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Making WAP/Utility Partnerships Smoother and More Substantial

Making WAP/Utility Partnerships Smoother and More Substantial. Jack Laverty NiSource/Columbia Gas of Ohio NLIEC 2005 Conference Phoenix, Arizona June 16, 2005. Creating/Maintaining the Partnership The Strategic Triangle. Creating/Maintaining the Partnership. Political Management

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Making WAP/Utility Partnerships Smoother and More Substantial

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  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. Creating/Maintaining the PartnershipThe Strategic Triangle 19th Annual NLIEC Conference

  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? 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  5. Creating/Maintaining the Partnership • 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 • 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? 19th Annual NLIEC Conference

  6. 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? 19th Annual NLIEC Conference

  7. 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 19th Annual NLIEC Conference

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

  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 19th Annual NLIEC Conference

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

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

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

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

  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 19th Annual NLIEC Conference

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

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

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