1 LOW-INCOME ENERGY NETWORK LIEN advocacy update: Making progress LIEN Annual Conference, Toronto June 10, 2008 Theresa McClenaghan, CELA Mary Truemner, ACTO

2 Presentation overview 1.Timing is good to tackle energy poverty 2.LIEN’s “pyramid” 3.Low-income energy conservation programs 4.Low-income energy rate affordability program 5.How you can help

3 Opportunities to end energy poverty Environmental, social and economic…  Ontario’s goal to reduce peak electricity demand by 6,300 MW by 2025 (OPA’s Integrated Power System Plan or IPSP – includes $10 Billion for conservation)  Ontario’s climate change plan (coal plant phase-out by 2014)  Ontario’s long-term affordable housing strategy  Ontario’s poverty reduction strategy, with firm targets to measure progress

4 LIEN’s approach to low-income energy conservation & assistance

5 Major Gaps  No comprehensive, province-wide low- income energy conservation program – and no national program  No permanent low-income energy rate assistance program

6 Where do low-income consumers live? 759,590 LICO households (2001 Census)  490,485 are tenant households (65%)  Live in private sector rental or social housing – most in multi-residential buildings  269,095 are homeowners (35%)  39% are senior-led

7 Rising energy prices  Real cost-to- customer increases of OPA’s 20-year IPSP expected to be 15% to 20%  Natural gas prices and oil also on the rise

8 Rising energy prices and low-income consumers  Low-income households are particularly vulnerable to increases in shelter and utility costs - put housing in jeopardy.  High energy costs are the second reason for economic evictions in Ontario, right after unaffordable rents.  Heating, eating or paying the rent will be choice faced by many.  Reductions in energy use may be at the expense of health, socially acceptable standards of living.

9 Energy conservation and low-income consumers Conservation is a cheap, fast, clean solution to energy crunch and climate change crisis More efficient use of energy: reduces pollution major respiratory health improvements especially for youngest and oldest avoids cost of new generating plants reduces energy bills and lessens effect of rising prices Makes housing more affordable & comfortable BUT, it won’t happen in low-income residential sector without financial investment …

Income Levels and Determinants of Health  Hospitalizations for conditions like asthma, angina, chronic obstructive pulmonary disease, heart failure and others are twice as high in lowest income neighbourhoods compared to highest income neighbourhoods (2008 Health Indicators Report, Stats Canada) 10

11 Snapshot - low-income conservation Enbridge Gas Distribution Inc. $ 4,558,250 Union Gas $ 4,303,000 LDCs' low-income CDM $ 4,293,120 LDCs' social housing CDM $ 4,554,216 OPA's Social Housing Program - Phase One $ 9,250,000 OPA's Energy Efficiency Assistance for Houses pilot $ 2,900,000 OPA's Canada-Ontario AHP Energy Efficiency Program $ 3,700,000 Total $ 33,558,58 OPA's Multifamily Buildings Program (6 units +) RFP issued OPA's Energy Efficiency Assistance for Houses program – expansion province-wide in development

12 Low-income rate assistance  Ontario Home Energy Affordability Program – LIEN tried to file in Union Gas and Enbridge Gas Distribution’s rates hearings at OEB  5 major components: rate affordability, arrears management, crisis intervention, conservation & demand management and consumer protections  low-income consumers should not pay more than 6% of total household income on energy

13 Low-income rate assistance April 26, 2007 OEB decision – no jurisdiction to set affordable rates for low-income consumers -strong dissent decision by OEB Vice-Chair Response:  LIEN appealed decision to Divisional Court, and  LIEN requested Minister of Energy to issue a directive to the OEB to hold a generic hearing to consider and implement solutions, including low-income rate assistance

14 Low-income rate assistance May 16, 2008 – Divisional Court issues decision in favour of LIEN  Declare that OEB has jurisdiction to establish a rate affordability assistance program But:  Court waivers on how and the manner by which the Board should exercise the jurisdiction to consider ability to pay in rate setting  We need a generic hearing at the OEB

15 Local advocacy  Educating and gaining support of MPs, MPPs, municipal councils and LDCs about need for low-income CDM programs and low-income rate assistance  Raising public awareness about energy poverty in the local community  Input to poverty reduction consultation and upcoming affordable housing strategy consultation