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Maryland Office of Home Energy Programs

Affordable Payment Plans Mary Lou Kueffer, Director June 13, 2006. Maryland Office of Home Energy Programs. Maryland Energy Assistance Program (MEAP) Electric Universal Service Program (EUSP). Maryland Office of Home Energy Programs (OHEP).

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Maryland Office of Home Energy Programs

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  1. Affordable Payment Plans Mary Lou Kueffer, Director June 13, 2006 Maryland Office of Home Energy Programs Maryland Energy Assistance Program (MEAP) Electric Universal Service Program (EUSP)

  2. Maryland Office of Home Energy Programs(OHEP) • Applies an annual grant directly to the household’s utility/vendor account • Provides a benefit = to a percentage of the household’s annual estimated gas or electric consumption • Provides a percentage of estimated winter use for bulk fuels • Assists the household with energy bills – does not pay the entire bill • Makes energy assistance available in all Maryland jurisdictions

  3. Profile of an OHEP Recipient • At or below the income limits established by the federal poverty guidelines • Is a resident of Maryland • Household consists of all individuals living in the same residential unit • Benefit program year runs on State fiscal year of: • July 1 – June 30

  4. Funding Sources

  5. Funding Sources (con’t) • In addition: • State funds: • $10.9 million (deficiency appropriation for FY2006) • $25.1 million for FY2007 EUSP – (mitigation funds – to help offset the impact of significantly increased energy bills)

  6. Income Limits in FY2007 EUSP 150% State Funds 200% MEAP 200%

  7. Must have account in applicant’s name Must go on budget billing Must be paid out for bill assistance only one time exception for arrearage retirement (limited funds) May be applied to past due bills May be applied to account not in applicant’s name May not be available to federally subsidized renters if heat is included in rent Likes & Dislikes EUSP MEAP

  8. Benefit Planning • Legislative directives • Adequate funding • Estimated population • Projected price of energy • Weather predictions • ???????????????? • I&E

  9. Advantages of a Separate Electric Program • Annual benefit instead of a winter/summer benefit • Provides a benefit for energy use other than heating/cooling • Provides flexibility for distribution of benefits between both programs • Additional funding allows for overall better ability to help low income families afford their energy bills

  10. Are bills more affordable….? • Maryland Public Service Commission contracted for an EUSP evaluation to determine success of EUSP benefit on low income households to afford energy bills. • Initiated July 2004 • Two year evaluation • Tracks a new applicant and their payment patterns before and after enrollment • Final report due by September, 2006

  11. What’s working…. • Puts more energy assistance funds into the low income community • Stops electric terminations and provides a means to catch up with past due bills through arrearage retirement • Relieves limited LIHEAP funds by carrying a bigger part of all electric households energy burden • Identifies a defined $$$ funding source ahead of the program year • Tailors benefit to individual household through annual consumption information

  12. What’s not working… • Fixed ratepayer funds cannot be carried over from year to year • Reserves in the EUSP fund could provide for additional assistance during years of extreme weather and/or spiking energy costs. • Legislated even monthly benefit is provided through utility’s budget billing process. • Biggest utility is also a dual fuel utility and limits a struggling household to stay current on electric payments – all customer payments go to gas and gas arrearage before being applied to electric.

  13. What would we do differently… • Require more planning and testing time • Plan for future capability - not rely on past programming • Demand more standardization from the utilities • Base client file on independent ID, not social security number • Build a fiscal system into the database

  14. Maryland’s Promise • Each year we get better • Each year we serve more households • Each year energy costs go up and the need grows Next year the Maryland Office of Home Energy Programs is committed to meeting the challenge of a significantly increased eligible population in an electric deregulated environment. Maryland Energy Assistance Hotline 1-866-900-3637

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