2016 LIEN Annual Conference Donna Kinapen and Rachel Anderson, OEB March 23, 2016
Low-Income Energy Assistance Program
What is LEAP EFA? LEAP EFA is a grant program, funded by ratepayers, to provide emergency relief to eligible low-income consumers who may be experiencing difficultly paying their bill It is not intended to provide regular or ongoing bill payment assistance 3
LEAP EFA and Winter Warmth Results from January 1, 2014 to December 31, 2014 • 79 distributors participating in LEAP EFA and Winter Warmth: – 74 Electricity distributors – 5 Natural gas distributors • 116 social service agencies participating in LEAP EFA and Winter Warmth program delivery: – 70 lead agencies delivering LEAP EFA in the electricity sector – 46 agencies delivering LEAP EFA and Winter Warmth in the natural gas sector 4
LEAP EFA and Winter Warmth – Results Overview Results from January 1, 2014 to December 31, 2014 Electricity Distributors 2014 2013 Change % Change $ 5,536,646 $ 5,031,449 LEAP Funds Available +$ 505,197 +10.0% $ 4,762,007 $ 4,279,839 LEAP Funds Disbursed +$ 482,168 +11.2% 9,656 9,293 Applicants Assisted +363 +3.9% $ 418 $ 399 Average Grant +$ 19 +4.8% Natural Gas Distributors * 2014 2013 Change % Change $2,760,904 LEAP and WW Funds Available $ 2,314,018 +$ 446,886 +19.3% $2,632,808 $ 2,128,223 LEAP and WW Funds Disbursed +$ 504,585 +23.7% 6,135 Applicants Assisted 4,971 +1,164 +23.4% $369 $ 364 Average Grant +$ 5 +1.4% * Utilities Kingston provides partial LEAP EFA data in their Utilities Kingston Annual Reports 2014 and 2013 . 5
LEAP EFA and Winter Warmth – Results Overview Results from January 1, 2014 to December 31, 2014 • 48 electricity distributors fully exhausted their LEAP funds – These distributors have approximately 1,737,474 customers – Overall, up 3 from 45 in 2013 • 7 electricity distributors have a surplus balance that is less than their average grant, so effectively funds were exhausted – These distributors have approximately 708,318 customers • 19 electricity distributors have LEAP funds remaining – These distributors have approximately 2,111,356 customers – Overall, down 11 from 30 in 2013 2014 % of Total 2013 LEAP EFA and Winter Warmth % Change Results Funding Results Total Unused Funds – Electricity Distributors $ 774,643 14.0% $ 751,609 +3.1% Total Unused Funds – Natural Gas Distributors $128,095 4.9% $185,794 -31.1% 6
LEAP EFA and Winter Warmth – Results Overview Results from January 1, 2014 to December 31, 2014 14 12 10 Number of electricity distributors 8 2014 2013 6 2012 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month in which LEAP funds were depleted 7
Common Characteristics of a LEAP EFA Applicant Dwelling Type House (74%) Private Rental Housing Type (58%) Average Single - with Monthly children (32%) Income Family Type $1,681 Single – no children (32%) Average Arrears $550 8
Comparisons between LEAP and OESP LEAP and OESP are distinct programs that complement each other Some changes were made to LEAP to align with OESP Customers can receive both a LEAP grant and OESP credit at the same time 9
Updates to LEAP and Alignment with OESP • Definition of Low Income – Income eligibility now based on Statistics Canada’s after-tax Low Income Measure (LIM) derived thresholds – Previously, LEAP income eligibility was based on pre-tax income and Statistics Canada’s Low Income Cut-Off (LICO) + 15% OESP & LEAP Income Eligibility Table Derived from Low Income Measure (LIM) Total 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7+ Persons income Less than or equal to Eligible Eligible Eligible Eligible Eligible Eligible Eligible $28,000 $28,001- - - Eligible Eligible Eligible Eligible Eligible $39,000 $39,001- - - - - Eligible Eligible Eligible $48,000 $48,001- - - - - - - Eligible $52,000 10
Updates to LEAP and Alignment with OESP • Exclusions from Income Eligibility Calculations – Exclude the Universal Child Care Benefit (UCCB), Canada Child Tax Benefit (CCTB) and Ontario Child Benefit (OCB) – Exclude income from Registered Disability Savings Plans and Assistance for Children with Severe Disabilities – These child benefits may be considered when assessing whether an applicant will be able to sustain utility service • Attendance – Only the utility account holder must attend the application interview for LEAP and the in-person application process for OESP (when this occurs) • Transfer of funds: – Requirement to remit cheques between agencies and utilities is eliminated – OEB is not prescribing the process; agencies and utilities should come to an arrangement that works best for them • Utilities Contacting Applicants re: Energy Conservation – The Consent to Disclosure of Personal Information form now includes consent to be contacted by a utility representative about participation in utility low-income energy conservation programs by default unless an applicant opts-out 11
