1. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training Part 6: ERR; Energy Vendors; Public Utilities Commission Presentation; EAP WAP Coordination; WAP Presentation

2. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Ch 8. Energy Related Repair 2

3. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY14 Energy Related Repair Intention  Implement ERR changes and improvements  Clarify misunderstood policies and procedures By  Explaining changes  Responding to questions 3

4. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY14 Energy Related Repair Importance of ERR  ERR is response to life-threatening situations  Health & safety risks  Single largest benefit to a household, therefore at most risk and under most scrutiny  Stays with dwelling, not the individual  So, we need to be extra diligent – eligibility, benefit levels 4

5. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Training Topics  ERR Eligibility  Determining Benefit Delivery  Completing Services  ERR Payments  eHEAT Improvements  Questions 5 FFY14 Energy Related Repair

6. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY14 Energy Related Repair Proof of Ownership section addition (Pg 4)  “Service Providers should require contractors to notify them if the repair will cost over $1,000 before the contractor begins the repair work. Service Providers must then obtain ownership verification before the repair work occurs.” 6

7. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY14 Energy Related Repair ERR Eligibility - Improvements  “Medically Necessary Fuel Type Changes” – permanent (Pg 7)  “ERR funds may be used to change fuel types in medically necessary situations provided the household supplies a written doctor’s letter stating the need or disability. Medically necessary excludes short-term disabilities.” 7

8. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Determining Benefit - Changes Manual J is required (Pg 12)  It is not required to submit a bid or proposal  But it must be performed by the selected contractor before installing the heating unit  If costs increase after selected contractor calculates Manual J, all proposals/bids must be reevaluated 8

9. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 ERR Procurement (Pg. 8)  In FFY13 ERR expenditures were $6 million  Must follow Title 2 CFR Part 215  Must have written procedures in place for either option - part of Local Plan attachments  Cost-price analysis, quality-price analysis, special considerations  Master list of contractors, case-by-case contracting  Local Plan: Service Provider ERR procurement policy & procedures 9 Determining ERR Benefit Changes

10. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY14 Energy Related Repair Determining Benefit Delivery - Changes New section: Referring ERR Emergencies to WAP (Pg 6)  No-heat situations: The average temperature is expected to be below 45 degrees for 48 hours or more, or the temperature is at or below 32 degrees.  Life-threatening situations: A malfunctioning heating system is creating a life-threatening situation, e.g. a high level of CO in the flue of the heating system. 10

11. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Completing services - Improvements On Site Inspections section (Pg 10)  It is a best practice to get inspections done within 30 days of invoice receipt FFY14 Energy Related Repair 11

12. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 ERR Payments - New Payment improvements Payments section (Pg 10)  Payments for services must be made to contractors or energy vendors in a timely manner (within 60 days of completion of event)  Timely ERR payments – 30 days from inspection/receipt of invoice  Should have internal process to encourage contractors FFY14 Energy Related Repair 12

13. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 ERR Payments - New Payment improvements Recovery of Overpaid or Disallowed ERR Expenditures (Pg. 11)  Subject to repayment with non-federal funds  Contractors subject to repayment and unable to receive future EAP payments  Service Providers report suspected fraud to local authorities FFY14 Energy Related Repair 13

14. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Completing services - Improvements  Trigger change: When the last payment for an event is entered, it prompts letter ERR Notification letter 14

15. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 ERR eHEAT Screen Enhancements  ERR Tracking worksheet is optional  Still needed for referrals to WAP  Other changes were made to record more details for transactional information, self-monitoring and auditing for integrity FFY14 Energy Related Repair 15

16. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 In eHEAT there are two screens affected:  ERR Event Screen  ERR Task Screen  There is no change to the ‘Maintain Inspection’ screen FFY14 Energy Related Repair 16

17. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 ERR Event Screen  Does the household have Temporary Heat?  Does the household have redundant heat that heats essentially the same area?  Assessment fields  Ownership Verification FFY14 Energy Related Repair 17

18. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 ERR Task Screen  The “Describe Task” field specifies the details  Work Order Authorized Date  Authorized By  Work Complete Date  No changes to the ‘Inspection’ Screen FFY14 Energy Related Repair 18

19. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Paying a Single Task  For a single contractor with multiple tasks in an event you can now pay for a completed task even if there are other tasks in progress ERR Payment 19

20. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Ch 3. Energy Vendors 20

21. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY13 Overview  SPs sent payments to 839 energy vendors  Xcel, CenterPoint, MERC and MN Power serve approximately 75% of all EAP households  Training and Communication  Monitoring 21

22. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY13 Energy Vendor Payments VendorTotal Paid (PH & Crisis) 1.Xcel$22,630,342 2.CenterPoint$10,228,495 3.MERC$4,565,283 4.Minnesota Power$2,081,423 5.Federated Coops$1,877,777 6.Beltrami Electric Coop$1,738,565 7.Ferrellgas$1,573,585 22

23. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY13 Energy Vendor Payments FFY13 Energy Vendor Payments (continued) VendorTotal Paid (PH & Crisis) 8.Otter Tail Power$1,519,329 9.Northern Star Coop$1,106,490 10.East Central Energy$1,012,231 11.Lake Country Power$927,096 12.Bemidji Coop$879,271 13.Alliant Energy$875,283 14.Como Oil & LP Duluth$866,377 15.City of Duluth$655,763 23

24. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY13 Fuel Source Used by EAP HHs 24

25. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Chapter 3 – Energy Vendors Context: FFY14 Improvement Process  Joint Approach to Development w/SPs  Meeting with top energy vendors  Energy vendor SMEs  DOC state staff 25

26. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Chapter 3 – Consumption Voluntary Shutoffs  Reminder: Addition to Consumption Data Specifications  Added to both Chapter 3 and Chapter 6  Instructions on reporting consumption when it is known that a household voluntarily has their energy service disconnected  Service Providers need to ensure applicable energy vendors are aware of this change 26

27. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Chapter 3 - Crisis Many improvements made in the Crisis Chapter also reflected in the Energy Vendor Chapter  Page 7, Crisis Eligibility section: Notice of being put on a load limiter  Page 7, Amount of Crisis Benefit section: Rounding up Crisis payments to the nearest dollar & allowable credits  allowable credit of less than $1.00  allowable delivered fuel account credits of $10 27

28. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Chapter 3 – Crisis Chapter 3 – Crisis (continued)  Page 8, Crisis Information Requirements section: minor changes to information energy vendors may need to provide both pre-delivery and post-delivery  Page 9, Process to Reduce Ineligible Crisis Delivery section: changes clarify energy vendor’s actions needed  Page 10, Early Notification of Payment and Emergencies section: when possible, energy vendors should accept eHEAT “Payable” status for addressing household energy emergencies  Reminder: Obtaining post delivery information 28

29. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Chapter 3 - Additional Improvements  Page 11, Energy Vendor Internal Controls Responsibility section: Energy vendors are to ensure that crisis payments don’t create a credit…  over $1.00 on a connected fuel account  over $10.00 on a delivered fuel account  Page 13, Access to Records section: SP audit instructions moved to Appendix 3C, Monitoring Report 29

30. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EV/SP Agreement – Appendix 3A  In part II, #4 was deleted, “The Service Provider will ensure payments are made to the vendor within 5 business days of early notification of a payment”  In part III, #15 was edited to specify that “Payable” status should be accepted, when possible for addressing household emergencies  Chapter 3, Page 10 The Agreement Between Energy Vendor & Service Provider section: No payments without signed agreements 30

31. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Monitoring of Energy Vendors FFY14 Minor Improvements  Monitoring Report & Cover Letter (3C & 3B)  Sample size  Reviewing Crisis events  Better guidance on how to analyze  Coming post October 1  Vendor SME  Coordinated monitoring is still an aspiration 31

32. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 FFY14 Reminders  Payment exports – Name on account  Portals  Control Measures  Communication & Relationship Building  Maintaining current vendor lists in eHEAT  Pay-As-You-Go Programs 32

33. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Public Utilities Commission 33

34. Energy Assistance Program Fall Training August 20-21, 2013 Public Utilities Commission Brian Swanson 34

35.  Public Utilities Commission  Complaints & Communications  Key trends  Smart Meters  Pay as you go  Residential Consumer Protections 35

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  50 staff 36

37.  Services provided by the Consumer Affairs Office  Mediation between utility companies and their customers  Consumer Education  Telephone Discount Programs  Cold Weather Rule  Utility Resource  Public Comments 37

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 38

39.  Complaints handled by the PUC  Billing Disputes/errors  Cold Weather Rule (October 15- April 15)  Deposits  Disconnection of Service  Extended Area Service (EAS)  Meter reading issues  Pipeline routing  Power plant siting  Rates  Service areas  Transmission line routing 39

40.  Complaints NOT handled by the PUC  Cellular or mobile phone service or VOIP  Cable TV  Internet  Water  Billing disputes between roommates or tenants and landlords  Damage to customer’s property by utility  Damage to utility’s equipment by customers  Easements and easement rights  Customer-owned telephone equipment  Disputes with municipal utilities or electric cooperatives 40

41. 41

42.  What happens after we receive the complaint form?  Complaint is recorded into our tracking system  Complaint is assigned to a mediator for review  Mediator contacts customer if there are additional questions or missing information  Mediator emails a copy of the complaint form and any additional questions that need to be answered to the utility  The utility must respond within 10 business day  Depending on the response, either contact the customer or ask utility additional questions 42

