State and Local Policy Database

Guidelines for Low-Income Energy Efficiency Programs

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Alabama Power is currently running a low-income pilot but has not established a sustained low-income energy efficiency program.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: June 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Federal funding for weatherization efforts in Alaska is supplemented by financial investment from the state, utilities, and other organizations. The Alaska Housing Finance Corporation (AHFC) has administered the federal Low-Income Weatherization Assistance Program (WAP) since 1992. Funding is prioritized for low-income seniors and families with disabilities or young children in their home. In program year 2019, $4.7 million was distributed resulting in 190 unit completionss. No specific required spending or savings requirements for utility programs were identified. Utilities generally do not administer separate low-income energy efficiency programs. However, utility funding is used to supplement the programs described above.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: November 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified. In 2010, the Arizona Corporation Commission (ACC) ordered in Decision 71819 that each investor-owned utility must achieve cumulative annual electricity savings of at least 22% of its retail electric sales in calendar year 2019 through cost-effective energy efficiency programs. The decision ordered that utilities “…allocate a portion of DSM resources specifically to low-income customers,” but does not identify a minimum spending level.

Utility funds dedicated to weatherization, in addition to DOE funds for weatherization, are managed by the Arizona Department of Housing (ADOH).

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Since 2011, Arizona Administrative Code Title 14, Chapter 2, Article 24 (R14-2-2412) has directed that “…an affected utility’s low-income customer program portfolio shall be cost-effective, but costs attributable to necessary health and safety measures shall not be used in the calculation.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

There are no specific spending or savings requirements for low-income energy efficiency programs.

Following unsuccessful attempts in the early 2000s to create a low-income weatherization program, the Arkansas Public Service Commission (PSC) approved the Arkansas Weatherization Program (AWP) in 2007 in Order No. 4 in Docket No. 07-079-TF, as a quick start program. In February 2010, the PSC approved AWP to run through June 2011, and subsequent orders have extended AWP through 2018. In 2014, in response to a proposal to develop a consistent approach for weatherization programs across all Arkansas utilities, the PSC approved a uniform weatherization program in PSC Docket 13-002-U, Order No. 22 at 11.

Act 1102 of 2017 (Ark. Code Ann. Sec. 23-2-304(a)(11)) was passed by the Arkansas General Assembly, authorizing the Commission to "propose develop, solicit, approve, require, implement and monitor financial assistance programs" for utility customers who are 65 years of age or older or who meet the income eligibility qualifications of LIHEAP.  After notice and a hearing, the Commission may approve and order a financial assistance program for utility customers if the Commission determines that the program is beneficial to the ratepayers of a public utility and the public utility. That authorization is contingent on the provision that the Commission shall not fix rates, charges, or surcharges that recover, directly or indirectly, any portion of the cost of programs authorized by this Act from a ratepayer that is not in the customer class of ratepayers eligible to participate in the programs. The Commission has not taken action to implement this authority by either order or rule.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Arkansas does not require program-level cost-effectiveness for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

AWP funds from utilities are administered in conjunction with US DOE WAP funds. The provider installs the approved measures in the home. Part of the cost of the audit and installation is covered by the customer’s AWP utility, and the balance is paid by the customer. Customers eligible for the DOE WAP have their co-payment covered by that federal program.

Last updated: June 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

California’s Long Term Energy Efficiency Strategic Plan, first adopted in 2008 and updated in 2011, establishes a goal for the Commission's Energy Savings Assistance Program that, by 2020, 100% of eligible and willing customers will have received all cost-effective low-income energy efficiency measures.

The CPUC’s ESA program installs weatherization and energy efficiency measures, provides minor home repairs, and offers energy education at no cost to income-eligible program participants. Per code, income eligibility for the ESA program is currently set at 200% or less of the Federal Poverty Guideline (FPG). Eligibility will increase to 250% of the FPG starting July 1, 2022. The program is funded by ratepayers as part of a statutory public purpose program surcharge that appears on monthly utility bills, with the goal to reduce energy consumption, resulting in bill savings, while also increasing the health, comfort, and/or safety of the household. 

Public Utility Code Section 2790 requires an electrical or gas corporation to perform home weatherization services for low-income customers. A utility must balance the cost effectiveness of the weatherization services and the policy of reducing the hardships low-income households face. It is set in code that by 2020, 100% of all eligible and willing low-income customers will be given the opportunity to participate in the program. An ongoing aspiration for the program is that it will be an energy resource by delivering increasingly cost-effective and longer-term savings to participants. For each budget cycle, the CPUC establishes program funding, and goals and targets, for each utility through a Decision. Code also requires that program funding be no less than what was authorized in 1996, based on an assessment of customer need, thereby providing a baseline of funding.

In two new 2021 Decisions (D.21-06-015 and D.21-10-023), the CPUC established new ESA program goals for the IOUs based on energy savings, replacing the previous goals based on the number of homes treated. The Decision also established new ESA budgets, new homes treated targets (not goals), and other requirements related to cost-effectiveness and new multi-family and pilot programs. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Currently, the CPUC applies the Energy Savings Assistance Program Cost Effectiveness Test (ESACET) to the low-income weatherization program known as ESA. This cost-effectiveness test incorporates participant and utility non-energy benefits to accurately capture demand-side management (DSM) impacts to the portion of the California housing stock in which low-income customers reside.

Although the CPUC does not mandate a 1.0 ESACET threshold for the IOUs to meet, they continue to encourage the IOUs to seek ways to increase the program’s cost effectiveness through providing deeper energy saving treatments, accurately valuing and accounting for NEBs, and through reduced costs in administration and overhead to achieve a 0.70 ESACET portfolio average.

Coordination of Ratepayer-Funded Low-Income Programs with the California Department of Community Services & Development's Low-Income Programs

The California Department of Community Services & Development (CSD) administers the Low-Income Weatherization Program (LIWP), which installs solar photovoltaics, solar hot water heaters, and energy efficiency measures in low-income single family and multi-family dwellings in low-income communities to reduce GHG emissions and save energy. LIWP is funded through AB 32 cap-and-trade auction revenues and has been allocated a total of $212 million since 2014 from the state budgets. Decision 16-11-022 directed the large investor-owned utilities to work with the Community Services and Development’s low-income weatherization programs on various fronts, including setting up a data sharing plan and establishing a referral process between the ESA Program and CSD’s program for identified customers with high energy burden and non-IOU fuel sources. The IOUs and CSD also set up a cost-sharing process where the ESA Program reimburses LIWP for installed measures that are common to both programs, thereby preserving LIWP funds for measures that the ESA Program does not provide.

Coordination of Ratepayer-Funded Low-Income Programs with SB350

SB 350 was passed in 2015 establishing annual savings targets to achieve a cumulative doubling of statewide energy efficiency savings by 2030. The bill mentions no specific low-income energy efficiency targets, but it does direct the California Energy Commission to publish a study on barriers for low-income customers to energy efficiency and weatherization investments, including those in disadvantaged communities, as well as recommendations on how to increase access to energy efficiency and weatherization investments for low-income customers. SB 350 Barriers Study updates can be found here.

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

HB 21-1238 (2021), requiring gas utilities to develop energy savings targets every four years, includes a requirement that 25% of residential DSM programs target low-income households.

In 2007, the Colorado General Assembly passed HB 1037, which, in addition to establishing energy savings goals for utilities, also instructed them to make sure that low-income customers had access to DSM programs. This was codified in Colorado statute 40-3.2.104, which directs utilities to provide funding for low-income energy-assistance programs such as bill assistance and weatherization through the assessment of a public benefits charge.

This funding is administered by the Colorado Energy Assistance Foundation (now Energy Outreach Colorado), created under section 40-8.5-104. Energy Outreach Colorado is required to file a report with the commission annually, showing amounts of money collected under the public benefits charge and demonstrating that the funds were used towards low-income energy bill payment assistance and energy efficiency improvements for affordable housing and non-profit facilities.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Decision No. C08-0560 directs the Colorado Public Service Commission to pursue all cost-effective low-income DSM programs, “but to not forego DSM programs simply because they do not pass a 1.0 TRC test.” It also directs that, in applying the TRC to low-income DSM programs, “the benefits included in the calculation shall be increased by 20%, to reflect the higher level of non-energy benefits that are likely to accrue from DSM services to low-income customers.” This was increased further to 50% for low-income measures and products in April 2018 under Decision No. C18-0417.

To avoid unintended impacts to calculations of benefits pursuant to performance incentives, the decision also allows utilities to exclude these costs in these determinations: “To address this concern we find that the costs and benefits associated with any low-income DSM program that is approved and has a TRC below 1.0 may be excluded from the calculation of net economic benefits. Further, the energy and demand savings may be applied toward the calculation of overall energy and demand savings, for purposes of determining progress toward annual goals.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Colorado Commission on Low-Income Energy Assistance is responsible for coordinating the state’s low-income energy assistance services pursuant to C.R.S. § 40-8.5-103.5 and Executive Order D 026 07. Many Colorado utilities have decided to enter into agreements with the Colorado Energy Office, the federal Weatherization Assistance Program grantee, and/or non-profits like Energy Outreach Colorado or community action agencies. In these instances, the funds generated by monthly surcharges are given to these other entities to provide services to the utility’s low-income customers.

Last reviewed: October 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Connecticut's Home Energy Solution-Income Eligible (HES-Income Eligible) program is designed to decrease the energy burden of income-eligible customers (households whose incomes are at or below 60 percent of the State Median Income) living in single-family homes through customer education on products and services, the direct-install of air sealing, duct sealing, and HVAC and water heating equipment testing, and the qualification of the home for additional energy-efficient upgrades. Though similar to HES, this program’s services are offered at no cost to the customer. Upgrades for additional energy efficiency measures (e.g., appliances, windows, insulation, appliances, active demand response) are also covered through nominal customer or landlord contributions. 

