FFY2012 EAP Annual Training Section 2 Includes Chapter 1 Control Environment, Chapter 3 Service Provider Responsibility, Chapter 3 Energy Vendor and PUC

FFY2012 FFY2012 EAP Annual EAP Annual TrainingTrainingSection 2Section 2

Includes Chapter 1 Control Environment, Chapter 3 Service Provider Responsibility, Chapter 3 Energy Vendor and PUC

August 10 & 11August 10 & 11FFY2012 EAP Annual TrainingFFY2012 EAP Annual Training

2

Chapter 1 Program Control Environment Chapter 1 Program Control Environment


3

IntentionsMaintain affordable, continuous, and safe home

energy for low-income Minnesota households

Business Strategy Model Business Strategy Model


4

Values Overall:

1. Affordable, safe, and dependable energy 2. Advocacy 3. Good stewardship of resources 4. Being realistic about limitations5. Quality6. Partners and Partnerships (see Coordinated Responsibility

Model)7. Understanding the program in the context of broader public

policy and other needs of low-income Minnesotans 8. Being the compass but not the map9. Reward positive, proactive behavior by all energy

stakeholdersRegarding Households:

1. Dignity and privacy 2. Participation (see Coordinated Responsibility Model)3. Empower people to make informed decisions regarding their

energy use and needs4. Serving the most in need – balancing total number of

participants, makeup of participants, and levels of service

Regarding Collaboration: 1. The responsibility to provide a safety net2. Working towards the same goals3. Stakeholders personal commitment and

accountability 4. Represent our own personal perspective,

the views of our stakeholder group, and the world from multiple perspectives

5. Actively coordinate across programs and departments

Regarding Policy Direction: 1. Creative and flexible approaches 2. Consistency 3. Balance of simplicity and fairness 4. Recommendations based on a sound

community analysis5. More strategic than operational6. Timely and proactive in order to mitigate

emerging problems


5

MeansMeans Offerings (Products & Services) •Energy bill payment •Furnace repair or replacement •Energy related crisis intervention •Advocacy•Outreach •Referral •Information •Education •Conservation Coordination and Collaboration •Demonstrate effectiveness of investment

Markets (Customers) •Households, emphasizing low-income: •Families with children under age five•Families with members who are disabled•Seniors •EAP Director and Staff•Local Service Providers •Policy decision makers •Funders (e.g. HHS)•Energy Vendors •Mechanical Contractors •PAC members•Weatherization Assistance Program •Partner organizations •Community •Tax payers•Utility rate payers


6

EAP employs a “Coordinated Responsibility Model” The Model assumes households, vendors, and the program all have a

role in assuring heat for low-income households during the winter. • Program responsibility includes providing heating payment

supplements, case management and advocacy for households, and maintaining influence with vendors.

• Energy Vendor responsibility is to be as flexible as possible so energy payments leverage the highest possible level of service to the household.

• Household responsibility is to make reasonable and planned payments for energy service, access government aid when necessary and communicate with vendors and government service providers.

The Minnesota Model The Minnesota Model


7

Recent Developments include Annual Office of Legislative Auditors report

No Findings for the program side of LIHEAP DOC has recently hired an Internal Controls Director Nationally, Minnesota is represented on the Program

Integrity Workgroup. This workgroup is developing internal control in a number of areas

We continuing to incorporate internal controls in all areas of EAP especially in the area of energy vendors

Internal ControlsInternal Controls


8

Deputy Commissioner

Minnesota Department of CommerceDivision of Energy Resources

Bill GrantBill Grant


9

Coordinator’s RoleQ & AQ & A


10

Chapter 2: Overview of Service Provider Responsibility Chapter 2: Overview of Service Provider Responsibility


11

Control Environment Risk Assessment Control Activities Communication and Information Monitoring

Chapter Structure Chapter Structure


12

Monitoring and self monitoringVendor MonitoringAppeals Inventory and Purchase Requests and documentationWeb PageConflict of Interest

Changes in Chapter 2 Changes in Chapter 2


13

Chapter 3 – Energy VendorsChapter 3 – Energy Vendors


14

1. Context2. Vendor SME group3. Policies and Procedures

Chapter Changes Agreement Between EV and SP Changes

4. Vendor Communication5. Vendor Monitoring Effort6. Issues Management

Chapter 3 – Training TopicsChapter 3 – Training Topics


15

Continued emphasis on increasing internal controls:General Accounting Office (GAO)Office of the Legislative Auditor (OLA)National Program Integrity WorkgroupMain focus on energy vendor transactions occurring

at the Service Provider, state office, and energy vendor company office

Energy vendor monitoring plays a key role

Chapter 3 - ContextChapter 3 - Context


16

Creation of the Vendor SME

Need for Service Provider experts providing energy vendor knowledge and advice to State Office

