Making WAP/Utility Partnerships Smoother and More Substantial Jack Laverty NiSource/Columbia Gas of Ohio NLIEC 2005 Conference Phoenix, Arizona June 16,

Making WAP/Utility Partnerships

Smoother and More Substantial

Jack Laverty

NiSource/Columbia Gas of Ohio

NLIEC 2005 Conference

Phoenix, Arizona

June 16, 2005

19th Annual NLIEC ConferenceSlide 2

Creating/Maintaining the PartnershipThe Strategic Triangle


Creating/Maintaining the Partnership

• Political Management– Does a partnership currently exist?

– What are relationships like between the WAP group(s) and the utility?

• Are there any existing interfaces? Personal connections?

– What is the regulatory and political climate?• What is the state PUC’s view of Wx?

– What is the public and private reputation of the state (or local provider) WAP?



• Political Management– Relationships with the Media– Relations with stakeholders including locally-

elected officials (Senate and House), PUC, Consumer’s Counsel, county commsioners, etc.

• Open Houses and other organized media events

– Representation in regulatory proceedings• Be at the table; everyone else is



• Capacity– What is the public

and private perception of the state (or local) WAP as a potential partner?

– What is the capacity of the network to deliver services?

• Capacity Issues– History of Expertise– Training– Management/Operations– Data collection/evaluation– Quality Assurance– Standards– Customer Service/Marketing– Program Performance Metrics– Technology– Program Design

• The right ECMs



• Value– What value

would a partnership create for both the Utility and the service provider and other stakeholders?

• Value– Create Win-Win for all

parties• Benefits to all ratepayers

• Serve low income customers/constituents of Utility, Agency, Local Officials

– Save customers energy/$

• Reduce arrearages

• Reduce bad debt expenses

• PR opportunities various stakeholders

• Allow Utility to recover costs of program


• “Friendly” regulatory/political environment• COH

– Mandated to provide RCS audits in 1984, partnered with WAP CBOs

– Moved to Low-Cost program in 1986– WarmChoice developed collaboratively in 1987

• WAP CBOs– History of successful program operations since 1979– Ohio was aggressive in all aspects of WAP development; staff who

had been involved in energy crisis programs since 1975– Engaged in political process– Large funding base, get 15%$ LIHEAP, active PIPP program– Willingness to change and evolve– Entrepreneurial focus

Case History


COH Energy Assistance/Management Programs

• Low-Income Weatherization program

– Largest Gas Utility weatherization program in Ohio ($5,500,000/year)


• Eligible Customers– 150% poverty level, HEAP/PIPP eligible– Rental properties require landlord (LL) contributions for

heating system replacements if LL not income eligible• Priority customers

– High usage– High arrearage

• NOT an emergency response program• Detailed inspection performed• Prescriptive list of WAP Retro-Tech/NEAT generated energy

conservation measures (ECMs) validated by independent HWAP and COH evaluations


• Energy Conservation Measures (ECMs)– Attic and Sidewall Insulation


• Energy Conservation Measures (ECMs), cont.– Floor, duct and water heater insulation

– Instrumented air and duct sealing (using a blower door)


• Energy Conservation Measures (ECMs), cont.– Replacement (high efficiency) heating and water

heating systems for defective units


• Energy Conservation Measures (ECMs)– Some repairs– Customer Education on energy use, payment

programs, arrearage forgiveness, health and safety issues

– Frequently partner with Ohio HWAP, EPP, HTF, CHIP, USDA Rural Development

– Use HWAP standards (WPS)• Enables consistency and ease of coordination

between HWAP and WarmChoice


• Performance Metrics from Evaluations– Historical customers served

• 45,000

– Average investment per household• $3500 COH funds, can be higher when cost-shared

with HWAP

– Yearly ccfs saved (average per household)• 429 (30% reduction in use)

– $ saved• Varies with cost of gas; 1997 savings were

$200/year


• Performance Metrics from 13 Evaluations– Impact arrearages, varies with cost of gas - $60

to $147– Persistence study

• Energy savings do not decline over time

– Non-energy benefits not counted, but:• Helps with homelessness prevention• Environmental (CO2)• Improved health and safety• Housing durability• Other


• What makes it smooth(er)?• Existing, proven CBO network willing to work together and

with Utility to provide meaningful services

• Mostly the same customer eligibility criteria– WAP Prioritization issue – regulatory: High Use, High Arrears

• Moved to same wx. standards, same ECMs allowed

• Simple fee for service payment system based on collaboratively developed price list

