Making WAP/Utility Partnerships Smoother and More Substantial

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Making WAP/Utility Partnerships Smoother and
More Substantial
Jack Laverty NiSource/Columbia Gas of Ohio NLIEC
2005 Conference Phoenix, Arizona June 16, 2005
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Creating/Maintaining the Partnership The
Strategic Triangle
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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 PUCs view of Wx?
• What is the public and private reputation of the
  state (or local provider) WAP?

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Creating/Maintaining the Partnership

• Political Management
• Relationships with the Media
• Relations with stakeholders including
  locally-elected officials (Senate and House),
  PUC, Consumers Counsel, county commsioners, etc.
• Open Houses and other organized media events
• Representation in regulatory proceedings
• Be at the table everyone else is

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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

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Creating/Maintaining the Partnership

• 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

• Value
• What value would a partnership create for both
  the Utility and the service provider and other
  stakeholders?

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Case History

• 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

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COH Energy Assistance/Management Programs

• Low-Income Weatherization program
• Largest Gas Utility weatherization program in
  Ohio (5,500,000/year)

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• 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

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• Energy Conservation Measures (ECMs)
• Attic and Sidewall Insulation

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• Energy Conservation Measures (ECMs), cont.
• Floor, duct and water heater insulation
• Instrumented air and duct sealing (using a blower
  door)

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• Energy Conservation Measures (ECMs), cont.
• Replacement (high efficiency) heating and water
  heating systems for defective units

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• 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

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• 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

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• 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

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• 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

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• 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

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• 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

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• 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
  others needs
• Flexibility exceptions for unusual situations

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• What makes it more substantial?
• Large of Utility HVAC replacements lower WAP
  HS costs, allowing more units to be served via
  WAP or HS 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 Governors Award for Excellence in Energy
  Efficiency

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COH Low-Income Program Matrix
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Wrap-Up

• Thanks for your participation!
• Questions?