2013 Energy Assistance Public Hearings

AgendaAgenda

• HEAP and Winter Crisis Updates• Guideline Changes• Percentage of Income Payment Plan (PIPP) Plus

Updates• Testimonies & Questions

HEAP and Winter HEAP and Winter Crisis UpdatesCrisis Updates

2012 Energy Assistance Programs2012 Energy Assistance Programs

Funding Source Amount

LIHEAP $165,465,332

LIHEAP Total: $165,465,332

HWAP Transfer (up to 15%) $24,819,800

Sub Total: $140,645,532

Total Energy Assistance: $140,645,532

2013 Energy Assistance Programs Proposed 2013 Energy Assistance Programs Proposed Funding LevelFunding Level

Funding Source Amount

LIHEAP** $144,000,000

LIHEAP Total: $144,000,000

HWAP Transfer (up to 15%) $21,600,000

Sub Total: $122,400,000

Total Energy Assistance: To be determined

** Based upon Ohio’s allocation of projected funding level for LIHEAP as proposed by the Administration. Both the Senate and House Appropriations Committees have approved approximately $3.4 Billion which is the same as last year’s level

2012 HEAP Program Summary2012 HEAP Program Summary

2012 HEAP Program Summary2012 HEAP Program Summary

  Poverty Ratio Households Percent

1 Below 75% 217,305 47.34%

2 75% to 100% 88, 061 19.18%

3 101% to 125% 64,986 14.16%

4 126% to 150% 49,188 10.72%

5 151% to 175% 25,678 5.59%

6 176% to 200% 13,839 3.01%

  Total 459,057 100.00%

Average HEAP Benefit $ 177.55

Comparison 2008- 2012 Eligible-Applications

2012 HEAP Program Summary2012 HEAP Program Summary

2012 Winter Crisis Program Summary2012 Winter Crisis Program Summary

  Poverty Ratio Households Percent

1 Below 75% 82,685 53.23%

2 75% to 100% 28,748 18.51%

3 101% to 125% 18,694 12.03%

4 126% to 150% 13,347 8.59%

5 151% to 175% 7,419 4.78%

6 176% to 200% 4,445 2.86%

  Total 155,338 100.00%

Total Households Served by Federal Poverty Ratio

Average WCP Benefit $ 338.55

• July 18th, 2012 – Began outreach. Elderly and disabled were sent applications first. Applications were then sent to all other households previously found eligible for HEAP in 2012.

• Completion date—August 1, 2012

• Over 455,000 applications were distributed to individuals when mailing was completed.

• July 24, 2012—Applications began to be distributed by Community Action Agencies, Second Harvest Foodbanks, and other Agencies.

• Total distribution of applications will be about 1 million.

2013 HEAP Outreach Summary2013 HEAP Outreach Summary

2012-2013 Income Guidelines2012-2013 Income Guidelines

To be eligible a household must have total household income for the last 12 months or 90 days equal to or less than 200% percent of the federal poverty guidelines. The period to be used in determining annual income must not be more than twelve months, or less than the ninety-day period preceding the request for assistance by the household.

Size of Household

Total Household Income for 12

Months

1 up to $22,340.00

2 $30,260.00

3 $38,180.00

4 $46,100.00

5 $54,020.00

6 $61,940.00

7 $69,860.00

8 $77,780.00

* For households with more than 8 members, add $7,920 per member.

