Needs Assessments for the Energy Savings Assistance (ESA) and the California Alternate Rates for Energy (CARE) Programs

Evergreen Economics conducted the 2013, 2016, and 2022 Low Income Needs Assessments (LINAs) for the California investor-owned utilities (IOUs) and the California Public Utilities Commission (CPUC). Generally, these LINA studies have employed a combination of large-scale quantitative data collection from eligible or nearly eligible households; qualitative interviews or focus groups with additional households, program providers, market observers, stakeholders, and/or community-based organizations; and use of secondary data.

The 2013 LINA provided information on the needs of the low-income customers eligible for the Energy Savings Assistance (ESA) and the California Alternate Rates for Energy (CARE) programs. The study (1) reported on estimates of eligible households; (2) explored program accessibility; (3) obtained customer perceptions of the programs; (4) assessed willingness and barriers to participate; (5) assessed the energy-related needs (including measures) of customers; (6) provided data to support updates of remaining energy savings potential; (7) collected data on energy burden and insecurity; and (8) assessed the non-energy benefits of the ESA program. The Evergreen study team used numerous data and information sources including in-depth interviews with program staff and contractors; analysis of secondary data from the U.S. Census and American Community Survey, program tracking and billing data and related low-income study data; 1,028 telephone surveys; conjoint survey and modeling to understand drivers and barriers to ESA participation; 88 in-home visits with current CARE enrollees; and review of low-income energy efficiency programs across the country.

Evergreen's research provided vital market feedback on the remaining barriers and needs to assist the CPUC in developing program guidance and policies and the IOUs in refining their program design. The study identified that the programs have successfully reached many low-income segments that are considered hard-to-reach through aggressive marketing and outreach efforts, but that there are still customers that are facing hardship related to either their energy bills and/or the condition of the energy-using equipment in their homes.

The key objectives of the 2016 study focused on understanding customers’ energy burden and insecurity, beneficial energy efficiency measures, and potential program accessibility barriers including a need to provide income documentation. In addition to assessing energy burden on a traditional metric, Evergreen examined households’ relative burden using several additional metrics, including modified energy burden. Comparisons of these metrics and an examination of how various customer segments fare by each metric broadened understanding of hardship and burden among low-income households. In addition to many of the same data collection methods and information sources as for the 2013 study, Evergreen conducted focus groups with high burden customers and interviews with community-based organizations (CBOs) that serve low-income households.

The 2022 study was intended to provide a more holistic understanding of different types of renters (for example, elderly and disabled renters and multiple families renting one household) and their concerns, needs, priorities, and efforts to inform improvements in engaging and providing them with energy-related services. Within these renter types, the study was designed to develop an understanding of where energy issues rate among other common concerns such as paying rent and food insecurity. Topics that were explored included energy use patterns, energy burden, disconnects, and bill arrearages. This latest study included 1,000 surveys of low-income renter households throughout the state to collect demographic information and energy use patterns and to gain insights about eligible households' perspectives on the IOUs' weatherization programs. Telephone interviews with a nested sample of eligible households and input from program contractors who routinely interact with landlords provided additional insights about tenant and landlord barriers to participation.