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How are Low Income Customers Faring under Restructuring?

This presentation highlights the positive impact of restructuring on low income customers, including cost savings, expanded protections, and increased energy efficiency programs.

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How are Low Income Customers Faring under Restructuring?

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  1. How are Low Income Customers Faring under Restructuring? A Presentation to DOER Roundtable by Lawrence J. Reilly, President and CEO Massachusetts Electric Company December 1, 2000

  2. Low income customers have benefited under restructuring • Customers on Massachusetts Electric’s low income rate have saved more than $10 million to date • Protections in place before restructuring have been continued and expanded • Energy efficiency programs for low income customers have been expanded

  3. Low income customers have saved more than $10 million from restructuring Typical 500 kWh Bill (Rate R-2) *Includes 14,819 former EUA customers

  4. Protections for low income customers have been continued and expanded • Shut off moratorium continued • Low income customers allowed to return to standard offer service • Pay the lower of default or standard offer price • Low income rate discount has been preserved • Discount of about 25% from regular residential rates • Eligibility expanded • Ongoing outreach efforts

  5. Low income rate continues to provide about 25% discount Typical bill of a 500 kWh customer on R2 vs. R1 R2 R1

  6. Participation in Mass. Electric’s low income rate has expanded significantly since restructuring Number of R2 Customers* • Participation has increased by 20% since 1997 • Eligibility was expanded in March 1998 to include customers in subsidized housing Dec 97 Dec 98 Dec 99 Oct 00 *Includes former Eastern Edison customers

  7. A variety of outreach efforts are ongoing • Regular coordination with: • Fuel assistance agencies • Mass. Health • DOR – Child Welfare division • Other agencies providing transitional assistance • Newsletter articles/bill inserts • Educational point of purchase displays • Annual fuel audit • Customer service representative training • Updated website

  8. Energy efficiency programs for low income customers have been expanded • DSM efforts have increased more than tenfold • Programs designed in collaboration with Low Income Energy Affordability Network (LEAN) • Income certification by local CAP agencies

  9. Low income energy efficiency programs target four key areas • New Construction and Rehabilitation • Appliance Management Program • Insulation and Weatherization Services • Multi-family Services

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