 7 Dimension Almost Every Month Some Months 1 or 2 Months Never Worry about ability to pay 14.9%23.6%7.4%54.1% Reduce spending for basic necessities 17.0%23.3%6.7%53.0% Borrow to pay bill 3.9%11.6%7.2%77.3% Skip paying bill 3.9%13.0%9.4%73.7% Service termination threat 2.7%8.7%9.5%79.2% Any financial insecurity 23.6%25.4%8.9%42.2%

8. 2005 RECS Health & Safety Dimension of Energy Insecurity 8 Dimension Almost Every Month Some Months 1 or 2 Months Never Close off part of home 4.6%6.4%2.4%86.6% Keep home at unsafe temperature 1.8%4.1%2.5%91.6% Leave home for part of the day 1.0%4.2%3.6%91.2% Use stove or oven for heat 0.7%4.9%4.5%89.9% Any health or safety insecurity 6.3%12.4%7.3%74.0%

9. 2005 RECS Energy Insecurity by Census Region 9 Type of Energy Insecurity Census Region U.S. NortheastMidwestSouthWest Heating Interruption 6.9%6.5%10.3%13.4%9.2% Cooling Interruption 2.9%6.2%12.7%9.3%8.7% Reduce spending for basic necessities 39.0%49.3%49.5%48.2%47.0% Keep home at unsafe temperature 5.7%8.5%10.1%7.7%8.4%

10. 2005 RECS Energy Insecurity by Poverty Guidelines 10 Type of Energy Insecurity Poverty Group ≤100%>100%-150%>150% Heating Interruption 12.9%7.0%5.5% Cooling Interruption 10.1%8.6%6.1% Reduce spending for basic necessities 52.7%45.8%37.9% Keep home at unsafe temperature 12.1%6.3%4.4%

11. 2005 RECS Energy Insecurity by Demographic Group * 11 Type of Energy Insecurity Demographic Group Young ChildElderlyOther Heating Interruption 12.6%9.2%16.2% Cooling Interruption 12.2%7.5%11.2% Reduce spending for basic necessities 55.8%47.5%55.3% Keep home at unsafe temperature 9.3%14.5%11.6% *Households with income at or below 100% of HHS poverty guidelines

12. 2005 RECS Energy Insecurity by Energy Burden 12 Type of Energy Insecurity Residential Energy Burden* High Burden≥10.9% Moderate 6.5%≤Burden<10.9% Low Burden<6.5% Heating Interruption 12.7%7.4%7.2% Cooling Interruption 9.7%8.7%7.4% Reduce spending for basic necessities 51.1%49.0%40.4% Keep home at unsafe temperature 11.7%8.9%5.2%

13. 2005 RECS Multivariate Factor Analysis 13 Finding Tabular Analysis Multivariate Analysis Lower income  Higher rate Higher burden  Higher rate Northeast  Lower rate  Elderly  Lower financial rate Elderly  Lower health and safety rate 

14. Survey of Income and Program Participation (SIPP) Administered by Census Bureau Core Content and Topical Modules 2005 Adult Well-Being Module –Questions on energy service disruptions and bill payment problems Assets and Liabilities Module 14

15. 2005 SIPP Energy Insecurity by Demographic Group 15 2005 SIPP Demographic Group Young ChildElderlyOther Bill Payment Problems 29.0%7.3%24.5% Service Disconnections 6.1%0.8%4.3%

16. 2005 SIPP Analysis of Income Dynamics and Assets Why do elderly households experience lower levels of financial energy insecurity? –Possession of more assets? –More stable income? 16

17. 2005 SIPP Analysis of Assets 17 Group Elderly Low Income Households Non-Elderly Low Income Households Bill Payment Problem Service Disconnection # HHs (in millions) Avg. Net Worth* # HHs (in millions) Avg. Net Worth* No 10.0$146,59814.9$77,047 YesNo0.7$51,8164.2$19,434 Yes 0.1$55,9891.0$41,522 *Net Worth=Total Assets-Total Unsecured Debt

18. 2005 SIPP Analysis of Income Dynamics Non-Elderly More Likely to Have Volatile Income 18 Low Income Households with Volatile Income Group# (in millions)% Elderly 3.833.9% Non-Elderly 13.769.0%

19. 2005 SIPP Multivariate Analysis of Income Dynamics and Assets Elderly less likely to have bill payment problems Elderly less likely to have service shutoffs Income dynamics and assets partially explain this Still unexplained difference between elderly and non-elderly 19

20. 2009 RECS Preliminary Results 20 Health and Safety Problem Number of Low Income Households with the Problem Percent of All Low Income Households Kept home at unsafe temperature 5,677,24416.0% Medical attention needed b/c home too cold 966,3272.7% Medical attention needed b/c home too hot 102,7860.3% Fire started as a result of using an alternate heating source 96,1480.3% Fire started as a result of using an alternate lighting source 39,4420.1%

21. Contact 21 Ferit Ucar 609-252-2082 ferit-ucar@appriseinc.org David Carroll 609-252-8010 david-carroll@appriseinc.org