Overview of Low-Income Restructuring
Legislation and Implementation

Connecticut
Last Updated: March 2008

Connecticut's 1998 electric restructuring law imposed two separate charges. One, a system benefits charge, provides a mechanism to cover some of the two largest electric utilities' expenses in operating low-income assistance programs and complying with the state's consumer protection statutes; the other, a conservation surcharge, funds conservation and load management activities.

The law also continued Connecticut's consumer protection measures, considered among the strongest in the country, including a strict winter disconnect moratorium.

A system benefits charge (SBC) imposed on customers of the state's two investor-owned utilities – Connecticut Light & Power (CL&P) and United Illuminating – helps the utilities cover some low-income energy expenses. However, the majority of the fund has been used to decommission aging power plants, including a nuclear plant, pay taxes to towns affected by sales of utility properties, provide displaced worker protection, and for other utility revenue purposes.

The utilities' assistance programs mostly consist of budget payment and arrearage forgiveness programs. Qualified customers who make regular and timely payments can receive semi-annual arrearage forgiveness. Legislation passed in 2003 affected these programs by making arrearage forgiveness for electric heating customers mandatory; it remains voluntary for non-heating electric bills. The mandatory provision went into effect in late 2004.

The utilities are also allowed to use SBC funds to write off arrearages and uncollectibles incurred by hardship customers during the winter protection period. During 2007, SBC-funded arrearage forgiveness for electric heating customers amounted to about $3.7 million and helped 5,073 households.

Apart from the SBC, a gas arrearage forgiveness program has been mandated by statute for a number of years for households that receive energy assistance for their gas heating bills. During 2007, gas companies claimed about $10.5 million in expenses for this program, which served nearly 20,000 households.

The restructuring legislation also created an energy conservation fund for energy efficiency programs, funded by another charge, called the Conservation and Load Management Charge, on all electricity sold by the state's two IOUs. In 2007, this charge resulted in about $70 million, which was spent for conservation programs for all customer classes. These include load management programs, economic development, efficiency programs, including low-income weatherization; market transformation efforts, and research and development of new technologies, including renewables, that might improve energy efficiency in businesses and households.

Connecticut Light & Power and United Illuminating, whose low-income weatherization programs are called WRAP (Weatherization Residential Assistance Partnership) and UI-HELPS respectively, spent about $7.2 million of the energy conservation management fund for low-income energy efficiency programs in 2007, serving over 16,000 households, mostly through the state’s low-income weatherization network. The programs offer a full range of energy conservation measures to address inefficient lighting, water heating, inefficient heating equipment, refrigeration and insufficient insulation. During 2007, WRAP served over 10,600 homes at an average cost per unit of $564, including 922 refrigerator replacements, 307 window air conditioners and 116,831 lighting products. UI-HELPS served about 5,200 households.

CL&P and UI also organize workshops for low- and fixed-income customers to acquaint them with state and local assistance programs and also how to budget limited incomes by managing energy, housing, clothing and food dollars.

The publication Evaluation of the 2005 UI Helps and WRAP Low-Income Weatherization Programs: Final Report, summarizes the key findings and recommendations of a process evaluation of the 2005 WRAP and UI Helps.

Completed in December 2006 by Nexus Market Research, the evaluation showed that the programs accomplished their goals of reducing customers' energy use and bills despite limited program resources and a great demand for services. Participants reported high levels of satisfaction with and appreciation for the programs.

The evaluation noted that some participants in both programs received comprehensive services (e.g., insulation, refrigerators, etc.) that had a large impact on their energy use and bills; however, most participants received measures with relatively minor impacts (e.g., compact fluorescent lights and portable fixtures, faucet aerators, and showerheads).

The evaluation made 28 recommendations for both programs aimed at improving program delivery, goal measurement and achievement, and customer satisfaction.

For more information:

Annual reports from the Connecticut Energy Conservation Management Board about energy efficiency programs, including low-income, are available at: www.state.ct.us/dpuc/ecmb/index.html

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Page Last Updated: March 10, 2008