Representation Considerations: Small and large SPs (based on # of HH served) All types of fuel vendors Geographically diverse Volunteers EACA Chair Recommendations

Vendor Subject Matter Expert GroupVendor Subject Matter Expert Group


17

Pam Wild, MVACSue Thompson, SEMCACPhil Wold, Tri-ValleyRachel Bagley, Western Community Action Fenton Hyacinthe, CA of MplsScott Zemke, CAPSHCatherine Fair, CAPRWC Joan Markon, Fond du LacMary Heilman, AEOA

Vendor SME MembersVendor SME Members


18

Effort Definition:

Work Completed:Vendor chapter and agreement review EACA recommended improvements

Vendor SME Effort DefinitionVendor SME Effort Definition

Vendor SME - ED


19

Going Forward: The Vendor SME represents all members of EACA on vendor issues This group is available to you – make your voice heard Vendor Monitoring Improvements Vendor Registration Improvements TBD

Vendor SME – Your VoiceVendor SME – Your Voice


20

Consumption Data Specifications (Page 2)New language to provide clarity on what is considered

true consumptionExamples added for guidance

Situations when complete consumption is not available

Also located in Chapter 5

Chapter 3 – New LanguageChapter 3 – New Language


21

Assignment of Payments (Page 3)New language provides clarification to vendors about 30%

electric and reiterates responsibility to appropriately apply payments:

Page 3:Households may elect through their EAP application to have 30% of their primary heat benefit paid to their non-heating electric energy account. This option exists because non-heat electricity is most often crucial to operating a heating unit.



22

The vendor is responsible for applying EAP payments correctly for heat and non-heat electric payments. If the 30% option has been selected by the Service Provider on behalf of the household, the electric vendor must apply 30% of a benefit to the non-heating electric account.

If the vendor provides multiple utility services, including both heating and electric non-heating energy, and their billing system does not allow for separation of the two, they must notify their EAP Service Provider of their method to assure payments are correctly applied. Disconnections should not occur as a result of a vendor failing to appropriately apply EAP payments.

Chapter 3 – New Language ContinuedChapter 3 – New Language Continued


23

Early Notification of Payment & Emergencies (Page 5)

Vendors must supply EAP Service Providers with a 24 hour emergency contact number to address after hours emergencies. This requirement enables Service Providers to comply with LIHEAP Law, Section 2604(c) requiring EAP to provide some form of assistance within 18 hours after an eligible household in a life-threatening situation applies for crisis benefits.



24

Vendor Registration and Change of Vendor Information (Page 6)

A complete IRS W-9 Form has been added to the vendor registration information list

Also can be found as a link on EAP Tools on the web in the Vendor Management Forms Section



25

Vendor Monitoring & Reporting Requirements (Page 7) Vendors must contact the Service Provider if for any reason

the consumption amount needs to be changed after original submission.

The word “should” was changed to the word “must”. eHEAT enhancement: Energy Vendors are locked out of

consumption fields after eligibility has been determined.

Chapter 3 Chapter 3 – Edit & eHEAT Enhancement– Edit & eHEAT Enhancement


26

Section I. The vendor and the Service Provider will: Added #11

Work together to ensure EAP payments are appropriately applied to accounts and used for EAP services as designated by the Service Provider.

EV/SP Agreement ChangesEV/SP Agreement Changes


27

Section II. The Service Provider will: Added tank setting to #3

Make authorization through eHEAT, telephone, fax or electronic communication for: Payments for electricity, heating fuels and delivery of fuel. Continuation or reconnection of connected utilities. Payments for service deposits, pressure tests, line bleeding, tank

setting, tank rental, membership fee, if applicable. Removal from load limiters. Payments due and past due amounts for electricity and heating fuels.



28



29

14. Continue service, reconnect or deliver fuel to households eligible for EAP crisis payments or as negotiated by the Service Provider on behalf of the household.

