ENERGY IMPACT: Addressing Fuel Poverty
Photo Credit: elycefeliz via Flickr.
October 2014
prepared by:
POWER ACROSS TEXAS | energy impact
Acknowledgements
We would like to thank the steering committee, whose time and input helped shape the concept significantly.
Name
Bill Bojorquez
Charley Dean
Mitch Jacobson
Bob King
Becky Klein
Susan Meredith
Katie Rich
Ned Ross
Suzanne Russo
Raiford Smith
Organization
Hunt Consolidated/Sharyland Utilities in Valley
Owens Resource Group
Austin Technology Incubator
SPEER / Good Company Associates
Power Across Texas
Go Green Squads
Public Utility Commission of Texas
Direct Energy
Pecan Street, Inc
CPS Energy
Margo Weisz
Caroline Alexander
Carlos Olmedo
City Lights Group
City Lights Group
LBJ School of Public Affairs, UT Austin
We would also like to thank the many individuals and organizations that contributed their time to helping us
learn, discover, and develop the Energy Impact Platform. Appendix C recognizes the many contributors.
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Table of Contents
Executive Summary..................................................................................................................................... 1
The Energy Impact Platform: Structure & Governance .......................................................................... 3
PART I: BACKGROUND ...................................................................................................................... 4
Introduction ................................................................................................................................................ 5
Fuel Poverty in the Colonias and Texas ...................................................................................................... 6
Addressing Fuel Poverty ........................................................................................................................... 12
PART II: THE ENERGY IMPACT PLATFORM ....................................................................................... 18
The Energy Impact Platform ..................................................................................................................... 19
1. The Energy Impact Institute ........................................................................................................... 21
2. Energy Impact Fund ....................................................................................................................... 31
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis ................................................ 41
PART III: APPENDICES ...................................................................................................................... 42
Appendix A: Potential Funding Sources .................................................................................................... 43
Appendix B: Potential Partners ................................................................................................................. 45
Appendix C: Project Contributors ............................................................................................................. 48
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Executive Summary
Power Across Texas hosted the Texas Energy Innovation Challenge in 2013 to address the cost burden of energy
for residents of colonias and for low-income people throughout Texas. Inter-disciplinary teams from three major
universities developed concepts to bring affordable energy to these under-served areas of Texas. At the
conclusion of the challenge, Power Across Texas decided to pursue the issue more concretely, and devise
innovative solutions to alleviate fuel poverty. The result was the development of The Energy Impact Platform.
The Energy Impact Platform will work to address the systemic causes of fuel poverty by developing sustainable
solutions that can have a lasting impact on low-income electricity consumers. The platform will consist of two
parts:

A research institute that will be a partnership between academia, the public sector, energy companies, and
other private sector companies to coordinate research that will address fuel poverty in the state.

A mezzanine fund that will assist in bringing to market high-impact technologies and services that have
applications for low-income markets.
The Energy Impact Institute will be responsible for advancing the collective knowledge of low-income
households and their relationships to energy. The Institute will assemble data on this population’s energy
consumption patterns, construct a network of households willing to participate in research, and create the
capacity to test, demonstrate, and assess new products in diverse segments of the low-income population. This
infrastructure could be used to develop a wide range of goods and services that will reduce the electricityrelated cost burden on low-income families. The range of products and services could include new technologies,
retail electric products, energy-efficiency programs, distributed generation, consumer financing models,
education curricula, and outreach strategies. Research findings can inform both market-based solutions and
public policy.
The Energy Impact Institute will benefit energy stakeholders by:

leveraging shared research dollars,

aggregating data that focuses on low-income consumers,

serving as a third party validator of research findings and evaluator of programs or policies.
The Platform will also include the Energy Impact Fund, which will help new technologies and services expand or
commercialize more quickly. The Fund will provide favorable financial products and business assistance to
companies emanating from the Institute, or otherwise, that are developing products or services that could assist
low-income markets.
The Fund will be able to meet the capital needs of businesses of various sizes and growth potential, including
companies that are developing innovative new technologies or internet-based companies that provide new
channels for customers to interact with their energy usage. The Fund will also be able to provide financing to
smaller businesses that may provide services such as weatherization or energy audits.
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The Energy Impact Fund will provide a range of business development services and market expertise to portfolio
companies. Entrepreneurs with promising companies often need business support in financial management,
marketing, or operational systems as they grow. The Fund will provide assistance through staff and volunteer
mentors who can work with entrepreneurs to address specific challenges. Additionally, the Fund will work in
concert with the Energy Impact Institute to provide information on the preferences, behaviors, and needs of
low-income energy consumers to portfolio companies.
Fund Goals:











Structure:
Geographic focus:
Socio-economic focus:
Financial Products:
Sustainability:
Self-sufficiency:
ROI:
Investment Terms:
Total Assets:
Portfolio Size:
Net Assets:
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Nonprofit mezzanine fund
Markets throughout Texas, special consideration given to colonias
Energy related businesses that serve low-income households
Flexible debt structures and equity investments up to $500,000
Sustainable revenue by year 3
75% self-sufficient through portfolio income within 5 years
2%-4% annual return to Fund investors
3 – 10 years, interest only
$6 million within 3 years
$5 million within 3 years
Maintain minimum net assets of 30% of total assets
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The Energy Impact Platform: Structure & Governance
ENERGY IMPACT
PLATFORM
(executive committees)
INSTITUTE BOARD OF
DIRECTORS
RESEARCH ADVISORY
COMMITTEE
FUND BOARD OF
DIRECTORS
ENERGY IMPACT
INSTITUTE
ENERGY IMPACT FUND
INVESTMENT
COMMITTEE
collaborative research
debt/equity
investments
proprietary research
and development
technical assistance
policy research
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PART
I:
PART I:
BACKGROUND
BACKGROUND
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Introduction
Power Across Texas hosted the Texas Energy Innovation Challenge in 2013 to address the access to affordable
energy for residents of colonias and for low-income people throughout Texas. Inter-disciplinary teams from
three major universities developed concepts to bring affordable energy to these under-served areas of Texas. At
the conclusion of the challenge, Power Across Texas decided to pursue the issue more concretely by devising
innovative solutions to accessible and affordable energy.
As part of this effort, Power Across Texas, in
partnership with the State Energy Conservation
“A household is said to be in
Office (SECO) and the University of Texas’ Energy
Institute, conducted a detailed market study in
fuel poverty when its members cannot
October 2013 to better understand the constraints
afford to keep adequately warm or cool
and opportunities of offering affordable energy
at reasonable cost, given their income.”
solutions in the Texas colonias. Through a survey of
343 households in 24 colonias, the report compiled
As defined by the United Kingdom’s
information on energy usage and expenditures,
Warm Homes and Energy Conservation Act.
housing conditions, workforce characteristics, food
security, and access to credit. The study found that
96 percent of households have access to electricity and that these very low-income households spend between
11.6 percent and 28.4 percent of their monthly income on electricity. The burden of monthly electricity bills on
the households surveyed is more than 20 percent higher than that of the average US household in the bottom
quintile of the US income distribution.1 The extremely high burden of electricity costs has a significant impact on
these households’ ability to meet their family’s other basic needs. These findings led Power Across Texas’
initiative to evolve from a focus on access to electricity to a focus on alleviating fuel poverty.
To assist in the development of a model for alleviating fuel poverty in the colonias and for low-income
households across the state, Power Across Texas hired City Lights Group, a strategic consulting firm. As part of
this project, City Lights Group identified and evaluated various concepts with respect to their potential impact
on fuel poverty. With the help of a steering committee of experts in the energy sector, the project team
concluded that a research institute with an associated mezzanine fund would have the highest potential impact
at this point in time.
The report that follows consists of three parts. Part I is a summary of the primary challenges that low-income
energy consumers face and recommendations for meeting their energy needs. Part II is a concept plan for the
Energy Impact Platform, which consists of the research institute and mezzanine fund. Part III includes the
appendices which consist of supplementary information such as funding sources, potential partners, and a list of
project contributors.
1
Olmedo, Carlos. “Energy, Housing and Income: Constraints and Opportunities for Affordable Energy Solutions in the Texas Colonias.”
October 2013.
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Fuel Poverty in the Colonias and Texas
LOCATION OF COLONIAS ALONG THE TEXAS-MEXICO BORDER
Source: US Department of Housing and Urban Development via Community Planning and Development Maps.
Colonias are settlements along the Texas-Mexico border in which the majority of the population is low or very
low-income. The settlements are often in unincorporated subdivisions and are characterized by substandard
housing and, in many cases, a lack of basic infrastructure.2
The highest concentration of colonias is in the Lower Rio Grande Valley in South Texas, which includes six
counties – Cameron, Hidalgo, Starr, Willacy, Webb, and Zapata. In this region, almost 165,000 households (40
percent) earn less than $25,000 annually. There are 102,000 households that earn annual incomes below the
federal poverty line. Just over half (51 percent) of these households own their homes. Many of these low-
2
Federal Reserve Bank of Dallas. “Texas Colonias: A Thumbnail Sketch of the Conditions, Issues, Challenges and Opportunities.” 1995.
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income families live in single-family detached
homes in colonias. In fact, across the region, 84
percent of all housing units are single family
detached.3
CHARACTERISTICS OF COLONIA RESIDENTS
The SECO Market Study revealed that 96 percent
of the households surveyed have access to
electricity and 73 percent own their homes. Twothirds of households surveyed earn less than
$1,600 a month and have an average of 4 people
living in their households. These households pay
between 11.6 and 28.4 percent of their incomes
for electricity. 4 These findings demonstrate the
deep impact that fuel poverty has on households
that have limited financial resources and large
families to support.
Across Texas, there are almost 2.1 million
households (24 percent) that earn less than
$25,000 annually.5 The Texas State Data Center
estimates that low-income households in the state
spend about 12.5 percent of their annual incomes
on home energy costs, versus 4.0 percent for non
low-income households.6
40%
102K
73%
84%
96%
> 12%
of residents earn less
than $25,000 annually
households earn less than
the federal poverty line
of households own their
own homes
of all housing units are
single-family detached
of residents have access
to electricity
of residents’ monthly
incomes pay for
electricity
HOME ENERGY COSTS AS SHARE OF ANNUAL INCOME – TEXAS HOUSEHOLDS
low-income households
other households
Source: TDHCA, Weatherization in the State of Texas. March 2014
3
2007-11 American Community Survey via HUD’s CPD Mapping Tool.
Olmedo, 2013.
5 2007-11 American Community Survey via HUD’s CPD Mapping Tool.
6 TDHCA, Weatherization in the State of Texas. March 2014
4
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Low-Income Electricity Customers
The Electric Reliability Council of Texas (ERCOT) reports a total of 24 million customers across their territory and
6.7 million premises that fall in competitive-choice areas.7 Of these, 5.8 million are residential customers living in
the deregulated areas. Assuming that the income distribution of the state is similar to the population of
customers that live in deregulated areas, this would mean that about 1.4 million of these customers are lowincome.8
Of the 5.8 million residential customers in deregulated areas, almost 40 percent (2.3 million) of the customers
have never switched providers – they are still using the affiliate provider.9 Of these, an estimated 552,000 are
low-income customers that have stayed with the affiliate providers.10
The majority of the communities in South Texas that are considered colonias lie in the deregulated electricity
markets within the American Electric Power (AEP) service area. This means that low-income households in these
areas have chosen a retail electric provider (REP) or chose to stay with the incumbent provider when
deregulation occurred. The Magic Valley Electric Coop (MVEC) serves many colonia residents that do not live in
competitive-choice areas.
AEP AND MVEC SERVICE AREA BOUNDARIES
Source: Public Utilities Commission via TNRIS.
Note: ORANGE represents AEP’s service area. LIGHT BLUE represents MVEC’s service area.
7
ERCOT, Quick Facts. April 2014.
2007-11 American Community Survey via HUD’s CPD Mapping Tool. (24% households earn < $25,000 a year x 5.8 million residential
customers = 1.4 million low-income customers)
9 Public Utility Commission, Report Card. July 2014.
10 2007-11 American Community Survey via HUD’s CPD Mapping Tool. (24% households earn < $25,000 a year x 2.3 million residential
customers = 552,000 low-income customers)
8
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According to the US Energy Information
Agency, residential electricity customers in
Texas consume an average of 1,168 kWh
per month at an average price of 10.98
cents / kWh. 11 The average electricity
consumption and average rate specifically
of low-income households in the state is
not currently known.
TEXAS ELECTRICITY CONSUMER PROFILE, 2012
in comparison to the US and state high/low’s
Though a statewide study of low-income
electricity customers has not been
conducted, we can paint the current
picture of how low-income customers are
served using available data and
information obtained through interviews
Source: US Energy Information Agency.
with industry experts. Taking this
approach, the following conditions are revealed:
1. Low-income customers have limited access to affordable rates and plans.
2. Low-income customers are costly to serve and hard to reach.
3. Low-income households are inefficient consumers of electricity.
These characteristics are generally applicable to the low-income population as a whole and affect how lowincome customers are served. However, the low-income population is not a homogenous group. It reflects the
diversity of the over-all population of Texas. As a result, the ways electric providers serve their low-income
customers vary from company to company. The descriptions below highlight the commonalities among the ways
that REPs and other electric providers serve this customer base.
Limited access to affordable rates and plans.
Low-income customers in competitive-choice areas typically pay much higher rates than the average customer.
The average household in the territory covered by MVEC consumes 7,600 kWh annually.12 When compared to
the average Texas household, which consumes 14,000 kWh annually, the actual electricity consumed by
households in colonias is low.13 Yet, the SECO Market Study found that households’ electrical bills average $153
a month (the average Texas household pays $128 a month). 14,15 With an average monthly consumption of about
11
US Energy Information Agency, 2012 Average Monthly Residential Bills by State.
Oscar Garcia, Residential Energy Incentive Program Database, April 2014.
13 US Energy Information Agency, 2012 Average Monthly Residential Bills by State.
14 Olmedo, 2013.
15 EIA.
12
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633 kWh and an average monthly bill of $153, this implies a rate of $0.24 per kWh. This rate is almost three
times the prevailing rate of $0.085 offered on the competitive market.16
Low-income customers carry a higher cost burden than the average Texas household. Many of these households
pay higher rates due to a lack of understanding of the deregulated electricity market and how best to shop for
the most favorable rates. Others face more significant barriers because they are viewed by electric providers to
be high-risk – those that have poor credit or no credit. These high-risk customers must pay a security deposit,
which in many cases is not affordable for them, or pay a higher rate (20 percent more) that captures the risk in
lieu of a security deposit.
Recent innovations in product development among electrical providers offer low-income customers products
that provide flexibility and less uncertainty regarding monthly bills. These innovations include plans that offer
the ability to buy a surety bond instead of paying a security deposit, or a pre-pay plan, or even a 12-month fixed
monthly bill. While offering more flexibility to accommodate low-income customers’ needs, all of these products
encompass the perceived risk of serving these customers, which translates to rates that are 30 to 50 percent
higher than the prevailing rate for 1,000 kWh monthly.17
In addition to higher rates, low-income customers’ electricity costs often include late fees, reconnections fees,
and customer service fees. Furthermore, because many of these low-income customers are already using less
than 1,000 kWh per month, they are sometimes charged a fee for under-consumption if their plan is not rightsized. These fees contribute greatly to the high cost burden of low-income customers.
High cost to serve.
Though it is not known what the rate of default is among low-income customers across the state, it is commonly
accepted among electric providers that higher rates of bad debt and arrears are associated with the low-income
customer segment. In addition, low-income customers are likely to call customer service with more frequency
than other customer segments, which contributes to a higher cost-structure for electric providers serving these
customers. These customers are also difficult to reach through typical engagement strategies such as smart
phones applications and interactive websites; thus, direct mail is often the primary mechanism for reaching lowincome customers. For these reasons, retail electric providers attempt to capture these associated costs through
higher priced products.
Inefficient electricity consumption.
Though many low-income customers consume less energy than the average Texas household, this is largely due
to differences in home size and, in some cases, fewer large appliances. Customers of all income levels are often
inefficient consumers of electricity. From leaving the lights on to having the thermostat too low, many
customers consume unnecessary electricity. In low income homes, the impact of these consumption patterns is
amplified by a variety of other factors. In the colonias, the Do-It-Yourself (DIY) model of construction that
prevails often results in sub-standard housing. These housing conditions can contribute to higher heating and
16
PowertoChoose.org
Via PowertoChoose.org (9/18/2014): prevailing rate (1,000 kWh) = $0.085; prepaid rate (1,000 kWh) = $0.13 - $0.15; prevailing rate
(500 kWh) = $0.105; prepaid rates (5,000 kWh) = $0.14 - $0.16.
17
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cooling costs. In addition, low-income customers are more likely to have older, less-efficient appliances and
household electronics. These older appliances and electronics consume significantly more energy than their new,
more efficient counterparts.
SUMMARY

Texas colonias are characterized by the prevalence of low-income households (40 percent earning less
than $25,000 annually), single-family detached housing units, and high rates of home ownership.
Monthly electricity costs account for anywhere between 11.6 percent and 28.4 percent of monthly
household income.

In Texas, 2.1 million households (24 percent) earn less than $25,000 annually. They spend, on average,
12.5 percent of their income on electricity.

