2012/2013 Annual Report

Necessity Knows No Season

Daniel Canavan, Chairman Northeast Utilities

Hillel Weisel, Vice Chairman Inland Fuel Terminals

Richard Schauster, Treasurer Empire Industries, Retired

Jenny Comerford, Secretary Hartford Investment Management Company

Vicki Anderson Pawcatuck Neighborhood Center

John Bowman F.F. Hitchcock Oil Company

Nancy Bulkeley Dominion Nuclear Connecticut

Sharon Coffey Cooper Surgical, Inc.

Tim Cole Connecticut Energy Efficiency Board

Renee Di Nino Clear Channel Radio Connecticut

Lori Johnson Commverge Marketing

John Larkin JC Larkin Company

Paul Pendergast CPTV

Hopeton Scott First Baptist Church, Bridgeport

Matthew Service Service Internet Solutions, LLC

Lynn Vasquez Connecticut Light & Power

Ronald Walsh Walsh, Merrill & Brousseau, PC

Patricia J. Wrice Executive Director

Lynn McDonald Director of Development

Betty Walsh Director of Finance and Administration

Brenda Watson Director of Community Programs

Nadia de la Puente Case Management Coordinator

Clasina Jones Development Assistant

Regina Pelrine Finance Assistant

2012-2013 Board of Directors Operation Fuel Staff2012 HighlightsWith your support in 2012/2013, Operation Fuel helped:

• More than 21,000 individuals, including over 8,000 children.

• Provide support to 2,000+ seniors; an increase of 50% over the prior year.

• Small businesses lower their energy burden through our Project Best Program.

• Ensure your support was used wisely, with 93% of contributions directly helping those in need.

This past winter marked our 36th year as Connecticut’s only statewide emergency energy assistance program. The majority of our recipients are working class families and elderly people who are living on fixed incomes. Some of the households that we help are going through a temporary crisis such as recent unemployment or a serious illness.

Because of the generosity of our community partners and energy grants from the state of Connecticut and Northeast Utilities, we were able to provide over $3.5 million in energy assistance to more than 8,200 households this past year. Almost half of our recipients were either children or elderly.

The need for energy assistance is greater than ever. According to our most recent Home Energy Affordability Gap report, the annual gap for Connecticut households with incomes at or below

200 percent of the Federal Poverty Level was nearly $662 million during 2012. This averages out to an annual home energy affordability gap of about $2,304 per household, which is the difference between what these households can afford to pay and what they actually owe.

Clearly, lower-income households need much more financial assistance with their energy expenses than Operation Fuel is capable of providing. Energy affordability and the need for energy assistance is now a year-round problem for many. Thousands of families and senior citizens live in fear of having their utilities turned off each spring when the Winter Protection program ends on May 1.

As the energy needs of Connecticut households have changed, Operation Fuel has looked for alternative solutions to the energy affordability crisis that affects

so many of our lower-income households. We recently developed a strategic plan for the next few years that will increase our outreach in the areas of energy conservation and education, energy policy/advocacy and comprehensive case management services. We believe this will allow Operation Fuel to have a greater impact on our state’s energy affordability crisis, while helping to empower people to reduce their energy consumption.

And for the past several years, we have been trying to get an affordable utility rate approved for families and the elderly who are struggling financially.

Connecticut is one of the few cold weather states that does not offer this type of rate for lower-income households.

With your help, we can collectively maximize our limited resources to ensure that lower-income residents stay warm and safe without being forced to choose between paying for food, medicine, electricity or heat. But for this to happen, it is imperative for Connecticut to adopt an affordable utility rate to ease the financial burden that affects so many of our vulnerable households.

Patricia Wrice Executive Director, Operation Fuel

Executive Letter

Operation Fuel and its network of over 100 fuel banks gave out $3,592,800 in energy assistance over the past year to more than 8,200 households throughout Connecticut. A total of 21,432 individuals were served including 2,052 elderly and 8,222 children under the age of 18.

Operation Fuel works in partnership with businesses, communities, government and individuals to ensure that Connecticut households have access year-round to critically needed energy assistance. The non-profit is funded by donations from corporations, foundations and individuals. Operation Fuel also received a $2.8 million energy grant from the state of Connecticut this past year.