For the 2019-2021 Plan and the 2022-2024 Plan, the HES-Income Eligible program and its sister solution HES serve as the primary drivers of the utilities’ support in helping the State of Connecticut meet its legislative goal of weatherizing 80% of Connecticut’s existing homes by 2030. This goal was established by Public Act 11-80, Section 33, An Act Concerning the Establishment of the Department of Energy Environmental Protection and Planning for Connecticut’s Energy Future.

Connecticut’s utilities are required to allocate their limited-income budgets in parity with the revenues that are expected to be collected from that sector. As part of their Performance Management Incentive (PMI) calculation, the electric and natural gas utilities are required to spend a percentage of the HES-Income Eligible program budget. Additionally, the HES-Income Eligible program has electric, natural gas, oil, and propane savings metrics that must be met prior to the utilities receiving their PMI.

Connecticut’s Department of Economic and Community Development (DECD) manages the Energy Conservation Loan (ECL) program that assists low- and moderate-income households (based on the US Department of Housing and Urban Development’s standard of 200% of area median income) in receiving zero/low-interest financing to make energy efficiency improvements. The HES-Income Eligible program also assists customers in remediating some health and safety issues that are barriers to energy efficiency, including: performing a clean, tune, and test of a home’s HVAC system, making furnace repairs, fixing gas (natural gas and propane) leaks on the customer side, and performing domestic hot water tune-ups. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Connecticut relies on the Total Resource Cost test as its primary test for the HES-Income Eligible program. Connecticut regulators have repeatedly approved non-cost-effective low-income programs; however, no explicit adjustments or exceptions to general cost-effectiveness rules are in place for the HES-Income Eligible program. More information regarding benefit-cost testing of efficiency programs in Connecticut can be found in Chapter 5 of the 2019-2021 Plan and 2022-2024 Plan.

Conn. Gen. Stat. §16-24a required DEEP to conduct a proceeding regarding the development of a Low Income Discount Rate (LIDR) for natural gas and electric customers. In July 2013, the Bureau of Energy and Technology Policy (BETP) conducted the "Low Income Discount Rate Review" and submitted its report to the CT Public Utilities Regulatory Authority (PURA) with the following recommendation: "currently available programs already provide benefits equal to, or greater than, the value of benefits low-income households would receive through a 10% low-income discount rate." In November 2013, PURA accepted the recommendation and determined that the existing rate assistance and energy efficiency programs are more beneficial to Connecticut's low-income residents than replacing them with a low-income discount rate.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

For the 2019-2021 Plan, Connecticut’s utilities will continue their long-term partnership with the Community Action Agencies (CAAs) to assist in cost sharing for US Department of Energy-funded Weatherization Assistance Program (WAP) projects. DEEP administers Connecticut WAP projects through one CAA administrator. The target market for WAP are single-family properties and it is designed to help income-eligible customers minimize their energy burden through retrofits and home improvement measures. The utilities cost share some energy efficiency measures for WAP projects, including: ductless heat pumps, domestic hot water measures, administrative fees, heating system replacements, insulation, LED bulbs and fixtures, and windows. 

Under the Energy Affordability Docket, the Energy Efficiency Group, supports low-income programs, such as NU-Start and Matching Payment Plans.  This way as customers are having difficulty paying their energy bills, they can work with the Energy Efficiency team to reduce their bills.

Last reviewed: May 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Delaware established legislative energy savings targets in 2009 with the adoption of SB 106, although these have yet to be implemented. The legislation sets up a Sustainable Energy Trust Fund to collect charges assessed by energy providers in service of energy savings goals. SB 106 specifies that 20% of assessment be provided to the Weatherization Assistance Program.

Electric utility restructuring legislation passed in 1999 specifies that Delmarva Power and Light collect 0.095 mills/kWh (approximately $800,000 annually) from customers to be forwarded to the Department of Health and Social Services, Division of State Service Centers, to be used to fund low-income fuel assistance and weatherization programs.

The Delaware Weatherization Assistance Program has an annual goal of completing 400 homes.   In addition, to make low-income energy efficiency programs more accessible, a Guidance Document was drafted in 2016 as part of the merger settlements approved by the PSC between Exelon and Delmarva Power and Light to allocate $4,000,000 of the funds towards low-income customer energy efficiency programs. This Guidance Document applies to DPL customers, and funds are available to support organizations delivering energy efficiency programs to low-income rate payers. Organizations that receive grants to run low-income energy efficiency programs will increase energy efficiency measures for low-income Delaware households, increase statewide electric and gas savings, engage and inform low-income households about the benefits of energy efficiency, develop a community-based approach to address energy efficiency issues in low-income housing by mobilizing public and private sector resources, and ensure the greatest extent feasible that job training, employment, and contracting generated by this grant will be directed to low-income households. All settlement-funded low-income programs must be officially recommended by the EEAC and approved by the PSC. The Delaware Public Service Commission approved Delmarva Power's low-income settlement distribution plan at a hearing on May 22, 2018.

Energize Delaware was selected to be the grant manager for $4 million in funds designated for low income energy efficient programs for Delmarva Power customers. The funds originated from the Exelon\Delmarva Power Merger Settlement approved by the Delaware Public Service Commission.  Energize Delaware will distribute the funds competitively to organizations capable of delivering energy efficiency programs to low income customers over a three-year period. Two distinct energy efficiency programs will be funded: Large-Scale energy efficiency programs and Community-Scale programs.  The first round of solicitation for the Large-Scale grant closed April 24th with 8 applications requesting nearly $10 million in funding.  The Grant Review committee is preparing to meet to review the applications and make decisions on the grant awards which should be issued in July.  Community-Scale grant applications are being accepted and are being considered by the Grant Review Committee on a rolling basis. (https://empowergrantde.org/about/)

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In 2016, the Evaluation, Verification, & Measurement subcommittee of the EEAC reviewed net-to-gross ratios, avoided costs, and net environmental impacts for low-income energy customers. The EM&V Committee recommended a proposed net-to-gross ratio for low-income programs to be 1. This includes income-eligible HES, low-income multi-family, and low-income new construction programs.

The EM&V Committee in 2016 recommended specific non-energy benefits for low-income programs. These non-energy benefits include weatherization reduced arrearages and participant health and safety benefits. Specific values were also applied to non-energy benefits and are locked in for three years. These non-energy benefits were unanimously recognized and approved by the EEAC.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Department of Natural Resources and Environmental Control (DNREC) administers federal weatherization funds, which are coordinated and joined with federal LIHEAP block grant, state utility funds, and funds from the Regional Greenhouse Gas Initiative (RGGI).

The Low-Income Energy Efficiency Committee of the EEAC began meeting in 2016 with a purpose to develop cost-effective low-income programs to submit before the EEAC. It is made up of stakeholders from the EEAC, utility representatives, state agencies, community action agencies, community-based organizations, faith-based organizations, and community foundations. In an effort to better serve the low-income population in the state, the committee was tasked with identifying existing services that provide funding for affordable housing. Some of the existing programs identified include the Weatherization Assistance Program (WAP), Low-Income Home Energy Assistance Program (LIHEAP), SHARING Fund, Beat the Peak, and Assisted Home Performance with Energy Star.

The Weatherization Assistance Program (WAP), Low-Income Home Energy Assistance Program (LIHEAP), and Delaware Sustainable Energy Utility collaborate in order to deliver services to as many clients as possible.  The Delaware Pre-Weatherization Program (Pre-WAP) is a unique initiative developed in order to serve clients that would otherwise be deferred by WAP due to the condition of the client’s home.  The Pre-Weatherization program helps low-income families in Delaware prepare their homes to meet the requirements for the State of Delaware’s Weatherization Assistance Program.  Many potential Weatherization Assistance Program (WAP) clients cannot afford the structural home repairs needed to qualify the home, and therefore lose the ability to participate in weatherization assistance.  Participants whose properties have been deferred by WAP for structural reasons are referred to Energize Delaware’s Pre-Weatherization Program.  Energize Delaware provides funding to pay for the repair of the structural issues, such as leaky roofs, broken windows and doors, or moisture in crawl spaces.  The Pre-Weatherization Assistance Program will inspect homes, hire contractors, schedule repair work, and perform a quality assurance post-inspection, then re-admit these units into the Weatherization Assistance Program.  Over 200 homes have been completed to date at an average cost of $3,000 per home.  Participants in the LIHEAP are also referred to WAP for additional services.

Last reviewed: September 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The DC Council adopted the Clean and Affordable Energy Act (CAEA) of 2008 effective October 1, 2008, which authorizes the Energy Office to contract with a DC “Sustainable Energy Utility” (SEU) for the implementation of energy efficiency programs. The legislation also established a separate Energy Assistance Trust Fund (EATF) to be used solely to fund: “(1) the existing low-income programs in the amount of $3.3 million annually; and (2) the Residential Aid Discount subsidy in the amount of $3 million annually.” Sec. 201 of the legislation specifies that the contract with DC SEU shall “improve the energy efficiency of low-income housing in the District of Columbia.” 

For the 2017-2021 program cycle the low-income spending requirement was adjusted to 20% of expenditures. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

While no specific rules are in place for low-income programs, programs that are not cost effective may be included in DCSEU’s portfolio as long as the overall portfolio is cost effective based on the societal cost test. A 5% adder is applied to program benefits to account for additional non-energy benefits including comfort, noise reduction, aesthetics, health and safety, ease of selling/leasing home or building, improved occupant productivity, reduced work absences due to reduced illnesses, ability to stay in home/avoid moves, and macroeconomic benefits.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The federal Weatherization Assistance Program is administered by the Department of Energy & Environment’s Energy Administration Energy Efficiency and Conservation Branch (EECB), which leverages 15% of its WAP grant to seek additional funds from the DC SEU and local District General Funds, to supplement WAP and increase the number of homes to be weatherized. Utilities and the District coordinate through the Income Qualified Efficiency Fund. More info on the IQEF is available here.

