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Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board

Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board. Stephen St Marie Policy & Planning Division May 16, 2013. Low-Income Programs for Each Class-A Water Utility.

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Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board

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  1. Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board Stephen St Marie Policy & Planning Division May 16, 2013

  2. Low-Income Programsfor Each Class-A Water Utility • The Programs for the 10 Class-A Water Utilities have been built up and developed in each company’s GRCs, so each program is unique. • The programs are all based on Income and Household size, but beyond that, they have many variations: • A specific Dollar amount off, a sur-credit, or a percentage of the fixed charge. • A reduced quantity rate or percentage off the bill • Typical value, from $6 to $25

  3. The Penetration RateOf the Low Income Programs • Typical enrollment was about 25% • Now, there is an effort to raise the penetration rate – the participation of eligible customers – including by sharing of data with the energy utilities. • Penetration could increase from 25% to over 80%. • This study: What would be the cost to the supporting households if alleligible households participate?

  4. Note that the Income Eligibility Upper Limit Is based on Household size.

  5. A preliminary Reviewof Three California Water Utility Companies • Great Oaks Water Company • A relatively small utility in an affluent area within San Jose • San Jose Water Company • Relatively large utility – serves most of San Jose • Park Water Company • Serves a less affluent area in Los Angeles County

  6. Example:Great Oaks Water Company

  7. Great Oaks Water CompanyLow-Income Program • 50% off of bi-monthly service charge of $16.78 • Actual Dollar Value to an eligible customer: $8.39 per bi-monthly bill. • Typical bi-monthly residential bill: $90

  8. Great Oaks Estimated Median Income: $90,625 National Median Income: $50,054

  9. About 29,500 households – Census Data Estimated Median Income: $90,625 Eligibility Limit, say $35,000 Supporting Households Would Pay $1.49 Each Cost is 14.4% of One Hour Of Median Household Income About 15% Of Households Eligible To Receive $8.39

  10. A California Water Utility Example:San Jose Water Company

  11. San Jose Water CompanyLow-Income Program • 15% off of total bill • Actual Dollar Value varies with consumption • Typical bi-monthly residential bill: $46 • For this analysis, we take 15% of $46, for a value of $6.90

  12. Estimated Median Household Income For San Jose Water Svc Area: $80,243 US Median Income: $50,054

  13. About 327,000 households – Census Data Estimated Median Income: $80,243 Eligibility Limit, say $35,000 Supporting Households Would Pay $1.88 Each Cost is 20.5% of One Hour Of Median Household Income About 21% Of Households Eligible To Receive $6.90 on Avg

  14. A California Water Utility Example:Park Water Company

  15. Park Water Service Estimated Median Income $50,000 US Median Income: $50,054

  16. About 56,000 households – Census Data Estimated Median Income: $50,000 Eligibility Limit, say $35,000 Supporting Households Would Pay $2.37 Each Cost is 41.5% of One Hour Of Median Household Income About 30% Of Households Eligible To Receive $5.50

  17. Review and Next Steps • An evaluation of three companies shows substantial variation in the cost borne by the supporting households. • New and Better Data from 2010 Census are becoming available. • Calculate for All of the Class-A Companies • Estimate Incomes by Household Size • Analyze Commercial and Industrial Sales

  18. Thank you! For Additional Information: www.cpuc.ca.gov Stephen.St.Marie@cpuc.ca.gov 415-703-5173

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