Documenting the Need: Preparing an Affordable Energy Needs Analysis

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Documenting the NeedPreparing an Affordable
Energy Needs Analysis

• Roger D. Colton
• Fisher, Sheehan Colton
• Belmont, MA
• National Community Action Foundation (NCAF)
• November 2005

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Statement 1Unaffordable energy is documented
by high energy burdens.

• Define energy burden (bill as percent of
  income)
• High energy burdens by poverty level.

• FSC Home Energy Affordability Gap state fact
  sheets.
• LIHEAP Home Energy Notebook.

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Statement 2The problem of unaffordable home
energy bills is massive.

• Counter the common belief that sure, there are
  folks who pay 40 of their income for home
  energy, and I know both of them.

• FSC Home Energy Affordability Gap state fact
  sheets.
• U.S. Census Bureau American FactFinder Table
  P88 (income as ratio to Poverty Level--persons).

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Statement 3The problem of unaffordable home
energy bills is statewide..

• Counter common belief that unaffordability is
  often solely an urban problem.

• FSC Home Energy Affordability Gap (gap by
  county/burden by county) Affordability Gap
  detailed state back-up.
• U.S. Census Bureau American FactFinder Table
  P88 (income as ratio to Poverty Level--persons).

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Statement 4The problem of unaffordable home
energy is not simply a utility problem..

• Remember the bulk fuels customers.

• U.S. Census Bureau American FactFinder Table
  HCT10 (tenure by home heating fuel--households).
• U.S. Dept of Energy Winter Fuels Report (Weekly
  Petroleum Status Report Appendix) (FO/LPG winter
  prices)

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Statement 5The problem of unaffordable home
energy is not matter of household budgeting..

• Household income insufficient to pay home energy
  bills.
• Income deficit given different household
  characteristics.

• Annual Federal Poverty Level by HH size (LIHEAP
  office)
• National Center on Children in Poverty (NCCP)
  family resource simulator

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Statement 6The problem of unaffordable home
energy is not simply a matter of utility
shutoffs..

• The paid but unaffordable bill is a real
  phenomenon.
• The heat or eat phenomenon is a real choice.
• To pay energy bills, people go without food,
  medical care, and other necessities.

• The NEADA LIHEAP survey (2003 and 2005).
• Energy Poverty in Missouri (NLIEC)
• Iowa LIHEAP Survey.

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Statement 7The problem of unaffordable home
energy is getting worse..

• Energy prices are dramatically increasing.
• Compare percentage increases in Poverty Level to
  percentage increases in energy prices.
• Compare increase in Home Energy Affordability Gap
  to increases in LIHEAP.
• Home energy taking up a bigger proportion of HH
  budgets each year.

• Bureau of Labor Statistics Average price
  data--area.
• U.S. Dept of Energy Natural Gas Monthly and
  Electric Power Monthly.
• FSC Home Energy Affordability Gap state fact
  sheet.
• Bureau of Labor Statistics Consumer Expenditure
  Survey.

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Statement 8Work is not necessarily the answer
to the problem of unaffordable home energy.

• Energy prices are increasing much more rapidly
  than wages.
• Hours and earnings both for occupations common to
  working poor (e.g., retail trade) are low and
  uncertain.

• Bureau of Labor Statistics Employment, Hours and
  Earnings from the Current Employment Statistics
  Survey (state and metro area)
• NCCP Family Resource Simulator.

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Statement 9The problem of unaffordable home
energy can often be traced to physical housing
units.

• The age of housing units can be associated with
  Poverty Level.
• Physical problems with housing units can be
  associated with income.

• U.S. Census Bureau American FactFinder, Table
  HCT23 (tenure by poverty status by year structure
  built).
• HUDs State of the Cities Data System (SOCDS)
  CHAS data base.

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Statement 10LIHEAP is not the answer to the
problem of unaffordable home energy.

• LIHEAP covers a fraction of income-eligible
  households.
• LIHEAP covers a fraction of the Home Energy
  Affordability Gap.
• Increase in participation will drive benefits
  down.
• Increase in benefits will drive participation
  down.

• LIHEAP Home Energy Notebook eligible HHs _at_ state
  eligibility guidelines eligible HHs at maximum
  eligibility, recipient HHs
• Home Energy Affordability Gap LIHEAP coverage
  ratio.

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Statement 11WAP is not the answer to the
problem of unaffordable home energy.

• A substantial reduction in energy usage will
  still not make energy bills affordable at even
  moderate Poverty Levels.
• Number of households in need outstrips ability of
  state to weatherize.

• Home energy burden FSC Home Energy Affordability
  Gap state fact sheets.
• Number of households with physical housing needs
  SOCDS.
• Number of housing units weatherized each year
  through WAP State WAP agency.

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Statement 12A multitude of remedies is
required to address home energy unaffordability.

• Increased LIHEAP appropriations.
• Utility-funded rate affordability program.
• Utility-funded efficiency programs.
• Regulatory relief (deposits, late fees,
  collection fees, etc.)
• Statewide fuel fund
• Food Stamp attention to SUA.
• PHA attention to utility allowances.
• Energy Star homes for HOME/CDBG
• EITC outreach.

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