In addition, a new initiative in the District is aimed at reducing the energy costs for the District of Columbia’s households by increasing the energy efficiency of their dwelling, while ensuring their health and safety.  The energy and healthy homes services are provided free of charge to qualifying households. To deliver services, DOEE provides grants to grantees, which are responsible for performing improvements and upgrades. This will be achieved by installing approved energy efficiency measures in low-income households and providing energy and healthy homes related information to occupants. The amount available is approximately $3,000,000 per year and may be extended up to three years with additional funding. (Link)

Last reviewed: June 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

By Order No. PSC-14-0696-FOF-EU, the Commission directed the FEECA utilities to educate low-income customers on energy efficiency opportunities. The Florida Public Service Commission is not aware of legislation or regulations requiring specific levels of utility spending or savings related to low-income energy efficiency programs. The above-referenced Order requires each utility to assist and educate low-income customers, specifically with respect to measures that have less than a two-year payback. In 2019, by Order No. PSC-2019-0509-FOF-EG, the Commission affirmed the support originally expressed in the prior order. The DSM Plans offered since the 2014 and 2019 Orders were issued (in 2015 and 2020) provide each company's plan to educate low-income customers on energy efficiency and conservation.

The Commission has adopted specific goals to track and/or evaluate energy efficiency for business and residential customer classes, but none that are prescriptively identified as for low-income and marginalized communities. In annual reports, the FEECA utilities provide data on participation levels and program costs for all programs, in addition to goal achievement information. The annual reports are available here.

 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Program-level cost-effectiveness tests are applied to all programs, including low-income energy efficiency programs.  

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Section 5.2 of the Annual Report on Activities Pursuant to the Florida Energy Efficiency & Conservation Act (FEECA), lists the state agencies and organizations in Florida that assist and educate consumers on energy conservation. In addition to the Florida Public Service Commission, website information is provided for the Florida Department of Environmental Protection, The Office of Energy, the Florida Solar Energy Center, as well as information for Florida Weatherization Assistance and Florida's Local Weatherization Agencies List.

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Although no minimum spending or saving requirements are in place for low-income programs, in proceedings for Georgia Power’s 2019 Integrated Resource Plan, GPC agreed to designate $400,000 toward low-income programs through a local service organization and to carveout $500,000 in the Home Energy Improvement Program in the annual budget for Multifamily low-income customers. Georgia Power launched a certified program designed to serve low-income customers with additional funding from a donation model.  The Income-Qualified (Crowd-Funding) program, known as the Residential Home Energy Efficiency Assistance Program ("HEAAP"), has a total budget of $4 million per year for 2020-2022.  Also, an Income-Qualified Tariff Based Energy Efficiency Pilot, similar to a PAYS programs, now known as RISE was approved in the 2019 IRP with a budget of $7 million for the period of 2020-2022.  This program is currently only avaialble for low-income customers in two Georgia service areas (Atlanta and Athens).  The Commission approved the tariff and terms and conditions for this program. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

There is no stafe-wide explicit adjustments or exceptions to general cost-effectiveness rules are in place for certifiied low-income programs though they are exempted in practice.  Certified income-qualified programs must pass the Total Resource Cost Test but, in keeping with industry practice, these programs are evaluated at a 100% Net-to-Gross ratio.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Low-Income program is administered solely by GPC, though individual projects may receive funding from various sources.

Last reviewed: May 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No legislative mandate, but PUC has given guidance and required in the Triennial Plan approximately 21% of the funding is going to "affordability and accessibilty - Hard To Reach" categories, which include low-income populations.  COVID-response planning also increases focus in this area for PY20.

Hawaii Energy's 2019-2021 Triennial Plan does however include performance indicators for Customer Equity (island equity), and Affordability & Accessibility categories; with particular focus on low-income and ALICE (Asset-limited Income Constrained Employed) populations.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last Updated: June 2020

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In October 2012, PUC staff issued its draft report on low income weatherization and energy conservation education programs. In this report, the staff recommended criteria for how to evaluate requests for more weatherization funding. The staff also provided recommendations and comments on changes utilities could make regarding cost-effective calculations and procedures, some of which included the calculation of non-energy benefits.

In April 2013, the PUC largely adopted the staff’s recommendations regarding methodology for evaluating LIWAP and the criteria for increased funding in Order No. 32788, Case No. GNR-E-12-01. The PUC encourages utilities to include non-energy benefits of LIWAPs when calculating cost effectiveness but currently declines to construct a specific cost-effectiveness test for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Idaho Department of Health and Welfare, Division of Welfare, administers the Low Income Home Energy Assistance and Weatherization Programs in Idaho. The division subcontracts with the Community Action Partnership Association of Idaho (CAPAI) to provide weatherization, energy assistance, and community block-grant services to low-income participants in Idaho. Utilities such as Idaho Power also offer weatherization assistance in conjunction with the state’s WAP program through ratepayer-funded Weatherization Assistance for Qualifying Customers (WAQC) program, which provides supplementary funding to CAP agencies for weatherization.

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

In December 2016, the Illinois State Legislature passed the Future Energy Jobs Bill (SB 2814). The legislation directs utilities to implement low-income energy efficiency measures of no less than $25 million per year for electric utilities that serve more than 3 million retail customers in the state (ComEd), and no less than $8.35 million per year for electric utilities that serve less than 3 million but more than 500,000 retail customers in the state (Ameren).

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Section 8-103B (Energy Efficiency and Demand-Response Measures) of SB 2814 excludes low-income energy efficiency measures from the need to satisfy the total resource cost-effectiveness (TRC) test.

Coordination of Low-Income and WAP Services

The Illinois Department of Commerce and Economic Opportunity (DCEO) is responsible for administering the state’s allocation of DOE weatherization funds. In Illinois, the weatherization program is called the Illinois Home Weatherization Assistance Program (IHWAP). IHWAP provides Illinois’ low-income residents with the labor and materials needed to weatherize their homes and is funded by three sources: DOE WAP funding, Low Income Home Energy Assistance Block Grant funds from the US Department of Health and Human Services (HHS), and the state’s Supplemental Low-Income Energy Assistance Fund (from the monthly Low-Income Energy Assistance Charge assessed by electric and gas utilities).

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Before Senate Bill 340 terminated Energizing Indiana and the state’s utility energy efficiency targets, five utilities and the Indiana Municipal Power Agency had offered an Income-Qualified Weatherization Program through Energizing Indiana. This has since been discontinued, though many of these utilities now operate their own low-income energy efficiency programs.

There is currently no minimum spending or savings requirement in place for low-income programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Under Senate Bill 412 and Indiana Code 8-1-8.5-10(h), an electricity supplier may submit its energy efficiency plan to the commission for a determination of the overall reasonableness of the plan either as part of a general basic rate proceeding or as an independent proceeding. A petition submitted may include a home energy efficiency assistance program for qualified customers of the electricity supplier whether or not the program is cost effective.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: October 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Iowa Code 476.6 (13 and 476.6 (15) require that the investor-owned utilities' energy efficiency plans include programs for low-income customers but does not require a specific level of spending.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

According to IAC 199 – 35.5(4)(c)(3), "...Energy Efficiency programs for qualified low-income persons and for tree planting programs, educational programs, and assessments of consumers' needs for information to make effective choices regarding energy use and energy efficiency need not be cost-effective and shall not be considered in determining cost-effectiveness of plans as a whole."

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

IPL, Black Hills Energy, and MidAmerican Energy jointly implement the Weatherization Assistance Program (WAP) through the Iowa Utility Association (IUA). The utilities contribute program funding through the Iowa Department of Human Rights (DHR). These funds reimburse Community Action Program (CAP) agencies for the costs of performing energy assessments and purchasing and installing qualifying energy efficiency measures in residences occupied by low-income families. WAP is available to homeowners and renters whose income level is at or below 200% of the Federal Poverty Level (FPL). Homes occupied by the elderly, individuals with disabilities, and families with children under the age of six are prioritized for weatherization assistance, as are households with high usage. CAP agencies market and deliver the program to low-income customers, and the DHR's Division of Community Action Agencies (DCAA) administers the program.

The Iowa Division of Community Action Agencies (DCAA), in coordination with investor-owned utilities, conducts and publishes an annual evaluation of the Iowa Weatherization Program. The performance assessment is used to determine technical assistance and training needs.

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

In 1994, Kentucky passed its DSM Statute (KRS 278.285), which allows utilities to propose and the PSC to review DSM programs aimed at reducing their customers’ energy use through efficiency and load management. However, the statute does not specifically address low-income programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Requirements for low-income programming are similar to those governing other programmatic offerings, and these were established by precedent in a 1997 proceeding surrounding the approval of LG&E’s DSM program portfolio. The rules for benefit-cost tests are stated in Case No. 1997-083. These benefit-cost tests are required for total program level screening, with exceptions for low-income programs, pilots, and new technologies. The commission also found in Case No. 97-083 that “If [a] filing fails any of the traditional [cost-effectiveness] tests, LG&E and its Collaborative may submit additional documentation to justify the need for the program.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The Louisiana Public Service Commission (LPSC) approved final energy efficiency rules in 2013 in LPSC General Order dated January 10, 2013 (Docket R-31106), however these did not address specific requirements for low-income programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

In its original Quick Start portfolio filing, Entergy submitted an income-qualified program that did not pass TRC on the basis of its overall value, as well as its role in allowing low-income customers to participate in Quick Start programs that might otherwise be inaccessible. Commission staff expressed concern surrounding this program and suggested that Entergy consider removing it, which led to Entergy adjusting the program to meet TRC test requirements, amending its program plan, and ultimately receiving commission approval.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

LD-1559, passed in June 2013, states that Efficiency Maine Trust shall “target at least 10% of funds for electricity conservation collected under subsection 4 or 4-A or $2,600,000, whichever is greater, to programs for low-income residential consumers, as defined by the board by rule.” For the Natural Gas Conservation Fund (natural gas ratepayer funds), this allocation is set at a reasonable percentage considering low-income consumers’ share of gas load and the cost-effective opportunity available at their homes, which in practice Efficiency Maine has set at 10%.  Regarding the use of RGGI funds, the statute requires that Efficiency Maine "shall ensure that measures to reduce the cost of residential heating are available for low-income households..." and Efficiency Maine allocates a minimum of 10% to Low-Income Initiatives. See 35-A MRS §10109(4)(A).

