Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit
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Transcript of Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit
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Energy Poverty and Household Wellbeing
Atlantic City Electric / Delmarva Power Agency SummitOctober 5, 2005
Donnell ButlerDavid Carroll
Carrie-Ann Ferraro
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Organization of Presentation
• Introduction – 5 minutes
• State Analysis – 20 minutes
• Metropolitan Area Discussion – 5 minutes
• Local Area Analysis – 10 minutes
• Indicators of Wellbeing – 10 minutes
• Conclusion – 5 minutes
• Questions / Feedback – 5 minutes
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Purpose of the Presentation
• Furnish information about the energy needs of low-income households in DE, NJ, MD, and VA to policymakers and program managers
• Explore the linkages among energy poverty and household wellbeing
• Demonstrate how existing data sources can be used to obtain useful information for policy formulation and program design
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State Level Analysis
Methodology
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State Information Needs
• Policymakers and program managers need:– State-level cross-sectional data to understand
current status for households in the state– State-level longitudinal data to understand trends
for households in the state– National-level data to understand how those
state-level energy needs compare to households nationwide
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State-Level Data Sources • 2000 Census Public-Use Microdata (PUMS)
– Data available includes:• Household Demographics: income and poverty level,
presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation
• Housing Unit Characteristics: age of unit, unit type, home ownership
• Energy Data: Main heating fuel, energy expenditures
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State-Level Data Sources• 2002-2004 Current Population Survey, Annual Social and
Economic Supplement (ASEC)
– Statistical variances are too large for a single ASEC annual file to allow for a useful analysis for a single state.
– Three-year average of 2002, 2003, and 2004 data used to estimate the FY 2003 LIHEAP eligible population
– Data available includes:• Household Demographics: income and poverty level, presence of
vulnerable members, race and ethnicity, household composition, employment, income program participation
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Definitions
• LIHEAP Eligible/Low Income – Each state can set their own household income cutoff between 110% of the poverty level and the greater of 150% of the poverty level or 60% of state median income
• Delaware – 200% of HHS Poverty Guidelines• New Jersey – 175% of HHS Poverty Guidelines• Maryland – 150% of HHS Poverty Guidelines• Virginia – 130% of HHS Poverty Guidelines
Source: LIHEAP Clearinghouse State Fact Sheets
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Definitions
• Energy Burden – Direct energy expenditures as a share of gross money income
• Energy Gap – Difference between client energy burden and any target burden
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Limitations
• Maximum Income Standard – Federal maximum income standard covers at least 50% more households
• Renters – About 15% of households pay for part or all of their energy through their rental payments
• Update – Information not updated for recent increases in energy prices and poverty
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State Level Analysis
Findings
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Number of Households
Percent of All DE Households
LIHEAP Eligible Households, 2000 63,4581 21.3%
LIHEAP Eligible Households, 2003 68,7052 21.8%
Delaware LIHEAP Eligible Households (2000 and 2003)
1 Source: 2000 Decennial Census PUMS 5 Percent Sample.2 Source: Three-year Average of the CPS ASEC 2002-2004.
Delaware LIHEAP Eligible Population
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Number of Households
Percent of All MD
Households
LIHEAP Eligible Households, 2000 253,3021 12.8%
LIHEAP Eligible Households, 2003 294,9262 14.1%
Maryland LIHEAP Eligible Households (2000 and 2003)
1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2 Source: Three-year Average of the CPS ASEC 2002-2004.
Maryland LIHEAP Eligible Population
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Number of Households
Percent of All NJ
Households
LIHEAP Eligible Households, 2000 502,5741 16.4%
LIHEAP Eligible Households, 2003 646,1922 20.0%
New Jersey LIHEAP Eligible Households (2000 and 2003)
1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2 Source: Three-year Average of the CPS ASEC 2002-2004.
