1 Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit October 5, 2005 Donnell Butler David Carroll Carrie-Ann

1

Energy Poverty and Household Wellbeing

Atlantic City Electric / Delmarva Power Agency SummitOctober 5, 2005

Donnell ButlerDavid Carroll

Carrie-Ann Ferraro

2

Organization of Presentation

• Introduction – 5 minutes

• State Analysis – 20 minutes

• Metropolitan Area Discussion – 5 minutes

• Local Area Analysis – 10 minutes

• Indicators of Wellbeing – 10 minutes

• Conclusion – 5 minutes

• Questions / Feedback – 5 minutes

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Purpose of the Presentation

• Furnish information about the energy needs of low-income households in DE, NJ, MD, and VA to policymakers and program managers

• Explore the linkages among energy poverty and household wellbeing

• Demonstrate how existing data sources can be used to obtain useful information for policy formulation and program design

4

State Level Analysis

Methodology

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State Information Needs

• Policymakers and program managers need:– State-level cross-sectional data to understand

current status for households in the state– State-level longitudinal data to understand trends

for households in the state– National-level data to understand how those

state-level energy needs compare to households nationwide

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State-Level Data Sources • 2000 Census Public-Use Microdata (PUMS)

– Data available includes:• Household Demographics: income and poverty level,

presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation

• Housing Unit Characteristics: age of unit, unit type, home ownership

• Energy Data: Main heating fuel, energy expenditures

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State-Level Data Sources• 2002-2004 Current Population Survey, Annual Social and

Economic Supplement (ASEC)

– Statistical variances are too large for a single ASEC annual file to allow for a useful analysis for a single state.

– Three-year average of 2002, 2003, and 2004 data used to estimate the FY 2003 LIHEAP eligible population

– Data available includes:• Household Demographics: income and poverty level, presence of

vulnerable members, race and ethnicity, household composition, employment, income program participation

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Definitions

• LIHEAP Eligible/Low Income – Each state can set their own household income cutoff between 110% of the poverty level and the greater of 150% of the poverty level or 60% of state median income

• Delaware – 200% of HHS Poverty Guidelines• New Jersey – 175% of HHS Poverty Guidelines• Maryland – 150% of HHS Poverty Guidelines• Virginia – 130% of HHS Poverty Guidelines

Source: LIHEAP Clearinghouse State Fact Sheets

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Definitions

• Energy Burden – Direct energy expenditures as a share of gross money income

• Energy Gap – Difference between client energy burden and any target burden

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Limitations

• Maximum Income Standard – Federal maximum income standard covers at least 50% more households

• Renters – About 15% of households pay for part or all of their energy through their rental payments

• Update – Information not updated for recent increases in energy prices and poverty

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State Level Analysis

Findings

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Number of Households

Percent of All DE Households

LIHEAP Eligible Households, 2000 63,4581 21.3%


Delaware LIHEAP Eligible Households (2000 and 2003)

1 Source: 2000 Decennial Census PUMS 5 Percent Sample.2 Source: Three-year Average of the CPS ASEC 2002-2004.

Delaware LIHEAP Eligible Population

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Percent of All MD

Households



Maryland LIHEAP Eligible Households (2000 and 2003)

1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2 Source: Three-year Average of the CPS ASEC 2002-2004.

Maryland LIHEAP Eligible Population

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Percent of All NJ

Households



New Jersey LIHEAP Eligible Households (2000 and 2003)


New Jersey LIHEAP Eligible Population

15


Percent of All VA

Households



Virginia LIHEAP Eligible Households (2000 and 2003)


Virginia LIHEAP Eligible Population

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Number in DE

Number in MD

Number in NJ

Number in VA

LIHEAP Eligible Households1 68,705 294,926 646,192 364,985

LIHEAP Recipient Households 2 13,277 80,608 154,645 97,778

Recipients as Percentage of Eligible Households

19.3% 27.3% 23.9% 26.8%

State LIHEAP Eligible and Recipient Households (2003)

1 Source: Three-year Average of the CPS ASEC 2002-2004. 2 Source: LIHEAP Household Reports FY 2004 (Heating).

State LIHEAP Recipient Population

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Energy Burden

• Percent of total household income spent on total residential energy.