Following the passage of LD 1766 in 2019 and its establishment of a state-wide goal to install 100,000 high-performance heat pumps by 2025, MaineHousing allocated a portion of its annual LIHEAP weatherization budgets to pay for the installation of 1,000 heat pumps/year in LIHEAP-eligible homes. 

In 2021, the Legislature passed LD 1766, codifying the state's plan (the Maine Jobs and Recovery Plan) to spend roughly $1 billion in discretionary funding from the American Rescue Plan Act (ARPA) Coronovirus State and Local Fiscal Recovery Funds. This plan allocated $25 million to the Efficiency Maine Trust to to accelerate weatherization and efficiency upgrades for homes in the State, especially for low-income, older residents and renters. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Maine does not have specific cost-effectiveness guidelines in place for low-income programs. However, the cost-effectiveness test for all programs requires consideration of non-energy benefits including “…reduced operations and maintenance costs, job training opportunities and workforce development, general economic development and environmental benefits, to the extent that such benefits can be accurately and reasonably quantified and attributed to the program or project.”

The Maine PUC allows EMT to bundle individual measures in Low-Income homes that, taken alone, may score as low as 0.7 using the Total Resource Cost Test but, when bundled, achieve a TRC of 1.0 or above.  Additionally, EMT's strategic plan, approved by the PUC, provides that "For Low-Income Initiatives, a monetary benefit for avoided bad debt may be included in the benefit-cost assessment. Inclusion of that benefit requires a study of bad debt avoidance attributable to energy efficiency to quantify the impact."  EMT, Triennial Plan IV, at pp. 4-7

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Maine State Housing Authority administers the federal Weatherization Assistance Program (WAP) for the state. State regulations require the Housing Authority to ensure effective coordination of WAP with the Housing Authority’s Central Heating Improvement Program (CHIP)—which finances energy-related repairs for low-income homeowners—as well as with other bill assistance programs. 2009 Public Law Chapter 372 requires that the Housing Authority must also coordinate WAP plans and use of federal DOE funds with the programs administered by Efficiency Maine Trust.

Following the passage of LD 1766 in 2019 and its establishment of a statewide goal to install 100,000 high-performance heat pumps by 2025, MaineHousing allocated a portion of its annual LIHEAP weatherization budgets to pay for the installation of 1,000 heat pumps/year in LIHEAP-eligible homes. 

Last reviewed: May 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The EmPOWER Act of 2008 required all utility plans to address low-income communities. From 2009 through the end of the second quarter of 2012, the electric utilities (BGE, DPL, PE, Pepco, and SMECO) all implemented their own limited-income programs through their residential programs. In 2012, the Maryland Department of Housing and Community Development (DHCD) became the sole implementer of limited income programs across Maryland in compliance with Order No 84569. In 2017, SB 184 continued the requirement for limited income energy efficiency programs started under the EmPOWER Act of 2008.

Order No. 87082, issued in July 2015, directed the Limited-Income Work Group to consider and develop a recommended post-2015 goal for the EmPOWER limited-income programs no later than February 1, 2016.

In February 2016, the Work Group released a summary report, but they did not come to a consensus on one recommendation. Rather, the report provided recommendations based upon agreement on certain points among various stakeholders, such as customer eligibility and overlaps between electric and natural gas utility service territories.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In Order No. 87082, the PUC requires cost-effectiveness screening for limited-income programs but indicates the programs may still be implemented without satisfying the test, stating:

 “We accept the recommendation of the Coalition that, while cost-effectiveness screening of the limited income sub-portfolio shall be required in the same manner as with respect to the other EmPOWER sub-portfolios, the results of the limited-income sub-portfolio screening shall serve as a point of comparison to other jurisdictions and past programmatic performance rather than as the basis for precluding certain limited-income program offerings.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Order No. 88964 issued by the Commission on December 31, 2018 directs the Low Income Work Group (“Work Group” or “LIWG”) and Maryland Department of Housing and Community Development (“DHCD” or “Department”) to file a summary report on limited income participation and savings in the EmPOWER program on or before April 15, 2019.

On April 15, 2019, the Work Group issued a report that agreed on actions to collect additional information on limited income measures installed by the Utilities but did not come to a consensus on a recommendation for an energy savings goal.

Last updated: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

In the late 1990s, Massachusetts restructuring law established a low-income conservation fund through a 0.25 mills per kWh charge on every electric customer, while a conservation charge on natural gas customers’ bills has funded natural gas low-income energy efficiency programs.

In 2010, the program received additional funding through the 2008 Green Communities Act, which required that 10% of electric utility program funds and 20% of gas program funds be spent on comprehensive low-income energy efficiency and education programs. The legislation further directed that these programs be implemented through the low-income weatherization and fuel assistance program network with the objective of standardizing implementation among all utilities.

In 2020, the Energy Efficiency Advisory Council (EEAC) created the Equity Working Group (EWG) to identify and recommend priority actions, plans, and partnerships to increase participation among moderate-income customers, renters and landlords, customers with limited English proficiency, and small businesses as identified in two non-participant studies completed in early 2020. The EWG strives to develop just and equitable solutions that are centered in the communities that have been historically underserved by the existing Mass Save programs.  Throughout 2020, the EWG has engaged with stakeholders representing underserved customer groups to solicit feedback on strategies that the council would recommend for inclusion in the 2022-2024 Three Year Energy Efficiency Plan. In January 2021, the EWG presented their recommendations to the full council.  Recommendations from the EEAC EWG support developing metrics for tracking progress towards equity goals, including tracking program participation, investment, and benefits. The resulting equity targets framework for 2022-2024 is available here

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Massachusetts relies on the TRC test as its primary test for DSM programs, but it specifically calculates additional benefits from low-income programs in its benefit-cost ratio.

D.P.U. 08-50-B specifies that an Energy Efficiency Plan must include calculations of non-energy benefits, including non-resource benefits related to: “(A) reduced costs for operation and maintenance associated with efficient equipment or practices; (B) the value of longer equipment replacement cycles and/or productivity improvements associated with efficient equipment; (C) reduced environmental and safety costs, such as those for changes in a waste stream or disposal of lamp ballasts or ozone-depleting chemicals; and (D) all benefits associated with providing energy efficiency services to Low-Income Customers.”

In addition to the factors used to calculate market-rate benefits,  cost-effectiveness evaluation for the current low-income programs in Massachusetts includes consideration of non-energy benefits such as asthma reductions, thermal stress reductions, productivity improvements due to fewer missed workdays and improved sleep, reduced risk of carbon monoxide poisoning, reduced risk of fire, and reduced reliance on high interest, predatory loans.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Coordination occurs through the Massachusetts Low-Income Energy Affordability Network (LEAN), which was established by the lead agencies of the low-income weatherization and fuel assistance program network. LEAN works to standardize eligibility requirements, procedures, and standards to enable delivery of various programs through CAP agencies throughout the state. The ratepayer funded low-income programs (i.e., the Income Eligible Coordinated Delivery initiative within Mass Save) is administered in coordination with LEAN and implemented by local Community Action Program (“CAP”) Agencies. Revenue streams are leveraged with the Department of Housing and Community Development (“DHCD”) Weatherization Assistance Program (“WAP”) and the Heating Emergency Assistance Retrofit Task Weatherization Assistance program (“HEARTWAP”). This approach provides a seamless, integrated experience leveraging all applicable revenue streams for income eligible participants with no co-payments required from customers.

In 2019, Bay State Gas Company d/b/a Columbia Gas of Massachusetts (“CMA”) provided an enhanced weatherization offering to support the homes and businesses impacted by the September 2018 natural gas explosion incidents in the Greater Lawrence portion of its service territory.  In conjunction with this enhanced offering, the Massachusetts Attorney General provided an additional $500,000 for low income homes.  Specifically, these funds were used to mitigate barriers (e.g. knob and tube wiring) that would otherwise prevent the installation of cost effective weatherization in low income homes.   

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

SB 438, approved in December 2016, carried forward the state’s 1% annual energy savings requirement for utilities. The bill does not specify a minimum required level of spending or savings for low-income energy efficiency programs, other than to direct that distribution customers’ funding responsibilities for low-income residential programs be proportionate to the distribution customers’ funding of the total energy waste reduction program: “The established funding level for low-income residential programs shall be provided from each customer rate class in proportion to that customer rate class’s funding” of total energy efficiency programs.

Through a contested case process, utilities which are eligible to receive an incentive payment based on performance, have low income program goals.  Some are based on lifetime savings and some are based on increased spending.  DTE Energy and Consumers Energy also have a separate metric that assesses additional multi-family housing upgrades.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Sec. 71 (4)(g) of SB 438 appears to exempt low-income programs from demonstrating cost-effectiveness. To demonstrate that the provider’s energy waste reduction programs, excluding program offerings to low-income residential customers, will collectively be cost effective, SB 438 states: “An energy waste reduction plan shall…demonstrate that the provider’s energy waste reduction programs, excluding program offerings to low-income residential customers, will collectively be cost-effective.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Bureau of Community Action and Economic Opportunity (BCAEO) within the Michigan Department of Health and Human Services (DHHS) is responsible for administration of the federal Weatherization Assistance Program (WAP) for the state and for overseeing activities of Michigan Community Action Agencies (CAAs). The CAAs, utilities, and other agencies coordinate at the local level with utility EO programs directly supplementing WAP to streamline efforts and leverage available funding.

MPSC staff, stakeholders and the utilities reached a settlement on plan filings for programs beginning in 2018, which included additional incentive payment percentages based on increased low income programming. MPSC staff meet monthly with low income advocates including other state departments, advocacy groups, housing developers, and utilities to coordinate low-income energy-efficiency resources.