Section III Edits ContinuedSection III Edits Continued


30

Section V: Edited Signature BlockEV/SP Agreement ChangesEV/SP Agreement Changes


31

Primary Relationship between SP and EV Escalating communication eHEAT Vendor Manual EAP Tools on the web Refund Help Sheet Continue to encourage use of eHEAT

Vendor CommunicationsVendor Communications


32

Monitor 5% of vendors including a variety of fuel providers (Chapter 2 and 3)

Have a monitoring schedule so all vendors are monitored overtime Problematic vendors require more timely monitoring Encourage in person, on site monitoring The monitor hat v. trainer hat Monitoring is an opportunity to discuss issues and approach before

the start of the program Use the path to a solution when planning monitoring visits

(revisit Jeff’s 2010 Training PowerPoint)

Vendor Monitoring EffortVendor Monitoring Effort


33

HistoryEffort DefinitionPlan

SME assist in developing an approach Execute approach Evaluate outcome Pilot

Shutdown Effect

Group Monitoring EffortGroup Monitoring Effort


34

Examples of current issues being worked on:MERC not counting taxes and fees in consumptionXcel PAR not having access to correct consumptionMuni Payment IssuesGAP as it relates to EAPProgram vendor internal controls

Vendor Issue ManagementVendor Issue Management

Energy Assistance Program Fall TrainingAugust 10-11, 2011

Public Utilities CommissionTracy Smetana

35

Who is the Public Utilities Commission?

What is the Cold Weather Rule?How can Energy Assistance providers

assist customers with Cold Weather Rule protection?

What other utility consumer assistance is available?

36

Regulate Local and in-state long distance telephone

companies Investor-owned electric and natural gas utilities Permitting for power plants, pipelines,

transmission lines 5 Commissioners

Appointed by the Governor Serve staggered terms FT employment

40 staff

37

Services provided by the PUC Consumer Affairs Office Mediation between utility companies and

their customers Consumer Education Telephone Discount Programs Cold Weather Rule Utility Resource Public Comments

38

Interagency Relationships Attorney General Department of Commerce Federal Communications Commission Governor Legislators (State and Federal) Public Utilities Commissions in other

states Social Service Organizations

39

Protects customers from having heat shut off in the winter. Residential Heat affected Electric and natural gas

October 15 through April 15

40

Regulated Cold Weather Rule (CWR) Companies Alliant Energy/Interstate Power & Light CenterPoint Energy Community Utility Company Dakota Electric Association Great Plains Natural Gas Greater Minnesota Gas Island Gas/Sheehan’s Gas Company Minnesota Energy Resources Corp (MERC) Minnesota Power Northwest Natural Gas Northwest Natural Gas of Murray County Northwestern Wisconsin Electric Otter Tail Power Xcel Energy

41

Pre-season bill inserts

• Explanation of the Cold Weather Rule• Explanation of no-cost and low-cost methods to

reduce energy consumption• Third-party notice• Ways to avoid disconnection• Information regarding payment agreements• Explanation of the customer's right to appeal• List of names and telephone numbers for

county and local energy assistance and weatherization providers in each county served by the utility

42

CWR Payment Plan

Reconnect service OR prevent disconnection. Available to all residential customers, regardless of

income. Payment installments need not be equal; may be

based on factors such as lump sum payments or additional income expected during payment period.

If income at or below 50% of state median, payments no more than 10% of household income.

43

Disconnect notice

Ten working days prior to disconnection date

CWR insert must be included

What’s next?

44

Customer contacts utility NO written application required Household income at/below 50% of state median

income▪ Enter into mutually acceptable CWR payment plan▪ Consider household’s financial resources and

circumstances▪ No more than 10% of household income▪ Make and keep CWR payment plan▪ Customer must contact utility to request modification of

CWR payment plan▪ Payment agreement ends April 15 unless utility and

customer agree to a different end date45

Customer contacts utility NO written application required Household income greater than 50% of

state median income▪ Enter into mutually acceptable CWR payment

plan▪ Consider household’s financial and other

extenuating circumstances ▪ Make and keep CWR payment plan▪ Customer must contact utility to request

modification of CWR payment plan▪ Payment agreement ends April 15 unless utility

and customer agree to a different end date46

Customer contacts utility Utility and customer do NOT agree on a

CWR payment plan▪ Utility informs customer of right to appeal▪ Utility sends appeal form to customer▪ Customer has 10 working days to complete

appeal and send to PUC▪ PUC has 20 working days to issue decision on

appeal

47

Customer contacts utility Customer fails to keep CWR payment

plan▪ Customer subject to disconnection

48

Customer does not contact utility Must investigate whether occupied or

vacant▪ If vacant, proceed with disconnection▪ If occupied…▪ Make contact with customer▪ Offer CWR payment plan▪ Customer subject to disconnection without CWR

payment plan

49

Income Verification Customer who receives low income

assistance does not need to provide additional verification

Proof of income = pay stubs, tax return, Social Security statement, etc

Self declaration Customer has right to appeal utility’s

determination

50

No deposit or late fees if household income at or below 50% of state median income AND keeping CWR payment plan

No disconnection during any appeal process

Timely payment = within 7 calendar days

51

Cooperative/Municipal CWR Written application required Applies only to households at/below 50% of

state median income No 10% cap on payment Appeal process does not include PUC Requires notice to Energy Assistance

provider before disconnecting unoccupied residential unit

Reconnection provision added 2007-2008 season

52

Keys to protection

Contact utility company Payment plan based on customer’s

financial situation Make and keep a payment plan PUC available to answer questions,

assist customers

53

Electric Discounts Xcel Energy▪ Required by law▪ Low Income households only (LIHEAP)▪ Eligible seniors and/or disabled, 50% off first 300 kwh▪ Affordability Program for eligible customers spending

more than 3% of household’s annual income.