The deregulated electricity market encompasses 5.8 million residences. Of these, an estimated 1.4
million are low-income. AEP’s service area covers the majority of colonias.
Though a statewide study of low-income electricity customers has not been conducted, we can paint the
current picture of how low-income customers are served. In general, low-income customers face the
following challenges:
1. Low-income customers have limited access to affordable rates and plans. Many low-income
customers pay higher rates because they do not know now to shop for the most favorable rates.
Others can only access more expensive products because they are high-risk. Various fees, including
late fees, reconnection fees, and customer service fees also contribute to the cost burden. Lowincome customers’ average monthly consumption is about 633kWh, with an average monthly bill of
$153. This implies a rate of $0.24 per kWh. This rate is almost three times the prevailing rate of
$0.085 offered on the competitive market.
2. Low-income customers are costly to serve and hard to reach. Low-income customers are typically
higher-touch and use more expensive customer service channels. They are also harder to reach
through social media and other low-cost engagement channels.
3. Low-income households are inefficient consumers of electricity. Older homes, less-efficient
appliances, and inefficient consumption patterns contribute to higher energy usage among lowincome households.
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Addressing Fuel Poverty
Though the problem of fuel poverty is widespread both in Texas and across the US, it is not a focus of social
policy discussions as it is in developing nations or the United Kingdom. As a result, programs to address fuel
poverty are somewhat piecemeal. The federal government provides block grants, and local utilities have their
own programs to address the issue in Texas. To the extent that these programs are administered by the same
network of community action agencies (CAAs), they are coordinated. However, the CAAs do not necessarily
control the policies that establish the program rules. Furthermore, many of these programs do not address
systemic reasons for fuel poverty, and there are few policies that address the issue holistically or
comprehensively.
Existing Programs
The majority of existing programs provide temporary assistance to eligible households who cannot pay their bills
or they provide funds to improve the efficiency of the homes through energy-efficiency improvements and
weatherization. Some programs provide assistance for making security deposits and a few provide education.
Descriptions of the largest programs in Texas are below.
Low Income Home Energy Assistance Program
LIHEAP provides federally-funded assistance in managing costs associated with home energy bills, energy crises,
as well as weatherization and energy-related minor home repairs. The program is part of the US Department of
Health & Human Services’ Administration for Children & Families. The program provides $2 to $3 billion in
funding to households across the US. About half of this funding goes towards heating assistance, which provides
support to about 5 million households each year. Crisis benefits account for the next largest sum – about $500
million. Weatherization benefits account for about $250 million. Cooling benefits have historically accounted for
less than $100 million.18
Weatherization Assistance Program
The Department of Energy (DOE) Weatherization Assistance Program provides grants to states, territories, and
tribes to improve the energy efficiency of the homes of low-income families. These governments, in turn,
contract with local governments and nonprofit organizations to provide the services to low-income families.
In Texas, LIHEAP funds are combined with Department of Energy funds to operate Texas Department of Housing
and Community Affairs (TDHCA) Weatherization Assistance Program (WAP). WAP is designed to help lowincome customers control their energy costs through the installation of weatherization materials and education.
The program goal is to reduce the energy cost burden for low-income households through energy efficiency. The
WAP is administered through sub-recipients, which collectively cover all 254 counties of the state. In 2012, the
most recent year for which data is available, over 12,000 low-income households were served. This was a
18
LIHEAP Annual Report Statistics, FY 2008. Published May 2012.
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particularly large number of households due to the influx of funds authorized by the American Reinvestment
and Recovery Act (ARRA).
Comprehensive Energy Assistance Program
TDHCA also manages the Comprehensive Energy Assistance Program (CEAP), which combines temporary bill
relief with consumer education to promote behavior changes that will reduce monthly electricity bills. This
program is also integrated with LIHEAP and is administered by the same network of community action agencies
that cover all 254 counties in the state.
Current Status: For FY 2014, $104 million was allocated for LIHEAP and $3.8 million for WAP.19
The System Benefit Fund – LITE-UP Texas
The State created the Systems Benefit Fund to assist temporarily low-income people with their bills. All energy
users paid into the Fund, which was used to provide a safety net to those who were not able to pay their energy
bills in hot summer months between May and September. Any household that receives Medicaid and the
Supplemental Nutrition Assistance Program (SNAP) or is at or below 125 percent of the federal poverty
guidelines qualifies for the LITE-UP Texas Program. A household that is eligible may receive a discount on their
bill.
Current Status: The Systems Benefit Fund has been de-funded and will no longer be available to assist lowincome consumers once the fund is depleted.
Utility-Funded Weatherization Programs
The 79th Texas Legislature passed SB 712 requiring unbundled transmission and distribution utilities (TDUs) to
provide funds for market-based standard offer programs and targeted market-transformation programs to
acquire additional energy efficiency equivalent to at least 10 percent of the electric utility’s annual growth in
demand. As part of this program, the utility may use up to 10 percent of the cost of its energy-efficiency
program for research and development.
Each TDU is required to include a targeted low-income
energy-efficiency program. The Public Utilities Commission
(PUC) determines the appropriate level of funding to be
allocated to both targeted and standard offer low-income
energy-efficiency programs. TDUs may contract with
nonprofit or for-profit energy-efficiency service providers to
administer these programs. In 2012, the targeted lowincome programs served just over 24,000 households.
ENERGY-EFFICIENCY PROGRAM BUDGETS
(in 000s)
2015
Oncor
$49,233
Centerpoint
39,120
AEP North
2,956
AEP Central
14,082
Total
$105,391
Source: PUC, 2014 Energy Efficiency Plans & Reports.
Current Status: The energy-efficiency program budgets for Oncor, Centerpoint, and AEP total $117 million in
2014 and $105 million in 2015.
19
2014
$60,916
39,305
2,855
14,423
$117,499
http://www.lbb.state.tx.us/Federal_Funds/Federal_Funds_Watch/843_FFW_Presidents_Budget.pdf
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Gaps in Existing Programs
While the System Benefit Fund touched millions of households across the state, it did not help address the
systemic challenges that are the root causes of fuel poverty. Furthermore, the de-authorization of the program
leaves a void that must be filled.
LIHEAP, WAP, CEAP, and Utility-Funded Weatherization Programs, on the other hand, do provide for the longterm reduction in recipients’ energy costs. However, the program reaches only a small percentage of lowincome households, according to TDHCA. Likewise, the various programs offered by nonprofits and local
governments are limited in their scope and size.
More importantly, these programs cannot help large portions of the low-income population due to specific
barriers. For example, the DIY homes prevalent in colonias cannot access federal energy-efficiency programs
because of requirements that houses meet certain building codes to be eligible. Also, low-income households
have higher rates of mobility in many areas, especially among those who rent. As a result, programs that target
fuel poverty through home improvements (weatherization and energy efficiency) are ineffective for renters
because the improvements are not portable. In addition, programs that reduce a household’s energy
consumption could unwittingly expose the household to a minimum usage fee if household electricity
consumption drops below 1,000 kWh.
Furthermore, the majority of these programs do not address the issue of access to affordable rates or integrate
on-going education into the programs. The primary focus of these programs is energy efficiency and
weatherization, though some educational materials are often left behind.
What is missing among these various programs are scalable solutions that treat the root causes of fuel poverty.
The solution must provide access to more affordable electricity rates. It must improve the energy-efficiency of
the household. And it must educate low-income customers on how they can change their own behaviors to save
electricity and seek the most affordable products for their needs.
Improved Programs and Services for Low-Income Customers
A more integrated approach to affordably meeting the energy needs of low-income customers is necessary. A
joint effort between electric providers, TDUs, social services, and the public sector will be essential. This
approach will include three essential components: reducing electricity costs, improving energy-efficiency of lowincome housing, and promoting changes in behavior that encourage conservation.
Reduce electricity cost
As mentioned previously, for various reasons, low-income customers often pay a premium rate compared to the
average customer. This disparity should be addressed first and should incorporate the following:

Price Shopping - Help customers identify the best product they can access.
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
Distributed Generation - Connect customers with installers of distributed generation assets that could
provide them with low-cost electricity (<10₵ / kWh). This could include solar leasebacks or community solar
projects. In addition, installation could involve community members as part of a workforce training program.

Deposit Guarantee – Create (or promote) a centralized pool of funds that would provide a guarantee to REPs
up to the amount of the required deposit. The guarantee would be used in lieu of a deposit. Such a
mechanism would reduce the risk assumed by REPs and allow them to offer more favorable prices to this
customer segment.

Reduce Fees – Incentivize REPs to eliminate minimum usage fees for household below a certain income level.
Increase energy efficiency
Many low-income customers have old appliances that consume significantly more energy than their modern
counterparts. Refrigerators, electric water heaters, air conditioning units, and space heaters are among the
appliances that are widely used in low-income households and are often large, inefficient consumers of energy.
The replacement of the most inefficient appliances can lead to a sizeable reduction in a household’s monthly
energy usage. In addition, weatherization and general household repair can greatly improve the housing
conditions of low-income families and also reduce monthly energy usage. This service would entail the following
components:

Energy Audit – Identify which appliances most need replacing in the customer’s household based on the age
and efficiency of the existing appliance. Inventory and prioritize weatherization and repairs that will
contribute to a reduction in energy usage.

Program Referral – Based on the needs of the household, recommend programs that can provide assistance
in securing the needed appliances and repairs. Facilitate the application process whenever possible.

Direct Services – Where assistance programs do not exist, provide the weatherization and repairs using a
volunteer-based or community-based model.

Financing – Create a fund that can provide loans to support energy-efficiency improvements. The fund could
be employer based or offered in partnership with electric providers for on-bill financing. Seek bulk-buying
opportunities and donations to reduce the cost burden for the customer.
Improve energy consumption patterns
A variety of tools and curricula exist to educate customers on how to reduce their energy consumption by
changing their behavior. Making those more accessible to low-income customers can also have a notable impact
on their monthly energy expenditures. This program could include:

Tips Sheets and Educational Materials - Develop easy-to-understand, bilingual educational materials that are
distributed through community agencies and in communities. These materials would include simple ways to
reduce energy consumption.
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
Individualized Instruction – During the energy audit, the auditor could educate household members on
specific actions they can take to reduce their energy consumption. The auditor would give a tip sheets to the
customer at the conclusion of the audit.

Home Energy Reports – Provide low-income customers with home energy reports that would provide
comparative information on energy usage and tips to reduce energy costs. These reports would be provided
through partnership with electric providers.

Technology & Tools – Provide access to tools such as programmable thermostats, home energy monitors, or
advanced meters that will help customers measure and manage their energy usage.
This approach to addressing the energy needs of low-income households will reduce monthly energy bills for
each household and will allow electricity providers – utilities, co-ops, and REPs alike – to provide better services
to this customer segment with less risk and lower costs.
Designing Scalable, Dynamic Mechanisms for Addressing Fuel Poverty
Texas needs a coordinated effort to better understand low-income energy consumers and address their unique
needs. While many of the components of an integrated service model exist in various organizations and
institutions, numerous questions remain about the optimal design for programs that can make a significant
impact on fuel poverty statewide. Below, we highlight some of the remaining areas of uncertainty.

Statewide low-income electricity consumption – A study that looks comprehensively at the electricity
consumption of low-income households in the state would document the scale of fuel poverty in Texas,
establish a knowledge base, and create a baseline. It could provide key information that would greatly aid in
structuring effective public policy and low-income retail electric products. This includes average annual
consumption, average rates, types of retail electric products, default and arrears rates, actual credit risk,
typical appliances, and more.

Distribution channels – A body of research that identifies the best channels for reaching the diverse
segments of low-income households would provide important information for any organization that needs
to reach low-income markets. Information such as the number of households that have internet service,
own smart phones and data plans, use email regularly, read their utility bills, and participate in a community
organization or institution. This would allow REPs as well as municipally-owned utilities, cooperatives, and
even community action agencies to achieve greater penetration into their low-income communities.