•Social Security Disability (SSDI)•Supplemental Security income (SSI) •Railroad Pensions•Retirement and/or Company Pensions•Social Security•Veteran’s Pensions•Veteran’s Compensation•Company Disability and Black Lung•Strike Benefits•OWF/TANF/DA•Alimony•Unemployment Benefits•Workers’ Compensation•Unearned income paid to or on the behalf of minors

•Estate and Trust Settlements (excluding attorney fees)•Capital Gains (Example: Proceeds from sale of property, home and stock)•Utility Allowances (as discretionary income)•Immigrant Relocation Allowance•Adoption Assistance•Child Support•Garnished Wages•Active Military Pay•Cash Gifts•Lump Sum Distribution (prorated when payment is designated for a set period of time)

Countable IncomeHousehold income is defined as the total annual gross income before taxes (minus exclusions) of all household members, except earned income of dependent minors under 18 years of age. All income sources and some exclusions must be documented. Head of household and spouse may never be considered minors. Gross household income includes wages, interest dividends,annuities and pensions. Additional sources of countable income include but are not limited to the following:

Excluded Income

•Food Stamps/Cash Payment for food stamps•Assets from bank withdrawals•Tax refunds and rebates•Handicapped Income- self-sufficiency programs (e.g., work expenses for the blind)•Loans from individuals or institutions requiring repayment of either principal or principal and interest•Funds/training stipends designated for specific purposes (i.e., educational grants for tuitionand/or books) •Work Allowances (i.e., LEAP)•Transportation Allowances (i.e. Workforce Investment Act (WIA))•Title V Wages – Older Americans’ Act

•Medicare payments•Stipend for Foster Care•Agent Orange Compensation/Benefit•Vista or other Americorp Stipends•Health Insurance Premiums (dental, vision and health insurance, supplemental health insurance)•Prevention, Retention, Contingency (PRC), assistance to attempt to divert families from long-term financial dependency•Title III DREAP•Documented Child Support Paid•Military allowances for subsistence; housing, family separation, etc.

energyhelp.ohio.gov

Changes

• Department of Development (DOD) to change name to Development Services Agency (DSA) beginning September 28, 2012.

• Office of Community Services (OCS) became the Office of Community Assistance (OCA).

Kaizen Event Recommendations

• OCA begins to develop an on-line application process based on recommendations from a Kaizen Event.

• OCA enhances efforts to collect more e-mail addresses from clients to cut postage costs and reduce paper.

• More information on OCA Kaizen event can be found by accessing the lean.ohio.gov website.

Social Security Number/Citizenship Requirements

• Social Security Numbers will be required for all household members, regardless of age.

• The Energy Assistance Application will continue to request documentation of citizenship or resident alien status for all household members, but it will only be required for the primary applicant.

Program Integrity/Internal Controls

• Requirement by U.S. Department of Health and Human Services (HHS) that States supplement their plans with a “Program Integrity Assessment “ in order to receive LIHEAP funding

• Part of an effort to ensure that internal controls are in place to prevent, detect, monitor, and prosecute improper payments due to fraud.

• Office of Community Assistance (OCA) has established a formal program integrity/fraud prevention section to develop and update procedures for reporting, deterring, and detecting fraud, and for taking corrective actions.

Percentage of Income Payment Plan Plus (PIPP

Plus) Data

Arrearage Example $2400

This was to be calculated by the Electric Utility at the first billing cycle in November 2010 (old debt owed to utility as of 11/1/10)

Monthly Bill Example$100

The customer’s monthly usage charge

PIPP Plus Installment Example$60

What the customer must pay each month in full and on time (6% payment example for an electric PIPP Plus customer with $1000 monthly income)

Current Bill Balance Example$40

This is the current bill balance that is credited (monthly bill minus PIPP Plus installment)

Arrearage Credit Example$100

This is the arrearage credit (1/24th of the old debt owed)

Arrearage Remaining after one year of on time full payment of installments

$1200

What one year of on-time, in-full payments would do to reduce the customer’s arrearage.

