HD7 - Effectiveness of Low-Income Energy Assistance Programs


Executive Summary:
House Bill 2473 as passed by the 2001 Virginia General Assembly amended Title 63.1 of the Code of Virginia, by adding Chapter 22 consisting of Sections 63.1-336 through 63.1-343. Section 63.1-339.A.2. requires the Department of Social Services to report annually to the Governor and General Assembly on or before October 1 on the effectiveness of low-income energy assistance programs in meeting the needs of low-income Virginians.

Many energy assistance programs exist in Virginia to assist low-income households. Many of these programs work in conjunction with the Virginia Energy Assistance Program, which is based on and funded by the federal Low Income Home Energy Assistance Program. This report includes information on state-operated programs such as the Virginia Energy Assistance Program and the Weatherization Program, and utility based programs such as EnergyShare, Fan Care and the Neighbor to Neighbor Program.

The determination of need is governed by the rules for each of the low-income energy assistance programs. Household size, income, energy burden (cost of energy in relation to income), or the debt to income ratio, and the presence of a vulnerable person (age 60 or older, disabled, or under age 6) in the home is used in establishing need for assistance.

Most programs in Virginia measure program effectiveness by customer satisfaction and number of households served. This report covers federal fiscal years 1999, 2000, and 2001 (through July 30, 2001) and addresses effectiveness in relationship to numbers of households served.

Low-income households spend a large percentage of their income on residential energy. Data captured by the Virginia Energy Assistance Program reveals that 75 percent of the households receiving assistance in Virginia spend in excess of 50 percent of their income on home energy. The Virginia Energy Assistance Program in conjunction with other programs will continue to assist low-income households that have the highest energy costs or needs.