Engagement strategies – Knowing which segments of the low-income population respond best to different
engagement strategies would allow organizations to structure programs to be more effective.
Understanding distribution channels is part of this, but understanding what information sources they trust,
what communications tools they use, and how best to engage them is essential.

Joint risk mitigation – Public sector partnerships could mitigate the risk and cost associated with serving this
population. This would allow retail electric providers to offer low-income customers lower rates.
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
Technological innovation and adoption – The rapid rate of technological change in the energy efficiency and
clean energy markets makes the evaluation of technologies for application in low-income markets difficult.
In this context, understanding the low-income customers’ appetite for technology adoption is important.

Sustainable funding mechanisms – Public sector support for low-income programs and energy-efficiency
programs has ebbed and flowed over the past decade. Identifying a sustainable funding source is essential
to addressing fuel poverty over the long-term.

Comprehensive policy approach –A multi-dimensional policy approach is needed to truly make an impact of
fuel poverty in Texas.
Because so much uncertainty remains surrounding how to best serve low-income customers in Texas, the
project team and steering committee concluded that a platform that included a research institute and a funding
mechanism would be the most effective means of ensuring that scalable solutions to address fuel poverty in
Texas are developed.
SUMMARY

The largest existing programs that help alleviate fuel poverty are federally- or utility-funded. These
programs offer bill-pay assistance, weatherization, and some education. However, they are often not
integrated and often cannot or do not reach large segments of the low-income population.

An integrated approach to alleviating fuel poverty would focus on increasing access to affordable rates
and plans, improving the energy efficiency of the household, and educating low-income customers on
behavior changes that can reduce energy consumption.

While many of the components of an integrated service model exist in various organizations and
institutions, numerous questions remain about the optimal design for programs that can make a
significant impact on fuel poverty statewide. For this reason, the project team and steering committee
recommended the creation of the Energy Impact Platform, which includes a research institute and
mezzanine fund.
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PART 2: THE ENERGY IMPACT PLATFORM
PART II:
THE ENERGY IMPACT PLATFORM
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The Energy Impact Platform
The Energy Impact Platform (EIP) will work to
address the root causes of fuel poverty and
develop sustainable solutions that have a lasting
impact on low-income households. The Platform
will consist of two parts - a research institute
and mezzanine fund. The Institute will be a
partnership between academia, the public
sector, energy companies, and the private sector
to coordinate research that will serve to address
fuel poverty in the state. The mezzanine fund
will assist in bringing to market high-impact
technologies and services that have applications
for low-income markets.
The Approach
The EIP will serve as a cross-sector, multidisciplinary partnership designed to address fuel
poverty through coordination, innovation, and
dissemination of information.
As coordinator, the EIP will plan and coordinate
across sectors to leverage efforts, share valuable
information, and maximize the collective impact of
the initiative and its partners.
As innovator, the EIP will spearhead research and
invest in businesses that facilitate the
development of technologies, products, and
services that positively impact low-income
households.
As disseminator, the EIP will ensure the
innovations and information developed and
acquired through the Institute reach low-income
households and those that serve low-income
households.
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ENERGY IMPACT PLATFORM STRUCTURE
Objective
To reduce the cost burden of energy for low-income
households in the Rio Grande Valley and Texas.
Mission
The Energy Impact Platform draws on the expertise of
academia, the energy industry (public and private), the
finance industry and social service providers to improve
low-income energy customers’ access to affordable and
efficient energy products and services. The EIP seeks to:
 advance the understanding of low-income energy
consumers;
 stimulate innovation in meeting their energy needs; and
 hasten the commercialization and deployment of new
technologies and services.
Business Model
The Energy Impact Platform will be set up as a nonprofit
organization. Planned revenue sources include:
 Memberships. Memberships from businesses and
academic institutions interested in participating in precompetitive research opportunities managed by the
partnership.
 Sponsored Research. The organization will contract with
companies or government institutions to conduct
research to meet their individual goals.
 Portfolio ROI. The Fund will generate fee and interest
revenue from portfolio clients.
 Grants and Donations. The EIP will seek grants and
charitable gifts to deepen its work in low-income
communities.
Governance
Board members will represent a cross-section of leadership
from academia, finance, the energy industry, and service
community. The Executive Committees of the Institute and
the Fund will make up the Platform board of directors.
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THE ENERGY IMPACT MODEL
Coordination
Innovation
•Raise awareness of fuel
poverty and energy insecurity
in Texas.
•Conduct multi-disciplinary
research on fuel poverty,
develop and test products,
and evaluate impact potential
of products.
•Convene partners to
collectively identify issues
related to fuel poverty and
seek solutions.
•Develop resources for
research partnerships by
designing projects and
securing funding.
•Create and maintain a central
repository of energy rebates
and assistance programs
available to support lowincome households.
•Engage in a national/global
conversation on fuel poverty.
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•Operate a mezzanine fund to
provide favorable capital for
businesses with technologies
and services that meet the
energy needs of low-income
households.
•Informed by research, define
policies and programs that
address the root causes of
fuel poverty.
•Hold an innovation challenge
to engage stakeholders in the
development of solutions to
address specific needs of lowincome energy consumers.
Dissemination
•Convene partners and other
stakeholders at conferences,
or other events, to share
findings and showcase
products and services
developed through the
Institute.
•Publish periodic whitepapers
and case studies that present
research findings and
successful projects.
•Participate in national and
international events to
present findings and share
success stories with others
working to address fuel
poverty.
• Provide members with
research results.
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1. The Energy Impact Institute
The Energy Impact Platform consists of the Energy
Impact Institute and the Energy Impact Fund. While
the goal of the Energy Impact Fund is to help new
technologies and services expand or commercialize
more quickly, the Energy Impact Institute will be
responsible for advancing the collective knowledge
and understanding of low-income households and
their relationships to energy.
The Institute will assemble data on this population’s
energy consumption patterns, construct a network
of households willing to participate in research, and
create the capacity to test, demonstrate, and assess
new products in diverse segments of the low-income
population. This infrastructure could be used to
develop a wide range of goods and services that will
reduce the electricity-related cost burden on lowincome families. The range of products and services
could include new technologies, retail electric
products, energy-efficiency programs, distributed
generation, consumer financing models, education
curricula, and outreach strategies. Research findings
can inform both market-based solutions and public
policy.
The Energy Impact Institute will benefit energy
stakeholders by:
EXAMPLE RESEARCH QUESTIONS

What are low-income households’ energy
consumption patterns? Which services or behavior
changes could have the greatest impact on the
energy bill?

What appliances/electronics do low-income
households use? Where do they shop for these
items?

What electricity rates are they currently paying?
Are the retail electric products they are using the
most appropriate for their consumption patterns?

What kinds of distributed generation products and
technologies would work best in these
communities? Are there effective neighborhood
solutions, such as community solar?

What are the retail electric products that would be
most suitable for these households (reducing risk
for REPs/utilities and increasing access to
affordable rates)?

How readily can new technologies be deployed in
these households? What are barriers to
deployment?

How responsive are they to education programs on
energy usage? What are the most effective and
least invasive delivery methods?

leveraging shared research dollars,

aggregating data that focuses on low-income
energy consumers,

serving as a third party validator of research findings and evaluator of programs or policies.
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Program Areas
The Energy Impact Institute’s programs will consist of two areas. Functional areas are described below.

The Consortium
A consortium model will be used to conduct collaborative research. The consortium model offers members
the ability to pool research and development resources on topics that are pre-competitive or noncompetitive. The consortium members would define an objective (e.g. reduce fuel poverty by 25 percent by
2025) and would define research specializations or topic areas (e.g. distributed generation, affordable
energy-efficiency technologies, demand response, behavior modification programs) aimed at meeting that
objective. This research will be funded collectively through membership dues and research grants. The
intellectual property generated through this research will be royalty-free and accessible all members.
COLLABORATIVE RESEARCH MODEL: THE CONSORTIUM
MEMBERSHIP
DUES
$
PROJECT 1
INSTITUTE
$$$
RESEARCH
GRANTS
$$
PROJECT 2
PROJECT 3
PROJECT 4
1. Members’ dollars are pooled with additional dollars
into a research fund.
2. The Institute develops and/or seeks research
proposals that will help meet its objective.
3. Research Advisory Committee decides which
proposals to fund (members’ proposals have
preference).
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
Proprietary Projects
The Institute will also conduct sponsored research and development for specific clients. Members will
receive a discount on these services.
Sponsored research will involve a member or non-member organization contracting exclusively with the
Institute to conduct research on a topic specified by the organization. The Institute will provide services to
assist in bringing relevant and promising discoveries and technologies to market more quickly. These
services could include pilot and demonstration projects, market research and testing, and outcome
measurement and evaluation. These services most likely will be exclusive arrangements with a single
industry sponsor, though additional partners could be involved (example structure: a single REP, multiple
TDUs, the PUC). For most projects, the sponsor will provide the funding and intellectual property generated
through the research will be exclusively the sponsor’s. In some cases, partners could also contribute funds;
such cases would most likely not generate intellectual property.
PROPRIETARY PROJECTS: SPONSORED RESEARCH & PRODUCT DEVELOPMENT
CLIENT
(members,
partners,
other)
INSTITUTE
NONCOMPETITIVE
MEMBERS
(academia)
PROJECT
1. Client contracts Institute to conduct a discrete project.
2. The Institute assembles a team of experts and researchers from among the membership
to meet the needs of the client.
3. Member team executes project.

