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Documenting the Need: Preparing an Affordable Energy Needs Analysis

Documenting the Need: Preparing an Affordable Energy Needs Analysis. Roger D. Colton Fisher, Sheehan & Colton Belmont, MA National Community Action Foundation (NCAF) November 2005. Define “energy burden” (bill as percent of income) High energy burdens by poverty level.

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Documenting the Need: Preparing an Affordable Energy Needs Analysis

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  1. Documenting the Need:Preparing an Affordable Energy Needs Analysis Roger D. Colton Fisher, Sheehan & Colton Belmont, MA National Community Action Foundation (NCAF) November 2005

  2. Define “energy burden” (bill as percent of income) High energy burdens by poverty level. FSC Home Energy Affordability Gap state fact sheets. LIHEAP Home Energy Notebook. Statement #1:Unaffordable energy is documented by high energy burdens.

  3. Counter the common belief that “sure, there are folks who pay 40% of their income for home energy, and I know both of them.” FSC Home Energy Affordability Gap state fact sheets. U.S. Census Bureau: American FactFinder: Table P88 (income as ratio to Poverty Level--persons). Statement #2:The problem of unaffordable home energy bills is massive.

  4. Counter common belief that unaffordability is often solely an urban problem. FSC Home Energy Affordability Gap (gap by county/burden by county): Affordability Gap detailed state back-up. U.S. Census Bureau: American FactFinder: Table P88 (income as ratio to Poverty Level--persons). Statement #3:The problem of unaffordable home energy bills is statewide..

  5. Remember the bulk fuels customers. U.S. Census Bureau: American FactFinder: Table HCT10 (tenure by home heating fuel--households). U.S. Dep’t of Energy: Winter Fuels Report (Weekly Petroleum Status Report: Appendix) (FO/LPG winter prices) Statement #4:The problem of unaffordable home energy is not simply a utility problem..

  6. Household income insufficient to pay home energy bills. Income deficit given different household characteristics. Annual Federal Poverty Level by HH size (LIHEAP office) National Center on Children in Poverty (NCCP) “family resource simulator” Statement #5:The problem of unaffordable home energy is not matter of household budgeting..

  7. The “paid but unaffordable bill” is a real phenomenon. The “heat or eat” phenomenon is a real choice. To pay energy bills, people go without food, medical care, and other necessities. The NEADA LIHEAP survey (2003 and 2005). Energy Poverty in Missouri (NLIEC) Iowa LIHEAP Survey. Statement #6:The problem of unaffordable home energy is not simply a matter of utility shutoffs..

  8. Energy prices are dramatically increasing. Compare percentage increases in Poverty Level to percentage increases in energy prices. Compare increase in Home Energy Affordability Gap to increases in LIHEAP. Home energy taking up a bigger proportion of HH budgets each year. Bureau of Labor Statistics: Average price data--area. U.S. Dep’t of Energy: Natural Gas Monthly and Electric Power Monthly. FSC Home Energy Affordability Gap state fact sheet. Bureau of Labor Statistics: Consumer Expenditure Survey. Statement #7:The problem of unaffordable home energy is getting worse..

  9. Energy prices are increasing much more rapidly than wages. Hours and earnings both for occupations common to working poor (e.g., retail trade) are low and uncertain. Bureau of Labor Statistics: Employment, Hours and Earnings from the Current Employment Statistics Survey (state and metro area) NCCP Family Resource Simulator. Statement #8:Work is not necessarily the answer to the problem of unaffordable home energy.

  10. The age of housing units can be associated with Poverty Level. Physical problems with housing units can be associated with income. U.S. Census Bureau: American FactFinder, Table HCT23 (tenure by poverty status by year structure built). HUD’s State of the Cities Data System (SOCDS): CHAS data base. Statement #9:The problem of unaffordable home energy can often be traced to physical housing units.

  11. LIHEAP covers a fraction of income-eligible households. LIHEAP covers a fraction of the Home Energy Affordability Gap. Increase in participation will drive benefits down. Increase in benefits will drive participation down. LIHEAP Home Energy Notebook: eligible HHs @ state eligibility guidelines; eligible HHs at maximum eligibility, recipient HHs Home Energy Affordability Gap: LIHEAP coverage ratio. Statement #10:LIHEAP is not the answer to the problem of unaffordable home energy.

  12. A substantial reduction in energy usage will still not make energy bills affordable at even moderate Poverty Levels. Number of households in need outstrips ability of state to weatherize. Home energy burden: FSC Home Energy Affordability Gap state fact sheets. Number of households with physical housing needs: SOCDS. Number of housing units weatherized each year through WAP: State WAP agency. Statement #11:WAP is not the answer to the problem of unaffordable home energy.

  13. Statement #12:A multitude of remedies is required to address home energy unaffordability. • Increased LIHEAP appropriations. • Utility-funded rate affordability program. • Utility-funded efficiency programs. • Regulatory relief (deposits, late fees, collection fees, etc.) • Statewide fuel fund • Food Stamp attention to SUA. • PHA attention to utility allowances. • Energy Star homes for HOME/CDBG • EITC outreach.

  14. For more information: http://www.fsconline.com News Library

  15. For more information: roger@fsconline.com

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