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Southwest Gas Corporation. California Low-Income Assistance Programs Overview. LIOB Meeting June 7, 2006. R. Southwest Gas Corporation (Southwest) Presentation Outline. Company Overview CARE Program LIEE Program Current/Proposed Budgets Public Purpose Program Surcharge Concerns.

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southwest gas corporation

Southwest GasCorporation

California

Low-Income

Assistance Programs

Overview

LIOB Meeting

June 7, 2006

southwest gas corporation southwest presentation outline

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Southwest Gas Corporation (Southwest)Presentation Outline
  • Company Overview
  • CARE Program
  • LIEE Program
  • Current/Proposed Budgets
  • Public Purpose Program Surcharge
  • Concerns
southwest s three state service area

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Southwest’s Three State Service Area

1.7 million customers in Arizona, Nevada and California as of December 2005

36%

10%

54%

= California Service Territories

(not to scale)

why southwest is a unique california utility

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Why Southwest is a Unique California Utility
  • Approximately 170,000 customers statewide
    • Residential – 95%
    • Other – 5%
  • Multi-jurisdictional with varied climate zones
    • Southern California: Barstow, Victorville, Big Bear and Needles
    • Northern California: Lake Tahoe and Truckee
  • Overlap with both large and small electric utilities
  • Southwest was the only Small and Multi-jurisdictional Utility (SMJU) included in the Winter Initiative
california alternate rates for energy care program

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California Alternate Rates for Energy (CARE) Program
  • Southwest customers qualify at 200% of the Federal Poverty Income Guidelines
  • 20% discount to qualifying customers
  • CARE is a self-certification program with recertification every two years
  • Outreach:
    • Applications distributed annually as bill inserts (English/Spanish)
    • Targeted Mailings, Posters, Flyers, and Spanish Newspaper Ads
  • Increased enrollment:
    • Data share, capitation, and online application
    • Phone enrollment (winter 2005/2006 only)
care participation

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CARE Participation
  • Current CARE customers = 39,052
  • Estimated eligibility:
    • Southern California = 35% to 40% of primary residential
    • Northern California = 8% to 10% of primary residential
low income energy efficiency liee program

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Low-Income Energy Efficiency (LIEE) Program
  • Southwest customers qualify at 175% of the Federal Poverty Income Guidelines
  • Weatherization including appliance replacement and energy education completed as defined in the:
    • California Weatherization Installation Standards manual
    • California Policy and Procedures manual
  • Southwest’s contractors assisted 738 homes in 2005
    • Northern California – Richard Heath and Assoc./Project GO
    • Southern California – Community Action Partnership of San Bernardino County
  • Partner with additional weatherization programs
  • Inform and enroll customers on CARE
current proposed budgets

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Current/Proposed Budgets

TOTAL CALIFORNIA

CARELIEETOTAL

D.05-07-014 authorized $4,113,191 $941,980 $5,055,171

Per Year – 2005 and 2006

A.06-06-___ proposed $8,943,330 $1,080,000 $10,023,330

Per Year – 2007 and 2008

  • Pursuant to D.05-07-014 Southwest filed a two-year budget application for its low-income assistance programs on June 1, 2006
  • CARE benefits are expected to more than double from 2005 to 2007
southwest s concerns

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Southwest’s Concerns
  • Administration challenges due to varied income guidelines for CARE and LIEE
    • CARE: Southwest at 200% vs. Other Small Utilities at 175%
    • LIEE: Southwest at 175% vs. Large Utilities at 200%
  • High percentage of residential customers eligible for CARE
  • Southwest’s CARE portion of the PPP surcharge is increasing rapidly as non-CARE customer base that pays this portion of the surcharge decreases
slide11

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Questions