54

Electric Discounts Minnesota Power▪ Available to all residential customers,

regardless of household income▪ Tiered rate schedule▪ Proposal to implement a low income

program pending (Customer Affordability of Residential Electricity--CARE)

55

Natural Gas Discounts CenterPoint Energy▪ Available to all residential customers,

regardless of household income▪ Tiered rate schedule

56

Gas Affordability Programs (GAP) Required by state law Must be LIHEAP recipient Program goals▪ Reduce the percentage of income low income

households devote to current energy bills▪ Increase the number and frequency of

customer payments▪ Provide assistance to pay arrears

57

Gas Affordability Programs (GAP) Affordable monthly payment

▪ Household pays percentage of monthly income toward current bill 4% for CenterPoint, Xcel and Great Plains 6% for MERC, Alliant/Interstate

▪ GAP funds pay the remainder Arrearage forgiveness

▪ Household with arrears upon entering the program▪ Customer pays a portion of arrears each month▪ GAP funds match customer payment▪ 12-24 months

Greater Minnesota Gas▪ Waive monthly facility fee▪ $102 credit after 12 consecutive payments

58

Gas Affordability Programs (GAP) GAP is a matching program Program is funded by a charge on

customer bills More than $8 million GAP per year 30,000—36,000 customers per year Customers removed from program after

two consecutive missed payments

59

Conservation and Rebate Programs Required by law▪ Natural Gas and Electric Utilities▪ Investor-owned, Cooperatives, Municipals▪ Percentage of revenue (varies by company type)▪ Low income conservation program

Examples▪ “Energy Star” appliance rebates▪ Fluorescent bulb recycling programs▪ Free/discounted energy audits▪ Cycled central air conditioning▪ Home Energy Reports

60

Medical equipment in use. Requires electricity. Necessary to sustain life.

Written certification from a medical doctor. The customer must enter into a payment

agreement.

Applies to all electric utilities. Statute is silent on re-certification.

61

No disconnection if National Weather Service issues…• Excessive heat watch• Heat advisory• Excessive heat warning

Applies to all electric utilities

62

Available to customers of Traditional landline telephone service Some cellular Not Voice Over Internet Protocol (VOIP)

Participate in qualifying program OR household income at or below 135% of federal poverty

63

Qualifying programs Medicaid/Medical Assistance Food Support MFIP SSI Federal Housing Assistance (Section 8) Temporary Assistance to Needy Families (TANF) Low Income Home Energy Assistance (LIHEAP) National School Free Lunch Program Bureau of Indian Affairs General Assistance if living on a reservation Tribally Administered Temporary Assistance for Needy Families (TANF) if

living on a reservation Tribal National School Free Lunch Program if living on a reservation

64

Link Up One time credit when hooking up new service

Telephone Assistance Plan + Lifeline Monthly credit on telephone bill Minimum discount = $2.50/month, up to

$10/month Application + proof of income to local

telephone company www.lifeline.org

65

CENTURYLINK SUPPORT CENTERPOB 4918MONROE LA 71211 Fax 318-330-6113 FRONTIERATTN OFFLINE DEPT1398 S WOODLAND BLVDDELAND FL 32720 QWEST COMMUNICATIONSPOB 2738OMAHA NE 68108-2738 Verizon Wireless: 1-800-924-0585

66

Utility “rate cases”Deposits“Name game”Landlord/tenant issues

67

Department of Commerce www.commerce.state.mn.us

Division of Energy Resourceswww.energy.mn.gov

Office of the Attorney General www.ag.state.mn.us

Stay Warm Minnesota www.staywarm.mn.gov

68

Tracy SmetanaConsumer MediatorMinnesota Public Utilities Commission121 Seventh Place EastSuite 350St Paul MN 55101-2147651-296-0406, option 1 1-800-657-3782, option 1Fax [email protected]@state.mn.us www.puc.state.mn.us

69


70

Coordinator’s RoleKen BensonQ & A: Vendor & PUCQ & A: Vendor & PUC

Documents

FFY2012 EAP Annual Training Section 2 Includes Chapter 1 Control Environment, Chapter 3 Service Provider Responsibility, Chapter 3 Energy Vendor and PUC