Pennsylvania spends $7.12 subsidizing low-income bills for every $1 spent reducing them
CAP programs cover the gap between what low-income customers can afford and what they owe. LIURP programs weatherize homes to permanently reduce consumption. In 2022, Pennsylvania spent $494.7 million on bill subsidies and $69.5 million on weatherization — a 7.1-to-1 ratio that treats the symptom annually rather than addressing the cause once.
2022 spending: subsidize the bill vs. fix the house
CAP: subsidize the bill
462,575
Customers served by CAP programs statewide (electric + gas combined). Each customer receives ongoing monthly bill subsidies as long as they remain enrolled and income-eligible.
LIURP: fix the house
17,242
Homes weatherized by LIURP in 2022 (electric + gas combined). Each home receives a one-time retrofit that permanently reduces consumption. Gas heating jobs save an average of 14.5% on usage and $220/year.
$494.7M
Total CAP spending in 2022: $403.5M in bill credits (81.6%), $72.6M in arrearage forgiveness (14.7%), $18.7M in admin (3.8%). This spending recurs every year for every enrolled customer.
$69.5M
Total LIURP spending in 2022: $44.3M electric + $25.2M gas. Average gas heating job costs $6,800-$13,000 depending on utility. NFG spent only $847K of a $2.9M budget (29% execution rate, 78 jobs completed).
Columbia Gas spends an average of $1,202 per year in CAP credits per enrolled customer. A $13,000 weatherization job that eliminates the need for CAP pays for itself in avoided program costs within roughly 11 years — and the house stays fixed. Without weatherization, the CAP credit recurs every month, every year, for as long as the customer remains low-income.
CAP credit per customer: $28.8M Columbia Gas CAP credits ÷ 23,982 enrolled = ~$1,202/yr. Weatherization job cost: $13,030 average (Columbia Gas LIURP). LIURP energy savings data from 2020 program year evaluations (2-year evaluation lag). Average gas heating savings: 14.5% of usage, $220/year direct bill reduction.
Sources: CAP spending by component — PA PUC BCS Universal Service Report 2022, CAP Cost tables (electric p.41, gas p.42). LIURP spending — BCS Report, LIURP Spending tables (electric p.53, gas p.54). LIURP jobs — BCS Report, LIURP Production tables (electric p.54, gas p.55). LIURP energy savings — BCS Report, LIURP Energy Savings tables (p.56, 2020 PY evaluations). CAP customer count — BCS Report, CAP Participation tables. NFG underspend — BCS Report, LIURP Spending table (gas).