Title text hereAffordable and Reliable Home Energy for an Aging Population

Keeping the Golden Years Energized NARUC Winter Committee MeetingsWashington, DC, February 11, 2014

Christopher BakerAARP Public Policy Institute

AARP Public Policy Institute

The Public Policy Institute informs and stimulates

public debate on the issues we face as we age.

The Institute promotes development of sound,

creative policies to address our common need for

economic security, health care, and quality of life.

An Aging Population

Baby boomers will turn 65 at a rate of nearly 8,000 per day for the next  17 years.

By 2030, adults age 65+ will account for roughly 20% of the population.

By 2050, older people will outnumber children for the first time in history.

Access to Home Energy is Particularly Important for Older Adults

Aging can impair the body’s ability to maintain a normal temperature.

Other factors: 

Chronic medical conditions such as diabetes, lung

disease, and heart disease

Multiple prescription medicines

Percentage of Older Adults with One or More Chronic Conditions

Age 50+ 50-64 65-74 75-84 85+0

25

50

75

100

79.772.5

87.9 92.3 92.9

Source: Source: Johns Hopkins Bloomberg School of Public Health analysis of Medical Expenditure Panel Survey, 2005. Data does not include people who live in institutions.

Utility Expenditures as a Percentage of Average Annual Expenditures Are Highest for Older Consumers

< Poverty 100-199% Poverty

200-299% Poverty

300%+ Poverty0

5

10

15

9.2 8.87.9

5.8

10.2 10.5

8.9

6.2

11.410.8

9.4

6.7

<50 50-64 65+

Perc

ent

of

Avg.

Annual Expendi-

ture

s

Source: AARP Public Policy Institute analysis of 2012 Consumer Expenditure Survey.

Utility Expenditures as a Percent of Average Annual Expenditures by Ethnicity

White African-American Hispanic Other0

5

10

15

6.4

8.47.6

5.5

6.8

9.6

8

6.3

8

12.2

10.2

7.2

<50 50-64 65+

Ethnicity

Perc

ent

of

Avg

. A

nnual Exp

endi-

ture

s

Source: AARP Public Policy Institute analysis of 2012 Consumer Expenditure Survey.

Expenditures on Electricity Comprise the Largest Portion of Utility Expenditures for Consumers Aged 50+

Source: AARP Public Policy Institute analysis of 2012 Consumer Expenditure Survey.

Electricity38%

Tele-phone31%

Natural Gas10%

Water and

Other Public

Services15%

Fuel Oil and

Other Fuels5%

Expenditures on Electricity Comprise a Larger Portion of Utility Expenditures for Lower-Income Consumers Aged 50+

< Poverty 100-199% Poverty

200-299% Poverty

300%+ Poverty

0

10

20

30

40

50

60

44 41 40 36

1010 10

10

35 5

5Fuel Oil and Other Fuels

Natural Gas

Electricity

Perc

ent

of

Uti

lity

Expendit

ure

s

Source: AARP Public Policy Institute analysis of 2012 Consumer Expenditure Survey.

AARP state surveys: many older adults are concerned about the cost of their home energy going up

All surveys are available at www.aarp.org/utilities.

Expenditures for Heating Fuels vs. Average LIHEAP Grants, 2007-2013, All Age Groups

2007

—08

2008

—09

2009

—10

2010

—11

2011

—12

2012

—13

$0

$250

$500

$750

$1,000

$1,250

$378 $362

$502 $429 $417 $375

$952 $975 $914 $918 $909 $844

Average LIHEAP Heating Grant Average Heating Expenditures

Sources: Short Term Energy Outlook, October 2013 (Table WF01); LIHEAP Home Energy Notebooks, 2007–2009; NEADA 2012 Energy Assistance Survey

Promoting the Important Connection between Affordable Energy and Health

• LIHEAP supplements

• Shut-off protections

• Energy efficiency

• Energy assistance

• Home heating oil

• Power restoration priorities

• Smart meters

• Time-of-use rates

• Rate cases

• Rate design

Health should be considered in any policy decision that has an impact on energy use

Title text here AARP Public Policy Institute www.aarp.org/ppi

Christopher BakerSenior Strategic Policy Advisor

cbaker@aarp.org

Twitter: @AARPpolicy Blog: www.aarp.org/policyblog