Public policy
The Institute will share research findings with public sector agencies and policy-makers to help inform
effective service delivery and policy.
Revenues, Membership, and Potential Partners
The Institute will derive its revenues from membership dues, research grants, fees from proprietary projects,
proceeds from events, and other grants or donations.
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The Institute will solicit memberships to fund its collaborative and policy research. Membership levels could
range from $1,500 - $25,000. These fees would attractive to members because they can leverage their research
and development dollars through the consortium.
A portion of membership fees should also fund policy research. The policy research initiatives not only would
lower the energy burden for low-income households but also would benefit the companies that serve them by
reducing the risks associated with serving that population and creating market opportunities. The benefits of
collaborative policy research would likely exceed those fees as well. For example, a guarantee fund that protects
electric providers in the case of a low-income customer’s default would allow the electric providers to reduce
their bad debt reserves, freeing up additional working capital.
Membership fees
Non-Research Partner
Research Partner
Associate Member
Annual Member
Founding Member
MEMBERSHIP FEE LEVELS AND BENEFITS
$25,000
$15,000
$5,000
$2,000
$1,500
Participation in research projects




Discounts on fees associated with proprietary projects



Recognition on website





Recognition at events





Voting position on Research Advisory Committee


Leadership position on Board of Directors

The research infrastructure assembled by the Institute – data collection platforms, networks of potential
participants in pilots/demonstrations, multi-disciplinary research expertise – will create value for potential
partners in sponsored research and product development. This infrastructure would likely be particularly
attractive to small to medium REPs who do not have the capacity to sustain a sophisticated research
infrastructure. The fees associated with this work will be set according to each individual project’s scope of work
and will be commensurate with the scale and complexity of the project.
The Institute will supplement these revenues with grants, donations, and other contributions from a variety of
sources including the federal government, state agencies, and private foundations.
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A list of possible resources is below:













Department of Energy (EERE, NREL)
HUD
National Science Foundation
State Energy Conservation Office
Carbon War Room
Google Green
Annie E. Casey Foundation
Blue Cross & Blue Shield of Texas
Ford Foundation
The Cynthia & George Mitchell Foundation
Roy A. Hunt Foundation
W.K. Kellogg Foundation
Walmart Foundation
Potential partners and members will include academia, the public sector, TDUs, REPs, municipally-owned
utilities and cooperatively-owned utilities, technology and service companies, and other stakeholders such as
nonprofits, local government, school districts, and state agencies. A description of the research institute’s value
proposition as well as potential roles of each group is provided on the table that follows.
POTENTIAL MEMBERS AND PARTNERS
Partner
Value Proposition of Institute
Potential Roles
Academia


Connects researchers with funding.
Provides access to data/data
platforms and networks that will
enable their research.



Proposes topics.
Designs, leads, and implements
projects.
Lends research and technical
expertise, as needed.
Public Sector




Assists in policy implementation.
Ensures policy impact is optimized.
Evaluates policies and programs.
Likely will reinforce other lowincome support programs,
amplifying their impact and
effectiveness.

Creates rules and regulations
that support research, pilots,
and demonstrations.
TDUs

Provides mechanism for sharing the
costs of energy-efficiency research
and development on common
topics.

Provides necessary
permissions.
Provides incentives for REPs to
participate.
Supports the creation of
mechanisms and promotes the
commercialization of technologies
that can help in the development of
retail products.


REPs
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

Provides access to customers.
Through customer relationship,
secures permission to access
AMS data.
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Partner
Value Proposition of Institute
Potential Roles
Municipally-Owned Utilities and
Cooperatively-Owned Utilities

Reduces risks related to serving lowincome customers.


Provides access to customers.
Through customer relationship,
secures permission to access
AMS data.
Technology and Service
Companies

Provides framework for testing
products in a competitive market

Provides product for testing
and technical expertise.
Other
(Nonprofits, Local Government,
School Districts, Health &
Human Services, Other Utilities)

Provides solutions for addressing
low-income clients’ or constituents’
needs.


Publicizes programs to clients.
Assists in targeting
participants.
Provides possible distribution
channel(s) for education and
outreach.

Source: CLG Research.
Fundraising Strategy and Launch
The Energy Impact Institute should have a goal of raising $260,000 to fund Year 1 operations to cover personnel
expenses, some overhead, and start-up expenses. This initial seed funding could come from sources including
private foundations, community affairs divisions of private companies, and federal grants.
YEAR 1 EXPENSES
Functional Areas
Executive Level Oversight
Research and Technology
Overhead
Start-up
Sample Tasks
fundraising & development, member acquisition,
financial oversight, board management, business
development, contract negotiations
technology evaluation, research design, project
management
share of rent, utilities, office supplies, legal, travel,
other
legal, branding, web site, marketing collateral
(design & printing), office equipment
Cost Range
$45,000
$40,000
$55,000
$60,000 - $150,000
To raise awareness of the capabilities of the Institute, a high-visibility research or pilot project should be pursued.
This project would engage partners across the spectrum, and yield an outcome that would generate goodwill
among potential partners. The successful completion of such a project would establish the Institute’s track
record and provide credibility, which will, in turn, facilitate membership recruitment.
By Year 2, the Institute should aim to have enough members to generate $100,000 in fees. These fees will fund
one or two initial research projects through the consortium model. Additional research funds will be raised
through federal, foundation and industry sources. Success in this fundraising area will be vital to membership
recruitment as it demonstrates how members’ research and development dollars can be leveraged.
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Management
A board of directors that represents a cross-section of leadership from academia, finance, the energy industry
and the service community will govern the Institute. The Executive Committees of the Institute and the Fund will
make up the Platform Board.
The Research Advisory Committee will set a quantitative objective for the Institute, will choose the areas of
research specialization, and will evaluate research proposals. This committee will be comprised of founding and
annual members.
The Energy Impact Institute will be managed by Pecan Street, Inc., a research and development organization
focused on developing and testing advanced technology, business models, and customer behavior related to
advanced energy management systems. As such, they have the staffing and expertise already in place to manage
the activities of the Institute.
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Sample Opportunity Profiles
CONSORTIUM: LOW-INCOME PILOT
Description:
The Energy Impact Institute and its partners propose to pilot a project that will assist the PUC, TDUs, and REPs in
identifying the most-effective technologies, distribution channels, and engagement strategies to ensure that the
greatest number of low-income households is able to leverage the benefits of energy-efficiency programs.
The pilot project will use an engagement model that will provide basic education on energy usage to all
customers and more targeted education and technology solutions to those customers that are most responsive
and interested. This tiered model will allow the pilot to evaluate how to best engage different segments of the
low-income population, which technologies have the largest effect on energy consumption, and what kinds of
messages elicit the greatest response from customers. Having this information will allow TDUs and REPs to
structure their low-income energy-efficiency programs in ways that maximize their impact in the low-income
community while minimizing the program cost.
Expected Outcomes and Results:




Household energy consumption patterns
Customer segmentation and messaging
Education delivery models
Technology adoption, utilization, and impact
Partners / Roles:
Funding Sources:
The PUC
REP(s)
TDU(s)
Energy-efficiency program – R&D funds
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PRODUCT DEVELOPMENT: SMART WATER HEATER PILOT
Description:
Direct Energy is developing smart water heaters that can be used as powerful demand response tools without
compromising the comfort of households. The water heaters in development heat off-peak and are gridresponsive appliances. In contrast, typical electric water heaters account for up to 18 percent of household
energy costs as they cycle on and off – sometimes at peak hours.
The company is designing a pilot program to test the product in a home environment. For this pilot, the company
is looking for a partner to help them identify low-income candidates and to share in the research and
development costs.
Expected Outcomes and Results:




Improved understanding of low-income customer behavior
Data to demonstrate effectiveness as a demand response tool
Quantifiable impact on household consumption
Improved energy efficiency for low-income households
Partners / Roles:
Funding Sources:
Direct Energy
Centerpoint
Centerpoint Energy Efficiency Program
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POLICY RESEARCH: SYSTEM BENEFIT FUND IMPACT
Description:
The dissolution of the System Benefit Fund leaves a void in the support system for low-income families facing
fuel poverty. It is unclear what the impact of this will be on low-income families and what the impact will be on
electric providers.
To understand what the effect of the dissolution of the SBF is, the Institute will work with electric providers to
better understand how the SBF is utilized prior to 2015 and to measure what happens after the SBF is depleted
and the LITE-UP program is de-funded.
Expected Outcomes:

Measurable impact of the SBF prior to and after dissolution
Partners / Roles:
Funding Sources:
REPs
Munis / Coops
Memberships
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2. Energy Impact Fund
The Energy Impact Fund is part of The Energy
Impact Platform, which will work to address
the systemic causes of fuel poverty and
develop sustainable solutions to have a
lasting impact on low-income households.
The Energy Impact Platform consists of the
Energy Impact Institute and the Energy
Impact Fund.
ENERGY IMPACT FUND STRUCTURE
Objective
To reduce the cost burden of energy for low-income people.
Mission
The Energy Impact Fund provides capital, training, and market
expertise to businesses that provide services or technologies
that can assist low-income energy markets in improving energy
efficiency and accessing affordable energy.
To this end, the Fund seeks to:
 advance the understanding of low-income energy
consumers;
 stimulate innovation in meeting their energy needs; and
 hasten the commercialization and deployment of new
technologies and services.
The goal of the Energy Impact Fund is to help
new technologies and services expand or
commercialize more quickly. The fund will
provide favorable financial products and
business assistance to companies emanating
from the Institute, or otherwise, that are
developing products or services that could
assist low-income markets in reducing their energy bills.
Impact funds, such as this, are private-sector financial intermediaries that make loans or equity investments and
provide business assistance to their portfolio companies. They are disciplined investors that use a range of
products and strategies to bring capital to people and businesses that may be underserved by the conventional
financial system. Impact funds are flexible, market-based institutions with a focus on promoting both economic
vitality along with other beneficial returns for the community.
Impact funds are often designed to provide early stage businesses with loans that conventional bankers consider
too risky. Most banks seek more seasoned businesses with steady sales. Because bank loans are geared toward
high-speed processing, borrowers who need early-stage capital or flexible terms often experience difficulty
qualifying.
Venture capital funds, conversely, are designed to provide earlier-stage capitalization and are exclusively
focused on fast growth businesses with very high revenue potential, upwards of $50 million. The goal of a
venture capital investor is to drive toward a liquidation event, which can eclipse a long-term focus on social
impact, or sideline companies with a more moderate growth trajectory.
Impact funds can make flexible debt or equity investments to viable ventures that fit into the parameters of
neither the conventional banking system nor traditional venture capital funds. Capital structures can be flexible,
for example providing subordinated or patient debt. As mission-driven investors, impact funds consider both the
financial soundness and the community impact of a particular investment.
Impact funds are designed to respond to the needs of young or innovative businesses. Superior to other forms
of available capital, such as credit cards or factoring companies, impact funds focus on structuring the right
financial package for their clients, and developing the business’ operational capacity. Because of impact funds’
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flexibility, they are able to facilitate further investment by leveraging their capital through subordination or
flexible deal structuring.
Different fund structures offer different sets of advantages and challenges. After reviewing the particular merits
of each structure, a nonprofit mezzanine fund offers the most opportunity to further the mission.
Mezzanine Fund