Michigan also distributes funds through the Michigan Energy Assistance Program, which are grants to non-profit organizations who assist the low income with bill payment. Many utilities coordinate their energy efficiency programs with these organizations to further assist low-income households with their home energy needs.

Last reviewed: August 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

To help ensure that low-income customers have the opportunity to participate in CIP, Minnesota Statutes §216B.241, subd. 7(a) establishes minimum low-income spending requirements for electric and natural gas utilities and associations. The Energy Conservation and Optimization Act (ECO) was signed into law during the 2021 legislative session. ECO contains many changes and updates to CIP, including more than doubling the low-income spending requirement for all IOUs. Beginning in 2022, the minimum low-income spending requirement for gas IOUs will be equal to 1% of three-year average residential GOR. The minimum low-income spending requirement for electric IOUs will be equal to 0.4% of three-year average residential GOR beginning in 2022; then, it will increase to 0.6% of residential GOR beginning in 2024. Source: “HF 164: Energy Conservation and Optimization Act of 2021.” May 25, 2021.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The rules for benefit-cost tests are stated in MN Statutes 261B.241 and Rule 7690.0550. The benefit-cost tests are required for portfolio, market segment, and at the program level. Due to their unique purpose and the spending requirement for low-income programs, the Department of Commerce has not required low-income programs to pass cost-effectiveness tests. Subd 7(e) of 216B.241 directs that “costs and benefits associated with any approved low-income gas or electric conservation improvement program that is not cost-effective when considering the costs and benefits to the utility may, at the discretion of the utility, be excluded from the calculation of net economic benefits for purposes of calculating the financial incentive to the utility. The energy and demand savings may, at the discretion of the utility, be applied toward the calculation of overall portfolio energy and demand savings for purposes of determining progress toward annual goals and in the financial incentive mechanism.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Minnesota Department of Commerce is responsible for administration of the federal Weatherization Assistance Program (WAP). The department’s Division of Energy Resources includes not only WAP but also the State Energy Program (SEP), Low Income Energy Assistance Program (LIHEAP), as well as the Conservation Improvement Program (CIP), a statewide program funded by ratepayers to help Minnesota households and businesses use electricity and natural gas more efficiency. Close proximity of these programs within the department allows for coordination of services for low-income households. The Department of Commerce Energy Assistance Program (EAP) offers a simple one-stop shop for applying to EAP, WAP, and CIP.

APPRISE Incorporated recently completed a State-commissioned three-year study on the Low Income CIP. One of the primary objectives was to assess the current performance of the utility LI CIP programs and identify opportunities for increasing the efficiency and effectiveness of those programs. Overall, the study found that the LI CIP is meeting or exceeding most of the statutory and regulatory requirements. The study also identified ways in which program performance could be enhanced through additional collaboration among the utilities to share program experiences, and between the Minnesota Department of Commerce and the utilities to consider the adoption of low-income program best practices.

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified, although most regulated utilities voluntarily offer low-income programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

While no legislation or regulations have been adopted to require a specific level of utility spending for low-income energy efficiency programs as reported by the PSC, the Commission has ordered a number of regulated utilities to include specified levels of funding for low-income weatherization programs in their rates. The Division of Energy requested this in cases to assure continuous funding levels rather than subjecting WAP funding to voluntary MEEIA programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Missouri specifies the total resource cost (TRC) test to be a primary test for cost effectiveness. The benefit-cost tests are required for portfolio and total program level screening, although state regulations for utilities allow for low-income programs to have a TRC ratio of less than one (4 CSR 240-20.094(2).

Section 393.1075.4 of Missouri Code also specifies that "programs targeted to low-income customers or general education campaigns do not need to meet a cost-effectiveness test, so long as the commission determines that the program or campaign is in the public interest.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Division of Energy administers the state Weatherization Assistance Program and also receives utility weatherization funds from four investor-owned utilities to administer consistent with US DOE WAP guidelines pursuant to PSC rate case orders. These funds are awarded by the Division of Energy to local weatherization agencies at the same time as state WAP funds and are subject to the same quality control and monitoring procedures. Local agencies use a combination of the utility and state WAP funds to maximize cost-effective savings.

The four utilities with weatherization funds administered by the Division of Energy are: Ameren Missouri Electric, Ameren Natural Gas, Laclede Gas, and Liberty Gas. For the remaining utilities that administer their own WAP funds/programs, the utilities have contracts with the affected local WAP agencies that are the Division of Energy’s subgrantees and administer the federal WAP funds.

Some community action agencies in the state are also working to implement Healthy Home Programs to complement low-income energy efficiency programs (CAASTLC). The Missouri Housing Development Commission implements a weatherization loan program per RSMo 215.062.

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

SB 150, passed in 2015, made changes to the state’s system benefit fund, increasing a public utility’s minimum funding level for low-income energy and weatherization assistance and clarifying that eligible projects can be located on tribal reservations. SB 150 increases a public utility’s minimum annual funding requirement for low-income energy and weatherization assistance from 17% to 50% of the public utility’s annual electric universal system benefits (USB) level. A cooperative utility’s minimum annual funding requirement for low-income energy assistance remains at 17% of its annual USB funding level.

Mont. Code 69-8-402 specifies that the initial funding level for USB programs is 2.4% of each utility’s annual retail sales revenue for the calendar year ending December 31, 1995.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Montana specifies the Total Resource Cost (TRC) to be its primary test for decision making. The benefit-cost tests are required for the individual measure level for program screening, but there are exceptions for low-income programs, pilots, and new technologies.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Low income energy assistance program (LIEAP) and a low-income weatherization program are run by the Department of Health and Human Services. Energy Share, a non-profit, receives funding from utility USB programs and also provides bill assistance and low-income weatherization. Energy Share and DPHHS work with Human Resource Development Councils (HRDC) to distribute funding. 

Last reviewed: August 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Utilities collaborate closely with local and regional community-action and state agencies as well as the Nebraska Energy Assistance Network (NEAN) to fund and coordinate low-income assistance including weatherization and billing assistance.

Last updated: July 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

In July 2001, Nevada passed AB 661, which created the Nevada Fund for Energy Assistance and Conservation (FEAC) through a universal energy charge (UEC) assessed on retail customers of the state’s regulated electric and gas utilities. Nevada’s Energy Assistance Code specifies the UEC is 3.30 mills per therm of natural gas and 0.39 mills per kWh of electricity purchased by these customers.

NRS 702.270 requires that 25% of the money in the FEAC must be distributed to the Nevada Housing Division for programs of energy conservation, weatherization, and energy efficiency for eligible households. The Housing Division may use not more than 6% of the money distributed to it, pursuant to this section, for its administrative expenses.

In June 2017, SB 150 was signed into law, which, in addition to directing the PUCN to establish annual energy savings goals for NV Energy, also requires utilities to set aside devote a minimum 5% of efficiency program expenditures to low-income customers..

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Nevada Housing Division for programs of energy conservation, weatherization, and energy efficiency for eligible households do not require a cost–benefit analysis. 2017 legislation established that low-income programs do not have to pass cost effectiveness screening as long as the portfolio of all DSM programs passes.

Also a non-energy benefits adder of 25% is applied to low-income programs. Regular programs receive a 10% adder. Depending on the percentage of low-income participation in a program, the non-energy benefits adder is adjusted using a weighted average formula. (See pg 143 of 2020 Combined Annual DSM Report in Docket No. 20-07004)

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Per Settlement Agreement, the Home Energy Assistance program's budget is 17 percent of the total plan budget. Any unused monies in the HEA program carry forward to the next year. In addition. RSA 374-F:3, VI-a (c), approved February 2022, provides "that no less than 20 percent of the portion of the [system benefit charge] funds collected for energy efficiency shall be expended on low-income energy efficiency programs." The 20 percent requirement is specific to the electric utilities.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In 2021, New Hampshire used the Granite State Test as its primary cost-effectiveness test and the Utility Cost Test and secondary Granite State Test as secondary tests.  For these tests, the non-energy benefits for the low-income program participants are included.  The Home Energy Assistance program includes a 20% adder for non-energy benefits.  The commission recognizes low-income benefits, and low-income programs that do not screen with benefit-cost ratios greater than 1.0 may still be approved if the programs are otherwise well designed. 

In 2022, HB549, approved February 2022, requires the use of the Granite State Test as the primary test, and the total resource cost test as the secondary test starting in 2022.  As a result of a NH study conducted, the low-income Home Energy Assistance Program adds non-energy benefit of $406/weatherization program. 

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Utilities continue to collaborate closely with the network of Community Action Agencies (CAAs) throughout the State, as well as the NH Department of Energy (formerly the NH Office of Strategic Initiative), which administers the U.S. Department of Energy Weatherization Assistance Programs, and other advocates serving the income-eligible population to ensure that most effective deployment of statewide resources for this population.  In addition, the NH Utilities are working one-on-one with CAAs to ensure that their weatherization contractors are fully equipped and qualified to meet the unique needs related to this housing stock, and that there is the sufficient capacity to meet program and customer efforts to deliver low-income programs are coordinated with Community Action Agencies.  Annual electric and MMBtu savings are revised to reflect current projects modeled by the CAAs.   In addition, training programs are conducted across the state of New Hampshire to increase the number of weatherization contractors.

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The State’s low-income energy efficiency program, New Jersey Comfort Partners, arose out of 1999 restructuring legislation that designated a systems benefit charge as the funding source for energy efficiency programs (EDECA). A low-income program is required as set forth in EDECA at N.J.S.A. 48:3-61. The NJBPU has approved a low-income energy efficiency program since 2001. There are no specific levels of required of spending, although each year the program budget does specify annual goals for number of customers served.

