States Cope with Record Heat;
Heat-Related Deaths Prompt Actions

While official counts of heat-related deaths vary depending on the source, the U.S. sees about 700 heat-related deaths each year, according to the Centers for Disease Control, and a majority of the victims are age 65 or older.

Based on unofficial tallies from newspaper articles, as many as 80 heat-related deaths were reported, mostly in Southern states, during the summer heat wave. A t least 51 deaths during August were blamed on persistent much above normal temperatures experienced across much of the central and southeastern U.S., according to the National Climate Data Center (NCDC).

In fact, according to the NCDC, the summer heat wave set more than 2,000 new daily high temperature records across the southern and central U.S., and the month of August was the second warmest on record.

Unofficially, Tennessee lost 15 people to the heat, Alabama reported 12 fatalities, Missouri lost 9, and Arkansas and Georgia each had 4 fatalities. Three deaths in Illinois, 2 deaths in South Carolina and one death in Mississippi were attributed to the heat.

The August heat in Alabama sent 352 people to emergency rooms and 78 to hospitals for heat-related illnesses, according to the Alabama Department of Public Health.

California also had excessive heat, and one newspaper report said 29 persons are believed to have died as a result of it. According to news reports, many, but not all, were elderly and many lived on the margins, unable or unwilling to spend the money to cool their homes. Some were isolated and refused or were unable to leave their homes.

On the positive side, many states and utilities activated systems for checking on the vulnerable elderly and disabled. Others implemented plans to increase awareness about heat dangers or increase protections to avoid heat-related illnesses. Cooling centers also operated in at least ten states, providing people with air-conditioned places to escape the heat.

Temperature-related protection from utility service disconnection was extended by the Georgia Public Service Commission on September 4. Residential service could not be disconnected if at 8 a.m. on the scheduled disconnection day, the forecasted high temperature for the day was 98 degrees or higher or the heat index for the day was forecasted to be 110 degrees or higher.

The order was seen as a stop-gap measure, allowing the Commission time to study the issue of heat-related deaths in order to arrive at the best long-term policy.

After a deadly summer in 2006, Fresno County, California, implemented plans this summer to trigger the action part of the county's heat plan. A heat warning set in motion a plan for opening cooling centers and providing transportation for people who had none.

When more than 300 people contacted local community action agencies for air conditioners in Tennessee during July and August, Governor Bredesen announced the state would use state funds to reimburse all agencies that purchased air conditioners for low-income people. The Governor especially wanted to make sure that households with vulnerable members received air conditioners and encouraged households with existing units to use them with the assurance they would get the next month's electric bill paid.

According to Regina Surber, LIHEAP Director for Tennessee, many of the state's community action agencies were almost out of funds prior to the Governor's announcement. The state LIHEAP office bought 7,612 air conditioners to distribute to local agencies and guaranteed that recipients of the units would get their next month's electric bills paid.

Return to Contents


California Releases Low-Income Energy
Programs Needs Assessment

The California Public Utilities Commission is reviewing and seeking comments on a needs assessment of the state's rate-payer funded low-income energy programs: the California Alternate Rates for Energy (CARE), the utility low-income discount program, and the Low-Income Energy Efficiency Program (LIEE).

After about four years in the making, the long-awaited Final Report on Phase 2 Low Income Needs Assessment was released to the public in September. The Commission ordered a comprehensive needs assessment in 2000, in part because the public utilities code that authorizes the programs says they must be “funded at not less than 1996 authorized levels based on an assessment of customer need.”

The first phase, the purpose of which was to identify the study's scope, objectives and the data needed, was completed in 2002.

Phase 2, the implementation phase, was to determine the following: the number of households eligible for and being served by the two programs, whether the programs were reaching the appropriate populations and whether there were under- or over-served segments of the population, whether they were achieving their maximum potential in terms of participation and energy savings, and whether there was adequate coordination with other programs.

Performed by KEMA, the Phase 2 results suggest that, “over time, the programs have effectively targeted and provided services to low-income households that have the greatest need.”

According to the report's executive summary, “As of year-end 2006, however, there remains significant untapped potential in terms of the number of eligible households not enrolled in CARE and the number of households for which LIEE measures would be technically feasible, applicable and needed.”