• At the national level, the median residential energy burden was 3 percent for all households and 10 percent for all low-income households in 2003.

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Delaware LIHEAP Eligible Energy Burden

8%

18%

26%

19%

8%

5%

17%

0% 5% 10% 15% 20% 25% 30%

No Separate Energy Bill

Less than 5%

5 - <10%

10 - <15%

15 - <20%

20 - <25%

25% or greater

Energy Burden for Delaware LIHEAP Eligible Households (1999)

Source: 2000 Decennial Census PUMS 5 Percent Sample.

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Maryland LIHEAP Eligible Energy Burden

17%

13%

18%

15%

9%

5%

22%

0% 5% 10% 15% 20% 25%


Less than 5%

5 - <10%

10 - <15%

15 - <20%

20 - <25%

25% or greater

Energy Burden for Maryland LIHEAP Eligible Households (1999)


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New Jersey LIHEAP Eligible Energy Burden

14%

19%

20%

15%

8%

5%

20%

0% 5% 10% 15% 20% 25%


Less than 5%

5 - <10%

10 - <15%

15 - <20%

20 - <25%

25% or greater

Energy Burden for New Jersey LIHEAP Eligible Households (1999)


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Virginia LIHEAP Eligible Energy Burden

11%

10%

19%

17%

12%

7%

24%

0% 5% 10% 15% 20% 25% 30%


Less than 5%

5 - <10%

10 - <15%

15 - <20%

20 - <25%

25% or greater

Energy Burden for Virginia LIHEAP Eligible Households (1999)


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Energy Gap

• The dollar amount needed to reduce a customer’s energy burden to an amount equal to a specified energy burden percentage.

• At the national level, about $4.9 billion dollars in energy assistance would have been needed to ensure that no low-income household spent more than 15% of income on residential energy in 2003. The amount required to reduce residential energy bills to 25% of income was $2.7 billion.

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Delaware LIHEAP Eligible Energy GapEnergy Gap for Delaware LIHEAP Eligible Households (1999)


Energy Gap(in Millions)

Households with Energy Burdens Greater than 5%

47,740 $ 52 M


31,103 $ 29 M


11,286 $ 10 M


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Maryland LIHEAP Eligible Energy GapEnergy Gap for Maryland LIHEAP Eligible Households (1999)




181,687 $ 199 M


136,109 $ 131 M


62,935 $ 60 M


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New Jersey LIHEAP Eligible Energy GapEnergy Gap for New Jersey LIHEAP Eligible Households (1999)




345,296 $ 406 M


247,843 $ 257 M


109,890 $ 110 M


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Virginia LIHEAP Eligible Energy GapEnergy Gap for Virginia LIHEAP Eligible Households (1999)




274,578 $ 278 M


208,273 $ 184 M


89,216 $ 81 M


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DelawareEnergy Assistance

Energy Gap(in Millions) 1

FY ’04LIHEAPBenefits 2

FY ’04SupplementResources 3

Shortfall


$ 52 M $ 5 M $ 1 M $ 46 M


$ 29 M $ 5 M $ 1 M $ 23 M


$ 10 M $ 5 M $ 1 M $ 4 M

1 2000 Decennial Census PUMS 5 Percent Sample.2 FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

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MarylandEnergy Assistance




Shortfall


$ 199 M $ 30 M $ 48 M $ 121 M


$ 131 M $ 30 M $ 48 M $ 54 M


$ 60 M $ 30 M $ 48 M ($ 17) M



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New JerseyEnergy Assistance




Shortfall


$ 406 M $ 72 M $ 175 M $ 159 M


$ 257 M $ 72 M $ 175 M $ 9 M


$ 110 M $ 72 M $ 175 M ($ 137) M



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VirginiaEnergy Assistance




Shortfall


$ 278 M $ 36 M $ 2 M $ 239 M


$ 184 M $ 36 M $ 2 M $ 145 M


$ 81 M $ 36 M $ 2 M $ 42 M



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• Across all states– Increases in LIHEAP eligible population– LIHEAP participation rate below 28% of eligible

population– Approximately half of LIHEAP eligible have energy

burdens greater than 10 percent.– Combination of federal and state-level funds not

enough to ensure that no LIHEAP eligible household spends more than 10% of income on energy.