In addition to running Connecticut’s only statewide non-profit energy assistance program, Operation Fuel continued its advocacy for a low-income residential utility rate and the need for a permanent solution to the state’s energy affordability crisis.

The majority of energy assistance grants this winter went to households that needed help paying their oil bills. Operation Fuel had to close the winter program earlier than expected when it ran out of funds because of an increased need for energy assistance, due to the cold winter and high cost of home heating oil.

Operation Fuel also ran limited emergency energy assistance programs last summer and this past spring for households that were in severe crisis and faced with the termination of their utility services. Thousands of Connecticut households are in danger of losing their utility services each spring when the state-mandated Winter Protection program ends on April 30 and does not resume until November 1.

Energy Affordability Poses Year-Round Dilemma Energy affordability is now a year-round problem for many of Connecticut’s lower-income families and elderly people who are living on fixed incomes. Some of these households continue to struggle even after receiving energy assistance. The maximum annual Operation Fuel grant is $500 per household.

The annual home energy affordability gap for Connecticut households with incomes at or below 200 percent of the Federal Poverty Level was nearly $662 million during 2012, according to Operation Fuel’s latest Home Energy Affordability Gap: Connecticut (2012) report. This averages out to a home energy affordability gap of about $2,304 per household, which is the difference between what households can afford to pay and what they actually owe for their annual energy bills. Due to its limited funding, Operation Fuel can help only a small percent of these households.

A Year in Review

Looking for Alternative Ways to Help Realizing that lower-income households need much more financial assistance than it is capable of providing, Operation Fuel is trying to find other ways to help families and individuals who are struggling with high energy expenses. The non-profit recently developed a strategic plan to increase its outreach in the areas of energy policy and advocacy, comprehensive case management services, and energy conservation and education.

The non-profit believes that expanding into areas such as energy conservation and education will allow Operation Fuel to have a greater impact on the state’s energy affordability crisis, while helping to empower people to reduce energy consumption and manage their energy expenses.

Partnering on Long-term Solutions The strategic plan also calls for working with community partners to address clients’ needs in a more comprehensive way and to find

lasting solutions rather than quick, temporary fixes. In the coming year, Operation Fuel is partnering with three other organizations to start a homeless intervention program. Operation Fuel will explore other pilot programs that could help bring financial stability to Connecticut’s vulnerable households.

Need for Low-Income Utility Rate Operation Fuel believes that a low-income residential utility rate is one of the best ways to help Connecticut’s lower-income households that are struggling to pay their energy bills. For several years, the non-profit has been working diligently to get approval for this type of rate. Connecticut is one of the few cold weather states without a low-income residential utility rate.

Operation Fuel will continue to work with its community partners and government officials to find permanent solutions to the energy affordability crisis, including the approval of a low-income residential utility rate.

In recognition of providing energy assistance to Connecticut’s families and elderly since 1977, Operation Fuel commemorated its 35th anniversary during the fall of 2012 with a reception at the Connecticut Science Center in Hartford, Conn.

Operation Fuel partners with organizations and individuals to ensure that Connecticut households have access year-round to critically needed energy assistance. During the 35th anniversary reception, the non-profit recognized five of those

partners for their extraordinary efforts to support Operation Fuel and its mission. Honorees were: State Senator Toni Harp, State Rep. Toni Walker, Lindsay Parke, project manager, community relations, at Northeast Utilities; the First Baptist Church of Bridgeport, and Dominion, which owns the Millstone Power Station in Waterford, Conn.

Dominion, Northeast Utilities, HSB Group, NBC Connecticut and Clear Channel Communications were the major sponsors of the 35th anniversary reception. NBC Connecticut news anchor Keisha Grant was the event’s master of ceremonies.Left to right: First Baptist Church Pastor Hopeton Scott, Operation Fuel Executive Director Patricia

Wrice, NBC Connecticut Anchor Keisha Grant, Northeast Utilities Community Relations Manager Lindsay Parke, and Dominion New England Director of State and local Affairs Kevin Hennessy.

35 Years of Providing Energy Assistance

Operation Fuel continued to assist small business owners who want to reduce their energy expenses as it launched the second phase of its Project BEST (Business Energy Sustainability Team) program.