• Move from Stand-Alone only to Stand-Alone and Cost-Share program

• CBOs experienced with data collection and reporting

• Utility staff hired from WAP network


• What makes it smooth(er)?• Shared WAP/Utility customer service goals (2 for 1)

– Stand-alone and cost-share jobs

• Fee for service

– Prices list for HVAC/Wx/Repair measures

– Management and Operations Fees (overhead)

• Formalized training/certification process (OWTC) in place since 1980

• WAP allows sharing of equipment on cost-share jobs

• WAP allows integrated inventory system with monthly reimbursement for materials used in Utility program

– Need to ensure hours are not charged to both programs


• What makes it smooth(er)?• Marriage of WAP prioritization and Commission

mandated eligibility criteria

• Flexibility: COH allowed HVAC and DHW replacements before WAP

• COH QA approach– Look for success

– Look for opportunities to improve product and customer service

• Advance and special purchase funds


• What makes it more substantial?– CBOs engage in the evaluation process– CBOs technically proficient and open to new ideas

• HVAC installation and testing and blower door diagnostics mandated before WAP

• House Pressure/Duct Diagnostics, Infrared

– PR and relationships• CBOs hold open houses for elected and other officials• Customer ed can improve awareness of company actions• COH/CBO Quarterly and annual meetings

– Open communications, willing to listen to each other’s needs

– Flexibility – exceptions for unusual situations


• What makes it more substantial?– Large % of Utility HVAC replacements lower

WAP H&S costs, allowing more units to be served via WAP or H&S to be available to customers using other fuel sources

– Synergistic relationship between WAP/Utility Programs

• Allows for dealing with high cost jobs, but still have to “manage your portfolio”

– Won Governor’s Award for Excellence in Energy Efficiency


COH Low-Income Program MatrixProgram/Service Funding

SourcesFunding Amount

Services Provided Estimated Households

Served

Administrator Provider Benefits

Weatherization COH Base Rates ($.017/mcf)

$5,090,000 1300 Average benefits: Reduces PIPP Shortfall by $244 per customer; non PIPP customers see bills lowered by $244

COH Shareholder funds ($500K per year for 5 years starting 2004)

$500,000 150 Anticipated reduction of gas usage of 30%

Home Weatherization Assistance Program (HWAP)

US Departments of Energy/Health and Human Services

$7,187,682 HVAC Repair/Replace, Insulation, Air Sealing

1769 Ohio Department of Development

Community-based Organizations

Anticipated reduction of gas usage of 21% (1994 study)

Bill Payment Assistance and Reconnection Percentage of Income Payment Plan (PIPP)

Surcharge $.08.mcf

$15,152,700 Bill Payment Assistance

32,000 PUCO and Columbia Gas of Ohio

Columbia Gas Phone Centers and Community Action Agencies

Customer can maintain gas service by paying 10% of their gross income

COH Customer Donations

$258,200 Customers can maintain or establish gas service

COH Shareholder Contributions

$129,100 Reduces disconnect/reconnect cost for all ratepayers

COH Bad Debt Tracker

$137,500 688 COH

Special Emergency Assistance Program

COH Base Rates ($.0034/mcf)

$897,450 4,600 COH, Citizens Energy

Customers can maintain or establish gas service

HeatShare Fuel Funds Total

$1,284,750 6,800

Home Energy Assistance Program (HEAP)

US Department of Health and Human Services

$12,452,457 Bill payment assistance; reconnect funds

75,173 Ohio Department of Development

Community-based Organizations

Makes energy more affordable, allows customers to maintain service, reduces arrearage carrying costs for all ratepayers

EHEAP US Department of Health and Human Services

$2,789,850 25,701

Total Energy Assistance

$44,594,939 150,381 Units of assistance

Some customers get one or more services

Summary by Funding Source

Base Rates & Surcharge

$21,140,150

Customer Donations

$258,200

WarmChoice Weatherization Service

HVAC Repair/Replace, Insulation, Air Sealing

Columbia Gas of Ohio

Salvation Army

Community-based Organizations and private contractors

Funds for reconnection and bill assistance

2,200 COH

HeatShare - Bill Payment Assistance


Wrap-Up

• Thanks for your participation!

• Questions?

Documents

Making WAP/Utility Partnerships Smoother and More Substantial Jack Laverty NiSource/Columbia Gas of Ohio NLIEC 2005 Conference Phoenix, Arizona June 16,