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Southwest Gas Corporation

Southwest Gas Corporation. California Low-Income Assistance Programs Overview. LIOB Meeting June 7, 2006. R. Southwest Gas Corporation (Southwest) Presentation Outline. Company Overview CARE Program LIEE Program Current/Proposed Budgets Public Purpose Program Surcharge Concerns.

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Southwest Gas Corporation

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  1. Southwest GasCorporation California Low-Income Assistance Programs Overview LIOB Meeting June 7, 2006

  2. R Southwest Gas Corporation (Southwest)Presentation Outline • Company Overview • CARE Program • LIEE Program • Current/Proposed Budgets • Public Purpose Program Surcharge • Concerns

  3. R Southwest’s Three State Service Area 1.7 million customers in Arizona, Nevada and California as of December 2005 36% 10% 54% = California Service Territories (not to scale)

  4. R Why Southwest is a Unique California Utility • Approximately 170,000 customers statewide • Residential – 95% • Other – 5% • Multi-jurisdictional with varied climate zones • Southern California: Barstow, Victorville, Big Bear and Needles • Northern California: Lake Tahoe and Truckee • Overlap with both large and small electric utilities • Southwest was the only Small and Multi-jurisdictional Utility (SMJU) included in the Winter Initiative

  5. R California Alternate Rates for Energy (CARE) Program • Southwest customers qualify at 200% of the Federal Poverty Income Guidelines • 20% discount to qualifying customers • CARE is a self-certification program with recertification every two years • Outreach: • Applications distributed annually as bill inserts (English/Spanish) • Targeted Mailings, Posters, Flyers, and Spanish Newspaper Ads • Increased enrollment: • Data share, capitation, and online application • Phone enrollment (winter 2005/2006 only)

  6. R CARE Participation • Current CARE customers = 39,052 • Estimated eligibility: • Southern California = 35% to 40% of primary residential • Northern California = 8% to 10% of primary residential

  7. R Low-Income Energy Efficiency (LIEE) Program • Southwest customers qualify at 175% of the Federal Poverty Income Guidelines • Weatherization including appliance replacement and energy education completed as defined in the: • California Weatherization Installation Standards manual • California Policy and Procedures manual • Southwest’s contractors assisted 738 homes in 2005 • Northern California – Richard Heath and Assoc./Project GO • Southern California – Community Action Partnership of San Bernardino County • Partner with additional weatherization programs • Inform and enroll customers on CARE

  8. R Current/Proposed Budgets TOTAL CALIFORNIA CARELIEETOTAL D.05-07-014 authorized $4,113,191 $941,980 $5,055,171 Per Year – 2005 and 2006 A.06-06-___ proposed $8,943,330 $1,080,000 $10,023,330 Per Year – 2007 and 2008 • Pursuant to D.05-07-014 Southwest filed a two-year budget application for its low-income assistance programs on June 1, 2006 • CARE benefits are expected to more than double from 2005 to 2007

  9. R Public Purpose Program (PPP) Surcharges

  10. R Southwest’s Concerns • Administration challenges due to varied income guidelines for CARE and LIEE • CARE: Southwest at 200% vs. Other Small Utilities at 175% • LIEE: Southwest at 175% vs. Large Utilities at 200% • High percentage of residential customers eligible for CARE • Southwest’s CARE portion of the PPP surcharge is increasing rapidly as non-CARE customer base that pays this portion of the surcharge decreases

  11. R Questions

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