KEMA's calculations show that as of the end of 2006, nearly 3.7 million households were served by CARE; however, nearly 1.5 million households were eligible for, but not receiving it, including 500,000 households in the territory of Southern California Gas, another 500,000 eligible households in PG&E's territory, plus 300,000 in Southern California Edison and 115,000 in San Diego Gas and Electric territories.

When KEMA first began its study, the CARE and LIEE income maximum was 175 percent of federal poverty guidelines; it was increased to 200 percent in October of 2005. As a result, KEMA had to expand its study to take the increase into account.

Regarding LIEE, the report shows that compact fluorescent light bulbs (CFLs), faucet aerators, water heater pipe wrap and blankets, and weather-stripping were among the most commonly applicable and needed measures, and that CFLs, replacement refrigerators, and ceiling insulation present the largest available electricity savings potential. Measures with the largest available natural gas savings potential included ceiling insulation and water heater tank wraps.

The study used in-depth interviews, energy audits, census data, utility billing records and on-site surveys to develop a profile of the demographic, socio-economic, dwelling-type and geographic characteristics of the eligible low-income population in California.

Issues such as energy burden, energy insecurity, need for energy efficiency measures, and household comfort, health and safety were explored in the study, along with an assessment of barriers to program participation such as levels of program awareness, reluctance to accept aid, fear or distrust, and structural barriers to LIEE installations.

In addition to characterizing the population of low-income households across the state, the needs assessment provided characterizations within individual utility service territories, including the four major investor-owned utilities mentioned above, and seven smaller multi-jurisdictional utilities serving other areas of the state.

The KEMA report made several recommendations about targeting and enrollment strategies for improving LIEE programs and it is these about which the CPUC is seeking comments.

During 2006, about 3.7 million households received CARE and 150,000 households received LIEE with program costs of $793 million and $108 million respectively.

For more information, see the website of the Low Income Advisory Board and click on “Reports.”

Return to Contents

States Struggle with Oil Heat Prices,
Purchasing Issues

Oil-heated homes will experience the steepest price increases this winter, according to a recent national report, while those heated by natural gas will see relatively stable prices.

According to projections released this month by the National Energy Assistance Directors' Association (NEADA), prices for home heating oil are projected to be 47.3 percent higher than last year, rising from $2.48 per gallon on average last year to $3.48 this year. The average family will pay about $693 more for home heating oil for a total of $2,157. Average oil prices have more than doubled from their 2000-2005 levels of $1.48 per gallon and an average expenditure of $935 annually.

In the Northeast, where low-income households' use of fuel oil as the primary heating fuel ranges from over 75 percent
in Maine to 31 percent in Massachusetts,
the issue of how to maximize LIHEAP
funds for these households is a perennial issue.

It's been a controversial issue, as well, in Maine and Connecticut, where changes in these states' methods of buying oil for LIHEAP households has resulted in some dealers leaving the program. (Dealers
must sign the states' LIHEAP vendor agreements and accept the states' terms
for payments to their LIHEAP customers.
If vendors haven't signed the agreements, the customers must find another vendor.)

In Maine at least 226 dealers have signed on, compared to 264 last year. The issue for dealers is the LIHEAP office's requirement that participating dealers offer LIHEAP customers a 7-cent per gallon discount off their retail price, up from 3 cents last year. They can also offer the margin-over-rack option, charging a pre-determined margin above their rack or wholesale price.

The dealers have been vocal in their opposition to the discount-off-retail and margin-over-rack options since they were instituted in FY 2006, claiming that mandatory discounts are a financial burden to them and are the equivalent of a tax.

The state has responded that savings from the discount will allow it to purchase an additional 541,000 gallons of oil with LIHEAP funds. The state also said that despite some dealers leaving the program, there are enough of them to adequately serve LIHEAP households.

Connecticut dealers protested when the state, which has long had a margin-over-rack discount program for home heating oil, also added a discount-off-retail option of 35 cents per gallon for the first time this season. The state also added kerosene to the pricing options. Some dealers, at the urging of their state association, said they would not participate. As of November 6, 291 vendors had signed up, compared to 373 participating vendors last year, resulting in concerns that some areas will lack vendors. The state is closely monitoring the situation.

Among other northeast states, interest in delivered fuel purchasing programs continues to grow; legislation in Vermont requires the LIHEAP office to investigate purchasing options other than the summer fill program that the state has had for several years and which has had declining participation from vendors.

And in Pennsylvania, where nearly 24 percent of low-income households use fuel oil, the state is in the process of hiring a consultant to look into delivered fuel purchase programs.