PIPP Plus Clientsas of 5/31/12

Company

Active PIPP

Clients

Graduate Minimum payment

Waiver Post

AEP 123,001 9,814 15,612 6,424 38CEI 53,876 2,642 7,664 3,992 15,305Columbia Gas 78,790 2,588 11,967 0 0Dominion Gas 105,614 9,393 15,033 2 0DP & L 38,843 1,107 5,813 905 1,654Duke Energy 31,818 1,161 7,944 1,989 10,997Ohio Edison 76,994 4,797 9,004 6,483 23,735Toledo Edison 26,089 1,444 3,755 2,211 8,567Vectren 20,641 350 3,857 12 0

555,666 33,296 80,649 22,018 60,296

Distinct clients 410,783

Trends in PIPP Plus

May-12 Apr-12 Oct-11 Aug-11Active 555,666 565,150 537,805 523,111Distinct 410,783 416,844 410,817 408,759

May Payments

Company

Received an

arrearage credit

% of payments made by

active PIPP

Accrued Arrearages

Credits Applied

Accruing Arrearages

Credits Applied

AEP 60,282 49% $4,121,944.53 $4,353,659.71CEI 24,457 45% $1,641,850.29 $1,299,730.05Columbia Gas 18,707 24% $2,515,045.69 $585,893.33Dominion Gas 26,551 25% $10,882,976.58 $1,331,863.20DP & L 19,631 51% $964,651.30 $1,639,343.06Duke Energy 26,372 83% $2,165,302.41 $898,321.98Ohio Edison 37,097 48% $3,136,809.82 $2,350,014.77Toledo Edison 11,997 46% $969,303.42 $766,356.36Vectren 4,534 22% $307,206.67 $92,767.54

229,628 41% $26,705,090.71 $13,317,950.00$40,023,040.71

Payment Percentage Comparison

Company May-12 Apr-12 Oct-11 Aug-11AEP 49% 47% 50% 51%CEI 45% 40% 46% 50%Columbia Gas 24% 24% 27% 28%Dominion Gas 25% 25% 22% 27%DP & L 51% 50% 54% 53%Duke Energy 83% 81% 73% 68%Ohio Edison 48% 44% 49% 51%Toledo Edison 46% 42% 48% 50%Vectren 22% 20%

41% 40% 41% 44%

Utility Issued 14 day Disconnection Notices

Company May-12 Apr-12 Dec-11AEP 0 2,562 0CEI 22,642 21,621 540Columbia Gas 10,710 9,996 8407Dominion Gas 1,750 2,337 2071DP & L 6,319 5,000 6957Duke Energy 7,199 7,570 6922Ohio Edison 31,161 29,482 1270Toledo Edison 11,450 10,688 239Vectren 4,756 4,671

95,987 93,927 26,406

PIPP Plus Customers Disconnectedfor Non-Payment

May-12 Apr-12 Oct-11 Aug-11AEP 0 0 4 2CEI 790 520 539 664Columbia 636 442 570 1212Dominion 599 751 289 1058DP & L 1,120 404 981 917Duke 853 621 1027 1138Ohio Ed. 1,682 1,125 1265 1576Toledo Ed. 514 250 239 379Vectren 504 369

6,698 4,482 4914 6946

Disconnections for Failure to ReverifyMay 2012

AEP 717CEI 1,085Columbia Gas 1,108Dominion Gas 2,692DP & L 763Duke Energy 1,124Ohio Edison 1,261Toledo Edison 323Vectren 340

9,413

Other Statistics

• 115,074 Number of PIPP Plus clients who used the Winter Crisis Benefit

• 144,418 Number of PIPP Plus clients who never received an arrearage credit in PY 2011

• 6,407 Number of PIPP Plus clients who made 12 consecutive payments

Current Issues

• Working to clean up data issues with the CIR– Notified utilities of “PIPP Plus participants” with very old reverification

dates

– First Energy stopped sending some required data fields which is impacting the reverification process

• The reverification process is looking at last year’s reverification letters sent to the client and continuing the process from that last letter sent

Next Steps

• Fix the reverification process• New educational focus to encourage clients to make all their

monthly payments

Questions or Questions or Testimony Testimony

When asking questions or giving testimony, please state your name and the agency you are representing, if any.

ADDITIONAL TESTIMONY

Mail to:

Janet Cesner

77 S. High St., 25th Floor

Columbus, OH 43215