Project BEST helps small businesses become more energy efficient while offering financial assistance and incentives for implementing energy-saving changes. The program is funded by grants from the Energize Connecticut initiative and Dominion. For the second phase of Project Best, Operation Fuel has partnered with Connecticut Light and Power Company (CL&P) and The United Illuminating Company (UI). Project Best began two years ago with a $1 million grant from Dominion Resources Inc. and $150,000 from PSEG (Public Service Enterprise Group).

Operation Fuel believes that small businesses play a critical role in the communities they serve and energy efficiency is an effective way for small business owners to lower their operating expenses. Qualified business owners initially attend an energy efficiency workshop that includes presentations

on energy conservation and information on the utility-run programs that are available to small businesses.

After completing a workshop and having an energy assessment done through Energize Connecticut’s Small Business Energy Advantage program, qualified business owners will receive a $250 credit on their electric bill.

During the no-cost energy assessment, a utility-authorized energy professional identifies ways for the small business to conserve energy and save money on future energy bills. Project BEST provides approved program participants with funding of up to $1,000 for recommended energy-saving measures such as energy-efficient lighting or energy-efficient refrigeration equipment.

A wide range of small businesses are eligible to participate in Project BEST including retail stores, restaurants, professional services and personal care services. Women-owned and minority-owned businesses, in particular, are encouraged to participate.

Helping Small Businesses Reduce Energy Expenses

Senator Bob Duff, who chairs the Energy and Technology Committee of the Connecticut General Assembly, partnered with Operation Fuel at a press conference in April to ask for private donations to help eligible households with energy assistance. He also encouraged his colleagues to support Operation Fuel in the state budget, as the need for energy assistance continues to grow statewide.

Duff said more and more households in Darien and Norwalk, which are in the 25th senatorial district that he represents, are experiencing the effects of a weaker economy and higher oil prices. This coming winter, the Darien Social Services department will become a fuel bank when it joins Operation Fuel’s network of more than 100 fuel banks statewide.

Operation Fuel raised more than $30,000 from its fourth annual Burn Calories for Fuel 5K and 10K, which was held on April 13 at the Metropolitan Learning Center in Bloomfield. The proceeds were used to provide emergency energy assistance for lower-income Connecticut households. Operation Fuel’s staff supported Burn Calories for Fuel by running the course and helping out with the event.

Clear Channel Communications was the media sponsor. Connecticut Light & Power and Yankee Gas were platinum sponsors and Dominion was the gold sponsor. Windsor Federal Savings, Munich Re and Hartford Steam Boiler were silver sponsors. Physical Therapy & Sports Medicine Centers was the finish line sponsor. Hometown Heating, Brothers Oil, Barney Best Oil, F.F. Hitchcock Oil and Operation Fuel’s Board of Directors were mile marker sponsors.

Senator Duff Asks for Increased Support for Operation Fuel

Burn Calories Raises $30,000

Statement of Financial Position For the year ended June 30, 2013ASSETS

Cash and cash equivalents 1,178,002 Certificates of Deposit 226,969 Grants and other Receivables 89,398 Prepaid Expense 7,026 Total Current Assets 1,501,395

OTHER ASSETS

Property & Equipment 16,716(Net of depreciation)

Total Assets 1,518,111

Liabilities and Net Assets2012-2013 LIABILITIES

Accounts Payable 45,700 Accrued Liabilities 36,082 Deferred Revenue 89,422 Total Current Liabilities 171,204

NET ASSETS

Unrestricted 959,612 Temporarily Restricted 387,295 Total net assets 1,346,907Total Liabilities & Net Assets 1,518,111

$180,006419

$901,2202132

$93,106209 $262,213

608

$326,125782$159,408

379$1,000,4132,412

$570,3081,295

2012-2013 Grants & Number of Households Served

Financials

Revenue and ExpensesFor the Year Ended June 30, 2013REVENUES AND SUPPORT FOR RESIDENTIAL PROGRAMS

Energy Related Industry 145,000 Governmental Grants - State 3,100,000 Add-a-Dollar 414,368Foundation Grants 210,664 Individuals 381,364 Utility Shareholder Match 132,700 Corporations and Small Businesses 22,882 Faith Communities 28,699 Special Events 53,593 Interest Income 2,230 Total Support for Residential Programs 4,491,500 Support for Small Businesses Pilot Program 183,457 Grand Total Revenues and Support 4,674,957

