application process more convenient and allow a faster exchange of information between OnTrack agencies and PPL customers. At least one utility is planning to offer online applications for its CAP. In its latest USECP filing, Philadelphia Gas Works (PGW) reports it is developing an online CAP application that will allow customers to apply for the program through the its website, check the status of their application, and receive electronic correspondence. See PGW Amended Proposed 2017-2020 Plan at 13 and PGW 2017-2020 USECP Tentative Order at 17, Docket No. M-2016-2542415. PPL customers could benefit from a similar application process. Proposed Resolution: In its response to this Tentative Order, PPL should explain whether it is developing or exploring the use of web-based applications and electronic documentation process for OnTrack. If so, PPL should explain how customer education will be handled during this process. c. OnTrack Customer’s Ability to Pay and Energy Burden Levels – Clarification Requested In explaining PPL’s use of three possible payment options in OnTrack (i.e., Minimum Payment, Percent of Bill, and Agency Selected), the Company explains that it chooses the payment option “that most closely matches the customer’s ability to pay.” Proposed 2017-2019 Plan at 6. However, the Plan does not explain how PPL determines what OnTrack customers can afford to pay for electricity when assigning their payment option. Claiming that a customer’s OnTrack payment is based on the customer’s “ability to pay” suggests that the monthly bill reflects what the household can afford. However, PPL also charges OnTrack participants a $5 co-payment for pre-program arrears and a
PPL may use up to 20% of the LIURP budget annually to serve customers in the 151%-200% FPIG range, as well as customers with special needs--such as those with disabilities, those who require medical equipment, elderly or customers with small children in the house. Apartment buildings with at least three units may receive WRAP services if at least 50 percent of tenants are determined eligible. PPL prioritizes WRAP services based on customers with the highest electric usage or OnTrack customers in danger of exceeding CAP credit limits. For customers with rent/mortgage obligations that exceed their income or who have significant usage. PPL offers baseload or partial WRAP services and/or energy conservation education. Referrals for WRAP come from PPL customer service representatives, OnTrack agencies, gas utilities, state weatherization providers, and direct customer requests for weatherization services. a. 20% LIURP Budget—Clarification Requested In the Proposed 2017-2019 Plan, PPL states that it may use up to 20% of the annual LIURP budget to serve customers that are between 150%-200% of FPIG. Proposed 2017-2019 Plan at 37. This is consistent with the LIURP regulations at § 58.10(c). PPL further states that the 20% could include service for “special needs” customers (those with disabilities, medical equipment in the home, or elderly or small children), customers living in multi-unit projects and/or customers referred through coordination. In a footnote, PPL explains that Act 129 WRAP may treat multi-unit households below 150% FPIG in a building, and that the Act 129 Conservation Service Provider (CSP) would refer any remaining households between 150%-200% FPIG to LIURP WRAP. Proposed 2017-2019 Plan at 37. We ask PPL to clarify that in those multi-unit projects coordinated with Act 129 WRAP, the customers between 150%-200% FPIG would not necessarily be required to meet the annual usage threshold of 6,000 kWh and to confirm that no master-metered buildings would be treated with LIURP WRAP (i.e., universal service) funds under this arrangement.
Table 8 Universal Service Program Budgets Universal Service Component 2017 2019 OnTrack $106,000,000 $118,000,000 $129,000,000 WRAP $10,000,000 $10,000,000 $10,000,000 Operation HELP* $1,400,000 $1,400,000 $1,400,000 CARES $100,940 $103,968 $107,087 Total $117,500,940 $129,503,968 $140,507,087 Estimated Number of Residential Customers** 1,233,954 1,237,655 1,241,368 Average Monthly Cost per Residential Customer $7.84 $8.63 $9.34 *No funds for Operation HELP are recovered through base rates and therefore this budgeted amount is not counted as part of the “Average Monthly Spending per Residential Customer.” **Based on an average of 1,226,583 residential customers in 2015 and an annual 0.3% increase in PPL residential customers from 2012 through 2015. 2012-2015 Reports on Universal Service Programs & Collections Performance at 6. a. OnTrack Budget – Clarification Requested We have concerns about the increasing cost of PPL’s OnTrack program, which is funded by all residential ratepayers through a universal service rider. As illustrated in Table 9, OnTrack costs have increased by 78% from 2012 to 2015. By the end of 2015, PPL residential customers were paying approximately $5.70 monthly to fund this program.