SAN DIEGO, June 10, 2004 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) today launched the Family Electric Rate Assistance (FERA) program, which allows low-to-middle income households of three or more people to use more electricity at reduced rates.
The California Public Utilities Commission (CPUC) established FERA for customers who exceed the income threshold for the California Alternate Rates for Energy (CARE) program.
Beginning June 17, 2004, SDG&E residential customers who meet the income and eligibility requirements can sign up for the FERA program. To qualify for this program, customers must have a household of three or more people and a total household income of 175 percent (plus $1) to 250 percent of the federal poverty limit. Each June, the qualifying income guidelines are re-evaluated and are established for the next 12 months. Beginning June 1, 2004, the income guidelines are:
FERA Income Guidelines
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Number of people in the household Total Combined Annual Income
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1-2 Not applicable
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3 $27,501-$39,300
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4 $33,101-$47,400
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5 $38,701-$55,400
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6 $44,301-$63,500
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Each additional person +$5,601-$8,100
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Customers who qualify for the FERA program, will see their savings (if applicable) printed as a separate line item on their monthly SDG&E bill under the Electric Energy Charge. The average discount will vary depending on usage. This credit will appear one full billing cycle after the customer's completed application has been received and approved. Enrolled customers will be contacted by mail every two years to renew eligibility.
Under the FERA program, eligible customers will have their Tier 3 usages (131 percent to 200 percent) of baseline billed at Tier 2 rates. Customer usage in Tier 4 (201 percent to 300 percent of baseline) and Tier 5 (above 300 percent of baseline) will continue to be billed at the current Tier 4 and 5 rates. (More than one-half of residential customers do not exceed usage above 130 percent.) Customers whose usage falls below Tier 3 levels, will not receive a credit.
The following example shows the benefit of the FERA program for a residential customer who uses 1,000 kWh per month in the summer.
Current
Electric Rates FERA Previous New Bill
Allocation (E-1*) Rate Amount Amount
------ ----------------- --------- -------- -------- ---------
Tier 1 0-100 percent $0.04324 $0.04324 $15.31 $15.31
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Tier 2 101-130 percent $0.03774 $0.03774 $ 4.00 $ 4.00
------ ----------------- --------- -------- -------- ---------
Tier 3 130-200 percent $0.06305 $0.03774 $15.64 $ 9.36
------ ----------------- --------- -------- -------- ---------
Tier 4 201-300 percent $0.07212 $0.07212 $21.06 $21.06
------ ----------------- --------- -------- -------- ---------
Tier 5 Above 300 percent $0.08795 $0.08795 $ 0.00 $ 0.00
------ ----------------- --------- -------- -------- ---------
Total Bill Comparison and Savings: $56.01 $49.73
(savings $6.28)
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It is important to note that FERA does not replace CARE, which offers a 20 percent discount to low-income customers who have an annual income at or below 175 percent of the federal poverty limit. In addition to the CARE and FERA programs, SDG&E offers other assistance programs including:
* Flexible Payment Arrangements: Offers a more flexible payment schedule, if customers need more time paying their bill. (Arrangements must be made before 48-hour notices are received).
* Direct Assistance Program: Offers home improvements such as new energy-efficient appliances, energy-saving light bulbs and a variety of other measures to customers who meet specific requirements and income guidelines.
* Medical Baseline: Provides more gas and electricity that is billed at the lowest possible rate to customers on life support or with a qualifying medical condition.
* Level Pay Plan: Provides a set energy payment each month after averaging the amount of energy used over a 12-month period.
SDG&E is a regulated public utility that provides safe and reliable energy service to three million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE: SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.