1. We change the way people use energy™ OPALCO Low Income Assessment and Market Profile

2. Agenda  Demographics  Housing Characteristics  PAL-Qualified Residents  Potential Low-Income Opportunities  Low-Income Budget 2 © Copyright 2014 CLEAResult. All rights reserved.

3. Summary  Low-Income Assessment  Census, Experian, and other data was used to assess total population falling within the 200% of federal poverty guidelines by household size (used for PAL qualification)  LIHEAP qualification is 150% of poverty level  Analysis of demographics of PAL qualified customers  Program Participation  Customer low-income participation rates in PAL program and market rate analysis 3 © Copyright 2014 CLEAResult. All rights reserved.

4. OPALCO Territory – San Juan Islands 4 © Copyright 2014 CLEAResult. All rights reserved.  OPALCO territory data was analyzed based on census-tract level data and household level data  Household level data from Experian was available for over 80% of households in the territory  San Juan County is unique in having a much higher median age than Washington State as a whole (52 years vs. 38 years) and having a very high rate of seasonal occupancy (35% of all housing units vs. 3% for Washington State)

5. Overall Population Demographics and Occupied Households By Island 5 © Copyright 2014 CLEAResult. All rights reserved.  Data shown above is from census tract level data from the 2010 US Census  Total occupied households does not include the 35% of San Juan County households that are seasonally occupied or vacation homes  Over 26% of the population is 65 years or older

6. Housing Characteristics 6 © Copyright 2014 CLEAResult. All rights reserved.  Data shows breakdown of housing stock in San Juan County by occupied vs. vacant, housing type, and home heating fuel type  Data is based on 2010 and 2013 Census Data

7. Estimated Households Making 200% of Poverty Level Income By Household Size 7 © Copyright 2014 CLEAResult. All rights reserved. Over 2,000 households have total household income of 200% of Federal Poverty Level Guidelines Over 4,000 residents would qualify for PAL based on household income level  Based on Experian household-level data, over 62% of households with incomes less than 200% of Federal Poverty Level Guidelines are single adult households  Experian household size includes only adults, does not include children under the age of 18 Number of people in household

8. PAL Qualified Customers By Income and Household Size 8 © Copyright 2014 CLEAResult. All rights reserved. Household Size $1,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 + All Households 1 9.90%6.36%5.76%8.28%8.07%1.99%2.04%1.59%1.80%0.28%1.36%2.41%49.84% 2 1.30%2.47%1.23%3.95%10.52%4.19%1.90%1.04%0.62%0.21%0.37%1.09%28.89% 3 0.05%0.70%0.46%1.53%4.60%2.78%0.86%0.48%0.09%0.12%0.19%0.28%12.16% 4 0.02%0.25%0.18%0.33%2.08%1.62%0.41%0.12%0.09%0.05%0.04%0.14%5.32% 5 0.04%0.05%0.02%0.21%0.93%0.78%0.25%0.07%0.05% 0.00%0.02%2.47% 6 0.00%0.04%0.02%0.07%0.33%0.21%0.04% 0.02%0.00%0.02% 0.79% 7 0.00% 0.02%0.21%0.16%0.04%0.00% 0.04%0.00% 0.46% 8 0.00% 0.02%0.00%0.05%0.00% 0.07% All Households 11.31%9.87%7.68%14.39%26.80%11.73%5.53%3.33%2.66%0.76%1.97%3.96%100.00%  Experian data was fairly consistent with census tract level data; approximately 26% of the population would qualify for PAL based on adult household size and income level  Most of the income-based qualified customers are single adult households making less than $25,000 a year  Red cells show where correlation of income range and household size would indicate all homes would qualify for PAL while yellow cells indicate where some but possibly not all households would qualify

9. PAL Qualified Customers By Income and Household Size – Estimated Households 9 © Copyright 2014 CLEAResult. All rights reserved. Household Size $1,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 + All Households 1 754484439630614152156121137211031843,794 2 991889430080131914579471628832,200 3 454351173502126636791521925 4 119132515812331974311405 5 3411671591954401188 6 0315251633101160 7 0001161230030035 8 0010400000005 All Households 8617515851,0962,040893421253203581503027,613  Above table shows estimated households making 200% of Federal Poverty Level Guidelines By Household Size

10. PAL-Qualified OPALCO Customers By Location 10 © Copyright 2014 CLEAResult. All rights reserved. Rebates per 1000 residents

11. PAL Qualified Customers By Age – Experian Data 11 © Copyright 2014 CLEAResult. All rights reserved.  Seniors ages 75 and older have the highest rates of possible PAL qualification based on income; overall those 65 or older make up almost 35% of possible PAL income-based candidates  The next highest rates of income based household participation is for the age range of 18-34 year-olds  Over 81% of PAL qualified residents are living in single family homes with around 17% of the rest living in smaller multi-family housing units

12. PAL Qualified Customers By Age – Experian Data 12 © Copyright 2014 CLEAResult. All rights reserved.  Above table shows adult population by age range for total numbers and the numbers of those qualifying for 200% of federal poverty level guidelines

13. Past Program Participation – PAL Program 13 © Copyright 2014 CLEAResult. All rights reserved.  The table above shows the number of participants for the PAL program since 2011, including both recipients of the grants available for senior and low- income residents and other grants (mostly low-income).  The participation rate is based on total island population and the estimated PAL program qualified population—which is estimated at 26% of total population based on income levels in addition to another 20% of the population that would qualify as seniors but not based on income  The analysis doesn’t include estimates of disabled population

14. Potential Low Income Opportunities  Energy Coaching and Educational Opportunities  “Building Blocks” pilot in Michigan  Targeted Outreach for EE Upgrades and Assessments  Promote EE upgrades to alleviate yearly financial support  Targeted outreach to Low-Income Veterans  Coordinated data analysis of participants 14 © Copyright 2014 CLEAResult. All rights reserved.

15. Potential Low Income Opportunities (cont’d)  Establish Grant Partnerships to Support Community Outreach and/or Upgrade Opportunities  Reduced Permit Fees for EE Measure Installations 15 © Copyright 2014 CLEAResult. All rights reserved.

16. Low-Income Budget (Draft) ExpenseCost Rent$ 900 Car payment$ 150 Car/Home Insurance$ 100 Health Insurance$ 100 Cable/Phone$ 100 Food$ 250 Utility$ 90 Total$1,690 16 © Copyright 2014 CLEAResult. All rights reserved.