State LIHEAP EligibleSummary of Findings

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Metropolitan Area Discussion

Methodology

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Metropolitan Area Information Needs

• Metropolitan area policymakers & program managers need:

– Information related to demographic characteristics and energy needs of low-income households

– Information on the relationship between energy needs and other low-income needs, including housing, to promote the integration of programs aimed at assisting low-income households

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Data Sources for Metro Area Analysis • American Housing Survey (AHS) Metropolitan Area

Samples– Metropolitan Area Samples have sufficient numbers of

LIHEAP eligible records – Estimates are not available at the state level from the national

AHS sample– Several Metropolitan Areas are surveyed each year on a

rotating basis• Local MSAs: Baltimore, MD (1998), Norfolk-Virginia Beach-

Newport News, VA-NC (1998), Northern NJ PMSAs (2003), Philadelphia, PA-NJ PMSA (2003), Washington, DC-MD-VA MSA (1998)

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• American Housing Survey (AHS), Metropolitan Area Samples (continued)


presence of vulnerable members, race and ethnicity, household composition,

• Energy Data: Main heating fuel, energy expenditures, heating and cooling equipment

• Housing Unit Characteristics: unit type, home ownership, housing adequacy, housing costs

Data Sources for Metro Area Analysis

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Neighborhood Level Analysis

Methodology

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Neighborhood Information Needs

• Local program managers need local-level information about the population in their communities in order to:– Effectively implement programs

– Target outreach initiatives

– Improve integration of energy assistance programs with other programs designed to assist low-income households

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Neighborhood Data Sources

• 2000 Census Summary File 3 (SF3)– Data available includes:

• Household Demographics: income level, age of householder, race and ethnicity, languages spoken, household composition, income program participation


• Energy Data: Main heating fuel

– Data is limited to entire population; does not offer estimates of LIHEAP eligible population

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Neighborhood Data Sources

• 2000 Census Special Tabulations– Estimates of the LIHEAP eligible population can be obtained

from the Census Bureau for small areas, including Census Blocks, Block Groups, and Tracts


presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation


• Energy Data: Main heating fuel, energy expenditures

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Neighborhood Level Analysis

Findings

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Wilmington DE Map

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Eastside Neighborhood Map

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EastsidePoverty Level

17%

45%

38%35%

22%

34%

0%

10%

20%

30%

40%

50%

Below 100% 100% - 199%

Tract 9

Tract 17

Tract 20

Poverty Level of Eastside in Wilmington, DE Households (1999)

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EastsideHousing Tenure

41%

20%

6%

59%

80%

94%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Owner Renter

Tract 9

Tract 17

Tract 20

Housing Tenure: Eastside in Wilmington, DE Households (2000)

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EastsideNumber of Units in Structure

81%

44%

34%

12%

5%

13%

6%

51% 52%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Single Family Homes 2 - 4 Units 5-or-more Units

Tract 9

Tract 17

Tract 20

Number of Units in Structure: Eastside in Wilmington, DE Households (1999)

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EastsideYear Structure Built

11%

17%

36%

8%

51%

28%

41%

15%

24%

40%

17%

12%

0%

10%

20%

30%

40%

50%

60%

1980-2000 1960-1979 1940-1959 Pre 1940

Tract 9

Tract 17

Tract 20

Year Structure Was Built: Eastside in Wilmington, DE Households (1999)

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EastsideHousehold Size

24%

55%

7%

25%

18%

41%

22%

8%

20%

29%

18%

32%

0%

10%

20%

30%

40%

50%

60%

1-person 2-person 3-person 4-or-more-person

Tract 9

Tract 17

Tract 20

Household Size: Eastside in Wilmington, DE Households (2000)

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EastsideHome Heating Fuel

55%

44%

26%

2% 4% 5%

21%

34%

67%

22%

17%

3%

0%

10%

20%

30%

40%

50%

60%

70%

Natural Gas Bottled Gas Electricity Fuel Oil

Tract 9

Tract 17

Tract 20

Home Heating Fuels Used: Eastside in Wilmington, DE Households (1999)