In New York, where nearly 30 percent of low-income households use oil heat and about 30 percent of LIHEAP benefits are issued to oil dealers (around $60 million), a heating oil program that began as a pilot in 2003 expanded statewide this fall. As in Maine, dealers can provide either a margin-over-rack price, or a discount-off-retail of 13 cents for fuel purchased only with LIHEAP funds or 7 cents for all oil sold to LIHEAP customers throughout the season. Last year the state estimated it was able to purchase at least 6 percent more fuel with LIHEAP funds.

As crude oil prices neared $100 per barrel the first week in November, the average retail price of heating oil hovered close to $3 per gallon in some northeast states.

Return to Contents

Arkansas Weatherization Program Gets Underway

As of October 1, homes in Arkansas that are “severely energy inefficient” became eligible for weatherization services by community action agencies through the newly approved Arkansas Weatherization Program (AWP).

Unlike most weatherization programs, which select participants based on their incomes, the AWP will select homes that are owner-occupied for at least one year based on the age and energy efficiency of the homes.

If persons residing in eligible homes are, in fact, low income and eligible for the federally funded Weatherization Assistance program (WAP), they can be served with a combination of AWP and Arkansas WAP funds. (The WAP income eligibility in Arkansas is 125 percent of the federal poverty level or less.)

The AWP concept was approved by the Arkansas Public Service Commission (APSC) earlier this year when, after a collaborative process involving utilities, the Arkansas Community Action Agencies Association (ACAAA) and others, the APSC ordered all electric and gas utilities to begin implementing cost-effective energy efficiency programs for all utility customer classes. The APSC does not have the authority to order income-based programs.

The AWP is approved through 2009 with a spending target by the state's seven investor-owned gas and electric utilities totaling nearly $3.7 million, including $407,431 for the last three months of 2007. Total AWP spending by utilities through 2009 is capped at $4.4 million. Utilities will recover AWP costs through a rider or surcharge on customer bills.

Additionally, electric cooperatives have a similar but separate voluntary weatherization program funded at $114,000 for each full year and operated by community action agencies.

AWP is modeled on the WAP and uses WAP protocols, standards, and quality control processes, along with the existing Arkansas WAP service delivery network of community action agencies. Support and coordination is provided by the ACAAA, a participant in the collaborative.

AWP funds will cover 50 percent of the cost of an energy audit and eligible measures up to $1,500 for all-electric homes or combined gas and electric homes served by two participating utilities. Participating homeowners must pay the remaining 50 percent of the first $3,000 of cost. For homes receiving only gas or electricity from participating utilities, the maximum amount of AWP funds is $750. The maximum amount that can be spent for AWP services on any home is $5,000, with AWP and the customer covering the first $3,000 and the customer paying costs in excess of $3,000.

For low-income participants, DOE funds may be used for the customer's co- payment and for any AWP costs in excess of $3,000.

Program eligibility criteria are as follows: residential heating or cooling customers of at least one participating utility, site-constructed or mobile homes occupied by the current owner for at least one year, homes built prior to 1983 must meet three of seven criteria, and homes built from 1983 to 1996 must meet four of the seven criteria. Homes built in 1997 or later do not qualify for the AWP.

The seven criteria are: attic insulation equal to or less than R-12, wall insulation equal to R-O, floor insulation equal to R-0, single pane windows with no storm windows attached, heating system less than 70 percent efficient, cooling system with SEER of 8 or less, and air infiltration problems identified through either visual inspections or pre-blower door tests with specified results. Additionally, pre- and post-carbon monoxide readings must meet the health and safety regulation specified by U.S. Department of Energy.

According to Rose Adams, executive director of the ACAAA and a collaborative participant, the AWP is expected to provide the experience and data necessary to develop a larger and more comprehensive weatherization program that's expected to begin in 2010.

She also said it's estimated that one quarter of the housing stock in Arkansas is severely energy inefficient and that the WAP has a waiting list of up to three years in some parts of the state.

For more information, see the PSC website and search for Docket # 07-079-TF, and LIHEAP Networker # 61.

Return to Contents


Missouri PSC Approves Funding for Energy
Assistance and Efficiency Programs

The Missouri Public Utility Commission (PSC) in July approved new funding up to $1.8 million from LaClede Gas Company for low-income energy assistance and $450,000 for LaClede's weatherization program.