+ Merits





- Challenges



Venture Capital Fund
Best fit for mission. Does not drive to
liquidation that sublimates mission.
Low cost of entry. Can start a fund with as little
as $1 million.
Revenue from interest and fees realized as
soon as investments made.
Wide diversity of portfolio businesses in both
size and type that can impact low-income
markets.
Debt is good fit for distributed generation,
services, and other businesses that may further
mission.
Flexible, or subordinated debt, can be
leveraged to facilitate other sources of capital
for portfolio companies.
More control over fund growth and decisionmaking because less beholden to investors.

Will likely need some ongoing subsidy to
sustain operations.
Will rarely, if ever, realize the upside of a large
liquidation event.
Will have to take significant risk to meet the
needs of young businesses. This could require a
large annual expense to maintain adequate
loan loss reserve.
Debt offers limited control of decision-making
in portfolio companies.








Ability to make targeted investments in highgrowth businesses that have the ability to scale
quickly.
High degree of control over decision-making of
portfolio companies.
Can realize high investor returns over time.
Model allows use of investor capital to support
operations.
High cost of entry. Fund must be at least $50
million for model to work.
Long time horizon to get portfolio companies
to exit. Can be over 10 years before portfolio
companies reach exit, and returns realized.
Significant limits on type and size of companies
VC firms can fund. Companies must have
revenue potential upwards of $50 million.
Investors are primarily interested in technology
deals that are internet focused.
Strong drive toward exit strategy requires
sublimation of mission.
High cost to operate due to ongoing legal work.
Source: CLG Research.
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Structure
The Energy Impact Fund will be structured as a nonprofit mezzanine fund that is able to provide debt or equity
investments up to $500,000 to viable ventures that represent acceptable financial risk and provide a product or
service that can address the needs of low-income energy markets.
The Fund will function as a nonprofit entity in order to access grant funds that will allow it to provide services
aimed at deepening impact, such as business development and market expertise, to its portfolio clients.
Additionally, some subsidy can allow the Fund to take more risk, when appropriate, on businesses that have the
potential to have bigger impacts on low-income markets.
The Fund will be guided by the following operational objectives:





Time horizon:
Sustainability:
Self-Sufficiency:
Geographic focus:
Socio-economic focus:
Impact within 3 years
Sustainable revenue by year 3
75% self-sufficient through fee/interest income in 5 years
Markets throughout Texas, with special consideration given to colonias
Low-income households
Market Description and Demand
The market for the Energy Impact Fund will include a diverse range of energy-related businesses that serve the
Texas market. The focus of the Fund will be on businesses that have a new or innovative product or service that
can be utilized in low-income markets to increase energy efficiency, improve energy consumption patterns, or to
create access to more affordable energy.
Current trends in energy-related businesses include: data control technology, distributed generation, and
consumer-facing solutions. Consumers are seeking more control and understanding of their energy choices and
usage. While this increasing interest is less pronounced in low-income markets, the Energy Impact Institute will
be simultaneously working to better engage low-income customers in understanding the different drivers that
impact their energy bills. This engagement will result in increased demand for products and services that reduce
the cost burden of energy and give consumers more control of their energy costs.
The Fund will be able to meet the capital needs of businesses of various sizes and growth potential, including
companies that are developing innovative new technologies or internet-based companies that provide new
channels for customers to interact with their energy usage. The Fund will also be able to provide financing to
smaller businesses that may provide services such as weatherization or energy audits.
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
Examples of portfolio clients include:




Energy-management systems
Demand-response technologies
Online tools (i.e. product and service comparisons,
financial literacy on energy planning, etc.)
Distributed generation





