Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board
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1 Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board Stephen St Marie Policy & Planning Division May 16, 2013
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Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board. Stephen St Marie Policy & Planning Division May 16, 2013. Low-Income Programs for Each Class-A Water Utility. - PowerPoint PPT Presentation
Transcript of Review of the Water Low-Income Programs Meeting of the Low Income Oversight Board
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Review of the Water Low-Income ProgramsMeeting of the Low Income Oversight Board
Stephen St MariePolicy & Planning Division
May 16, 2013
Low-Income Programsfor Each Class-A Water Utility
• The Programs for the 10 Class-A Water Utilities have been built up and developed in each company’s GRCs, so each program is unique.
• The programs are all based on Income and Household size, but beyond that, they have many variations:
– A specific Dollar amount off, a sur-credit, or a percentage of the fixed charge.
– A reduced quantity rate or percentage off the bill
• Typical value, from $6 to $25
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The Penetration RateOf the Low Income Programs
• Typical enrollment was about 25%
• Now, there is an effort to raise the penetration rate – the participation of eligible customers – including by sharing of data with the energy utilities.
– Penetration could increase from 25% to over 80%.
• This study: What would be the cost to the supporting households if all eligible households participate?
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Note that the Income Eligibility Upper LimitIs based on Household size.
Note that the Income Eligibility Upper LimitIs based on Household size.
A preliminary Reviewof Three California Water Utility Companies
• Great Oaks Water Company – A relatively small utility in an affluent area within San Jose
• San Jose Water Company– Relatively large utility – serves most of San Jose
• Park Water Company– Serves a less affluent area in Los Angeles County
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Example:Great Oaks Water Company
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Great Oaks Water CompanyLow-Income Program
• 50% off of bi-monthly service charge of $16.78
• Actual Dollar Value to an eligible customer: $8.39 per bi-monthly bill.
• Typical bi-monthly residential bill: $90
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Great Oaks Estimated Median Income: $90,625
National Median Income: $50,054
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Estimated Median Income: $90,625
Eligibility Limit, say $35,000
About 15%Of Households Eligible
To Receive $8.39
About 15%Of Households Eligible
To Receive $8.39
About 29,500 households – Census Data
Supporting HouseholdsWould Pay $1.49 Each
Cost is 14.4% of One HourOf Median Household Income
Supporting HouseholdsWould Pay $1.49 Each
Cost is 14.4% of One HourOf Median Household Income
A California Water Utility Example:San Jose Water Company
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San Jose Water CompanyLow-Income Program
• 15% off of total bill
• Actual Dollar Value varies with consumption
• Typical bi-monthly residential bill: $46
• For this analysis, we take 15% of $46, for a value of $6.90
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US Median Income: $50,054
Estimated Median Household IncomeFor San Jose Water Svc Area: $80,243
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About 327,000 households – Census Data
Estimated Median Income: $80,243
Eligibility Limit, say $35,000
About 21%Of Households Eligible
To Receive $6.90 on Avg
About 21%Of Households Eligible
To Receive $6.90 on Avg
Supporting HouseholdsWould Pay $1.88 Each
Cost is 20.5% of One HourOf Median Household Income
Supporting HouseholdsWould Pay $1.88 Each
Cost is 20.5% of One HourOf Median Household Income
A California Water Utility Example:Park Water Company
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US Median Income: $50,054
Park Water ServiceEstimated Median Income $50,000
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About 56,000 households – Census Data
Estimated Median Income: $50,000
About 30% Of Households Eligible
To Receive $5.50
About 30% Of Households Eligible
To Receive $5.50
Supporting HouseholdsWould Pay $2.37 Each
Cost is 41.5% of One HourOf Median Household Income
Supporting HouseholdsWould Pay $2.37 Each
Cost is 41.5% of One HourOf Median Household Income
Eligibility Limit, say $35,000
Review and Next Steps
• An evaluation of three companies shows substantial variation in the cost borne by the supporting households.
• New and Better Data from 2010 Census are becoming available.
• Calculate for All of the Class-A Companies
• Estimate Incomes by Household Size
• Analyze Commercial and Industrial Sales
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