2021 and 2022 Annual Affordability Refresh

2021 and 2022 Annual Affordability Report

Metrics Data and Interactive Maps

Below are the downloadable tabular files, interactive maps, and raw data work papers for Areas of Affordability Concern, Affordability Ratio at the 20th Percentile, and Hours at Minimum Wage.

2021 and 2022 Affordability Ratio Calculators

This year, staff has prepared an updated AR calculator for historical analysis of 2021 using the same methodology that was used in the prior year’s affordability analysis (affordability analysis based on historical essential usage bills for 2021 and the 1-year 2021 sample of American Community Survey, or ACS, microdata). In a change from prior years, staff has also prepared a second draft AR calculator for historical analysis of the year 2022. This second calculator uses the same methodology that was used in prior years, but features more up-to-date historical essential usage bills for electricity, natural gas, and Class A water utilities. All other water essential usage bills, as well as communications essential usage bills, are based on 2021 values and adjusted for inflation. Income and housing cost data for 2022 in this version of the calculator is based on 2021 ACS microdata and adjusted for inflation.

Areas of Affordability Concern

The areas of affordability concern (AAC) for each industry are the geographical areas where the AR20 scores are greater than the affordability demarcations. These demarcations represent the inflection points of the distribution of all AR20 scores across the state. The demarcations are 15% for essential electric and communications services, and 10% of essential gas and water services. The AACs are presented in census tract geography. 

 

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Affordability Ratio

The Affordability Ratio (AR) metric quantifies the percentage of a representative household’s income that would be used to pay for an essential utility service, after non-discretionary expenses such as housing and other essential utility service charges are deducted from the household’s income.  The higher an AR, the less affordable the utility service.  The AR may be calculated for a single essential utility service, a combination of services, or all essential utility services combined.

 

AR20 Historical Trends

PG&E, SCE and SDG&E Electric AR20 - Selected Moderate and Hot Climate Zones*

PG&E, SCE, and SDG&E Electric AR20 - Selected Moderate and Hot Climate Zones*

AR20 data is from the Affordability Ratio Calculator (ARC) vintaged to each year, except for the 2019 data which was re-stated in the 2020 annual Affordability Report due to a change in methodology.

Larger Class A Water Utilities (>200,000 connections)

Larger Class A Water Utilities (>200000 connections)

Class A Water Utilities (<200,000 connections)

Class A Water Utilities (<200,000 connections)

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Hours at Minimum Wage

The Hours at Minimum Wage (HM) metric quantifies the hours of earned employment at the city minimum wage necessary for a household to pay for essential utility service charges. The minimum wage-based metric also implicitly considers the impact of essential utility service charges on lower-income customers regardless of the socioeconomic conditions of the community as a whole. 

 

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Additional Appendix Files for AAR