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

2. 19 th Annual NLIEC ConferenceSlide 2 Creating/Maintaining the Partnership The Strategic Triangle

3. 19 th Annual NLIEC ConferenceSlide 3 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?

4. 19 th Annual NLIEC ConferenceSlide 4 Creating/Maintaining the Partnership 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

5. 19 th Annual NLIEC ConferenceSlide 5 Creating/Maintaining the Partnership 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

6. 19 th Annual NLIEC ConferenceSlide 6 Creating/Maintaining the Partnership 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

7. 19 th Annual NLIEC ConferenceSlide 7 “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

8. 19 th Annual NLIEC ConferenceSlide 8 COH Energy Assistance/Management Programs Low-Income Weatherization program –Largest Gas Utility weatherization program in Ohio ($5,500,000/year)

9. 19 th Annual NLIEC ConferenceSlide 9 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

10. 19 th Annual NLIEC ConferenceSlide 10 Energy Conservation Measures (ECMs) –Attic and Sidewall Insulation

11. 19 th Annual NLIEC ConferenceSlide 11 Energy Conservation Measures (ECMs), cont. –Floor, duct and water heater insulation –Instrumented air and duct sealing (using a blower door)

12. 19 th Annual NLIEC ConferenceSlide 12 Energy Conservation Measures (ECMs), cont. –Replacement (high efficiency) heating and water heating systems for defective units

13. 19 th Annual NLIEC ConferenceSlide 13 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

14. 19 th Annual NLIEC ConferenceSlide 14 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

15. 19 th Annual NLIEC ConferenceSlide 15 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

16. 19 th Annual NLIEC ConferenceSlide 16 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

17. 19 th Annual NLIEC ConferenceSlide 17 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

18. 19 th Annual NLIEC ConferenceSlide 18 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

19. 19 th Annual NLIEC ConferenceSlide 19 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

20. 19 th Annual NLIEC ConferenceSlide 20 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

21. 19 th Annual NLIEC ConferenceSlide 21 COH Low-Income Program Matrix

22. 19 th Annual NLIEC ConferenceSlide 22 Wrap-Up Thanks for your participation! Questions?