11

LIOB UpdateLIOB UpdateLIEE/CARE ProgramLIEE/CARE Program

February 28, 2006February 28, 2006Pacific Gas and Electric CompanyPacific Gas and Electric Company

San Diego Gas and Electric San Diego Gas and Electric Southern California Gas CompanySouthern California Gas Company

Southern California EdisonSouthern California Edison

22

LIEELIEE

33

LIEE Program ObjectiveLIEE Program Objective

Funded through a public purpose program Funded through a public purpose program charge levied on customers’ utility bills, the charge levied on customers’ utility bills, the Low Income Energy Efficiency program Low Income Energy Efficiency program offers energy-saving and no-cost home offers energy-saving and no-cost home improvements to income-qualified improvements to income-qualified residential single-family, multi-family, and residential single-family, multi-family, and mobile home customers in addition to mobile home customers in addition to certain non-profit group living facilities on certain non-profit group living facilities on non-residential rates.non-residential rates.

44

HistoryHistory

Programs established at all utilities in the 1980’sPrograms established at all utilities in the 1980’sOriginal Focus for gas services – insulation Original Focus for gas services – insulation Wx measure (Big 6)Wx measure (Big 6)Electric services focused on lighting and cooling Electric services focused on lighting and cooling measuresmeasures 2001 Energy crisis led to the inclusion of electric 2001 Energy crisis led to the inclusion of electric measures measures Standardization process began in 2000Standardization process began in 2000Efforts to leverage with other programs Efforts to leverage with other programs (LIHEAP) & work with CBOs(LIHEAP) & work with CBOs

55

Legislation / DecisionsLegislation / Decisions

SB845SB845 Required all California investor owned IOUs to Required all California investor owned IOUs to

conduct low income energy efficiency programs. conduct low income energy efficiency programs. PUC Code - Section 2790PUC Code - Section 2790 Requires an electrical or gas corporation to perform Requires an electrical or gas corporation to perform

home weatherization services for low-income home weatherization services for low-income customers (Big 6) customers (Big 6)

D.00-09-036D.00-09-036 Beginning of LIEE StandardizationBeginning of LIEE StandardizationD.01-03-028D.01-03-028 10 year go back rule, income documentation, initial 10 year go back rule, income documentation, initial

CO testing requirements, reporting requirements CO testing requirements, reporting requirements manual, etcmanual, etc

66

Legislation / DecisionsLegislation / DecisionsD.01-05-033D.01-05-033 Rapid deployment – 2001 energy crisis, SBX 1-5 Rapid deployment – 2001 energy crisis, SBX 1-5

dollars made availabledollars made availableD.01-06-010D.01-06-010 Income guidelines increased from 150% to 175% and Income guidelines increased from 150% to 175% and

200%200%D.02-12-019D.02-12-019 Stay the course of RD – budgets doubled to tripled Stay the course of RD – budgets doubled to tripled

from prior base budgets, RD measures continued on from prior base budgets, RD measures continued on a pilot basisa pilot basis

D.03-11-020D.03-11-020 NGAT adopted, new mix of measures NGAT adopted, new mix of measures

77

Legislation / DecisionsLegislation / DecisionsD.05-04-052D.05-04-052 Adopted PY2005 programs and budgetsAdopted PY2005 programs and budgetsD.05-10-044D.05-10-044 Winter Initiative – increased income guidelines for Winter Initiative – increased income guidelines for

both LIEE and CARE to 200%, added measures for both LIEE and CARE to 200%, added measures for winter period (central forced air furnaces, leaky water winter period (central forced air furnaces, leaky water heaters, refrigerator go backs)heaters, refrigerator go backs)

D.05-12-026D.05-12-026 Adopted PY2006 programs and budgets – added new Adopted PY2006 programs and budgets – added new

measures (duct seal and repair, central air measures (duct seal and repair, central air conditioners in select climate zones), required conditioners in select climate zones), required PY2006 budget augmentation applications by 4/14/06 PY2006 budget augmentation applications by 4/14/06 and PY2007-2008 program applications 7/1/06and PY2007-2008 program applications 7/1/06

88

Policy & ProceduresPolicy & Procedures

Customer & Structural Customer & Structural EligibilityEligibilityCustomer Outreach & Customer Outreach & RelationsRelationsPre-Installation Pre-Installation ContactsContactsMeasuresMeasures