In 2021, NJ's Clean Energy Program (NJCEP) completed the transition of the administration of certain energy efficiency programs from NJCEP to the investor-owned utilities in accordance with the mandates from the Clean Energy Act of 2018. These new programs allow the utilities to work directly with customers to achieve energy savings. The EE transition framework has been designed to ensure that low- and moderate-income communities share the same level of access to the benefits associated with EE investments as wealthier communities do. Part of this includes the utilities and State continuing to co-manage the low-income program offerings through the Comfort Partners program. Utility residential programs also include enhanced incentives and features for low-income customers to access prescriptive EE incentives and products, as well as more favorable financing terms.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The NJBPU does not require that the Comfort Partners Program meet any cost-effectiveness tests. Implementation of a low-income energy efficiency program is required by N.J.S.A. 48:3-61 and does not require any cost-effectiveness tests. Comfor Partners conducts energy audits and implements all measures at the full cost plus measures required to address health and safety that are within the budget and seasonal spending guidelines.  If this level is not sufficient to implement the measures, the program can request additional approved spending. This process is set in the utilities' filing and approved priority list.

On August 2020, the NJBPU adopted the New Jersey Cost Test (NJCT) as the primary cost-effectiveness test for State and utility administered energy efficiency programs. The initial NJCT includes a 10% low-income benefits adder to account for the additional non-energy benefits to low-income program participants, such as improved health and safety. The newly adopted statewide evaluation structure puts in place a triennial review process to continually evaluate and update the NJCT to ensure that it is properly capturing low-income non-energy benefits. All non-energy benefits are currently being reviewed and proposed for the NJCT for the next triennium, with planned proposal of the next NJCT in early 2023 for adoption in the spring of 2023, which may include a New Jersey-specific measure of low-income benefits. 

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

In addition to opportunities through Comfort Partners, New Jersey’s Department of Community Affairs (NJDCA) administers the federally-funded Weatherization Assistance Program (WAP). The Office of Low-Income Energy Conservation (OLIEC) within the New Jersey Department of Community Affairs (DCA) is responsible for administration of the state’s Weatherization Assistance Program (WAP).The DCA established WAP to aid low-income households, with an emphasis on those who are high-energy users, have a high energy burden, are elderly or disabled, in order to decrease fuel consumption and related energy costs. The program is intended to reduce both the national energy consumption and the impact of higher fuel costs on low-income families. Funds are provided to facilitate several energy conservation measures, including but not limited to building shell, air-sealing, hot water conservation measures, attic, sidewall, and foundation insulation and electric base load measures.   

In order to expand access for low-income residents to energy efficiency opportunities, in 2018 the NJBPU and NJDCA approved a Memorandum of Understanding (MOU), to jointly deliver Comfort Partners and WAP services, in particular situations. The similar mission statements and target populations of the programs make the combination of efforts and resources a good fit for both programs and the MOU allows the NJ to more efficiently and comprehensively serve New Jersey’s residents and provide critical upgrades to residents. Through this MOU, NJBPU and NJDCA are able to coordinate the delivery of Comfort Partners and WAP services, streamline and increase customer access and are ultimately able to address concerns and provide weatherization in homes where otherwise the barriers to efficiency and weatherization were too great for one program to handle alone.

Through the Board's comprehensive June 2020 EE order, Utilities will also be required to provide non-competing low and moderate income energy efficiency programs. Additionally, the Board required staff to work with other state agencies to develop an integrated energy efficiency and health and comfort program and work to identify pathways to a "whole house" program and provide funding in the 5th quarter FY20 budget extension to design and establish this program. 

Last reviewed: June 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The state’s energy efficiency targets, first established in 2005 with the Efficient Use of Energy Act, were amended in 2013 with the passage of HB 267, and renewed and amended in 2019 with the passage of HB 291. The 2019 legislation calls for an 5% reduction of the 2020 energy consumption as a percent of sales during the period of 2021 through 2025.  The legislation calls on the Public Regulations Commission to adopt energy savings targets by June 30, 2025 for the years 2026 through 2030. The legislation also maintains that no less than 5% of the amount received by the public utility for program costs must be specifically directed to energy efficiency programs for low-income customers.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The utility cost test (UCT) is conducted in New Mexico and is considered to be the primary test for decision making and evaluating program cost effectiveness. HB 267 directs that “…In developing this test for energy efficiency and load management programs directed to low-income customers, the commission shall either quantify or assign a reasonable value to reductions in working capital, reduced collection costs, lower bad-debt expense, improved customer service effectiveness and other appropriate factors as utility system economic benefits.”

It was later codified in New Mexico Administrative Code that “in developing the utility cost test for energy efficiency and load management measures and programs directed to low-income customers, unless otherwise quantified in a commission proceeding, the public utility shall assume that 20% of the calculated energy savings is the reasonable value of reductions in working capital, reduced collection costs, lower bad-debt expense, improved customer service, effectiveness, and other appropriate factors qualifying as utility system economic benefits” [17.7.2.9 NMAC - Rp. 17.7.2.9 NMAC, 1-1-15].

Last reviewed: June 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The EmPower New York program, administered by the New York State Energy Research and Development Authority (NYSERDA) under an agreement with the New York Public Service Commission (PSC), offers no-cost energy services for households with incomes at or less than 60% of state median income.

January 2016 PSC Order authorizing the Clean Energy Fund Framework requires that NYSERDA “must invest at least $234.5 million of Market Development funds in Low-to-Moderate Income (LMI) initiatives over the initial three year period.” Market Development is one of four distinct portfolios supported by the Clean Energy Fund; the others include Innovation & Research, NY-Sun, and the NY Green Bank.

NYSERDA and the PSC have recommended advancing energy affordability by developing initiatives focused on energy solutions for Low and Moderate Income (LMI) consumers, and the PSC adopted an incremental funding minimum of 20% of additional investments to these sectors beginning in 2019.  Beginning in 2017, KeySpan Gas East Corporation (KEDLI) was required to implement an energy efficiency program for low income customers to replace the EmPower New York program (“EmPower Replacement Program”).  The program is available to customers who qualify for participation in KEDLI’s Residential Reduced Rate Low Income Program.  Consolidated Edison’s Multifamily Program provides its eligible low-income customers packaged measures including energy efficiency products and educational services.  Every customer who applies to the program may be able to qualify for one of two exclusive participation tracks: affordable housing track for buildings that receive designated low-income subsidies or Brooklyn Queens Demand Management (BQDM) Neighborhood track for buildings located within targeted Brooklyn-Queens neighborhoods, for which Con Edison is providing additional demand-side management resources.  PSC-authorized orders in December 2018 and January 2020 established annual utility-specific LMI program budgets and savings targets through 2025.

In December 2018, the PSC ordered the development of a Statewide LMI Portfolio, to include ratepayer funded initiatives administered by NYSERDA and the utilities.  The Order also required that a minimum of 20% of any additional energy efficiency investments through the utilities be directed to the LMI market segment.  In January 2020, the PSC authorized utility specific LMI budgets, totaling a minimum of $289 million through 2025. Combined with the NYSERDA ratepayer funded LMI budget, the LMI Portfolio will include at least $650 million of new investments in LMI energy efficiency through 2025. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The New York PSC has generally recognized and considered low-income specific benefits in deciding on funding for utility low-income programs. For example, in a 2010 Order, the commission approved a low-income program with a TRC ratio of 0.91, finding that “…As a general principle, all customers should have reasonable opportunities to participate in and benefit from EEPS programs. It is also important that supplemental funding be provided to address gas efficiency measures in this program.”

In assessing the utility filing or filings, the PSC employs a pragmatic standard of optimal reduction, with the paramount goals of achieving TBtu reduction and minimizing overall program costs. Consistent with current practice, benefit-cost analysis is applied to the portfolio as a whole. However, because of the sizable increase in LMI funding, the LMI portion of a portfolio may be removed from the portfolio BCA and considered separately.

Coordination of Low-Income and WAP Services

New York State Homes and Community Renewal is responsible for administering New York’s Weatherization Assistance Program. HCR works with the New York State Public Service Commission, NYSERDA, and other agencies to help ensure that needs of low-income clients are addressed through coordination of the WAP with other funds and programs where possible and to streamline delivery of all low-income programs available in the state.

NYSERDA also administers several efficiency programs that assist low-income households and provides additional opportunities for subgrantees to leverage WAP funding. The additional services provided through these programs include electric reduction measures such as energy-efficient appliance replacement, lighting replacement and retrofits, electric domestic water heater measures, cooling usage reduction, energy-efficient motor replacement and retrofit, and energy education activities. While changes to these programs are anticipated as a result of the Reforming the Energy Vision (REV) proceeding, New York is committed to providing additional support to mitigate the impact of changing energy markets on low-income households.

KeySpan Gas East Corporation (KEDLI) collaborates with PSEG Long Island to share referrals for income eligible rate payers.  KEDLI also provides referrals for services to such entities as Suffolk County and Nassau County DSS HEAP, Suffolk County and Nassau County DSS Heating Equipment Clean & Tune, Margert Community Corporation, Long Island Housing Partnership, Inc. Economic Opportunity Council of Suffolk, Inc., NYSERDA’s EmPower New York, Community Development Corporation of Long Island, Inc., and United Way of Long Island’s Project Warmth as appropriate.

New York State has convened a low-income energy task force, comprised of state agencies responsible for administering key low-income energy programs (NYSERDA, NYS Office of Temporary and Disability Assistance, NYS Department of Public Service, NYS Homes and Community Renewal).  The task force is directed to develop solutions for improving alignment and increasing impact of publicly funded low-income energy programs. 

NYSERDA and the DPS also administer the Low-Income Forum on Energy (LIFE), which provides an opportunity for stakeholders and service providers to engage and work to develop solutions for improving the delivery of service to income-eligible New Yorkers. 

Last reviewed: August 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

North Carolina Senate Bill 3 was finalized in 2008, introducing the state’s combined Renewable Energy and Energy Efficiency Portfolio Standard (REPS); however, the legislation does not address requirements for low-income programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs. The rules for benefit-cost tests are stated in SB 3—NC GA session law (SL 2007-397)Rule 8-68, and Rule 8-69. None mentions specific cost-effectiveness rules pursuant to low-income programs; however, low-income programs are generally not required to meet cost-effectiveness thresholds.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

There is limited coordination between utilities and local community service organizations and state agencies administering weatherization programs.