The funding is part of a $38.6 million rate increase agreement with LaClede that was approved by the PSC. The rate hike went into effect August 1 and raised monthly bills by about $2.45 for residential customers.

Under the agreement, LaClede will invest up to $600,000 annually for a new three-year low-income energy assistance pilot available to households with incomes up to 185 percent of federal poverty guidelines. The pilot will provide monthly bill credits for 24 months ranging from $10 to $60 depending on the household's poverty level.

It will also offer an arrearage repayment incentive under which the company will match dollar-for-dollar the payments that households make on their arrears until they are paid in full. Arrears will be spread over a 24-month period with a minimum payment amount of $5 per month.

The company will also increase funding for its existing weatherization program from $500,000 to $950,000 annually. LaClede has funded a weatherization program since 2002. Formerly, it administered the program by directly funding community action agencies in its service territory. Funds will now be administered by the state weatherization grantee, the Missouri Department of Natural Resources.

Additionally, LaClede will invest a minimum of $150,000 per year up to a total of $3.5 million over the next three years for new conservation and energy efficiency programs for non-low-income households. Members of an Energy Efficiency Collaborative representing the Office of the Public Counsel, the PSC Staff and the Missouri Department of Natural Resources will make recommendations for the programs.

Return to Contents

Low-Income Program Expansions
Approved in New York

In the past several months, the New York Public Service Commission (PSC) has approved new or expanded low-income energy conservation programs for customers of National Fuel Gas Company (NFG), Consolidated Edison and National Grid.

National Fuel Gas: The program originally was proposed as part of a rate increase sought by NFG, but because a decision on that issue isn't expected until December, the PSC decided to consider the conservation program separately in order to get it underway before winter.

Part of a $10.8 million program for all NFG customers and funded by a monthly surcharge, the low-income program will receive about 25 percent of the funds. Services will be targeted to those already enrolled in NFG's Low-Income Residential Assistance Program. Funded at about $4 million per year, it provides a 40 percent discount rate to about 20,000 LIHEAP-eligible households per year who are $300 or more in arrears and who maintain current bill payments.

The new conservation program for the low income will include heating system safety checks, energy audits, wall and ceiling insulation and the replacement of heating equipment. For the non-low income it will provide rebates on appliances and furnaces.

Consolidated Edison: Expanded efficiency programs for gas customers of Consolidated Edison in New York City have been underway since summer. Funded at $14 million for the next year, half of program funds are slated for low-income programs administered by the New York State Energy Research and Development Authority (NYSERDA) and coordinated with the delivery of low-income electric efficiency programs already administered by NYSERDA.

In ordering the program in May, the PSC said the programs should begin immediately so that measures could be in place before the 2007-08 heating season. 

Con Ed's existing gas efficiency pilot, also administered by NYSERDA, expired in September.  Its funding level was $1.66 million per year, with 50 percent for low-income gas efficiency programs, including weatherization and programs for owners of multifamily housing with low- income tenants, and the remainder for non-low-income residential and commercial customer gas efficiency programs.

Income eligibility for the low-income components is at or below 80 percent of state median income. Participants receive gas efficiency measures and incentives for making efficiency improvements to their homes.

National Grid: The company's low-income natural gas customers are benefiting from a $5 million extension of two existing energy efficiency programs. The PSC in August approved the $5 million extension for the EmPower New York and Assisted Home Performance (AHP) with ENERGY STAR programs. The former provides energy efficiency measures and energy-use management education to homeowners and renters with incomes below 60 percent of the state's median income, allowing, on average, about $2,380 of gas efficiency services such as wall, ceiling, and pipe insulation, heating system upgrades and repairs, and conversions from electric to gas appliances and water heaters.

Participants are identified through direct referrals by National Grid, or eligible referrals from area Offices for the Aging and community-based organizations. 

The AHP helps households with incomes less than 80 percent of the state's median income through a "building performance" approach to home improvements such as insulation, space and water heating system measures, replacement window and other energy efficiency improvements. Both programs are administered by NYSERDA.

Return to Contents

2006 Weatherization Funding Reaches Record

The latest annual funding survey for the Weatherization Assistance Program says that during Program Year 2006, the WAP had its highest amounts ever from the Department of Energy, from LIHEAP funding set asides and from “other” resources, primarily utilities. 