Management 4%

Fundraising 3%

Program 93%

Energy Related Industry 3%

State Government

Add-a-Dollar 9%

Foundation Grants 5%

Individuals 9% Utility Shareholder Match 3%

Corporations andSmall Businesses 0.5%

Special Events 1%

Faith Communities

0.5%

Grants 69%

Management 4%

Fundraising 3%

Program 93%

Energy Related Industry 3%

State Government

Add-a-Dollar 9%

Foundation Grants 5%

Individuals 9% Utility Shareholder Match 3%

Corporations andSmall Businesses 0.5%

Special Events 1%

Faith Communities

0.5%

Grants 69%

ExPENSES

Fuel Assistance Programs 4,179,622Management 174,995Fundraising 146,433Total Expenses 4,501,050

Advent Christian ChurchAldo Dedominicis FoundationAmerican Eagle Federal Credit UnionAmerican Savings FoundationArchdiocese of HartfordAsylum Hill Congregational Church, HartfordBeatrice Fox Auerbach FoundationBelcan Engineering GroupBeth El Temple of West HartfordBristol-Myers Squib Company Matyching GiftsBrothers Oil Company Inc.Brown Rudnick LLPBudd Family FundCarmon Community Funeral HomesChevron Matching Gifts ProgramChrist Church, Tashua, TrumbullChubb Group of Insurance CompaniesCIGNACigna FoundationClayman, Tapper & Baram, LLCClean Energy Finance & Investment AuthorityCLSJ Foundation, Inc.Coach Matching Gift ProgramCommunity Action Agency of New HavenCompetitive Resources Inc.Congregational Church of SalisburyConnecticut Elks AssociationConnecticut Health FoundationConnecticut Light & PowerConnecticut Natural GasConnecticut Power and Energy SocietyCovidien Employee Matching Gift ProgramDBA Stump Hollow Design

Dime Bank FoundationDominion FoundationElizabeth Raymond Ambler TrustEnfield Congregational ChurchEnsworth Charitable FoundationFellows International AssociationFirst Baptist Church Of BranfordFirst Baptist Church of EssexFirst Baptist Church, MeridenFirst Cathedral, BloomfieldFirst Church Congregational, FairfieldFirst Congregational Church of Canton CenterFirst Congregational Church of CheshireFirst Congregational Church, WashingtonFirst Congregational Church, WaterburyFisher Foundation, Inc.Fortress Fiduciary Company LLCFounders Congregational Church, HarwintonFrank Loomis Palmer FundGoodrich FoundationGroWell, Inc.Half Century ClubHarry E Goldfarb Family FundHCC Global Financial ProductsHearthstone Apartments, LLCHoly Trinity Orthodox Church, New BritainHSB Group, Inc.Huntington Congregational ChurchING Community Matching Gifts ProgramIrmar FoundationJames H. Napier FoundationJoe’s Gift ShopKostin, Ruffkess & Company

Ladies Home Missionary SocietyLiberty Bank FoundationLincoln Financial Group FoundationLux Bond & GreenMassMutual Financial Group Matching GiftsMaximilian E. & Marion O. Hoffman FoundationMichael Weber Computer ConsultingNaugatuck Savings Bank FoundationNew England Country Comforts LLCNew Opportunities, Inc.Northeast UtilitiesNortheast Utilities Customer Experience OrganizationNortheast Utilities Customer Service CenterNortheast Utilities IT DepartmentPawcatuck Neighborhood CenterPD Walsh’s Country Store, LLCPitney BowesPrudential Foundation Matching Gifts ProgramPullman & Comley, LLCR. S. Gernon TrustRocky Hill Congregational ChurchSacred Heart Dinner ClubScience Engineering Associates, Inc.Science Engineering Assocs., Inc.Second Congregational Church of GriswoldSisters of St. Joseph, HartfordSoccer With AldwinSouth Congregational Church, MiddletownSpectacular Party SalesSt. Anthony of Padua, LitchfieldSt. Anthony’s Roman Catholic Corp.St. Mary Church, UnionvilleSt. Mary’s Church