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific level of spending is required.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Ohio’s Restructuring Act, passed in July 1999, created the Universal Service Fund to control the cost of state’s Percentage of Income Payment Plan (PIPP) for low-income customers. Sec. 4928.55 of the legislation also directed the creation of the Electric Partnership Program (EPP) to target high-cost, high-volume PIPP or PIPP-eligible households. The EPP is designed to improve the electric efficiency of low-income households who participate in or are eligible for PIPP Plus. The program performs in-home audits and installs appropriate electric energy efficiency measures. About $15 million is set aside for the EPP each year. In addition to the EPP, most of Ohio’s gas utilities have weatherization programs, typically coordinated with the federal Weatherization Assistance Program.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Ohio uses the total resource cost (TRC) test and the utility cost test (UCT). Ohio specifies the TRC as its primary test for decision making. The benefit-cost tests are required for portfolio and customer project-level screening and are stated in Case No. 09-512-GE-UNC.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Ohio Development Services Agency (ODSA), Community Services Division, Office of Community Assistance (OCA) is responsible for administering LIHEAP, the Community Services Block Grant, the PIPP Plus Program, the State Energy Plan, and the EPP. In doing so, the HWAP network integrates federal weatherization funds with utility resources through a single coordinated funding model, managing programs for all seven major utilities.

Last updated: April 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Under OAC 165:35-41-4, all electric utilities under rate regulation of the Oklahoma Corporation Commission (OCC) must propose, at least once every three years, and be responsible for the administration and implementation of, a demand portfolio of energy efficiency and demand-response programs within their service territories. The regulations specify that demand portfolios address programs for low-income customers and hard-to-reach customers “to assure proportionate Demand Programs are deployed in these customer groups despite higher barriers to energy efficiency investments.”

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

OAC 165:35-41-4 directs that demand programs targeted to low-income or hard-to-reach customers may have lower threshold cost-effectiveness results than other efficiency programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Beginning in 2017 ONG combined the delivery of low income programs with both PSO and OGE.  Combining the gas and electric low income programs has enhance both the success and reach of these programs across the state.

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Legislation (Senate Bill 1149) requiring electric industry restructuring for the state’s largest investor-owned utilities was signed into law in July 1999. This was updated in 2021 through HB 3141, which increased annual expenditure by the utilities of 3% of their revenues to fund “Public Purposes,” including energy efficiency, development of new renewable energy, and low-income weatherization. Per the legislation, 13% of the public purpose charge would be allocated to low-income weatherization through the Energy Conservation Helping Oregonians (ECHO) program. HB 3141(2021) increased 

Last reviewed: July 2022

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The rules for benefit-cost tests are stated in Docket UM 551, Order 94-590, which lays out a number of situations where the PUC may make exceptions to the standard societal test calculation. Order 15-200, signed June 23, 2015, concerns Idaho Power Company’s request for cost-effective exceptions to its DSM programs. The commission adopted the recommendation of staff that cost-effectiveness requirements in Order 95-590 do not apply to low-income weatherization programs, such as the Weatherization Assistance for Qualified Customers Program (WAQC).

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Oregon Housing and Community Services Department (OHCS) is responsible for administering US DOE Weatherization Assistance Program funds. OHCS also administers other funds related to low-income weatherization, including LIHEAP, the Bonneville Power Administration (BPA) Low-Income Weatherization Program, the occasional Petroleum Violation Escrow Program (PVE) funds and SBC-funded Energy Conservation Helping Oregonians (ECHO) program, and any funds designated for low-income weatherization awarded to the state as a result of legal settlements.

Subgrantees also have access to funds from utility rebates and the State Home Oil Weatherization Program (SHOW). Utility rebates and SHOW funds are not administered by OHCS.

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

In June 2015, the Pennsylvania Public Utility Commission (PUC) issued an implementation order for Phase III of the Energy Efficiency and Conservation (EE&C) Program, setting five-year cumulative targets of 5.7 million MWh, equivalent to about 0.8% of incremental savings per year through 2021. The order also requires each utility to obtain a minimum of 5.5% of their total consumption reduction target from the low-income sector.

In addition, utilities coordinate Act 129 low-income energy efficiency programs with the Low-Income Usage Reduction Program (LIURP). LIURP is a statewide, utility-sponsored usage-reduction program mandated by the Electric and Gas Choice Competition Act at 66 Pa.C.S.A. 2803 for electric and 2202 for gas, as part of the Universal Service Programs required for those customers who are at or below 150% of the Federal Income Poverty Guidelines. Details are available in each years’ Universal Service Report on the PUC website

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In Order M-2015-2468992, the PUC specifies 2016 total resource cost test requirements. Pennsylvania relies on the total resource cost (TRC) test and considers it to be its primary cost-effectiveness test. A benefit-cost test is required for portfolio-level screening. The commission requires that the electric distribution companies provide benefit and cost data for both low-income and estimated non-low-income residential program savings in their annual reports and that TRC Tests be calculated for all low-income programs and all residential programs. However, the Commission does not require a separate PA TRC test calculation for the low-income sector, as separate PA TRC tests are not required for any other customer sector.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The PA Dept. of Community and Economic Development (DCED) has a Weatherization Policy Advisory Council, of which the PUC is a voting member. There is a Coordination Committee, formed in 2012, that is charged with the specific task of coordinating the WAP program with LIURP and the Act 129 Low-Income Programs. There is a 2016 MOU that was put into place between DCED and the PUC to facilitate data sharing between all the agencies’ weatherization programs, but this MOU has not been posted or made publicly available.

Last reviewed: June 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 requires utilities to acquire all cost-effective energy efficiency and establishes requirements for strategic long-term planning and purchasing of least-cost supply and demand resources, as well as three-year energy saving targets. In Docket No. 4580, National Grid’s Energy Efficiency Program Plan for 2016, funding for residential income eligible programs is set at 13.2% of total implementation funding for the electric programs and 20% for natural gas customers. These levels were adjusted to 13% and 21%, respectively, for 2017 in Docket No. 4654.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Docket No. 4443 outlines incremental electricity savings goals for 2015-2017 and notes that the Energy Efficiency Resource Management Council recommended including resource impacts and non-energy benefits in the TRC test analysis, but only to specific programs or technologies such as income-eligible programs or combined heat and power. Although Rhode Island General Laws require the consideration of non-energy benefits (NEBs) in the development of combined heat and power, there does not appear to be a similar provision in the General Laws for income-eligible programs. In the absence of non-energy impact evaluations of Rhode Island programs, the state has relied on Massachusetts’ benefit valuation work, as they have similar program types.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Rhode Island Department of Human Services (DHS), Division of Community Services is responsible for administration of the state’s WAP and LIHEAP programs. CLEAResult, which since 2013 has operated as the lead vendor for National Grid’s Income Eligible Services (IES) program, works collaboratively with DHS to deliver weatherization services to eligible Rhode Islanders. Although DOE funds and utility funds are not directly blended on DOE weatherization jobs, the relationship is beneficial to both parties by enabling sharing of energy efficiency knowledge and program expertise.

As an example, CLEAResult and DHS have formed a Weatherization Technical Committee (WTC), which meets on alternating months and is comprised of a technical representative from each CAP agency (i.e. an experienced energy auditor), the CLEAResult QA Manager, and the three state monitors to discuss best practices and develop policy on weatherization matters of a technical nature. DHS and CLEAResult have also worked collaboratively on the development of a RI WAP/IES Operations Manual, which will incorporate all applicable elements of WPN 15-4.

Last updated: July 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The South Carolina Energy Efficiency Act and resultant statute (Section 48-52-210) direct the state agencies to establish comprehensive energy efficiency plans and “… ensure that basic energy needs of all citizens, including low-income citizens, are met.” No minimum requirements for low-income energy efficiency spending or savings are specified.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Dominion Energy of South Carolina, Duke Energy Carolinas, and Duke Energy Progress all include regulatory cost-recovery mechanisms that would function in the case of future low-income programs that do not pass cost-effectiveness tests.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

In South Carolina, Dominion,  Duke Energy Carolinas, and Duke Energy Progress and Piedmont Natural Gas all provide assistance with paying light bills for eligible individuals and families through a program called Project SHARE. Utility companies partner with the state and local Community Action Agencies to provide funding for projects and structural improvements. SCE&G and Duke Power have recently worked with local Community Action Agencies to provide 200 Community Solar opportunities, free of charge, to clients eligible for Weatherization services. (Source)

Electric cooperatives in SC also offer EE assistance to low-income households through a variety of programs, such as Help My House, which offers services such as  sealing and insulating homes and duct work, installing vapor barriers, replacing electric furnaces with heat pumps, repairing or replacing older heat pumps, and others. Customers receive below-market interest rates on loans (with no credit checks) to make these upgrades and repay the loans via their utility bills.

Last updated: June 2020

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

According to the Tennessee Valley Authority (TVA), the benefit-cost tests are required for overall portfolio and total program-level screening. The rules for benefit-cost tests are not specified. Some exceptions of flexibility exist in the application like low-income programs, pilots, and new technologies.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

As amended by SB 1434 in June 2011, Substantive Rule § 25.181 states “…each utility shall ensure that annual expenditures for the targeted low-income energy efficiency program are not less than 10% of the utility’s energy efficiency budget for the program year.”

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In an Order adopted September 28, 2012, the commission directed that low-income programs would not be required to meet the cost-effectiveness standard in Substantive Rule § 25.181 but rather would only need to meet standards required by the Savings-to-Investment ratio (SIR) methodology. All measures with a SIR of 1.0 or greater qualifies for installation. The SIR is the ratio of the present value of a customer’s estimated lifetime electricity cost savings from energy efficiency measures to the present value of the installation costs, inclusive of any incidental repairs, of those energy efficiency measures.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Utility low-income programs are administered separately from WAP programs.