Minor Home RepairMinor Home RepairInstallation P&PInstallation P&PInspectionsInspectionsContractor EligibilityContractor EligibilityNatural Gas Natural Gas Appliance TestingAppliance Testing

Weather Installation Standards Manual

99

Income DocumentationIncome DocumentationIncome guidelinesIncome guidelines FPG level is changed annually and provided by FPG level is changed annually and provided by

CPUC.CPUC.Types of incomeTypes of income All income is considered, including taxable and non-All income is considered, including taxable and non-

taxable, child support, spousal support, disability or taxable, child support, spousal support, disability or veteran’s benefits, rental income, social security, veteran’s benefits, rental income, social security, pensions and all social welfare program benefits pensions and all social welfare program benefits before any deductions are made. before any deductions are made.

Verification of incomeVerification of income Income documentation is reviewed, recorded, copied Income documentation is reviewed, recorded, copied

and stored.and stored.

1010

Household EligibilityHousehold Eligibility

10 Year Go Back Rule10 Year Go Back RuleSpace heating fuel sourceSpace heating fuel sourceOwners vs. RentersOwners vs. RentersDwelling Type (SF, MF, MH)Dwelling Type (SF, MF, MH)Meter Type (MM, SM, and Indiv. Meter)Meter Type (MM, SM, and Indiv. Meter)Need for Services (3 measure minimum, Need for Services (3 measure minimum, etc) etc)

1111

MeasuresMeasuresAttic InsulationAttic InsulationLow Flow ShowerheadsLow Flow ShowerheadsWater Heater BlanketsWater Heater BlanketsDoor WeatherstrippingDoor WeatherstrippingCaulkingCaulkingOutlet GasketsOutlet GasketsFaucet AeratorsFaucet AeratorsPipe WrapPipe WrapEvaporative CoolersEvaporative CoolersDuct Testing and SealingDuct Testing and Sealing

Refrigerator ReplacementRefrigerator ReplacementEvaporative Cooler Evaporative Cooler CoversCoversHard-Wired Compact Hard-Wired Compact FluorescentFluorescentThread-In Compact Thread-In Compact FluorescentFluorescentHE Window/Wall Air HE Window/Wall Air ConditionersConditionersMinor Home RepairsMinor Home RepairsHE Central A/CHE Central A/C

1212

NGATNGAT

Combustion appliance testing is Combustion appliance testing is conducted for all homes that receive conducted for all homes that receive infiltration reduction measures.infiltration reduction measures.Homes with non-IOU space heating are Homes with non-IOU space heating are not eligible for infiltration reduction not eligible for infiltration reduction measures (exception: PG&E service area).measures (exception: PG&E service area).ComplexitiesComplexities

1313

Current StateCurrent State

Winter Initiatives Winter Initiatives 200% FPG200% FPG Some customers able to self certifySome customers able to self certify Replace 65 AFUE furnaces with 80 or 92. Replace 65 AFUE furnaces with 80 or 92.

Applicable to owners and rentersApplicable to owners and renters Replace leaky water heatersReplace leaky water heaters

2004 P&P and WIS in effect (exception: 2004 P&P and WIS in effect (exception: CPUC approved new measures)CPUC approved new measures)

1414

California Alternate Rates California Alternate Rates for Energy for Energy

(CARE) Program(CARE) Program ReviewReview

1515

CARE Program OverviewCARE Program OverviewCARE Program HistoryCARE Program History

D. 89-07-062 and D.89-09-044 D. 89-07-062 and D.89-09-044 CARE (formerly LIRA) program was mandated by state CARE (formerly LIRA) program was mandated by state

legislation, SB 987, in 1987 and implemented in 1989legislation, SB 987, in 1987 and implemented in 1989 Originally offered a 15% discount to residential customers at or Originally offered a 15% discount to residential customers at or

below 150% of the Federal Poverty Guidelines.below 150% of the Federal Poverty Guidelines.D. 92-02-024; D. 94-12-047 D. 92-02-024; D. 94-12-047

