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New York State Department of Public Service Issues Low-Income Bill and Usage Analysis Proposed Scope

Strategic Insights

— 2 min read

The New York State Public Service Commission has been working to address energy affordability issues among low-income households, setting a target energy burden of 6% or below of household income by 2020. Building on this effort, the Department of Public Service has issued a document outlining a proposed scope for a comprehensive low-income average bill and usage analysis, developed by NYSERDA and the Energy Affordability Policy Working Group. This study aims to inform future improvements to the Energy Affordability Policy and other relevant income-eligible clean energy programs.

Key Takeaways:

  • The study will create a specific characterization of low-income energy cost and energy burden, analyzing data on the impact of energy efficiency and weatherization programs on low-income participants.
  • The characterization will include analysis of energy consumption and bills, along with other data, with potential stratification based on data availability, including customer income, housing type, and heating fuel type.
  • The study will investigate the impact of clean energy and energy affordability interventions on energy consumption and bills, including the effects of energy efficiency measures, electrification of heating and cooling, and access to rooftop solar.
  • Recommendations will be based on the data and analysis, including improvements to the EAP design to maximize the impact of ratepayer funds and meet the needs of the EAP.
  • The study will leverage utility billing, EAP participation, and EAP benefit level data; NYSERDA low-income program participation; Census data; and data from the NYS Office of Temporary and Disability Assistance (OTDA) on Home Energy Assistance Program (HEAP) participation.
  • The study's objectives are to create a specific characterization of low-income energy cost and energy burden, analyze data on the impact of energy efficiency and weatherization programs, and provide recommendations on EAP design to increase the impact of ratepayer funds.

Statistics:

  • 32% of households in New York State meet the definition of low-income, with an average income of $19,768 (NYSERDA, 2017).
  • The energy burden for low-income households (12.9%) was significantly higher than that for moderate-income (6.4%) and non-LMI households (2.4%) (NYSERDA, 2017).
  • NYSERDA energy efficiency and weatherization programs have served over 383,000 low-income households since 2003 (NYSERDA, 2022).
  • The study will analyze data from NYSERDA's residential retrofit, NY Sun, and Clean Heating and Cooling programs, combined with data from utilities, ODTA, HEAP, and the census (NYSERDA, 2022).

Sources:

  • New York State Public Service Commission, Case 14-M-0565, Order Adopting Low Income Program Modifications and Directing Utility Filings (issued May 20, 2016)
  • New York State Public Service Commission, Cases 14-M-0565 and 20-M-0266, Order Adopting Energy Affordability Policy Modifications and Directing Utility Filings (issued August 12, 2021)
  • NYSERDA, Low- To Moderate-Income Market Characterization Study (2017)
  • NYSERDA, NYSERDA Bill Analysis Propose Scope (February 4, 2022)

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