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Impact of Energy Efficiency Services on Energy Assistance

Impact of Energy Efficiency Services on Energy Assistance. NEUAC Conference June 18, 2014. Presentation Overview. Introduction NJ Comfort Partners Program NJ Universal Services Program Interaction of Affordability and Efficiency Programs NJ CP Affordability Impacts

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Impact of Energy Efficiency Services on Energy Assistance

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  1. Impact of Energy Efficiency Services on Energy Assistance NEUAC Conference June 18, 2014

  2. Presentation Overview • Introduction • NJ Comfort Partners Program • NJ Universal Services Program • Interaction of Affordability and Efficiency Programs • NJ CP Affordability Impacts • Universal Service Impacts • Summary 2

  3. NJ Comfort partners program 3

  4. NJ Comfort PartnersUtility Partners 4

  5. NJ Comfort Partners • Most jobs are joint electric and gas delivery. 5

  6. NJ Comfort PartnersService Delivery Partners • Five service delivery contractors. 6

  7. NJ Comfort PartnersParticipant Partners • Low-income households 7

  8. NJ Comfort PartnersParticipant Partners • Low-income households 8

  9. NJ Comfort PartnersParticipant Partners • Owners and renters 9

  10. NJ Comfort PartnersParticipant Partners • Single and multi-family 10

  11. NJ Comfort PartnersProgram Benefits • Measures installed 11

  12. NJ Comfort PartnersProgram Benefits • Measure expenditures 12

  13. NJ universal services program 13

  14. NJ USF Program • Goal: improve affordability of natural gas and electric bills for low-income households • Eligibility • 175% of Federal Poverty Level • High energy burden • >3% burden for natural gas, or • >3% burden for electric, or • >6% burden for electric heating • Application • Joint for LIHEAP, USF, and WAP • Year round application 14

  15. NJ USF Benefits • Target 6% Energy Burden • Maximum benefit of $1,800 • Monthly credits applied directly to natural gas and electric bill 15

  16. NJ USF Benefit Calculation • Annual income: $10,000 • Burden targeted at 3% of income • Estimated gas bill: $1400 • LIHEAP benefit: $500 • Net gas bill: $900 • Targeted bill: $300 • Annual subsidy: $900 - $300=$600 • Monthly credit: $600/12=$50 16

  17. Interaction of affordability and efficiency programs 17

  18. Program Coordination • Energy Efficiency Programs Linkage Options • Refer • Target (NJ CP method) • Requirement for participation • Linkage Advantages and Disadvantages • Advantage: reduce ratepayer subsidy • Disadvantage: may not all be the highest users 18

  19. Coordination • LIHEAP/Utilities/BPU • Program administered by LIHEAP office (DCA) • LIHEAP/USF application has income and heating fuel • DCA pays LIHEAP grant to utilities (annual credit) • Utilities furnish information on annual energy bill • DCA computes USF benefit and informs utilities • Utilities furnish USF benefit (monthly credit) • Utilities are reimbursed for USF from SBC fund • Usage Reduction • Comfort Partners / USF – Targeting coordination 19

  20. NJ CP ParticipantsReceipt of USF Credits 20

  21. Affordability Program Types

  22. Complications • Maximum Annual Credit • $1,800 • Energy Burden Target • 6% • Annual Credit Adjustment • Benefits accrue to customer in short-term 22

  23. Example Impact #1 All benefits to ratepayers. 23

  24. Example Impact #2 Benefits split between customers and ratepayers. 24

  25. Example Impact #3 All benefits to customer. 25

  26. Example Impact #4 All benefits to ratepayers. 26

  27. Affordability impacts 27

  28. Bill and Payment ImpactsElectric Baseload 28

  29. Bill and Payment ImpactsElectric Heating 29

  30. Bill and Payment ImpactsGas Heating 30

  31. Bill and Payment ImpactsCombination Fuel 31

  32. Bill ImpactsJobs with Major Measures 32

  33. Assistance Payments 33

  34. Assistance Payments 34

  35. Total Bill Coverage RateElectric Heating Jobs 35

  36. Universal service program impacts 36

  37. Change in USF CreditAll Jobs 37

  38. Change in USF CreditElectric Heating Jobs 38

  39. Summary 39

  40. Findings • Interactions between usage reduction and assistance benefits are complicated • Charges down • Assistance payments down • Benefits to ratepayer and customer 40

  41. Contact Jackie Berger, Ph.D. President and Co-Founder APPRISE 32 Nassau Street, Suite 200 Princeton, NJ 08542 609-252-8009 jackie-berger@appriseinc.org www.appriseinc.org 41

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