utilities respond to the growing number of customers struggling to pay their energy bills. becky...
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Utilities respond to the growing number of customers struggling to pay their energy bills.
Becky HarshDirector, Consumer Retail PolicyEdison Electric Institute
0%
50%
100%
150%
200%
250%
Natural Gas Electricity Gasoline Diesel FarmProducts
ConstructionMaterials
Iron andSteel
Percentage Increase: 2003-2008
Source: Producer Price Index (Bureau of Labor Statistics, U.S. Department of Labor)
59%
30%
156%
224%
45%34%
103%
Income spent on energy for households earning ◦ >$50,000 / year - 7% of
income ◦ $10,000 - $30,000 / year –
20% of income (25% of households)
◦ <$10,000 / year - 46% of income (8% of households)
Households earning < $30,000◦ Mostly senior citizens, single
parents, and minorities ◦ Force hard decisions about
what bills to pay … housing, food, education, health care, and other necessities 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Household Energy Expendituresvs. After-Tax Household Income
Over $50,000 $10,000 - $30,000 Under $10,000
Sources: Redefining Progress; U.S. Census Bureau, Current Population Survey, 2006 Annual Social and Economic Supplement
The Bull’s-Eye is Growing
Struggling and At-Risk Customers ◦ Difficult to Identify◦ Moderate to Medium
Income◦ First Timers◦ Lack Information
and Education on Options
◦ Don’t Qualify for Assistance Programs
Difficult to define due to lack of indicators◦ No income indicator – not defined by any known
federal standard
◦ Haven’t participated in existing assistance programs before
◦ Utilities lack data on positive payment history
◦ Negative payment history isn’t always a good indicator
Respond to comprehensive energy and climate legislation◦ How do you minimize compliance cost impacts on
low-income and at-risk consumers? ◦ What must be done to ensure participation of all
customer segments, allowing them to take advantage of the programs and opportunities created through the legislation?
Developing regulatory models which stimulates new investment , provides timely cost recovery, and equitably transforms our society to a greener and more energy efficient economy
Delinquencies
Disconnections
Arrearages
Write-Offs
Funding Buy-In
Programs
Southern California Edison ◦ Number of Accounts Past Due and Sent 2-Day (48
Hour) Notice of Disconnection increased from 5,179,504 in 2007, to 5,570,647 in 2008.
◦ Number of Accounts Granted Bill Payment Assistance increased from 1,398,216 in 2007, to 1,520,812 in 2008.
Michigan Gas Utilities◦ Number of customer delinquent increased from
39,304 in April of 2008, up to 44,350 in April 2009.◦ Number of delinquent arrears older than 90 days went
up from $2,030,426 in 2008, to $3,386,867 in 2009.
Kansas City Power and Light• Jan - May of 08 vs 09 - sent out 561 more notices
this year, with the total arrears dollars up $6.9M over last year. Just in the month of May 2009, arrearages were up $1.8M compared to May of 2008.
Wisconsin Public Service Corp.• Amount of dollars delinquent went up from
$32,600,233 in 2008, to $36,216,829 in 2009.• Number of customers eligible for disconnection in
2008 was 71,697, in 2009 it is up nearly 2,000 customers to 73,545 in 2009.
Utilities are pulling out all the stops to develop new, creative ways to help customers.• Education/Information
• Community Outreach
• Leverage Existing Programs
• Collaboration with regulators, consumer advocates and community organizations
• Utilizing Outside Funding Mechanisms