43.  By the numbers  About 5,500 calls handled last year ▪ 35% Electric ▪ 33% Telecom ▪ 16% Natural Gas ▪ 16% Miscellaneous (often non-regulated – water, cable, internet and sewer) 43

44.  Lifeline wireless providers approved in MN  Assurance Wireless  Budget Mobile  EnTouch Wireless  Life Wireless  Qlink Wireless  ReachOut Wireless  T-Mobile  TerraCom Wireless 44

45.  Lifeline eligibility based on program participation  Public assistance programs eligible for telephone discount participation  Medicaid/Medical Assistance  Supplemental Nutrition Assistance Program (SNAP)/ Food Stamps )  Minnesota Family Investment Program (MFIP)/ Temporary Assistance for Needy Families (TANF)  Supplemental Security Income (SSI)  Federal Housing Assistance or Section 8 Assistance  Low Income Home Energy Assistance Program (LIHEAP)  National School Lunch Program's free lunch program 45

46.  Lifeline additional qualifications for persons living on a reservation  Bureau of Indian Affairs General Assistance  Tribally administered Temporary Assistance for Needy Families  Head Start (only those meeting its income qualifying standard)  National School Lunch Program's free lunch program 46

47.  Lifeline income guidelines Federal Poverty Guidelines Household Size 135% ▪ 1 $15,512 ▪ 2 $20,939 ▪ 3 $26,366 ▪ 4 $31,793 ▪ 5 $37,220 ▪ 6 $42,647 47

48.  Rate Cases  Xcel Energy electric rate case ▪ Docket 12-961  CenterPoint Energy gas rate case ▪ Docket 13-316  MN Energy Resources ▪ Filing in September 2013  Customer charge increase 48

49.  More utilities are starting to use smart meters  Reliability ▪ Quicker resolution to outages ▪ Proactively resolves blink outages ▪ Easier access to meter reading  Information ▪ Able to review usage monthly, daily and hourly ▪ Review data by paper, website and smart phone app 49

50.  Pre-pay for electric service  Only a couple Cooperatives are currently using this  Like putting gas in your car to drive  Minimum deposit to start –($25 or $50), NO large deposit  Some have in home displays that show where you are at for the month  Same rate structure  Alert level set to notify customer when $15 is left on account 50

51.  Pre-pay for electric service  Can add money to account by IVR, on-line or speaking to a Rep.  If they fall behind, 50%, 30% or even down to 1% of payment to past due amount and the rest for current service.  Can go off of the program if the can’t afford to pre-pay 51

52.  MN Statute 216B.098  Budget Billing ( Municipal under 3000 customers are exempt)  Payment Agreements  Undercharges  Medically Necessary Equipment 52

53.  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. 53

54. MN Statute 216B.0975 Disconnection during Extreme Heat Conditions  No disconnection if National Weather Service issues… Excessive heat watch Heat advisory Excessive heat warning  Applies to all electric utilities 54

55.  When something doesn’t seem right  Best scenario is to have the household call PUC directly so we can get all of the information  The Service Provider can also call if household is unable to  Provide as much specific information as possible  There may be others with the same issue 55

56.  Department of Commerce www.commerce.state.mn.us www.commerce.state.mn.us  Division of Energy Resources www.energy.mn.gov  Office of the Attorney General www.ag.state.mn.us www.ag.state.mn.us  Stay Warm Minnesota www.staywarm.mn.gov www.staywarm.mn.gov 56

57. Brian Swanson Consumer Mediator Minnesota Public Utilities Commission 121 Seventh Place East Suite 350 St Paul MN 55101-2147 651-296-0406, option 1 1-800-657-3782, option 1 Fax 651-297-7073 consumer.puc@state.mn.us PublicComments.puc@state.mn.us www.puc.state.mn.us 57

58. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP - WAP 58

59. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP Terminology  EAP - Energy Assistance Program - (HHS)  ERR - EAP Energy Related Repair Component  EAPWX – EAP funds transferred to WAP and the services offered by WAP  WAP - Weatherization Assistance Program - (DOE)  EAP WAP – Referring to both EAP and WAP  Coordination – Common application, determination of income, related policy, etc. 59

60. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP  EAP and WAP in Relation to EAPWX Funds

61. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP EAP Funds Are Transferred to WAP (EAPWX) The Weatherization Assistance Program completes an EAPWX State Annual Plan  High level coordination  Includes use of funds  Signed by Marilou Cheple and John Harvanko 61

62. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP When & What EAP Funds Are Transferred to WAP?  After EAP receives all regular LIHEAP grant awards  EAPWX State Annual Plan is signed  Percentage of Regular LIHEAP funds 62

63. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP EAPWX Funds Transfer 5% of EAP funds transferred to EAPWX  FFY2013: $10,933,452*  FFY2012: $11,684,014*  FFY 2011: $ 7,262,047  FFY 2010: $ 7,226,376  FFY 2009: $ 7,226,376  FFY 2008: $ 3,874,401  FFY 2007: $ 3,873,447 Exceptions: *10% transferred in FFY2012 and FFY2013 63

64. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP What are EAPWX funds for? LIHEAP Statute:  “Provide low-cost residential weatherization and other cost-effective energy-related home repair” 64

65. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP EAPWX in Minnesota LIHEAP State Plan Includes:  % of EAP funds budgeted  Eligibility  Use of funds 65

66. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP EAP and WAP Coordination ERR Referrals to WAP  Heating system emergencies  Life-threatening  Homeowners & Renters  Crisis timelines -18/48 hour rules 66

67. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 EAP WAP Local EAP WAP Coordination Agreement  DOC EAP and WAP will jointly require a local EAP WAP Coordination Agreement  The local EAP WAP Coordination Agreement must include, but is not limited to:  Application coordination  Referrals EAP WAP  Communication  Signed by Coordinator(s) 67

68. FFY2014 EAP Annual Training August 20 & 21, 2013 FFY2014 EAP Annual Training August 20 & 21, 2013 Weatherization Assistance (WAP) 68

70. State Weatherization Field Monitor at Commerce Bachelors of Science in Residential Building Science and Technology Home Remodeler Construction and Project Manager

71. EAPWX Funding $10,933,452 DOE $4,015,528 MN Weatherization $2,000,000 Total $16,948,980

72. This EAPWX State Annual Plan applies to all EAPWX funds that have not been spent. All audits completed after July 26, 2013 must follow the rules in this plan. Audits completed prior to July 26, 2013 may use the previous guidance.

73. Spending Limits Average of $5,000 per household Additional $1,000 average for Health and Safety Energy Conservation Work At least one cost effective energy conservation measure must be completed with EAPWX Funds when any EAPWX Funds are spent on an audit event

74. Base loads EAP/WX funds will not be used for the following: CFL lights Refrigerators Gas stoves or ranges Installation of water pipe insulation on boilers or water heaters Water heater tank insulation Shower heads

75. Only mechanical systems will be addressed Tenants must directly pay for their own heating costs Everyone must be EAP eligible Vacant dwellings may not be Weatherized

76. If you are out of ERR money it is strongly encouraged that referrals are made to the Weatherization Program. Weatherization Program Managers can help clients by following the Weatherization Standalone Policy with repairs and replacements of heating plants.

77. It is important to develop a plan or procedure for referring clients to Weatherization in these emergency situations before the heating season starts. Plan for after hour emergencies as well. Feedback loop to ensure clients are serviced

78. Eligible Standalone work is the repair and replacement of heating plants and domestic water heaters. In emergency, no heat, or life threatening situations, Weatherization Service Providers must have in place a mechanical procurement process that ensures fair contractor competition while allowing for prompt services when a household is in imminent danger or is facing a no-heat or safety situation.

79. Calling the nearest mechanical contractor is not an acceptable method of procurement Once the EAPWX funds are transferred they must follow the Federal, State, and the Service Provider’s Procurement Policies.

80. Weatherization Service Providers must follow the same guidelines for response and resolution of emergencies as stated in the EAP Policy Manual. EAPWX funds may not be used to purchase fuel if a client is out of a delivered fuel.

81. Fuel Switching follows DOE guidelines. Fuel switching is allowed only with prior approval from the Division of Energy Resources Weatherization. This is a long process and it requires a significant amount of documentation.

82. Fuel Switching must have a minimum of 20% fuel cost savings over the life of the heating plant. Energy savings alone is not a strong enough reason for a fuel switch to be approved. Fuel switches are sometimes denied.

83. Contractors must supply an ACCA Manual J calculation when replacing a heating plant to ensure proper sizing and code compliance. Contractors must supply a copy of all permits including those for electrical work. Invoices must have a material and labor split or they will not be paid.

84. All Standalone Measures that cost more than $500 must pass a final inspection. Final inspections are a very thorough process that includes testing the mechanical equipment for proper installation and operation.

85. The tests are required at a final inspection can be found in the Weatherization Policy Manual. Testing includes Combustion Analysis Worst Case Draft test on the heating plant and DWH Combustion gas spillage test Heat Rise Test

86. We want to make sure the equipment is operating within the manufacturers specifications. We want to make sure that we don’t leave the home in a worse situation than when we found it.

87. If you want to learn more about the WAP Policy manual it can be found at the following link: Division of Energy Resources

88. If you have questions throughout the program year please contact your EAP monitor. EAP and WAP staff will work together at the state level to answer your questions.