Investing in low-income energy efficiency A Public/Private Agenda for Action in Canada

1. Investing in low-income energy efficiency A Public/Private Agenda for Action in Canada Presented to: Canadian Electricity Association Presented by: Roger D. Colton Fisher, Sheehan & Colton September 2007

2. Low-income energy efficiency:Getting the question right Are investments in low-income energy efficiency an effective and cost-effective for me to use in accomplishing my goals? Canadian Electricity Association

3. Government Objectives Environmental protection Resource conservation Economic development Affordable housing Non-energy benefits Utility Objectives Least cost provision of supply services Equity in efficiency investments Arrears management Low-income energy efficiency:Objectives can differ by stakeholder? Canadian Electricity Association

4. The Affordability of HousingUtility Costs Decrease Availability of Affordable Housing • Reduces ability to develop new affordable housing. • Increases developer expenses. • Decreases developer income. • Reduces ability to access existing housing at affordable prices. • Reduces proportion of shelter costs that can be devoted to the housing component of shelter. • Reduces household income available for housing. Canadian Electricity Association

5. Impacts of Weatherization Direct impacts Bill reductions Program expenditures Payment impacts Lower arrears Fewer disconnections Behavior impacts Less forced mobility Less family leave time Weatherization Total expenditure: $29.9 million $96 mm economic activity $55 mm earnings 3,300 jobs Total Economic Development Impacts: Weatherization in the Entergy States (mid-South) Canadian Electricity Association

6. Utility efficiency investments:The low-income equity considerations Low-Income unique market barriers • Lack of investment capital • High “hurdle rates” (approaching 100%) • Frequent mobility (3 years or less) • Lack of authority over housing (rental) Remedy: Investments proportionate to low-income population to total residential. Canadian Electricity Association

7. Utility efficiency investments:The arrearage management considerations Three components to arrears management • Reduced carrying costs • Reduced uncollectibles/bad debt • Reduced collection/disconnection costs Canadian Electricity Association

8. Low-Income Energy Efficiency:Examples of public/private partnership models • Colorado’s Energy Saving Partnership (E$P) • Massachusetts Low-Income Energy Affordability Network (LEAN): • New Jersey Comfort Partners • Indiana Wx/Refrigerator Replacement Program Canadian Electricity Association

9. Low-Income Energy Efficiency:The Future in Canada • Today’s collaborative meeting: great first step! • Important next steps: • Identification of reinforcing objectives • Identification of potential program synergies • Identification of potential program integration • Needs and resources analysis Canadian Electricity Association

10. For more information: roger@fsconline.com Canadian Electricity Association

11. For more information: http://www.fsconline.com (Library or News) Canadian Electricity Association