New Jersey LIHEAP Eligible Population
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Number of Households
Percent of All VA
Households
LIHEAP Eligible Households, 2000 343,1531 12.7%
LIHEAP Eligible Households, 2003 364,9852 13.0%
Virginia LIHEAP Eligible Households (2000 and 2003)
1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2 Source: Three-year Average of the CPS ASEC 2002-2004.
Virginia LIHEAP Eligible Population
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Number in DE
Number in MD
Number in NJ
Number in VA
LIHEAP Eligible Households1 68,705 294,926 646,192 364,985
LIHEAP Recipient Households 2 13,277 80,608 154,645 97,778
Recipients as Percentage of Eligible Households
19.3% 27.3% 23.9% 26.8%
State LIHEAP Eligible and Recipient Households (2003)
1 Source: Three-year Average of the CPS ASEC 2002-2004. 2 Source: LIHEAP Household Reports FY 2004 (Heating).
State LIHEAP Recipient Population
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Energy Burden
• Percent of total household income spent on total residential energy.
• At the national level, the median residential energy burden was 3 percent for all households and 10 percent for all low-income households in 2003.
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Delaware LIHEAP Eligible Energy Burden
8%
18%
26%
19%
8%
5%
17%
0% 5% 10% 15% 20% 25% 30%
No Separate Energy Bill
Less than 5%
5 - <10%
10 - <15%
15 - <20%
20 - <25%
25% or greater
Energy Burden for Delaware LIHEAP Eligible Households (1999)
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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Maryland LIHEAP Eligible Energy Burden
17%
13%
18%
15%
9%
5%
22%
0% 5% 10% 15% 20% 25%
No Separate Energy Bill
Less than 5%
5 - <10%
10 - <15%
15 - <20%
20 - <25%
25% or greater
Energy Burden for Maryland LIHEAP Eligible Households (1999)
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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New Jersey LIHEAP Eligible Energy Burden
14%
19%
20%
15%
8%
5%
20%
0% 5% 10% 15% 20% 25%
No Separate Energy Bill
Less than 5%
5 - <10%
10 - <15%
15 - <20%
20 - <25%
25% or greater
Energy Burden for New Jersey LIHEAP Eligible Households (1999)
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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Virginia LIHEAP Eligible Energy Burden
11%
10%
19%
17%
12%
7%
24%
0% 5% 10% 15% 20% 25% 30%
No Separate Energy Bill
Less than 5%
5 - <10%
10 - <15%
15 - <20%
20 - <25%
25% or greater
Energy Burden for Virginia LIHEAP Eligible Households (1999)
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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Energy Gap
• The dollar amount needed to reduce a customer’s energy burden to an amount equal to a specified energy burden percentage.
• At the national level, about $4.9 billion dollars in energy assistance would have been needed to ensure that no low-income household spent more than 15% of income on residential energy in 2003. The amount required to reduce residential energy bills to 25% of income was $2.7 billion.
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Delaware LIHEAP Eligible Energy GapEnergy Gap for Delaware LIHEAP Eligible Households (1999)
Number of Households
Energy Gap(in Millions)
Households with Energy Burdens Greater than 5%
47,740 $ 52 M
Households with Energy Burdens Greater than 10%
31,103 $ 29 M
Households with Energy Burdens Greater than 25%
11,286 $ 10 M
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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Maryland LIHEAP Eligible Energy GapEnergy Gap for Maryland LIHEAP Eligible Households (1999)
Number of Households
Energy Gap(in Millions)
Households with Energy Burdens Greater than 5%
181,687 $ 199 M
Households with Energy Burdens Greater than 10%
136,109 $ 131 M
Households with Energy Burdens Greater than 25%
62,935 $ 60 M
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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New Jersey LIHEAP Eligible Energy GapEnergy Gap for New Jersey LIHEAP Eligible Households (1999)
Number of Households
Energy Gap(in Millions)
Households with Energy Burdens Greater than 5%
345,296 $ 406 M
Households with Energy Burdens Greater than 10%
247,843 $ 257 M
Households with Energy Burdens Greater than 25%
109,890 $ 110 M
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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Virginia LIHEAP Eligible Energy GapEnergy Gap for Virginia LIHEAP Eligible Households (1999)
Number of Households
Energy Gap(in Millions)
Households with Energy Burdens Greater than 5%
274,578 $ 278 M
Households with Energy Burdens Greater than 10%
208,273 $ 184 M
Households with Energy Burdens Greater than 25%
89,216 $ 81 M
Source: 2000 Decennial Census PUMS 5 Percent Sample.
