PECO Operates Largest Assistance Program to Help Low-Income Families

As the winter heating season approaches, many thousands of local households will be eligible to receive help with energy bills from PECO Energy under the most comprehensive and generous low-income assistance program in Pennsylvania.

Since 1999 nearly 200,000 PECO customers have benefited from the utility's Universal Service programs that help make energy services more affordable and help qualified low-income households avoid falling behind or failing to pay their energy bills. About 15 percent of PECO's electric and gas customers in the Greater Philadelphia region are considered low-income based on government program definitions.

Among state utilities, PECO is recognized as having the largest customer assistance program in the state, according to the annual Universal Service Programs & Collections Performance Report issued by the Public Utility Commission. Universal Service programs are available to customers whose incomes are at or below 200 percent of the poverty level. In general, the programs provide bill payment assistance and help with home weatherization.

In 2003, the company spent about $86.5 million on Universal Service programs, which include the federally administered Low-Income Home Energy Assistance Program (LIHEAP), the Low Income Usage Reduction Program (LIURP), Customer Assistance Programs (CAP), the Customer Assistance and Referral Evaluation Services (CARES) program and the Matching Energy Assistance Fund (MEAF).

More than 36,000 PECO customers received grants totaling $8.7 million in assistance in 2003 to help with electric and natural gas bills as part of LIHEAP. The total number of LIHEAP assistance grants customers received last heating season was 36,451, which was up slightly from 2002, when 30,054 customers received similar grants worth $7.9 million.

Homeowners, renters, roomers and subsidized housing tenants may be eligible for LIHEAP grants. Both cash and crisis assistance is available. The cash program provides a direct payment to a vendor, such as a utility like PECO. Cash recipients can allocate their LIHEAP grant to any utility, oil or gas company that serves them. The assistance is based on the household income and can exceed $300.

The crisis program is allocated for emergencies including reinstating service that has been shut off for non-payment, fuel payments, and repairing leaking pipes and broken furnaces. Grants are up to $300.

The foundation of PECO's Universal Service programs is CAP, which provides discounted rates for electric and gas rates to qualified customers, ranging from 25 percent to 85 percent off the company's tariff rates. Customers are charged discounted rates based upon their household's ability to pay. In 2003, PECO's CAP customers received discounts totaling nearly $34.6 million. About 99,000 customers participate in the CAP programs, up from 54,000 in 1999.

CARES is a referral and information service designed to assist customers who have temporary or financial hardship.

Under the MEAF program, PECO matches customer contributions. Through MEAF, PECO provides a one-time grant to customers who are in need of emergency assistance with their bill payment.

About $6.4 million annually is allocated for LIURP - Low Income Usage Reduction Program - that helps customers increase the energy efficiency of their home and reduce energy usage so they can better manage their future energy bills. In 2003, 8,500 PECO customers received assistance through LIURP. PECO's spending for LIURP is the largest in Pennsylvania.

Consumers who are not eligible for low- and fixed-income assistance but are experiencing difficulty with their energy costs should take steps to ensure they are using energy as efficiently as possible and consider taking advantage of PECO's budget billing option. Customers can enroll in budget billing and find energy saving tips on PECO's website or by contacting the company at 1-800-494-4000.

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10/29/2004

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