Last updated: July 2017

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Utah has no specific required spending or savings requirements for low-income energy efficiency programs. 

Rocky Mountain Power provides low-income weatherization services to income-eligible households through a partnership with the Utah Department of Workforce Services, Housing and Community Development Division (HCD). HCD receives federal funds and subcontracts with seven non-profit agencies that install energy efficiency measures in the homes of income-eligible households throughout Rocky Mountain Power's service area. Rocky Mountain Power's funding of 50% of the cost of approved measures is leveraged by HCD with the federal funding they receive, allowing more homes to be served each year. Services are at no cost to the program participants.

Dominion annually provides $500,000 of low-income ratepayer-funded assistance delivered through a partnership with the Utah Department of Workforce Services, Housing and Community Development Division. It is targeted at replacing inefficient furnaces for income-qualified households. In addition, an approved non-profit or governmental organization may apply for rebates under the ThermWise Appliance and Weatherization programs for qualifying measures listed in § 2.10 and §2.14 of the Tariff.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The rules for benefit-cost tests are stated in Docket No. 09-035-27. Utah uses the total resource cost (TRC) test, utility cost test (UCT), participant cost test (PCT), and ratepayer impact measure (RIM). Approval of individual DSM programs or portfolios of programs should be based on an overall determination that the program or portfolio is in the public interest after consideration of all five tests and the passage of the threshold test, the UCT. In addition, Utah also utilizes the PacifiCorp TRC (PTRC) test, which follows the Northwest convention of adding 10% to the avoided costs to account for unquantified environmental and transmission and distribution impacts.

Dominion follows the California Standard Practice Manual. Questar Gas Company's requirements are identified in Docket No. 05-057-T01 (Questar was the gas utility name prior to merger with Dominion Energy). 

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Utah Division of Housing and Community Development administers the state's Weatherization Assistance Program (WAP). Participating households average nearly 33% in savings, or approximately $285 per year, after the completion of weatherization improvements. To apply for weatherization assistance, individuals must submit their application to the agency that services the county in which they reside. Benefits are provided in the form of noncash grants to eligible households to make energy-efficiency improvements to those homes.

The HCD administers the program statewide through eight government and nonprofit agencies. Benefits are provided in the form of noncash grants to eligible households to make energy-efficiency improvements to those homes. Those agencies are: Bear River Association of Governments, Salt Lake Community Action Program, Housing Authority of Utah County, Six County Association of Governments, Five County Association of Governments, Uintah Basin Association of Governments, and Southeastern Utah Association of Local Governments, all of which qualify as approved non-profit or governmental organizations (HCD implementation agencies).

Last reviewed: July 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Efficiency Vermont (EVT), the state’s energy efficiency utility established in 1999, is funded through a systems benefits charge on all utility customers’ bills. Vermont requires that EVT achieve a minimum level of low-income services spending (for the 2018-2020 period the requirement is $11 million). Most of the costs of the electric efficiency measures implemented by EVT and the community-based weatherization agencies are paid for by EVT, with any remaining balances covered by the federal Weatherization Assistance Program (WAP).

Other funding for WAP comes from the state’s Weatherization Trust Fund, which was created in 1990 through legislative enactment of a gross-receipts tax of 0.5% on all non-transportation fuels sold in the state. 

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Vermont specifies the Social Cost Test to be its primary test for decision making. A 15% adjustment is applied to the cost-effectiveness screening tool for low-income customer programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Vermont Office of Economic Opportunity (OEO) administers the Vermont Home Weatherization Assistance Program (HWAP), which includes both state and federal funds. OEO monitors and provides training and technical assistance to five non‐profit community Weatherization Assistance Programs. Efficiency Vermont supplements the state weatherization program with add-on measures beyond what would otherwise be included in the state- and federally-funded WAP. These measures include ENERGY STAR-qualified refrigerators, ENERGY STAR-qualified clothes washers, lighting, ventilation fans, and smart power strips. Efficiency Vermont continually assesses potential new measures to include in the scope of the add-on program and has updated its offerings to include heat pump water heaters, dehumidifiers, and mini-split heat pumps. Community Action Program agencies offer these measures as a part of the same program delivery as the state weatherization program, so customers must interact with only one program.

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The Virginia General Assembly passed Senate Bill 1349 in 2015, requiring utility pilot programs for energy assistance and weatherization for low-income, elderly, and disabled households. Governor Terry McAuliffe further strengthened this legislation through the issuance of Executive Directive 3 with additional implementing instructions. The 2018 Grid Modernization and Security Act (SB966) went further to require that at least 5% of energy efficiency programs benefit low-income, elderly, and disabled individuals.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The rules for benefit-cost tests are stated in 20 VAC 5-304-10, but they do not address low-income programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: October 2018

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified. SB 5116 Sec 12(4), passed in 2019, requires utilities to submit a plan to reach 60% of the current energy assistance need by 2030, and 90% of the current energy assistance need by 2050. Energy assistance by statutory definition can include conservation.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Washington specifies the total resource cost (TRC) test to be its primary test for decision making. The benefit-cost tests are required for overall portfolio and program-level screening. Per WAC 480-109-100, low-income weatherization is not included in the portfolio or sector-level cost effectiveness analysis. Companies may implement low-income programs that have a TRC ratio of 0.67 or above. The rules for benefit-cost tests are directed by the Energy Independence Act of 2006, codified in Chapter 194-37 WAC, which specifies that the TRC test include all non-energy impacts that a resource or measure may provide that can be quantified and monetized. Washington also applies an additional 10% benefit, consistent with the Northwest Power Act.

WAC 480-109-100(10)(a) allows utilities to fully fund low-income conservation measures that are determined to be cost-effective consistent with the procedures in the Weatherization Manual, as well as associated repairs, administrative costs, and health and safety improvements. However, in Docket UE-131723, signed March 12, 2015, the commission revised the rule language to allow, rather than require, utilities to pursue low-income conservation that is cost-effective consistent with the procedures of the Weatherization Manual. “In recognition that low-income conservation programs have significant non-energy benefits, we find it appropriate for utilities to maintain robust low-income conservation offerings despite the unique barriers these programs face.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Washington State is investing $15 million from 2015 to 2017 to provide weatherization in all counties of the state through its Matchmaker program, which matches state dollars with utility and other programs’ investments in weatherization. This biennium $4.3 million is being reserved in Matchmaker for the new Weatherization Plus Health initiative, which combines energy- and cost-saving weatherization improvements in low-income homes with measures that reduce health risks and health costs for vulnerable families. It is targeted to improve the home environments for children and adults with asthma.

In addition, the state applies over $70,000 of DOE WAP funding toward cosponsoring the Energy Project with the Washington State Community Action Partnership (WSCAP). The Energy Project serves the entire Washington weatherization network and has served as a model leveraging project for other states. The Opportunity Council in Bellingham serves as the administrative agent under an agreement with the WSCAP. Over the 23 years of its operation, the Energy Project’s activities have resulted in approximately $188 million of additional funding for low-income households. The Energy Project works to advocate for energy program funding and program designs that help low-income households by providing technical assistance to local agencies, negotiating programs with local utilities in coordination with the affected agencies, educating decision makers, evaluating and reporting progress, and researching new approaches and best practices for providing service.

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Cost Effectiveness tests are not currently applied to low income Programs.  WV Case 19-0396 is currently pending.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

WV WAP operates the Energy Crisis Intervention Program (ECIP) which provides emergency heat repair and replacement, and works with utility companies throughout the state to provide services to reduce consumers’ energy burden..

Last reviewed: July 2019

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Focus is required by statute and administrative code to ensure it provides participation opportunities to all customers who pay in on their rates. While this requirement doesn't specifically mention low-income customers, those customers do pay into the program and in practice the general requirement has been interpreted to require the provision of programs for low-income residential customers. Further code support for serving low-income customers is provided by the fact that administrative code requires Focus to pass a portfolio-level cost-effectiveness test (with res and nonres portfolios). Again, while it does not specifically mention low-income, one of the established reasons for setting portfolio-level testing rather than program- or measure-level testing is specifically to ensure that low-income programs can be operated even if it is more difficult for them to reach program-level cost-effectiveness.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The rules for benefit-cost tests are stated in Commission Order Docket 5-FE-101, Ref #: 343909, final decision dated June 6, 2018. Although no specific adjustments or exceptions to general cost-effectiveness rules are mentioned for low-income programs. Wisconsin uses a modified total resource cost (TRC) test that includes the value of emissions avoided through the program, including carbon dioxide, sulfur oxides, and nitrogen oxides. In addition, the commission also makes use of the TRC test, utility cost test (UCT), ratepayer impact measure (RIM), expanded TRC, and societal test. The Commission is also deciding on Quad IV goals and program objectives and will make final decisions in the fall of 2022. (Docket 5-FE-104

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Wisconsin Department of Administration (DOA), Division of Energy, Housing, and Community Resources (DEHCR) administers Home Energy Plus (HE+) through a network of county agencies, tribal governments, community-based organizations, and housing authorities. HE+ includes the Wisconsin Home Energy Assistance Program (WHEAP), Home Energy Plus Furnace Program, and the Weatherization Assistance Program (WAP). Wisconsin’s WAP is funded with a combination of state and federal funds, including US Department of Energy (DOE), Low Income Home Energy Assistance Program (LIHEAP or EAP), and state Public Benefits (PB) funding. HE+ and DOA work with Focus on Energy staff to coordinate delivery and support Focus' own services to low-income customers.  For example, the parties meet regularly to share information, and Focus sometimes takes leads on customers who are on a waiting list for HE+ services.

Wisconsin’s management of federal, state, and utility funding is unique in that Wisc. Stat. §16.957 directs agencies to aggregate all funding streams into a single public benefit fund to coordinate distribution of assistance.

Last reviewed: June 2022

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific required spending or savings requirements were identified.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Wyoming specifies the TRC test to be its primary test for decision making. The benefit-cost tests are required for overall portfolio level screening. The rules for benefit-cost tests are not specified.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017