Updates to LEAP and Alignment with OESP • Reporting – Two types of 'monthly reporting‘: ongoing program operations and demographic information – Ongoing program operations includes funds remaining, applications approved, etc. • Continue monthly reporting so no impact on agency funding payments – Demographic information includes sources of income, family composition, dwelling type, etc. • Only needs to be collected and filed every three years • OEB will provide advance notice when it expects this information to be collected and reported (next notice expected to be in 2017 for collection in 2018) – Annual Reporting Requirements - The number of LEAP applicants who received a grant in the prior calendar year will be reported annually by intake agencies to utilities, and by utilities to the OEB through the Reporting and Record Keeping Requirements (RRR) 12
Comparisons between LEAP and OESP • Unlike LEAP, the OESP does not have a 2-tier structure for intake agencies OEB Low-Income Energy Support Programs LEAP EFA OESP LEAP Lead Agency LEAP Intake Agency OESP Intake Agency • Agency settlement for LEAP occurs via LEAP Lead Agencies, whereas agency settlement for OESP occurs directly with all OESP Intake Agencies • LEAP Agencies work with applicants who are customers of specific utilities, OESP Intake Agencies can help any applicant in Ontario • Both LEAP and OESP eligible customers qualify for low-income customer service rules, but they must contact their utility in order to take advantage of them 13
Ontario Electricity Support Program
What is the Ontario Electricity Support Program? https://youtu.be/aP7C4my8Ym0 15
What does the OESP provide? What the OESP is: An ongoing, on-bill rate assistance program for low-income electricity consumers, with on-bill credits that began January 2016 Focus of the OESP: OESP provides targeted support to those low-income customers with the greatest need through a reduction on qualifying customer’s utility bills Funding: The OESP is funded through a provincial charge Expected to benefit more than 500,000 low-income households 16
Who is eligible and for how long? Who is eligible? How long does eligibility last? • Residential customers who receive • Eligible consumers only need to re- a bill directly from an electricity qualify every 2 years distributor or a unit sub-meter The first eligibility period is provider and live at the address staggered between 24-36 months • Household income falls below the • Eligibility period is 5 years for some level set in Stats Canada’s Low- – Seniors (65+ years old) Income Measure (LIM) – CPP permanent disability pension • Eligible amount depends on the recipients applicant’s total household income and number of people in the house • Consumers should reapply prior to the end of their eligibility period if their circumstances change – E.g., total household income drops, new household members 17
How much is the OESP credit? • The OESP uses a targeted, sliding-scale fixed credit to deliver greater benefits to those in greater need OESP Credit ($/month) Household Size (Number of People in the Household) 1 2 3 4 5 6 7 + Total Income ≤ $28,000 $30 $30 $34 $38 $42 $50 $50 $28,001 - $39,000 $30 $34 $38 $42 $50 $39,001 - $48,000 $30 $34 $38 $48,001 - $52,000 $30 18
How much is the OESP credit? • Those with unique needs get slightly more assistance to reflect their increased electricity use – Consumers who use electric heat as their primary heating source – Those that depend on medical equipment requiring significant electricity use (oxygen concentrator or mechanical ventilator) – First Nation and Métis customers OESP Energy Intensive Household Size (Number of People in the Household) 1 2 3 4 5 6 7 + Credit ($/month) Total Income ≤ $28,000 $45 $45 $50 $55 $60 $75 $75 $28,001 - $39,000 $45 $50 $55 $60 $75 $39,001 - $48,000 $45 $50 $55 $48,001 - $52,000 $45 19
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