October 14, 2009: Public Policy Conference Presentation:
2008 Xcel gas rate case
Energy CENTS provided a unique perspective and valuable information regarding the disproportionate burden that energy costs can represent for low-income households. It served as a check as to whether a particular alternative would promote the public policy goals of making affordable and uninterrupted service available to low-income ratepayers. If Energy CENTS had not intervened in this case, these interests would likely not have been as vigorously represented by any other parties in the rate case. Moreover, Energy CENTS’ positions in this matter promoted pubic policy goals and Commission rules that give special consideration to low-income ratepayers. Energy CENTS’ participation and extensive experience with issues surrounding low-income consumers [was] relevant to producing a fair decision for low-income consumers.
--Minnesota Public Utilities Commission
ECC worked to pass legislation requiring propane and fuel oil vendors receiving more than $250,000 in LIHEAP payments to report the following information to the Office of Energy Security:
- the number of customers refused delivery at any time during the heating season.
- the number of customers refused delivery during the heating season
- the number of customers on various budget plans, keep-fill routes and pre-buy
- the price per gallon for fuel
- on-fuel related fees (for minimum deliveries, etc.) paid for by LIHEAP funds
The bill passed both the House and Senate Energy Committees (with identical language) but was pulled at midnight during the conference committee.
As a result of ECC’s advocacy, customers enrolled in CenterPoint Energy and Xcel Energy’s affordability programs pay no more than 6% of household income for natural gas bills and 3% for electric bills.
Enrollments in CenterPoint Energy’s Gas Affordability Program increased from 10,543 in 2008 to a current level of 14,902. Xcel Energy’s gas and electric affordability program (“POWER On”) enrollment increased from 9,188 in 2008 to a current level of 13,692.
Regulatory Advocacy
Much of ECC’s regulatory activity in 2008 focused on the Minnesota Power electric rate increase. The Company’s rate structure includes an inverted block rate design in which electric rates increase as the amount of electricity usage increases. This rate structure directly benefits one-quarter of all Minnesota Power customers (26,000), promotes affordable electric service for low and fixed income customers and provides a conservation incentive to use less electricity. In the rate case, Minnesota Power proposed to eliminate that rate design and the Minnesota Department of Commerce Office of Energy Security supported the Company’s proposal.
Working with the Citizens Federation (formerly Minnesota Senior Federation – Northeast), ECC prevailed in preserving Minnesota Power’s rate structure. Rather than experience electric bill increases of over 100% as the Company had proposed, ECC’s expert testimony convinced the PUC to retain the current rate design, limiting the overall electric bill increase for the lowest usage customers to about $3.00 per month.
Energy CENTS Coalition * 823 East 7th Street * (651) 774-9010