 National Center for Appropriate Technology 3040 Continental Drive Butte, MT 59702 406.494.8662 Fax 406.494.2905 |
Overview of Low-Income Restructuring
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Program |
Total Cost* |
|---|---|
| LIHEAP Expansion |
$425,000 |
| RAD Expansion | $387,000 |
| Arrearage Retirement and Education | $250,000 |
| Weatherization Plus | $843,750 |
| Low Income Appliances | $1,065,000 |
| Weatherization/Rehabilitation | $750,000 |
Total |
$3,721,250 |
| * Includes administration cost | |
Three programs funded by the RETF are designed to help participants manage their energy bills through bill payments and energy education. The LIHEAP Expansion and Energy Education is an addition to the current LIHEAP program and includes bill payment assistance and educates residents about other energy efficiency programs.
The Residential Assistance Discount (RAD) Expansion increases the availability of the existing discounts to more LIHEAP-eligible PEPCO customers by providing additional funds to PEPCO. This program extends the number of households served by RAD; it does not increase the discount for a household beyond RAD.
PEPCO has offered the RAD program for a number of years. RAD customers receive a 63 percent discount on the first 400 kWhs in the summer months (June - October) and a 32 percent discount on the first 400 kWhs in the winter months (November - May) for a total savings of $102 per year. Eligible all-electric customers receive a $20 per month discount year-round and save $240.
The Arrearage Retirement program is intended to reduce eligible participants’ electric bills up to $250 on the condition that customers make specified co-payments and participate in the education, efficiency and RAD programs.
Households eligible for RAD can also participate in the RETF low-income weatherization programs. Three components will provide comprehensive energy efficiency services starting with rehabilitation followed by weatherization and appliance replacement.
The combined Weatherization Plus and Appliance Program expands the District Department of the Environment’s (DDOE) Weatherization programs by adding electricity saving measures in homes, including cost-effective refrigerator and lighting replacement, water heater wraps, hot pipe wraps, low-flow showerheads and faucet aerators. This program will also replace inefficient air conditioners when it is found to be cost effective in high-use homes.
The Weatherization/Rehabilitation program will expand to non-profit and community development corporations that are providing or will provide improvements to the homes of low-income District residents. RETF funds would be used to add an energy efficiency component to the home improvement efforts by selected organizations.
DDOE, the LIHEAP grantee, is the designated administrator of the RETF affordability, energy efficiency and renewable resources programs.
On February 8, 2005, the generation and transmission rate caps for non-RAD customers were lifted. The cap on the generation rates for RAD customers was lifted on February 8, 2007. On December 13, 2006, the Commission approved Order No. 14139 that provided an increase of 7.5 percent to be applied to all RAD customers, effective February 8, 2007. This amounts to about $3 - $4 more per month on a customer’s bill.
Based on the Commission’s Order in the PEPCO/Conectiv Merger case (F.C. No. 1002), PEPCO’s distribution rates will be capped through August 31, 2009 for RAD customers.
Even though all residential and commercial electricity customers have been able to choose an alternative electricity generation supplier since January 1, 2001, as of March 2008, only 0.9 % have chosen an electric supplier and 99.1% have remained with the PEPCO Standard Offer of Services (SOS). The Commission approved PEPCO’s proposed SOS retail rates, effective June 2006, for its customers in the District. Each year in June supply rates are adjusted to reflect the cost of power that PEPCO buys on behalf of its customers who do not contract with an alternative supplier.
Low-income natural gas customers are also benefiting from energy efficiency and rate assistance programs that were approved through the Omnibus Utility Emergency Amendment Act of 2005 that was signed into law January 28, 2005. The Act establishes a Natural Gas Trust Fund (NGTF) to promote energy efficiency and provide assistance to low-income natural gas customers.
The NGTF is funded through a non-bypassable charge of 0.0055 per therm on natural gas residential customer bills. The charge started in June 2005 and is not applied to customers participating in the existing Residential Essential Service program.
The DC Public Service Commission, in a January 2006 decision, Order No.13857, approved four programs to be funded under the NGTF. The programs were proposed by DDOE and were approved on a pilot basis that ended March 31, 2006. In Order No. 14608, dated October 23, 2007, the PSC approved extending the following programs (see table below). The approved programs must be implemented no more than 90 days after the date of the order and will end 2 years after.
Program |
Total Cost* |
|
|---|---|---|
Year 1 |
Year 2 |
|
| RES Expansion and Awareness | $472,900** |
$565,938** |
| Heating System Repair/Replace/Tune-up | $964,000 |
$964,000 |
| Energy Awareness Campaign | $308,000 |
$250,000 |
Total |
$1,744,900 |
$1,779,938 |
| *Administration costs are not included **Includes $50,000 for RES marketing campaign |
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Programs approved by the Commission include:
- Residential Essential Service (RES), a discount rate for qualified Washington Gas customers that was established in 1986. The RES discount, based on household size and income level, is available from November through April. The goal of the RES credit expansion is to increase participation in the RES program. The Commission agreed to increase the RES credit by 20 percent over a 6 year period. The average credit of $211 will increase to $254 and will be available to an additional 2,200 customers per program year.
- Heating System Repair Replacement and Tune-Up will replace or repair natural gas heating systems in low-income homes.
- Energy Awareness Campaign will promote energy efficiency awareness and increase low-income participation in natural gas financial assistance programs.
Continuation of the Residential Weatherization and Efficiency pilot for non-low-income homes was not approved by the Commission.
DDOE requested an increase in the eligibility level from 150 percent of the federal poverty guidelines to 175 percent. The Commission did not approve the increase stating the DDOE needs to improve the penetration rate among currently eligible customers. But, the Commission does believe that outreach should play a significant role in increasing participation and approved the awareness component of the RES program at a level of $50,000 for each of the two budget years.
As of March, 2008, there were 4 alternative commodity gas suppliers serving 12,091 participants in the residential program, accounting for 9 percent of all residential gas customers.
For more information
Omnibus Utility Emergency Amendment Act of 2005
PSC Order No. 13857 approves NGTF pilot programs, January 19, 2006
PSC Order No. 13507 adopts the amended RETF surcharge, February 17, 2005
PSC Order No. 13475 approves in part, and denies in part, the RETF Long-Term Plan filed by the DC Energy Office, March 7, 2005.
PSC Order No. 12778 designated DCEO the administrator of the RETF energy efficiency and renewable resources programs, July 9, 2003.
PSC Order No. 14689 extends RETF programs until September 30, 2008
More information about retail electric restructuring and customer choice is found on the District's Public Service Commission website.
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Page Last Updated: April 1, 2008