Documenting the Need: Preparing an Affordable Energy Needs Analysis Roger D. Colton Fisher, Sheehan & Colton Belmont, MA National Community Action Foundation.

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Presentation transcript:

Documenting the Need: Preparing an Affordable Energy Needs Analysis Roger D. Colton Fisher, Sheehan & Colton Belmont, MA National Community Action Foundation (NCAF) November 2005

Statement #1: Unaffordable energy is documented by high energy burdens. w Define “energy burden” (bill as percent of income) w High energy burdens by poverty level. w FSC Home Energy Affordability Gap state fact sheets. w LIHEAP Home Energy Notebook.

Statement #2: The problem of unaffordable home energy bills is massive. w Counter the common belief that “sure, there are folks who pay 40% of their income for home energy, and I know both of them.” w FSC Home Energy Affordability Gap state fact sheets. w U.S. Census Bureau: American FactFinder: Table P88 (income as ratio to Poverty Level- -persons).

Statement #3: The problem of unaffordable home energy bills is statewide.. w Counter common belief that unaffordability is often solely an urban problem. w FSC Home Energy Affordability Gap (gap by county/burden by county): Affordability Gap detailed state back-up. w U.S. Census Bureau: American FactFinder: Table P88 (income as ratio to Poverty Level- -persons).

Statement #4: The problem of unaffordable home energy is not simply a utility problem.. w Remember the bulk fuels customers. w U.S. Census Bureau: American FactFinder: Table HCT10 (tenure by home heating fuel-- households). w U.S. Dep’t of Energy: Winter Fuels Report (Weekly Petroleum Status Report: Appendix) (FO/LPG winter prices)

Statement #5: The problem of unaffordable home energy is not matter of household budgeting.. w Household income insufficient to pay home energy bills. w Income deficit given different household characteristics. w Annual Federal Poverty Level by HH size (LIHEAP office) w National Center on Children in Poverty (NCCP) “family resource simulator”

Statement #6: The problem of unaffordable home energy is not simply a matter of utility shutoffs.. w The “paid but unaffordable bill” is a real phenomenon. w The “heat or eat” phenomenon is a real choice. w To pay energy bills, people go without food, medical care, and other necessities. w The NEADA LIHEAP survey (2003 and 2005). w Energy Poverty in Missouri (NLIEC) w Iowa LIHEAP Survey.

Statement #7: The problem of unaffordable home energy is getting worse.. w Energy prices are dramatically increasing. w Compare percentage increases in Poverty Level to percentage increases in energy prices. w Compare increase in Home Energy Affordability Gap to increases in LIHEAP. w Home energy taking up a bigger proportion of HH budgets each year. w Bureau of Labor Statistics: Average price data--area. w U.S. Dep’t of Energy: Natural Gas Monthly and Electric Power Monthly. w FSC Home Energy Affordability Gap state fact sheet. w Bureau of Labor Statistics: Consumer Expenditure Survey.

Statement #8: Work is not necessarily the answer to the problem of unaffordable home energy. w Energy prices are increasing much more rapidly than wages. w Hours and earnings both for occupations common to working poor (e.g., retail trade) are low and uncertain. w Bureau of Labor Statistics: Employment, Hours and Earnings from the Current Employment Statistics Survey (state and metro area) w NCCP Family Resource Simulator.

Statement #9: The problem of unaffordable home energy can often be traced to physical housing units. w The age of housing units can be associated with Poverty Level. w Physical problems with housing units can be associated with income. w U.S. Census Bureau: American FactFinder, Table HCT23 (tenure by poverty status by year structure built). w HUD’s State of the Cities Data System (SOCDS): CHAS data base.

Statement #10: LIHEAP is not the answer to the problem of unaffordable home energy. w LIHEAP covers a fraction of income-eligible households. w LIHEAP covers a fraction of the Home Energy Affordability Gap. w Increase in participation will drive benefits down. w Increase in benefits will drive participation down. w LIHEAP Home Energy Notebook: eligible state eligibility guidelines; eligible HHs at maximum eligibility, recipient HHs w Home Energy Affordability Gap: LIHEAP coverage ratio.

Statement #11: WAP is not the answer to the problem of unaffordable home energy. w A substantial reduction in energy usage will still not make energy bills affordable at even moderate Poverty Levels. w Number of households in need outstrips ability of state to weatherize. w Home energy burden: FSC Home Energy Affordability Gap state fact sheets. w Number of households with physical housing needs: SOCDS. w Number of housing units weatherized each year through WAP: State WAP agency.

Statement #12: A multitude of remedies is required to address home energy unaffordability. w Increased LIHEAP appropriations. w Utility-funded rate affordability program. w Utility-funded efficiency programs. w Regulatory relief (deposits, late fees, collection fees, etc.) w Statewide fuel fund w Food Stamp attention to SUA. w PHA attention to utility allowances. w Energy Star homes for HOME/CDBG w EITC outreach.

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