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DelawareEnergy Assistance
Energy Gap(in Millions) 1
FY ’04LIHEAPBenefits 2
FY ’04SupplementResources 3
Shortfall
Households with Energy Burdens Greater than 5%
$ 52 M $ 5 M $ 1 M $ 46 M
Households with Energy Burdens Greater than 10%
$ 29 M $ 5 M $ 1 M $ 23 M
Households with Energy Burdens Greater than 25%
$ 10 M $ 5 M $ 1 M $ 4 M
1 2000 Decennial Census PUMS 5 Percent Sample.2 FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm
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MarylandEnergy Assistance
Energy Gap(in Millions) 1
FY ’04LIHEAPBenefits 2
FY ’04SupplementResources 3
Shortfall
Households with Energy Burdens Greater than 5%
$ 199 M $ 30 M $ 48 M $ 121 M
Households with Energy Burdens Greater than 10%
$ 131 M $ 30 M $ 48 M $ 54 M
Households with Energy Burdens Greater than 25%
$ 60 M $ 30 M $ 48 M ($ 17) M
1 2000 Decennial Census PUMS 5 Percent Sample.2 FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm
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New JerseyEnergy Assistance
Energy Gap(in Millions) 1
FY ’04LIHEAPBenefits 2
FY ’04SupplementResources 3
Shortfall
Households with Energy Burdens Greater than 5%
$ 406 M $ 72 M $ 175 M $ 159 M
Households with Energy Burdens Greater than 10%
$ 257 M $ 72 M $ 175 M $ 9 M
Households with Energy Burdens Greater than 25%
$ 110 M $ 72 M $ 175 M ($ 137) M
1 2000 Decennial Census PUMS 5 Percent Sample.2 FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm
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VirginiaEnergy Assistance
Energy Gap(in Millions) 1
FY ’04LIHEAPBenefits 2
FY ’04SupplementResources 3
Shortfall
Households with Energy Burdens Greater than 5%
$ 278 M $ 36 M $ 2 M $ 239 M
Households with Energy Burdens Greater than 10%
$ 184 M $ 36 M $ 2 M $ 145 M
Households with Energy Burdens Greater than 25%
$ 81 M $ 36 M $ 2 M $ 42 M
1 2000 Decennial Census PUMS 5 Percent Sample.2 FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm
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• Across all states– Increases in LIHEAP eligible population– LIHEAP participation rate below 28% of eligible
population– Approximately half of LIHEAP eligible have energy
burdens greater than 10 percent.– Combination of federal and state-level funds not
enough to ensure that no LIHEAP eligible household spends more than 10% of income on energy.
