Elder Independent Living:Elder Independent Living:Threats from High Energy Threats from High Energy

Prices and Prices and Weak Consumer ProtectionsWeak Consumer Protections

National Community Action National Community Action Foundation Energy Programs Foundation Energy Programs

Leveraging ConferenceLeveraging ConferenceOctober, 2006October, 2006

John Howat – National Consumer Law CenterJohn Howat – National Consumer Law Center

jhowat@nclc.orgjhowat@nclc.org

Prospective Living Prospective Living ArrangementsArrangements

Own home or apartmentOwn home or apartment Private residence shared with family Private residence shared with family

or unrelated personsor unrelated persons Retirement community offering Retirement community offering

limited services such as limited services such as housecleaning or group mealshousecleaning or group meals

Retirement community offering many Retirement community offering many services, including bathing, dressing, services, including bathing, dressing, assisted mobilityassisted mobility

Source: AARP/Harris Interactive Survey, September 2002

2004 Home Care 2004 Home Care StatisticsStatistics

20,000 Home Health Care 20,000 Home Health Care ProviderProvider

7.6 million recipients7.6 million recipients

$38.3 Billion Home health $38.3 Billion Home health Care ExpendituresCare Expenditures

Projected Population of the U.S.: 65 Years of Age or Older(in thousands)

35,061

40,243

54,632

71,453

80,049

86,705

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2000 2010 2020 2030 2040 2050

Projected Percentage Population Change in the U.S.: 2000 - 2050

0

10

20

30

40

50

60

70

2000-2010 2010-2020 2020-2030 2030-2040 2040-2050

..TOTAL ..65-84 ..85+

Percentage U.S. Population Change by Age Category: 2000 - 2050

4632 26

49

114

389

0

50

100

150

200

250

300

350

400

450

0-4 5-19 20-44 45-64 65-84 85+

Age Category

Perc

ent

Elderly and Non-Elderly Poverty: US Households in 2001

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Non Elderly Elderly

Non Elderly 12.8% 17.3% 22.0%

Elderly 17.6% 23.3% 32.7%

Poverty Rate 100% Poverty Rate 125% Poverty Rate 150%

LIHEAP-Eligible ConsumersAvg. Total Annual Expenditure for All fuels

Primary Heat Fuel is:

Actual 2001 Actual 2004 Actual 2005 Actual 2006

Projected 2007

(Normal Weather)

v. 2006 v. 2001 % of houses

Natural Gas $1,360 $1,538 $1,616 $1,875 $1,832 98% 135% 52.90%

Propane  $1,634 $1,924 $1,996 $2,281 $2,311 101% 141% 5.30%

Heating Oil $1,626 $1,981 $2,188 $2,561 $2,714 106% 167% 6.70%

Electricity $1,013 $1,120 $1,147 $1,296 $1,344 104% 133% 30.30%

All $1,270 $1,444 $1,513 $1,744 $1,751 100% 138% 100.00%

Source: Joel Eisenberg, ORNL October 2006

Electricity Intensity - Elder and Non-Elder Households:KWH per Square Foot of Living Space, U.S. 2001

4.20

4.40

4.60

4.80

5.00

5.20

5.40

Elder Households Non-elder Households

KW

H/S

q. F

t.

Elderly and Non-elderly Refrigerator Ownership Ratesby Age of Refrigerator

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

10 - 19 Yr. Old Refrigerator Ownership Rate 20+ Year Old Refrigerator Ownership Rate

Non-elderly Elderly

Home Energy Consumption per Sq. Ft.(BTU)

14.5

15

15.5

16

16.5

17

17.5

18

18.5

Nonelderly Elderly

Centers for Disease Control and Prevention, Morbidity and Mortality Weekly Report, June 11, 1999 / 48(22); p. 469-472.

Elder Energy Security: Elder Energy Security: Programmatic Programmatic RequirementsRequirements

Payment assistance that lowers home Payment assistance that lowers home energy payments to an affordable levelenergy payments to an affordable level Fixed bills to accommodate fixed incomesFixed bills to accommodate fixed incomes Arrearage management that does not Arrearage management that does not

compromise affordability of current billscompromise affordability of current bills Priority energy efficiency servicesPriority energy efficiency services

Focus on comfort measuresFocus on comfort measures Appliance replacementAppliance replacement

Medicaid Funding of Home Energy Medicaid Funding of Home Energy Bills?Bills?

Elder Energy Security:Elder Energy Security:Regulatory Consumer Regulatory Consumer

ProtectionsProtections Age-based shutoff protectionsAge-based shutoff protections

65+, financial hardship certification65+, financial hardship certification Serious illness shutoff protectionsSerious illness shutoff protections

Reasonable recertification proceduresReasonable recertification procedures Harsh weather shutoff protectionsHarsh weather shutoff protections

Seasonal, temperature-basedSeasonal, temperature-based Deferred Payment AgreementsDeferred Payment Agreements Personal notification of service Personal notification of service

disconnectiondisconnection