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Outline Introduction 2005 RECS Findings –Levels and Types of Energy Insecurity –Factors Related to Energy Insecurity 2005 SIPP Findings –Analysis of Assets and Income Dynamics 2009 RECS Preliminary Findings 3
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Energy Insecurity: Lessons from the RECS and SIPP
Ferit UcarDavid Carroll
2012 National Energy and Utility Affordability ConferenceJune 12, 2012
Introduction
• Home Energy Notebook Special Studies– FY 2008 – LIHEAP Energy Insecurity Study
• Based on 2005 RECS questions– FY 2009 –SIPP Study of Energy Affordability
• Based on 2005 Adult Well-Being Module• Analysis of Income Dynamics and Assets
• 2009 RECS
2
Outline
• Introduction• 2005 RECS Findings
– Levels and Types of Energy Insecurity – Factors Related to Energy Insecurity
• 2005 SIPP Findings– Analysis of Assets and Income Dynamics
• 2009 RECS Preliminary Findings
3
2005 RECS Heating Interruptions
4
Reason for Space Heating Disruption
Number of Low Income Households with Space
Heating Disruption
Percent of All Low Income Households
Inability to pay for the repair of broken heating system 1,581,233 4.4%
Inability to pay for bulk fuel delivery 300,284 0.8%
Inability to pay for electric service 1,671,636 4.7%
Inability to pay for natural gas service 621,956 1.7%
Disruption due to any reason 3,265,563 9.1%
2005 RECS Cooling Interruptions
5
Reason for Air Conditioning Disruption
Number of Low Income Households with Air
Conditioning Disruption
Percent of All Low Income Households
Inability to pay for the repair of broken air conditioner 1,427,509 4.0%
Inability to pay for electric service 1,240,278 3.5%
Disruption due to any reason 2,507,547 7.0%
2005 RECS Self-Reports on Impacts of Energy Assistance
6
Reason for Heating Interruption
Number of Low Income
Households with Interruption
Number of Low Income Households Energy Assistance Restored Heating
Percent of All Low Income Households
Energy Assistance Restored Heating
Inability to pay for the repair of broken heating system
1,581,233 176,301 11%
Inability to pay for bulk fuel delivery 300,284 103,646 35%
Inability to pay for electric service 1,671,636 322,077 19%
Inability to pay for natural gas service 621,956 126,034 20%
2005 RECS Financial Dimension of Energy Insecurity
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Dimension Almost Every Month Some Months 1 or 2
Months Never
Worry about ability to pay 14.9% 23.6% 7.4% 54.1%
Reduce spending for basic necessities 17.0% 23.3% 6.7% 53.0%
Borrow to pay bill 3.9% 11.6% 7.2% 77.3%
Skip paying bill 3.9% 13.0% 9.4% 73.7%Service termination threat 2.7% 8.7% 9.5% 79.2%Any financial insecurity 23.6% 25.4% 8.9% 42.2%
2005 RECS Health & Safety Dimension of Energy Insecurity
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Dimension Almost Every Month
Some Months
1 or 2 Months Never
Close off part of home 4.6% 6.4% 2.4% 86.6%
Keep home at unsafe temperature 1.8% 4.1% 2.5% 91.6%
Leave home for part of the day 1.0% 4.2% 3.6% 91.2%
Use stove or oven for heat 0.7% 4.9% 4.5% 89.9%
Any health or safety insecurity 6.3% 12.4% 7.3% 74.0%
2005 RECS Energy Insecurity by Census Region
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Type of Energy InsecurityCensus Region
U.S.Northeast Midwest South West
Heating Interruption 6.9% 6.5% 10.3% 13.4% 9.2%
Cooling Interruption 2.9% 6.2% 12.7% 9.3% 8.7%
Reduce spending for basic necessities 39.0% 49.3% 49.5% 48.2% 47.0
%
Keep home at unsafe temperature 5.7% 8.5% 10.1% 7.7% 8.4%
2005 RECS Energy Insecurity by Poverty Guidelines
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Type of Energy InsecurityPoverty Group
≤100% >100%-150% >150%
Heating Interruption 12.9% 7.0% 5.5%
Cooling Interruption 10.1% 8.6% 6.1%
Reduce spending for basic necessities 52.7% 45.8% 37.9%
Keep home at unsafe temperature 12.1% 6.3% 4.4%
2005 RECS Energy Insecurity by Demographic Group*
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Type of Energy InsecurityDemographic Group
Young Child Elderly Other
Heating Interruption 12.6% 9.2% 16.2%
Cooling Interruption 12.2% 7.5% 11.2%
Reduce spending for basic necessities 55.8% 47.5% 55.3%
Keep home at unsafe temperature 9.3% 14.5% 11.6%
*Households with income at or below 100% of HHS poverty guidelines
2005 RECS Energy Insecurity by Energy Burden
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Type of Energy InsecurityResidential Energy Burden*
HighBurden≥10.9%
Moderate6.5%≤Burden<10.9%
LowBurden<6.5%
Heating Interruption 12.7% 7.4% 7.2%
Cooling Interruption 9.7% 8.7% 7.4%
Reduce spending for basic necessities 51.1% 49.0% 40.4%
Keep home at unsafe temperature 11.7% 8.9% 5.2%
2005 RECS Multivariate Factor Analysis
13
Finding Tabular Analysis
Multivariate Analysis
Lower income Higher rate
Higher burden Higher rate
Northeast Lower rate
Elderly Lower financial rate
Elderly Lower health and safety rate
Survey of Income and Program Participation (SIPP)
• Administered by Census Bureau• Core Content and Topical Modules• 2005 Adult Well-Being Module
– Questions on energy service disruptions and bill payment problems
• Assets and Liabilities Module
14
2005 SIPPEnergy Insecurity by Demographic Group
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2005 SIPPDemographic Group
Young Child Elderly Other
Bill Payment Problems 29.0% 7.3% 24.5%
Service Disconnections 6.1% 0.8% 4.3%
2005 SIPPAnalysis of Income Dynamics and Assets
• Why do elderly households experience lower levels of financial energy insecurity?– Possession of more assets?– More stable income?
16
2005 SIPPAnalysis of Assets
17
Group Elderly Low Income Households
Non-Elderly Low Income Households
Bill Payment Problem
Service Disconnection
# HHs(in millions)
Avg. Net Worth*
# HHs(in millions)
Avg. Net Worth*
No No 10.0 $146,598 14.9 $77,047
Yes No 0.7 $51,816 4.2 $19,434
Yes Yes 0.1 $55,989 1.0 $41,522
*Net Worth=Total Assets-Total Unsecured Debt
2005 SIPPAnalysis of Income DynamicsNon-Elderly More Likely to Have Volatile Income
18
Low Income Households with Volatile Income
Group # (in millions) %
Elderly 3.8 33.9%
Non-Elderly 13.7 69.0%
2005 SIPPMultivariate Analysis ofIncome Dynamics and Assets
• Elderly less likely to have bill payment problems• Elderly less likely to have service shutoffs• Income dynamics and assets partially explain this• Still unexplained difference between elderly and non-elderly
19
2009 RECSPreliminary Results
20
Health and Safety ProblemNumber of Low Income
Households with the Problem
Percent of All Low Income Households
Kept home at unsafe temperature 5,677,244 16.0%
Medical attention needed b/c home too cold 966,327 2.7%
Medical attention needed b/c home too hot 102,786 0.3%
Fire started as a result of using an alternate heating source 96,148 0.3%
Fire started as a result of using an alternate lighting source 39,442 0.1%
