PROPOSED RULEMAKING
[52 PA. CODE CH. 58]
[27 Pa.B. 1165] [L-00960118]
Residential Low Income Usage Reduction Programs The Pennsylvania Public Utility Commission (Commission) adopted a proposed rulemaking to modify regulations to continue existing usage reduction programs for low income customers funded from gross utility revenues. The criteria for the continuation of low income usage reduction programs includes, but is not limited to: (1) annual funding for a utility's program; (2) integration of the program to operate with a utility's customer service and collection programs and other relevant public or private programs; (3) tenant eligibility; (4) onsite energy surveys; (5) program conservation measures; (6) conservation education; and (7) program evaluation. The contact persons are Rhonda Daviston, Assistant Counsel, Law Bureau, (717) 787-6166 and David Mick, Bureau of Consumer Services, (717) 783-3232.
Executive Summary
At the public meeting held September 19, 1996, the Commission adopted an order which promulgates the proposed rulemaking to extend the Residential Low Income Usage Program (LIURP) which is scheduled to expire on or before January 28, 1998.
The Commission recognizes LIURP's weatherization and conservation services have achieved significant benefits for utilities and low income customers. Analyses reveal that the LIURP program has achieved, among other goals, its initial goal of reducing energy usage, utility bills and arrearages for residential low income households. Based upon its experience with the LIURP program for over 9 years, the Commission believes that LIURP produces benefits for the regulated utilities associated with load management, avoided cost of future generation, and fuel purchasing, as well as diminished environmental impacts related to energy production and transmission. Reducing overall energy use through LIURP has implications for energy conservation which produces similar benefits.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 20, 1997, the Commission submitted a copy of these proposed amendments to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure. In addition to submitting the proposed amendments, the Commission has provided IRRC and the Committes with a copy of a detailed Regulatory Analysis Form prepared by the Commission in compliance with Executive Order 1996-1. A copy of this material is available to the public upon request.
If the Legislative Committees have objections to any portion of the proposed amendments, they will notify the Commission within 20 days of the close of the public comment period. If IRRC has objections to any portion of the proposed amendments, it will notify the Commission within 30 days after the close of the public comment period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulations, by the Commission, the General Assembly and the Governor of objections raised.
Public Meeting held
September 19, 1996Commissioners Present: John M. Quain, Chairperson; Lisa Crutchfield; John Hanger; David W. Rolka and Robert K. Bloom
Proposed Rulemaking Order The LIURP expires on or before January 28, 1998. See § 58.3 (relating to establishment of residential low income usage reduction program). In order to continue this program, the regulations must be revised accordingly.
Since its inception in 1988, the LIURP program, §§ 58.1--58.18, has provided conservation services to more than 110,000 low income households. Services may have included full weatherization conservation treatments, furnace repair and replacement, water heating measures, and electric baseload measures.
Analyses of the program and its results reveal that LIURP has achieved, among other goals, its initial goal of reducing energy usage, utility bills and arrearages for residential low income households. Based upon the Commission's experience with the LIURP program over nearly 9 years, we believe that LIURP produces both load management and energy conservation benefits. Assisting low income customers to reduce energy demand has benefits associated with load management, avoided cost of future generation and fuel purchasing, as well as diminished environmental impacts related to energy production and transmission. Reducing overall energy use through LIURP has implications for energy conservation which produces similar benefits.
LIURP benefits can also be viewed from a broader prospective. LIURP services engender improved community relations for utility companies as they become partners in addressing critical social needs in their service territories. Because of the labor intensive nature of usage reduction services, LIURP is also producing economic development benefits. At the same time, LIURP is improving the condition of Pennsylvania's existing housing stock.
From the perspective of low income LIURP recipients, the program has several worthwhile benefits. These include improved comfort levels, safer living conditions through reduction in the use of secondary heating devices, and more moderate and manageable utility bills. Furthermore, reduced energy bills contribute to the availability of affordable housing for low income families.
The current regulations have been modified to reflect certain changes in the program and prospective changes in the utility markets. The definition of ''covered utility'' has been amended to confine the program's parameters to local distribution utilities to ensure that the utility that has direct customer access will continue to provide the LIURP program.