State LIHEAP EligibleSummary of Findings
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Metropolitan Area Discussion
Methodology
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Metropolitan Area Information Needs
• Metropolitan area policymakers & program managers need:
– Information related to demographic characteristics and energy needs of low-income households
– Information on the relationship between energy needs and other low-income needs, including housing, to promote the integration of programs aimed at assisting low-income households
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Data Sources for Metro Area Analysis • American Housing Survey (AHS) Metropolitan Area
Samples– Metropolitan Area Samples have sufficient numbers of
LIHEAP eligible records – Estimates are not available at the state level from the national
AHS sample– Several Metropolitan Areas are surveyed each year on a
rotating basis• Local MSAs: Baltimore, MD (1998), Norfolk-Virginia Beach-
Newport News, VA-NC (1998), Northern NJ PMSAs (2003), Philadelphia, PA-NJ PMSA (2003), Washington, DC-MD-VA MSA (1998)
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• American Housing Survey (AHS), Metropolitan Area Samples (continued)
– Data available includes:• Household Demographics: income and poverty level,
presence of vulnerable members, race and ethnicity, household composition,
• Energy Data: Main heating fuel, energy expenditures, heating and cooling equipment
• Housing Unit Characteristics: unit type, home ownership, housing adequacy, housing costs
Data Sources for Metro Area Analysis
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Neighborhood Level Analysis
Methodology
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Neighborhood Information Needs
• Local program managers need local-level information about the population in their communities in order to:– Effectively implement programs
– Target outreach initiatives
– Improve integration of energy assistance programs with other programs designed to assist low-income households
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Neighborhood Data Sources
• 2000 Census Summary File 3 (SF3)– Data available includes:
• Household Demographics: income level, age of householder, race and ethnicity, languages spoken, household composition, income program participation
• Housing Unit Characteristics: age of unit, unit type, home ownership
• Energy Data: Main heating fuel
– Data is limited to entire population; does not offer estimates of LIHEAP eligible population
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Neighborhood Data Sources
• 2000 Census Special Tabulations– Estimates of the LIHEAP eligible population can be obtained
from the Census Bureau for small areas, including Census Blocks, Block Groups, and Tracts
– Data available includes:• Household Demographics: income and poverty level,
presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation
• Housing Unit Characteristics: age of unit, unit type, home ownership
• Energy Data: Main heating fuel, energy expenditures
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Neighborhood Level Analysis
Findings
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Wilmington DE Map
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Eastside Neighborhood Map
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EastsidePoverty Level
17%
45%
38%35%
22%
34%
0%
10%
20%
30%
40%
50%
Below 100% 100% - 199%
Tract 9
Tract 17
Tract 20
Poverty Level of Eastside in Wilmington, DE Households (1999)
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EastsideHousing Tenure
41%
20%
6%
59%
80%
94%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Owner Renter
Tract 9
Tract 17
Tract 20
Housing Tenure: Eastside in Wilmington, DE Households (2000)
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EastsideNumber of Units in Structure
81%
44%
34%
12%
5%
13%
6%
51% 52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Single Family Homes 2 - 4 Units 5-or-more Units
Tract 9
Tract 17
Tract 20
Number of Units in Structure: Eastside in Wilmington, DE Households (1999)
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EastsideYear Structure Built
11%
17%
36%
8%
51%
28%
41%
15%
24%
40%
17%
12%
0%
10%
20%
30%
40%
50%
60%
1980-2000 1960-1979 1940-1959 Pre 1940
Tract 9
Tract 17
Tract 20
Year Structure Was Built: Eastside in Wilmington, DE Households (1999)
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EastsideHousehold Size
24%
55%
7%
25%
18%
41%
22%
8%
20%
29%
18%
32%
0%
10%
20%
30%
40%
50%
60%
1-person 2-person 3-person 4-or-more-person
Tract 9
Tract 17
Tract 20
Household Size: Eastside in Wilmington, DE Households (2000)
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EastsideHome Heating Fuel
55%
44%
26%
2% 4% 5%
21%
34%
67%
22%
17%
3%
0%
10%
20%
30%
40%
50%
60%
70%
Natural Gas Bottled Gas Electricity Fuel Oil
Tract 9
Tract 17
Tract 20
Home Heating Fuels Used: Eastside in Wilmington, DE Households (1999)
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• Below 200% of Poverty: North – 52%, Central – 67%, South – 72%
• Renters: N – 59%, C – 80%, S – 94%• Large Multi-unit Structures: N – 6%, C – 51%, S – 52%• Built Prior to 1960: N – 81%, C – 32%, S – 36%• 4+ person Households: N – 29%, C – 18%, S – 32%• Electric Home Heating: N – 21%, C – 34%, S – 67%
EastsideLIHEAP Eligible Summary of Findings
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Indicators of Wellbeing Analysis
Methodology
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Indicators of Wellbeing Data Sources• Effects of Energy Poverty on Housing and Household
Wellbeing
• 2003 and 2005 National Energy Assistance Survey of LIHEAP Recipients:– Sponsored by NEADA
– Survey instrument is publicly available
– Interviewed a nationally representative sample of over 2,000 LIHEAP-recipient households from 20 states, including Delaware
– Documented the choices that LIHEAP-recipient households make when faced with unaffordable home energy bills
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Limitations
• Survey Response Challenges:– Relying on Respondent Memory– Response bias (e.g., prideful responses) – Inability to control response situation
• Population– Having received benefits, LIHEAP recipients
might be better off than LIHEAP eligible
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Indicators of Wellbeing Analysis
Findings
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Indicators of Wellbeing Housing Problems
Source: 2003 National Energy Assistance Survey.