Program modified to provide discount to qualified group living Program modified to provide discount to qualified group living facilities in 1992 pursuant to housing shelters and agricultural facilities in 1992 pursuant to housing shelters and agricultural employee housing facilitiesemployee housing facilities

Changed program name to California Alternate Rates for EnergyChanged program name to California Alternate Rates for EnergyD. 99-07-016, and D. 00-09-036D. 99-07-016, and D. 00-09-036

Standardized sources of income to determine CARE eligibilityStandardized sources of income to determine CARE eligibility Ordered utilities to standardized methodology for determining Ordered utilities to standardized methodology for determining

program eligibilityprogram eligibility

1616

CARE Program OverviewCARE Program OverviewD.01-05-033D.01-05-033

Allocated an additional $15 million statewide for CARE program fundsAllocated an additional $15 million statewide for CARE program funds Authorized CARE Capitation effortsAuthorized CARE Capitation efforts

D.01-06-010D.01-06-010 Increased Income Guidelines to 175% of the FPGIncreased Income Guidelines to 175% of the FPG Increased discount from 15 to 20% Increased discount from 15 to 20% Exempted CARE customers from tier three rate increases (electric only)Exempted CARE customers from tier three rate increases (electric only) Established CARE goals at 100% of customers willing to participateEstablished CARE goals at 100% of customers willing to participate

D.02-07-033D.02-07-033 CARE Automatic Enrollment for participants of LIHEAP, WIC, Medical CARE Automatic Enrollment for participants of LIHEAP, WIC, Medical

and Healthy Families adoptedand Healthy Families adoptedConfidentiality issues Federal program have restricted AE to the Low Income Confidentiality issues Federal program have restricted AE to the Low Income Home Energy Assistance program managed by the Department Community Home Energy Assistance program managed by the Department Community Services Confidentiality issues with Federal program have restricted AE to Services Confidentiality issues with Federal program have restricted AE to the Low Income Home Energy Assistance program manages by the the Low Income Home Energy Assistance program manages by the Department Community Services and Development.Department Community Services and Development.

1717

CARE Program Overview (cont.)CARE Program Overview (cont.)D.02-12-019 D.02-12-019

Rapid deployment strategy adopted to provide for increased funding Rapid deployment strategy adopted to provide for increased funding PY2003 CARE Program activities PY2003 CARE Program activities

D.05-04-052 and D.05-05-019D.05-04-052 and D.05-05-019 Granted funding for utilities PY2005 low income programsGranted funding for utilities PY2005 low income programs Two-Year funding cycle for 2006-2007 approvedTwo-Year funding cycle for 2006-2007 approved Cool Centers funding approvedCool Centers funding approved Excluded requirement that all residents in migrant housing centers be Excluded requirement that all residents in migrant housing centers be

eligible for CAREeligible for CARED.05-10-044 D.05-10-044

Winter Initiatives (11/01/05 – 4/30/06)Winter Initiatives (11/01/05 – 4/30/06)CARE/LIEE income thresholds increased from 175% to 200% of poverty CARE/LIEE income thresholds increased from 175% to 200% of poverty levellevelEnrollment and recertification on to CARE by phone is approvedEnrollment and recertification on to CARE by phone is approvedNo shut-off of services to customers paying 50% of current billNo shut-off of services to customers paying 50% of current billCARE participants are not to be removed for non-response to recertification CARE participants are not to be removed for non-response to recertification or income verification during the winter monthsor income verification during the winter months

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Conditions for ParticipationConditions for ParticipationIndividually Metered Residential CustomerIndividually Metered Residential Customer

The utility bill is in applicant’s name and the The utility bill is in applicant’s name and the address must be the applicant’s primary address must be the applicant’s primary residence.residence.Applicant cannot be claimed on another person’s Applicant cannot be claimed on another person’s income tax return, other than spouse.income tax return, other than spouse.The total yearly household income meets CARE The total yearly household income meets CARE income guidelines.income guidelines.Customer may be asked to verify his/her Customer may be asked to verify his/her income. If no reply or found not eligible customer income. If no reply or found not eligible customer may receive corrected billings.may receive corrected billings.Customers will be reminded to recertify their Customers will be reminded to recertify their CARE eligibility every two years. CARE eligibility every two years.

1919

CARE Program Income GuidelinesCARE Program Income Guidelines

Eligibility is based on annual household income and Eligibility is based on annual household income and number of residents in household.number of residents in household.