Refrigerator replacement has been specified in regulations so as to allow the electric utility more leeway in its program implementation. Next, upon informal requests from several utilities presently involved in the LIURP program, a section has been added to allow for landlord contributions. Finally, in response to other informal utility comments and requests, the special needs customer program has been expanded to allow for 20% of the utility's LIURP budget. This will give the covered utility greater flexibility in administering its program by slightly expanding customer eligibility requirements.
Accordingly, under section 501 of the Pennsylvania Public Utility Code, 66 Pa.C.S. § 501, sections 201 and 202 of the Commonwealth Documents Law (45 P. S. §§ 1202 and 1202) and regulations promulgated thereunder at 1 Pa. Code §§ 7.1--7.5, we propose to amend our regulations at §§ 58.1--58.18 as set forth in Annex A; Therefore,
It is Ordered that:
1. A Rulemaking Docket shall be opened to consider regulations set forth in Annex A.
2. The Secretary shall submit a copy of this order and Annex A to the Office of Attorney General for review as to form and legality and to the Governor's Budget Office for review of fiscal impact.
3. The Secretary shall submit this order and Annex A for review and comment to the Independent Regulatory Review Commission and to the Legislative Standing Committees.
4. The Secretary shall duly certify this order and Annex A and deposit them with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
5. Within 30 days of this order's publication in the Pennsylvania Bulletin, an original and 15 copies of any comments concerning this order and Annex A should be submitted to the Pennsylvania Public Utility Commission, P.O. Box 3265, Harrisburg, PA 17105-3265.
JOHN G. ALFORD,
Secretary
Statement of Commissioner John Hanger When the LIURP program began in 1988, it represented an ambitious attempt to provide conservation services to low income households. Since then, LIURP has been documented to be a useful program that works, and it should be continued. LIURP helps manage electric load for the utility, conserves energy and increases comfort while reducing payment problems for low income households while producing other community benefits as well.
I encourage interested parties to file comments on how to make this important program even better.
Fiscal Note: 57-179. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PENNSYLVANIA PUBLIC UTILITY COMMISSION
Subpart C. FIXED UTILITY SERVICES
CHAPTER 58. RESIDENTIAL LOW INCOME USAGE REDUCTION PROGRAMS § 58.2. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
* * * * * Covered utility--A jurisdictional electric or gas local distribution utility having sales of natural gas for purposes other than resale exceeding 10 billion cubic feet or sales of electric energy for purposes other than resale exceeding 750 million kilowatt-hours during the preceding calendar year or both.
* * * * * § 58.3. Establishment of residential low income usage reduction program.
A covered utility shall establish a usage reduction program for its low income customers. [The program shall be initially offered by January 28, 1988, and shall continue for 10 years following the initial offering. A covered utility may, with the approval of the Commission, continue to provide services after 10 years from the initial offering of program services.]
§ 58.8. Tenant eligibility.
(a) Program measures. An eligible customer who is a tenant shall have an equal opportunity to secure program services if the landlord has granted written permission to the tenant for the installation of program measures, and the landlord agrees, in writing, that rents will not be raised unless the increase is related to matters other than the installation of the usage reduction measures, and the tenant not evicted for a stated period of time at least 12 months after the installation of the program measures, if the tenant complies with ongoing obligations and responsibilities owed the landlord.
(b) Landlord contributions. A covered utility may seek landlord contributions as long as the contributions do not prevent an eligible customer from receiving program services. Contributions from landlords shall be used by the utility as supplemental to its approved Residential Low Income Usage Program budget.
§ 58.10. [Priority of program services] Program announcement.
* * * * * (c) A covered utility may spend up to [10] 20% of its annual program budget on eligible special needs customers as defined in § 58.2 (relating to definitions).
§ 58.11. Energy survey.
(a) If an applicant is eligible to receive program services, an onsite energy survey shall be performed to determine if the installation of program measures would be appropriate. The installation of a program measure is considered appropriate if it is not already present and performing effectively and when the energy savings derived from the installation will result in a simple payback of 7 years or less. A 12-year simple payback criterion shall be utilized for the installation of side wall insulation, attic insulation, space heating system replacement [and], water heater replacements and refrigerator replacement when the expected lifetime of the measure exceeds the payback period.
* * * * *
[Pa.B. Doc. No. 97-357. Filed for public inspection March 7, 1997, 9:00 a.m.]
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