Energy storage
Energy services (audits, efficiency, weatherization)
Energy integration systems and developers
Solar installers
Community solar
Among high-growth energy businesses there is a general shortage of early-stage funding. There is also a gap in
available capital for businesses that are not internet-focused or do not necessarily have revenue potential
upwards of $50 million. Businesses that may not be focused on an exit strategy (mergers and acquisitions or
public offering) are not in the bailiwick of venture capital firms, but they are often too nascent in their
development to have an appropriate risk profile for a conventional bank.
The Energy Impact Fund will be able to meet the needs of smaller businesses that have viable products or
services, but may have a slower or more modest growth trajectory. By providing more patient and flexible
capital that is paired with business development and market research, the Fund will be able to assist businesses
that may not qualify for traditional bank loans or may only have access to expensive alternatives, such as
factoring or credit cards, which can cut deeply into profits and hinder growth.
The key to the Fund’s success will be keeping deal flow strong. Strong deal flow will ensure that there will be an
adequate number of deals that have the appropriate risk profile and mission impact that the Fund seeks. The
Fund will have a natural relationship with the Energy Impact Institute, which will provide consistent access to
new relationships.
The Fund will also maintain active relationships with a number of partners that work with energy-related
businesses. The Fund’s ability to subordinate debt and provide flexible deal structures will incentivize banks and
angel investors to serve as natural partners. They will bring deals to the Fund when they are seeking a flexible
financial partner that can also bring the particular expertise of the Energy Impact Platform to bear.
Potential partners in the energy world include:
POTENTIAL MEMBERS AND PARTNERS
Name
Location
Pecan Street Research Institute
Austin, TX
Pike Powers Laboratory and Center for Commercialization
Austin, TX
Austin Technology Incubator / Clean Energy Incubator
Austin, TX
UT-Center for Electro mechanics
Austin, TX
UT-Energy Institute
Austin, TX
State Energy Conservation Office (SECO)
Austin, TX
Southwest Research Institute
San Antonio, TX
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
Name
Location
Texas Sustainable Research Institute
San Antonio, TX
San Antonio Clean Energy Incubator
San Antonio, TX
SURGE Accelerator
Houston, TX
University of Houston - Energy Research Park
Houston, TX
UH - Electronics Power Analytics Consortium
Houston, TX
TAMU - Riverside Energy Efficiency Laboratory
College Station, TX
TAMU - Energy Institute
College Station, TX
Science Technology and Advanced Research Park, Texas State University
San Marcos, TX
UT-Pan Am
Edinburg, TX
Entrepreneurship and Commercialization Center, UT-Brownsville
Brownsville, TX
Electric Power Research Institute
Palo Alto, CA
Edison Electric Institute
Washington DC
National Renewable Energy Lab
Golden, CO
Source: CLG Research.
Products and Services
A mismatch exists between the current products offered by banks and equity funds and the needs of many
businesses and organizations that serve lower-income markets. The Energy Impact Fund will respond to this
mismatch by offering financial products designed for younger businesses that require flexible terms. The Fund
will provide a mix of products and services aimed at cultivating businesses that can have a meaningful impact on
low-income energy consumers. The Fund will provide growth capital without the need for a company to sell
equity, a key consideration for companies with social missions that may be compromised by traditional financing.
The Fund will provide innovative capital structures through a mix of debt, warrants, royalty streams, or
convertible notes. Proceeds may be used to finance working capital, machinery, inventory, equipment, furniture
and fixtures, real estate acquisition and construction, leasehold improvements, and contract financing.
Additionally, the Fund will explore tax equity financing to assist high growth businesses.
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
SUMMARY OF PRODUCTS
Product
Return
Fees
Term
Size
Senior Debt
7%-14% Interest
royalty streams
2% at closing
fees for legal docs
and ancillary fees
Up to 7 year notes.
Amortizations up to
15 years for realestate
Up to $500,000
Subordinated
Debt
8%-16%
royalty streams
2% at closing
fees for legal docs
and ancillary fees
Up to 7 year notes.
Amortizations up to
15 years for realestate
Up to $300,000
Lines of Credit
10%-16%
2% at closing
fees for legal docs
and ancillary fees
1 year renewable
Up to $300,000
Equity
20% compounded
return
2% at closing
fees for legal docs
and ancillary fees
Tax Equity
case by case
legal docs at cost
Up to $300,000
Financial products are priced according to three factors: risk, impact, and the Energy Impact Fund’s financial
needs. Loans are priced to reflect the risk inherent in the venture being considered. Consequently, riskier loans
are priced at higher interest rates than less risky loans. Exceptions to this rule are made for loans with royalty
streams, a strong impact, and/or loans made to nonprofit organizations. Lastly, the Fund’s overall financial
needs affect the broader pricing structure, or range of interest rates.
The Energy Impact Fund, where appropriate, will work with financial partners to secure additional financing for
its clients. This may entail subordinating its collateral liens to the partner and altering its debt structure such
that it is palatable to said partner. The Fund is willing to take such actions, assuming the transaction still remains
fiscally prudent (though riskier), because this leverages additional investment toward the Fund’s mission.
The Fund will also provide a range of business development services and market expertise to portfolio
companies. Entrepreneurs with promising companies often need business support in financial or cash flow
management, marketing, or operational systems as they grow. The Fund will provide assistance through staff
and volunteer mentors who can work with entrepreneurs to address specific challenges. Additionally, the Energy
Impact Institute will provide information on the preferences, behaviors, and needs of low-income markets.
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
Service
Purpose
Business Development
Entrepreneurs in growth mode often need assistance with
specific challenges. Fund staff and volunteer mentors will
work with entrepreneurs to provide training and advice.
Market Expertise
Low-income markets have specific needs and preferences.
The Energy Impact Institute will provide data driven
information to entrepreneurs and will be equipped to test
some products and services.
Connect to Investors
The Fund will both provide capital and connect entrepreneurs
to capital sources that may be a good fit for their ventures.
This could include angel networks, venture capital firms, or
traditional banks.
The Energy Impact Fund will serve as a hub for business innovation in the energy field by hosting a nationwide
competition for entrepreneurs to present their business ideas and plans. Ventures will compete for seed funding,
mentoring and exposure to a community of potential customers and investors who are interested in energy
innovations geared at the needs of low-income people.
Financial Management and Risk Mitigation Strategies
Impact funds are sophisticated financial institutions that require strong financial management, well-developed
operational policies, experienced and accountable management, and significant capitalization. It is common for
a young fund to struggle, lose loan capital, or close its doors because of inadequate planning and policies in
place to successfully invest in higher risk products and markets.
The Energy Impact Fund’s primary risk mitigation strategies will include consistent focus on balance sheet
management and rigorous attention to portfolio risk through comprehensive underwriting and consistent
management of the loan loss reserve.
A strong balance sheet drives the health of a fund. Healthy net assets, access to cash, and adequate loan loss
reserves are the key to fund stability. Funds must manage cash fluctuations from capital investments, loan
originations and loan retirements. Significant changes in cash balances impact revenue, dictate the rate of loan
originations, and impact the ability to repay investors.
Most importantly, the balance sheet reflects adequate management of portfolio risk as reflected through the
loan loss reserve. The Energy Impact Fund will maintain a loan loss reserve fund in order to mitigate its exposure
to loan defaults and to estimate the amount of potential loan loss for accounting purposes. The reserve
represents the estimated risk in the portfolio.
To assess risk, each loan will be assigned a risk rating between 1-5 at the time the loan is executed, and updated
monthly throughout the term of the loan. A percentage of each loan balance is accrued to the reserve based on
the rating. For example, a low risk loan may receive a 1 and have only 2 percent of the loan balance reserved.
However, a loan that has frequent delinquent payments may receive a 4 and have as much as 60 percent of the
balance reserved.
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
Ratings are based on a number of criteria, including: stability of revenue and profits, collateral coverage,
payment history, and owner’s personal credit. Ratings are adjusted upward if the loan shows declining trends or
in events of noncompliance, such as: delinquency of loan payments, non-reporting of financial statements, or
failure to pay income and/or payroll taxes. As borrowers repay and new loans are made, the fund is adjusted
accordingly. Accruals to the loan loss reserve can be one of the largest annual expenses for a fund.
Portfolio risk decreases as the total loan portfolio grows, and becomes more diversified. For this reason, early
stage funds can be more vulnerable. To ensure that investments pose appropriate risk, another key risk
mitigation strategy is the utilization of an investment committee.
The investment committee is responsible for reviewing loan packages that are recommended by staff, to
determine whether they should be approved or declined. It is comprised of members with strong backgrounds
in lending, investing and portfolio management. A proposed investment can only be approved if a majority of
members vote to approve.
Committee members can request additional information or make recommendations on any aspect of the loan
structure or covenants. If after a loan is approved there is a material change in the application (e.g., certain
collateral is unavailable, more money is requested, etc.), then the loan needs to be taken back to the investment
committee for re-approval.
After years of trial and error, most impact funds have found that they require an operating subsidy to
adequately serve the intended market, and to provide ancillary services to portfolio clients. The Energy Impact
Fund aims to cover 75 percent of its costs through portfolio income within 5 years.
Capitalization Strategy
The Energy Impact Fund will start small, with a goal to build a $5 million portfolio within 3 years. The Fund’s role
will be to aggregate capital through a variety of social investors to support businesses that have viable financial
models and also serve the needs of low-income markets.
There are benefits and challenges associated with starting small or large. Small funds generate nominal revenue
to cover expenses, require significant operating subsidy, and may not attract the most experienced staff.
However, the reason that successful funds have traditionally grown slowly is that ongoing learning that takes
place along the way. Like any business, having a large surplus of cash doesn’t instill the most finely attuned
operating efficiencies. When a fund is forced to feel every loan loss through a large expense on the profit and
loss, and when generating adequate revenue is part of survival, then there is more incentive to employ effective
and efficient systems and procedures.
The Energy Impact Fund will launch when it has raised a $1.2 million in capitalization, with at least $400,000 of
those funds representing permanent capital in the form of net assets. Additionally, the Energy Impact Fund will
raise an additional $400,000 to cover operations during the nascent years. Social investors include: public
agencies (federal, state, county, city), foundations, companies and individuals.
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
Fund Goals:







Sustainability:
Self-sufficiency:
ROI:
Investment Terms:
Total Assets:
Portfolio Size:
Net Assets:
Sustainable revenue by year 3
75% self-sufficient through portfolio income within 5 years
2%-4% annual return to Fund investors
3 – 10 years, interest only
$6 million within 3 years
$5 million within 3 years
The Fund will maintain minimum net assets of 30% of total assets
Impact
The Energy Impact Fund’s primary objective is to reduce the cost burden of energy for low-income people.
Ventures applying to the Fund for capital will be required to:

Show how their product or service can impact energy costs for low-income households.

Develop metrics to measure the cost savings.

Provide these outcome metrics to the Fund throughout the term of the investment.
CITY LIGHTS GROUP
39
POWER ACROSS TEXAS | energy impact
Management and Governance
The Energy Impact Fund will initially be staffed with a full-time CEO who will report to the Board of Directors, a
lender, and a loan administrator/administrative assistant.
The Board of Directors will initially be comprised of 12 members who represent diverse experience. At least 3
members will be required to have experience with energy-related business, and at least 5 members will be
required to have experience with finance, lending operations, or investing.
The Investment Committee will be comprised of 6 members who are appointed by the Board of Directors. At
least 4 members will have strong experience in lending, investing, and portfolio management.
CITY LIGHTS GROUP
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POWER ACROSS TEXAS | energy impact
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis
The table below summarizes the Energy Impact Platform’s strengths, weaknesses, opportunities, and threats.
Strengths






No one else focused on fuel poverty in the state
of Texas (from more than a “watchdog”
perspective)
Creates a long-term structure for addressing fuel
poverty as the economy, technology, and
consumer behavior evolve
Could attract the participation of diverse
stakeholders
Should attract federal and state support or
participation at some level
Addresses systemic causes of fuel poverty from
an energy efficiency, financial and policy
perspective
Serving low-income populations more costeffectively is a motivator for REPs
Opportunities
 Defining specific value propositions for each





audience
Obtaining funding from SECO to do a statewide
market study to form the basis for future
research and product development
Capitalizing on present project opportunities
Partnering with Pecan Street to tap into
knowledge & organizational infrastructure
Devising a more systemic approach to alleviating
fuel poverty than the System Benefits Fund
Creating data-driven solutions to fuel poverty
CITY LIGHTS GROUP
Weakness







REPs in competitive market are difficult to engage
on cooperative efforts
Household electricity consumption data difficult
to obtain due to privacy restrictions
Capitalizing mezzanine fund could be challenging
if not a CDFI, and restrictions of CDFI designation
could make deal flow challenging
Assembling team with technical know-how could
prove costly and time-consuming for an
unproven concept
Seeding the start-up of the Institute will be
challenging
Market-based solutions are difficult to implement
in very low-income markets
Ongoing and diverse revenue sources could be
difficult to cultivate
Threats
 Lack of interest and participation from potential



