Pennsylvania Spends More for Universal Service Rate Assistance

Pennsylvania’s universal service programs for low-income households spent almost 14 percent more for rate assistance in 2007 than they did in 2006, although the number of households receiving such assistance declined. Spending for low-income energy efficiency programs remained about the same.

This is according to the latest annual report released by the Pennsylvania Public Utility Commission (PUC) summarizing the universal service programs and collections performance of each of the state’s major electric and natural gas distribution companies.

The state’s universal service programs, funded mostly by utility ratepayers, help ensure that all customers have access to utility service no matter what their income. Programs include the Low Income Usage Reduction Program (LIURP), Customer Assistance Program (CAP), Customer Assistance and Referral Evaluation Services (CARES) and Hardship Funds.

The number of households receiving rate assistance under the utilities’ CAPs fell by 8,923 households or 2.2 percent during 2007 compared to 2006. The number receiving energy efficiency services increased by about 1,000 households or 4.2 percent.

Highlights from the 2007 report show that electric companies:

Used $147,635,291 to enroll 219,748 customers in CAPs where on average those customers pay 79 percent of their total bill;
Reported their customers received more than $24 million in LIHEAP benefits;
Spent $20,558,560 to provide 21,079 households with LIURP benefits. The companies have budgeted $22,406,885 in 2008;
Reported 11,000 customers received nearly $3.2 million in hardship fund benefits.

Highlights also include that natural gas companies:

Used $182,732,645 to enroll 171,014 customers in CAPs where on average those customers pay 85 percent of their total bill;
Reported their customers received $54.9 million in LIHEAP benefits;
Spent $7,505,665 to provide 3,674 households with LIURP benefits. The companies have budgeted $9,692,458 in 2008; and
Noted about 8,500 customers received more than $3.7 million in hardship fund benefits.

Generally, Pennsylvania households enrolled in universal service programs have average household incomes that are less than $15,500 a year. According to the report, the gross write-offs ratio for the electric industry was 2.04 percent in 2007, compared to 1.86 percent in 2006, while the natural gas industry average was 4.10 percent in 2007 and 5.39 percent in 2006.

Source: PUC press release

Page Last Updated: July 10, 2008