Compiled by the National Association for State Community Services Programs (NASCSP), the PY 2006 WAP Funding Survey says an estimated $731.1 million was expected to fund the program in PY 2006, an increase of $91.2 million (or 14.25 percent) from the PY 2005 funding level of nearly $640 million. This is the highest level ever recorded for WAP, and the program expected its network of community action agencies would weatherize approximately 163,205 homes using all sources of funding.

The survey also reported:

• An estimated $238 million in DOE funds was used in PY 2006 to weatherize 95,878 homes, an increase of 4 percent from PY 2005 funding of $228 million.
  
  
• From the 45 states and the District of Columbia that set aside a portion of LIHEAP funds for weatherization-related activities,  PY 2006 totals were estimated at $312.3 million, an increase of $65 million over 2005. After LIHEAP received record funding in 2006, 31 states increased their LIHEAP set asides; however, 11 states decreased their set asides and 3 states didn't change their amount.
  
  
• WAP providers received approximately $178.7 million in funding from utility companies, state general funds, property owner contributions, and rehabilitation grants in PY 2006, an increase of about $21.1 million over 2005 funding.  Utility companies were the primary source of “other” funds. This funding level is a fifteen-year high, NASCSP says, and it was achieved through “painstaking leveraging activity at all levels.”
  
  
• The other source of funds that NASCSP tracks are Petroleum Violation Escrow funds, which accounted for less than one percent of the 2006 total, about $1.8 million, and only two states awarded them.

As the graphs below depict, during the past decade, LIHEAP set-aside funds have usually comprised the largest portion of weatherization funding, followed by DOE  and other funds.  During 2006, LIHEAP funding amounted to 43 percent of the total.

Return to Contents

Texas Utility Announces $150 Million Commitment

TXU Energy, one of Texas's largest electricity retailers, serving about 2.1 million households, has announced commitments totaling more than $150 million in low-income assistance over the next five years.

The announcement was made in October after TXU completed its merger agreement with Texas Energy Future Holdings Limited Partnership.

The company said it has created TXU Energy Access ^SM, a comprehensive, enhanced set of programs to assist eligible low- income customers. This includes $25 million per year for five years to continue the company's 10 percent electric bill discount and provide it to more low-income customers.

During the summer, when Texas re-instated its system-benefit-funded low-income discount (see LIHEAP news), TXU continued to offer its low-income discount as well; about 91,000 households received it during 2007. 

TXU also pledged to provide $5 million per year for five years for the TXU Energy Aid program, its fuel fund. TXU matches employee and customer contributions at a ratio of approximately $5 for every $1 donated.

In addition to the $150 million commitment, the TXU program will include new demand side management initiatives, energy efficiency and weatherization, including continuation of its Low-Income Weatherization program aimed at hard-to-reach customers, which is funded at about $3 million yearly.

Finally, TXU Energy is forming a new Low-Income Advisory Committee comprised of social service leaders to help the utility identify challenges faced by low-income customers, and to help them overcome those challenges.

In order to assist customers with summer heat, TXU last summer continued its statewide summer initiative called “Beat the Heat,” which includes educational workshops about the energy market, TXU  pricing plans, energy conservation information, heat safety, bill-payment assistance and summer protections.  As part of the program, 30,000 compact fluorescent light bulbs were distributed.

TXU also provided enhanced residential customer protections during the summer months, including a moratorium on disconnects of critical-care and low-income customers and those that are at least 62 years old who make deferred payment arrangements, and a waiver of deposit requirements for low-income customers that are at least 62 years old and for all customers with good payment records.

Return to Contents

Low-Income Energy Resources

The following are recently published Information Memoranda (IMs) and Action Transmittals (ATs) that are available on the federal LIHEAP website.

AT-2007-8 —  Submission of leveraging reports on FY 2007 leveraging activities, in order to qualify for FY 2008 leveraging incentive fund grant awards, and amendment of FY 2007 LIHEAP Plans as necessary to add information on leveraging carried out in FY 2007, dated 7/30/07

AT-2007-9 —  Correct Address for FY 2008 LIHEAP Grant Award Package, dated 8/17/07

IM-2007-8 — Awards of FY 2007 LIHEAP Leveraging Incentive Grants, dated 8/10/07

IM-2007-9 — Announcement of FY 2007 grant awards under the Residential Energy Assistance Challenge Program (REACH), dated 8/13/07

Return to Contents