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Affordable Payment Plans Top Five Lessons

Affordable Payment Plans Top Five Lessons. NLIEC June 13, 2006 David Carroll Jackie Berger. Lesson #1.

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Affordable Payment Plans Top Five Lessons

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  1. Affordable Payment PlansTop Five Lessons NLIEC June 13, 2006 David Carroll Jackie Berger

  2. Lesson #1 • Low-income customers want and need consistent monthly utility bills. Equal monthly bills result in the highest rate of coverage for the customer’s portion of the retail bill and the greatest perceived level of affordability for low-income customers.

  3. Lesson #2 • The most effective approach to program design within a service territory is to coordinate all energy assistance benefits, including LIHEAP, gas programs, electric programs, and fuel fund programs. Other approaches encourage customers to make suboptimal decisions.

  4. Lesson #3 • Low income customers want and need better information on their responsibilities and opportunities with respect to low-income payment programs. Mailings and bill messages, while preferred by customers, do not result in understanding.

  5. Lesson #4 • Energy is not the only budget issue. While offering the same benefit to each household is the “fairest” approach, programs need some mechanism for addressing individual budgetary circumstances.

  6. Lesson #5 • Low-income customers who participate in payment programs do not change their usage … unless they have one fuel subsidized and one fuel that is not subsidized.

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