Housing Problems Experienced by DE LIHEAP Recipient Households (2003, 2005)
40% 49%
7%2%
11%
5% 3%2%
0%
10%
20%
30%
40%
50%
Didn't MakeFull Rent orMortgagePayment
Evicted fromHome or
Apartment
Moved in withFriends or
Family
Moved intoShelter or Been
Homeless
2003
2005
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Indicators of Wellbeing Housing Wellbeing
Source: 2003 National Energy Assistance Survey.
26%27%
39%
50%
36%39%
18%
29%
0%
10%
20%
30%
40%
50%
60%
Went withoutfood for at least
one day
Went withoutmedical ordental care
Didn't fillprescription ortook less than a
full dose
Unable to payenergy bill due
to medicalexpenses
2003
2005
Sacrifices to Wellbeing Experienced by DE LIHEAP Recipient Households (2003, 2005)
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Indicators of Wellbeing Effects on Health
Source: 2003 National Energy Assistance Survey.
20%
31%
14%
25%
9%
13%
7%
12%
0%
10%
20%
30%
40%
Became sickbecause homewas too cold
Needed to goto a doctor or
hospitalbecause homewas too cold
Became sickbecause homewas too hot
Needed to goto a doctor or
hospitalbecause homewas too hot
2003
2005
Health Problems Experienced by DE LIHEAP Recipient Households (2003, 2005)
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Indicators of Wellbeing Summary of Findings
•In the last five years, due to their energy bills:
–40% of DE respondents in 2003 and 49% in 2005 reported that they missed a rent or mortgage payment
–27% of DE respondents in 2005 reported that they went without food for at least one day
– 39% of DE respondents in 2003 and 50% in 2005 reported that they went without medical or dental care
–20% of DE respondents in 2003 and 31% in 2005 reported that they became sick because their home was too cold
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• Using existing data sources, one can develop a broad array of information about the energy needs of low-income households– All data used for this presentation are publicly
available
• Data is available to explore linkages among energy poverty, housing affordability, and household wellbeing
Conclusion
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• Information can be used by:– Policymakers and program managers to make
effective decisions related to program design, operations and evaluation
– Agency managers to educate service providers and state officials on the diversity of the low-income population and how different strategies might be needed to achieve positive outcomes for different types of low-income households
Conclusion
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• Atlantic City Electric / Delmarva Power– Michael Hoy– Enid Wallace-Simms
• Wilmington Urban League– Tyrone Jones
Thank You
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Energy Poverty and Household Wellbeing
Atlantic City Electric / Delmarva PowerAgency SummitOctober 5, 2005
Donnell Butler ([email protected])David Carroll ([email protected])
Carrie-Ann Ferraro ([email protected])
http://www.appriseinc.org/Phone: 609-252-8008