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• Below 200% of Poverty: North – 52%, Central – 67%, South – 72%

• Renters: N – 59%, C – 80%, S – 94%• Large Multi-unit Structures: N – 6%, C – 51%, S – 52%• Built Prior to 1960: N – 81%, C – 32%, S – 36%• 4+ person Households: N – 29%, C – 18%, S – 32%• Electric Home Heating: N – 21%, C – 34%, S – 67%

EastsideLIHEAP Eligible Summary of Findings

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Indicators of Wellbeing Analysis

Methodology

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Indicators of Wellbeing Data Sources• Effects of Energy Poverty on Housing and Household

Wellbeing

• 2003 and 2005 National Energy Assistance Survey of LIHEAP Recipients:– Sponsored by NEADA

– Survey instrument is publicly available

– Interviewed a nationally representative sample of over 2,000 LIHEAP-recipient households from 20 states, including Delaware

– Documented the choices that LIHEAP-recipient households make when faced with unaffordable home energy bills

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Limitations

• Survey Response Challenges:– Relying on Respondent Memory– Response bias (e.g., prideful responses) – Inability to control response situation

• Population– Having received benefits, LIHEAP recipients

might be better off than LIHEAP eligible

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Indicators of Wellbeing Analysis

Findings

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Indicators of Wellbeing Housing Problems

Source: 2003 National Energy Assistance Survey.

Housing Problems Experienced by DE LIHEAP Recipient Households (2003, 2005)

40% 49%

7%2%

11%

5% 3%2%

0%

10%

20%

30%

40%

50%

Didn't MakeFull Rent orMortgagePayment

Evicted fromHome or

Apartment

Moved in withFriends or

Family

Moved intoShelter or Been

Homeless

2003

2005

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Indicators of Wellbeing Housing Wellbeing


26%27%

39%

50%

36%39%

18%

29%

0%

10%

20%

30%

40%

50%

60%

Went withoutfood for at least

one day

Went withoutmedical ordental care

Didn't fillprescription ortook less than a

full dose

Unable to payenergy bill due

to medicalexpenses

2003

2005

Sacrifices to Wellbeing Experienced by DE LIHEAP Recipient Households (2003, 2005)

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Indicators of Wellbeing Effects on Health


20%

31%

14%

25%

9%

13%

7%

12%

0%

10%

20%

30%

40%

Became sickbecause homewas too cold

Needed to goto a doctor or

hospitalbecause homewas too cold

Became sickbecause homewas too hot

Needed to goto a doctor or

hospitalbecause homewas too hot

2003

2005

Health Problems Experienced by DE LIHEAP Recipient Households (2003, 2005)

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Indicators of Wellbeing Summary of Findings

•In the last five years, due to their energy bills:

–40% of DE respondents in 2003 and 49% in 2005 reported that they missed a rent or mortgage payment

–27% of DE respondents in 2005 reported that they went without food for at least one day

– 39% of DE respondents in 2003 and 50% in 2005 reported that they went without medical or dental care

–20% of DE respondents in 2003 and 31% in 2005 reported that they became sick because their home was too cold

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• Using existing data sources, one can develop a broad array of information about the energy needs of low-income households– All data used for this presentation are publicly

available

• Data is available to explore linkages among energy poverty, housing affordability, and household wellbeing

Conclusion

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• Information can be used by:– Policymakers and program managers to make

effective decisions related to program design, operations and evaluation

– Agency managers to educate service providers and state officials on the diversity of the low-income population and how different strategies might be needed to achieve positive outcomes for different types of low-income households

Conclusion

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• Atlantic City Electric / Delmarva Power– Michael Hoy– Enid Wallace-Simms

• Wilmington Urban League– Tyrone Jones

Thank You

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Energy Poverty and Household Wellbeing

Atlantic City Electric / Delmarva PowerAgency SummitOctober 5, 2005

Donnell Butler ([email protected])David Carroll ([email protected])

Carrie-Ann Ferraro ([email protected])

http://www.appriseinc.org/Phone: 609-252-8008

Documents

1 Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit October 5, 2005 Donnell Butler David Carroll Carrie-Ann