St. Matthew Roman Catholic Church, TollandSt. Vincent DePaul, Middletown Inc.Stanton TelecommunicationsSun Life FinancialThe Carl Marks Foundation Inc.The Community Renewal TeamThe Dominican NunsThe Dornam FoundationThe Elizabeth Colt CircleThe Franklin Conklin FoundationThe Gryphon FundThe HartfordThe Hartford Marathon FoundationThe Stanley Black & Decker, Inc.Thomas Atkins Memorial Fund TrustTrinity Episcopal ChurchUBS Matching Gift ProgramUnilever United States Foundation, Inc.Union Baptist Church, StamfordUnitarian Universalist Society: East, ManchesterUnited Illuminating United Illuminating Matching Gifts ProgramUnited Technologies CorporationUnitedHealth GroupValley Presbyterian ChurchWebster BankWild Child Touring, Inc.Windsor Federal SavingsWolfgang Touring, LLCxL Specialty Insurance CompanyYankee Gas

Bloomfield Social & Youth ServicesBranford Fuel BankBristol Fuel BankBrookfield Emergency Fuel FundCatholic Charities Fuel BankCheshire Fuel BankChristian Community ActionColchester Fuel BankCommunity Fuel Bank New Milford Community Renewal Team, Inc. Cornwall Fuel FundCoventry Human Services/ Coventry Clergy Fuel BankCromwell Human ServicesDanielson Methodist Church Fuel FundDarien Human Services Deep River Fuel BankEast Hampton Volunteer Food BankEast Windsor Emergency Fuel BankEllington Fuel BankEmergency Aid Association Fuel BankEnfield Neighborhood Services Fuel BankFirst Baptist Church - Bridgeport Gifts of LoveGranby Emergency Fuel BankGreater New Haven Community Fuel BankGreenwich Fuel BankGroton Social ServicesGuilford Social ServicesHebron Interfaith Human ServicesJewish Family Service of New HavenKent Fuel BankKillingworth Fuel Bank Madison Senior Center Fuel Bank

Manchester Area Conference of Churches (MACC)Mary Knowles Memorial Fuel BankMiddlebury Social ServicesMontville Senior & Social ServicesNEON - StamfordNew Canaan Human ServicesNew Fairfield Fuel BankNew Opportunities of Greater MeridenNew Opportunities, Inc.Newington Deptof Human ServicesNewtown Fuel BankNorth Branford Fuel BankNorth Canaan Fuel BankNorwalk Energy Assistance ProgramNorwich Human ServicesOld Saybrook Fuel BankOrange Emergency Fuel Assistance ProgramPawcatuck Neighborhood CenterRoxbury Fuel BankRussell Mercier Senior CenterSalisbury Fuel BankSalvation Army- BridgeportSharon Community FoundationSomers Fuel BankSouth Windsor Food & Fuel BankSt. Vincent DePaul PlaceStonington Human Services Fuel BankStratford Senior Services Fuel BankTEAM, Inc.Thames Valley Council for Community ActionThe Community Action Danbury, Inc.The Salvation Army Community Service Dept.Thompson Ecumenical Empowerment Group (TEEG)

Three Angels AdventistTolland Fuel BankTorrington Chapter of FISH, Inc. Town of Chester Emergency Fuel BankTown of Clinton Fuel BankTown of Durham Fuel BankTown of East Hartford Fuel BankTown of EssexTown of Glastonbury Fuel BankTown of Madison Fuel BankTown of Monroe Senior CenterTown of PlymouthTown of Rocky Hill Human ServicesTown of Sherman Fuel BankTown of Stafford Fuel BankTri -Town Fuel BankTrumbull Fuel BankWallingford Fuel BankWarm HeartsWarren Social ServicesWashington Fuel BankWatertown Social Services Fuel BankWest Hartford Department of Human ServicesWestbrook Social ServicesWeston Fuel BankWestport Fuel BankWethersfield Emergency Fuel BankWilton Social ServicesWinchester Fuel BankWindham Area Interfaith Ministry (WAIM)Windsor Fuel BankWindsor Locks Social ServicesWoodbury Fuel Bank

Fuel Banks Community Partners

One Regency Drive, Suite 200Bloomfield, CT 06002

860-243-2345

www.operationfuel.org