partners
Lack of interest and participation from lowincome households
Delay in establishing a pipeline of deals for
mezzanine fund would put pressure to invest in
less-than-ideal prospects
Investment risk associated with mezzanine fund
41
PART
III:
PART III:
APPENDICES
APPENDICES
Appendix A: Potential Funding Sources
Organization
Department of Energy Office of Energy Efficiency &
Renewable Energy (EERE)
National Renewable Energy
Laboratory (NREL)
Housing and Urban Development Office of Economic Resilience
National Science Foundation
State Energy Conservation Office
Carbon War Room
Google Green / Google Energy
Annie E. Casey Foundation
Description
The Department of Energy has
periodic funding opportunities. The
most relevant are those through
EERE and NREL.
Website
http://www.energy.gov/eere/officeenergy-efficiency-renewable-energy
http://www.nrel.gov/
The Office of Economic Resilience
helps communities and regions build
diverse, prosperous, resilient
economies by enhancing quality of
place; advancing effective job
creation strategies; reducing
housing, transportation, and energy
consumption costs; promoting clean
energy solutions; and creating
economic opportunities for all.
Funding programs such as
Partnerships for Innovation or
Industry / University Cooperative
Research Centers invest in building
collaborative research capacity
SECO partners with Texas
consumers, businesses, educators
and local governments to reduce
energy costs and maximize
efficiency.
The Carbon War Room accelerates
the adoption of business solutions
that reduce carbon emissions at
gigaton scale and advance the lowcarbon economy.
Google is making big investments in
the energy sector in both power
generation and various technologies.
The Annie E. Casey Foundation
focuses on strengthening families,
building stronger communities and
ensuring access to opportunity. We
advance research and solutions to
overcome the barriers to success,
help communities demonstrate what
works and influence decision makers
to invest in strategies based on solid
evidence.
http://portal.hud.gov/hudportal/HU
D?src=/program_offices/economic_r
esilience
http://www.nsf.gov/
http://www.seco.cpa.state.tx.us/
http://www.carbonwarroom.com/
https://www.google.com/green/
http://www.aecf.org/
POWER ACROSS TEXAS | energy impact
Organization
Blue Cross & Blue Shield of Texas
Ford Foundation
The Cynthia & George Mitchell
Foundation
Roy A. Hunt Foundation
W.K. Kellogg Foundation
Walmart Foundation
CITY LIGHTS GROUP
Description
The BCBS Healthy Kids / Healthy
Families initiative supports
organizations that promote safe
environments for kids, among other
things.
The Ford Foundation supports
programs that:
- Strengthen democratic values
- Reduce poverty and injustice
- Advance human knowledge,
creativity and achievement
Website
http://www.bcbstx.com/companyinfo/community-involvement
The Mitchell Foundation seeks
innovative, sustainable solutions for
human and environmental
problems. The foundation works as
an engine of change in both policy
and practice in Texas, supporting
high-impact projects at the nexus of
environmental protection, social
equity, and economic vibrancy.
The Hunt Foundation’s Community
Development Initiative strives to
facilitate the development of
healthy and sustainable
communities.
The Kellogg Foundation supports
programs that promote secure
families.
The Walmart Foundation’s mission is
to create opportunities so that
people can live better.
http://cgmf.org/
http://www.fordfoundation.org/
http://rahuntfdn.org/
http://www.wkkf.org/
http://foundation.walmart.com/
44
POWER ACROSS TEXAS | energy impact
Appendix B: Potential Partners
Organization
Location
Description
URL
National Renewable Energy
Laboratory (NREL)
Golden, CO
http://www.nrel.gov/
Advanced Research Project
Agency - Energy (ARPA-E)
Clean Energy Alliance
Washington,
DC
National
Pecan Street Research
Institute
Austin, TX
Pike Powers Laboratory and
Center for
Commercialization
Austin, TX
Austin Technology
Incubator / Clean Energy
Incubator
UT-Center for
Electromechanics
UT-Energy Institute
Austin, TX
State Energy Conservation
Office (SECO)
Austin, TX
the U.S. Department of Energy's
primary national laboratory for
renewable energy and energy
efficiency research and development
Federal program that invests in very
early stage energy technologies
a national organization of nonprofit
incubators with a focus on cleantech.
CEA Members are highly skilled
incubators and accelerators known for
leadership in their fields. Collectively,
they offer a wide range of services,
expertise, and facilities that support
the commercialization of technologies
and services covering the gamut of the
cleantech arena.
a research and development
organization focused on developing
and testing advanced technology,
business model and customer
behavior surrounding advanced
energy management systems
developing, testing and validating a
wide range of smart grid, distributed
energy and consumer electronics
hardware and software
Founded in 2001, one of the longest
standing Clean Energy Incubators in
the US
Has a microgrid for use in research on
distributive power and smart grid
The Energy Institute fosters
interdisciplinary interactions among
colleges and schools across campus,
while serving as a portal for external
audiences interested in learning more
about energy research carried out at
The University of Texas at Austin.
On the implementation policy side of
things. Encourage residents and
commercial users to adopt energy
efficient technologies
CITY LIGHTS GROUP
Austin, TX
Austin, TX
http://arpa-e.energy.gov/
http://www.cleanenergyallia
nce.com/
http://www.pecanstreet.org
/
http://www.pecanstreet.org
/
http://ati.utexas.edu/
http://www.utexas.edu/rese
arch/cem/microgrid.html
http://www.energy.utexas.e
du/
http://www.seco.cpa.state.t
x.us/
45
POWER ACROSS TEXAS | energy impact
Organization
Location
Description
URL
Southwest Research
Institute
San
Antonio, TX
http://www.swri.org/
Texas Sustainable Research
Institute
San
Antonio, TX
San Antonio Clean Energy
Incubator
San
Antonio, TX
SURGE Accelerator
Houston, TX
University of Houston Energy Research Park
Houston, TX
UH - Electronics Power
Analytics Consortium
Houston, TX
Southwest Research Institute (SwRI) is
an independent, nonprofit applied
research and development
organization
We provide systems solutions that
pursue novel opportunities for
technology insertion to reduce costs,
improve reliability and assure
responsible environmental
stewardship that contributes to our
energy future
SACEI's mission is to develop new
companies and foster new business
activity related to clean technology in
San Antonio, in ways that can be
expanded to Texas, our nation, and
the world in order to promote
socioeconomic prosperity.
SURGE validates companies innovating
and exploiting the massive shifts in
technology, policy, and expertise in
the energy (which includes Energy
Tech, CleanTech, CleanWeb) and
water industries
advancing fossil fuels, leading systems
integration, driving alternatives and
renewables, and promoting energy
conservation and environmental
sustainability.
The University of Houston,
CenterPoint Energy and Direct Energy
are creating a special think-tank
focused on the needs of electricity
companies. The Electric Power
Analytics Consortium will serve as a
research unit to delve into retail
electricity issues, including providing
reliable electricity and encouraging
energy efficiency. The new research
group is part of the University of
Houston's push to apply energy
academic research to real-world
issues.
CITY LIGHTS GROUP
http://texasenergy.utsa.edu
/
http://texasenergy.utsa.edu
/research/san-antonioclean-energy-incubator/
http://www.surgeaccelerato
r.com/
http://www.uh.edu/af/unive
rsityservices/erp/
http://wireless.egr.uh.edu/
46
POWER ACROSS TEXAS | energy impact
Organization
Location
Description
URL
TAMU - Riverside Energy
Efficiency Laboratory
College
Station, TX
http://esl.tamu.edu/riversid
e-laboratory
TAMU - Energy Institute
College
Station, TX
Science Technology and
Advanced Research Park,
Texas State University
UT-Panam
Enterpreneurship and
Commercialization Center,
UT-Brownsville
FortZED /
Engines & Energy
Conversion Lab (EECL)
San Marcos,
TX
Riverside Energy Efficiency
Laboratory’s mission is to provide
accurate and repeatable testing and
research results, whether it is from a
standard test/research procedure or
from a custom test/research
procedure developed for specific
equipment requirements
Engages in basic, applied and
applications research and technology
development, demonstration and
deployment across the entire
spectrum of energy-specific resource
domains that will be required to
guarantee that our nation's energy
future is secure.
TxState's technology park coupled
with office of tech commericalization
and entrepreneurial support
General entrepreneurship and
commercialization support
http://www.utb.edu/edcs/iic
/Pages/default.aspx
CITY LIGHTS GROUP
Edinburg, TX
Brownsville,
TX
http://energyengineering.or
g/
http://www.txstate.edu/ocir
/STAR-Park.html
Fort Collins, Conducts research on distributed http://fortzed.com/
CO
generation and smart grid with the
goal of creating a zero energy district.
The EECL specifically states that its
mission is to help improve the human
condition. Research areas: distributed
power, energy for development
47
POWER ACROSS TEXAS | energy impact
Appendix C: Project Contributors
We would like to thank the many individuals who took the time to meet with us to provide their professional
insights and help us define the concept.
Name
Professional Affiliation
Michelle Allen
Doyle Beneby
Carol Biedrzycki
Kenneth Black
Helen Brauner
Marc Burns
Kateri Callahan
Bobby Calvillo
Randy Chapman
Scott Collier
John Dirvin
Trish Dolese
Marty Downey
Christine Eibs Singer
Nancy Floyd
Michael Freedberg
Kaoru Fujita
Amy Gasca
Jeff Goff
Charles Griffy
Bert Haskell
Scott Havis
Chris Hickling
Tom Hughes
Tim Irvine
Michael Kellerman
Laura Kilcrease
George Koutitas
Marc Lane
Paul Leggett
Doug Luckerman
Erica Mackie
Steve Madden
Cori Mathis
Daniel Matthews
Texas Retail Energy
CPS Energy
Texas ROSE
E Source
Karibu Consulting
Burns Law & Consulting
Alliance to Save Energy
Affordable Homes of South Texas
Texas ROSE / Texas Legal Services Center
Triton Ventures
Austin Ventures
Regulatory Compliance Services
ANB Systems
CES Global
Nth Power
US Department of Housing and Urban Development
Guava
Torch Energy Solutions
University Federal Credit Union
Consultant
Pecan Street, Inc
Green Mountain Energy
Edison Electric Institute
Reliant
Texas Department of Housing and Community Development
Pew Charitable Trusts
Triton Ventures
Gridmates
Attorney at Law
Mithril Capital Management
Current Choice
Grid Alternatives
Infinite Energy
Attorney at Law
OPower
CITY LIGHTS GROUP
48
POWER ACROSS TEXAS | energy impact
Name
Professional Affiliation
Adam Miller
Nick Mitchell
Stephanie Newell
Carlos Olmedo
Heather Pena
Jeff Pollock
Jim Reynolds
Carl Richie
John Ricks
Christopher Riley
Kelli Rod
Hossein Rokhasari
Scott Rozzell
Lillian Salerno
Mike Stockard
Barbara Tyran
Michael Webber
Marcie Zlotnick
Direct Energy
Brownsville CDC
Reliant
University of Texas
Reliant
J. Pollock, Inc
Power and Gas Consulting
Attorney at Law
OEG Onyx Energy Group
Shell
TXU
SURGE Accelerator
Centerpoint Energy
US Department of Agriculture
Oncor
Electric Power Research Institute
University of Texas
BZMZ Interests
CITY LIGHTS GROUP
49