Presentation prepared by Billy Weitzenfeld for The Association of Energy Conservation Professionals (AECP) on August 18, 1998.

· A key issue in the restructuring debate is affordability and the concern that deregulation of the utilties may actually increase electric bills and lessen the overall quality of service. This is an especially important issue for low-income families who often already have a much higher energy burden than middle and upper income citizens. As a matter of fact, according to Health and Human Service statisics, a family of median income in Virginia will spend, on average, 3.5% of their disposable income on energy bills whereas a low-income family will utilize 15% of their disposable income to pay the monthly energy bill.

· The only solution is to improve and enhance existing Public Benefit programs that provide opportunities for increased energy efficiency and that concentrate on reducing home energy consumption and the wasteful use of energy.

· The Virginia Weatherization program is an extremely cost-effective, valuable program that due to sophisticated building science expertise is able to provide low-income citizens with services that save energy, save money, and save lives. Weatherization is not a public relations program set up to appease certain mandates or simply help consumers pay their bills but rather a program that identifies the underlying causes of energy hardship and then provides long term solutions to those problems. Weatherization is a down and dirty, experienced effort that has been on the leading edge of energy conservation technology for over twenty years. Weatherization is the only Public Benefit program in Virginia that offers a true solution to home affordability.

· Weatherization funding is primarily Federal and in FY 97-98 1.5 mill was received from the Dept. of Energy, 1.5 mill from the Low Income Home Energy Assistance Program (LIHEAP), and $800,000 from remaining Oil Overcharge funds. The LIHEAP funds are a result of General Assembly legislation mandating a percentage of LIHEAP funds be allocated to Weatherization. This became necessary due to a 50% cut in Dept. of Energy funds in FY 95-96.

· Federal funds are being targeted for elimination by Congress and the future of Weatherization is very uncertain. It is time for the State of Virginia to assume more responsibility in establishing reliable and necessary funding sources for a program that does so much for all citizens of the Commonwealth.

· Electrical restructuring provides an excellent opportunity to provide stable funding for Weatherization and other energy efficiency programs. A System Benefits Charge is an excellent way to acheive this and should be considered very seriously by this Task Force. The Clinton Administration has encouraged states that are seeking to deregulate, to continue their support of Public Benefit programs and has offered matching money for this purpose.

· Utilities must be encouraged to effectively partner with programs like Weatherization because together we can acheive a healthy balance between energy use and energy conservation. This balance is important now and in the future and as a community it is mandatory that we work towards acheiving these goals.

· For further information contact Billy Weitzenfeld at 540-382-1975.