Household SizeHousehold Size Income Limit 200% Income Limit 200%

1 or 21 or 2 $27,700$27,70033 $26,600$26,60044 $32,000$32,00055 $37,400$37,40066 $42,800$42,800

Each additional household member $ 6,700

2020

CARE Program QualificationsCARE Program Qualifications

Wages or SalariesWages or Salaries Interest or Dividends from:Interest or Dividends from:

Savings Accounts,Savings Accounts, Stocks or Bonds, Stocks or Bonds, or Retirement Accountsor Retirement Accounts

Unemployment BenefitsUnemployment Benefits Rental or Royalty IncomeRental or Royalty IncomeScholarships, Grants, or Scholarships, Grants, or other Aid for Living Expensesother Aid for Living ExpensesSpousal SupportSpousal Support

Disability PaymentsDisability PaymentsWorkers CompensationWorkers CompensationSocial Security, SSI, SSPSocial Security, SSI, SSPPensionsPensionsInsurance SettlementsInsurance SettlementsLegal SettlementsLegal SettlementsTANF (AFDC)TANF (AFDC)Child SupportChild SupportCash and/or other IncomeCash and/or other Income

Income Sources Include: Income Sources Include:

2121

CARE Program ProcessesCARE Program ProcessesApplicationApplication

Applications are obtained either by customer request or as a result of Applications are obtained either by customer request or as a result of utility outreachutility outreach

Applications are processed and enrolled, returned for additional Applications are processed and enrolled, returned for additional information, or disqualified based on the program guidelinesinformation, or disqualified based on the program guidelines

Post-Enrollment Verification (PEV)Post-Enrollment Verification (PEV) Participants are randomly selectedParticipants are randomly selected Customers required to return income verification documents Customers required to return income verification documents

RecertificationRecertification Participants are required to certify to their eligibility every two yearsParticipants are required to certify to their eligibility every two years Sub-metered customers are required to certify to their eligibility annuallySub-metered customers are required to certify to their eligibility annually Group living facilities, migrant farmworker housing centers, and Group living facilities, migrant farmworker housing centers, and

agricultural employee housing facilities must recertify eligibility annuallyagricultural employee housing facilities must recertify eligibility annually

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CARE Statewide ParticipationCARE Statewide Participation

0

200000

400000

600000

800000

1000000

1200000

SDG&E SCG PGE SCE

PY2002Oct-05Dec-05

2323

Statewide CARE Customer Statewide CARE Customer BenefitsBenefits

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

SDG&E SCG PG&E SCE

20022005

2424

CARE Program OutreachCARE Program OutreachUtilities continue to increase outreach efforts in order to increase Utilities continue to increase outreach efforts in order to increase enrollment and meet the Commission’s goal of 100% participationenrollment and meet the Commission’s goal of 100% participationOutreach is directed to reach all qualified customers, including the Outreach is directed to reach all qualified customers, including the non-English speaking, seniors, the disabled, group living facilities non-English speaking, seniors, the disabled, group living facilities and agricultural employee housing facilities and migrant farmworker and agricultural employee housing facilities and migrant farmworker housing centers.housing centers.Utilities outreach efforts included:Utilities outreach efforts included:

Annual bill insertsAnnual bill inserts Utility Call Centers and field personnelUtility Call Centers and field personnel Utility websiteUtility website New customer welcome packets and other company brochuresNew customer welcome packets and other company brochures Quarterly bill messages Quarterly bill messages Utility data sharing in joint service territoriesUtility data sharing in joint service territories

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CARE Program Outreach (cont.)CARE Program Outreach (cont.)

Utilities’ outreach efforts (cont.)Utilities’ outreach efforts (cont.) Participation in community eventsParticipation in community events Contracts with community agencies to enroll qualified Contracts with community agencies to enroll qualified

customerscustomers A door-to-door enrollmentA door-to-door enrollment Multi-lingual television, newspaper and radio Multi-lingual television, newspaper and radio

advertising campaignadvertising campaign Leveraging with other utility assistance programs Leveraging with other utility assistance programs Targeted direct mail campaigns Targeted direct mail campaigns Community partnershipsCommunity partnerships