Energy Affordability

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0061.01 Christopher McMichael x4775 SENATE BILL 26-002
Senate Committees House Committees
Transportation & Energy
Appropriations
A BILL FOR AN ACT
CONCERNING ENERGY AFFORDABILITY , AND , IN CONNECTION101
THEREWITH , ESTABLISHING A PERCENTAGE -OF-INCOME102
PAYMENT PLAN PROGRAM FOR INCOME -QUALIFIED UTILITY103
CUSTOMERS.104
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill w ill be av ailable at
http://leg.colorado.gov.)
The bill requires an investor- owned electric utility (utility) to
submit a proposal to the public utilities commission (PUC) that
establishes a first allotment of residential electricity service (FARE
SENATE
3rd Reading Unamended
April 17, 2026
SENATE
Amended 2nd Reading
April 16, 2026
SENATE SPONSORSHIP
Kipp and Exum, Amabile, Ball, Benavidez, Coleman, Cutter, Gonzales J., Kolker,
Lindstedt, Marchman, Roberts, Snyder, Wallace, Weissman
HOUSE SPONSORSHIP
Willford,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
service) program.
The FARE service program provides a minimum level of
electricity at a marginal cost rate for income-qualified utility customers.
A FARE service proposal that a utility submits to the PUC must include:
! The amount of electricity that qualifies as a minimum level
of electricity for an average income-qualified utility
customer based on monthly usage to support a customer's
basic needs;
! A marginal cost rate on a per-kilowatt-hour basis for
delivering electricity to a customer, which marginal cost
rate must be lower than the residential customer rate that
the income-qualified utility customer would normally be
charged; and
! A description of the process by which an income-qualified
utility customer may enroll in the FARE service program.
The PUC shall approve a utility's FARE service proposal if the
PUC determines that the proposed FARE service would be in the public
interest.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 40-3-122 as2
follows:3
40-3-122. Energy affordability - percentage-of-income4
payment plan program - eligibility and participation - cost recovery5
- definitions - rules.6
(1) Definitions. AS USED IN THIS SECTION, UNLESS THE CONTEXT7
OTHERWISE REQUIRES:8
(a) (I) "ADMINISTRATIVE COSTS" MEANS A UTILITY'S DIRECT COSTS9
FOR LABOR, INCLUDING APPLICABLE BENEFIT LOADINGS, MATERIALS, AND10
OTHER VERIFIABLE EXPENDITURES DIRECTLY RELATED TO THE11
ADMINISTRATION AND OPERATION OF A PIPP PROGRAM.12
(II) ADMINISTRATIVE COSTS MUST NOT EXCEED TEN PERCENT OF13
THE TOTAL AMOUNT OF THE FIXED CREDITS APPLIED TO CUSTOMER BILLS14
FOR CURRENT USAGE AND PRE-EXISTING ARREARAGES, OR TEN THOUSAND15
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DOLLARS, WHICHEVER AMOUNT IS GREATER.1
(b) "AFFORDABLE PERCENTAGE OF INCOME" MEANS THE AMOUNT2
OF A PARTICIPANT'S ANNUAL BILL THAT IS DEEMED AFFORDABLE BASED ON3
A PARTICIPANT 'S ANNUAL HOUSEHOLD INCOME , AS DETERMINED4
PURSUANT TO SUBSECTIONS (4)(b) AND (4)(c) OF THIS SECTION.5
(c) "APPLICATION" MEANS:6
(I) A REQUEST BY AN APPLICANT TO PARTICIPATE IN A UTILITY 'S7
PIPP PROGRAM , IF AN INVESTOR -OWNED UTILITY OFFERS THEIR OWN8
APPLICATION PROCESS;9
(II) A REFERRAL BY A THIRD PARTY, AS DESCRIBED IN SUBSECTION10
(3)(a)(II)(B) OF THIS SECTION , FOR AN APPLICANT TO PARTICIPATE IN A11
UTILITY'S PIPP PROGRAM; OR12
(III) A PROCESS DETERMINED BY THE COMMISSION BY ORDER OR13
BY RULE.14
(d) "A RREARAGE" MEANS THE PAST -DUE BALANCE OWED BY A15
PARTICIPANT IN A PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM FOR16
UTILITY SERVICE, AS SHOWN ON THE MOST RECENT BILL RECEIVED BY THE17
PARTICIPANT BEFORE THE PARTICIPANT 'S INITIAL ENROLLMENT IN THE18
PIPP PROGRAM.19
(e) (I) "FIXED CREDIT" MEANS AN ANNUAL BILL CREDIT THAT IS20
CALCULATED BY A UTILITY AT THE BEGINNING OF A PARTICIPANT 'S21
PARTICIPATION IN THE UTILITY 'S PIPP PROGRAM EACH YEAR AND IS22
DELIVERED EITHER AS AN UP -FRONT ANNUAL CREDIT OR AS AN EQUAL23
MONTHLY CREDIT ON THE PARTICIPANT'S MONTHLY UTILITY BILL.24
(II) T HE FIXED CREDIT IS EQUAL TO THE PARTICIPANT 'S TOTAL25
PROJECTED FULL ANNUAL BILL MINUS THE PARTICIPANT 'S AFFORDABLE26
PERCENTAGE OF INCOME PAYMENT.27
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(f) "FULL ANNUAL BILL" MEANS THE PROJECTED ELECTRICITY OR1
GAS CONSUMPTION OF A PARTICIPANT IN ONE CALENDAR YEAR BILLED AT2
STANDARD RESIDENTIAL RATES BEFORE ANY FIXED CREDIT AMOUNT OR3
OTHER CREDITS OR DISCOUNTS ARE APPLIED TO THE BILL.4
(g) "INCOME-QUALIFIED UTILITY CUSTOMER" HAS THE MEANING5
SET FORTH IN SECTION 40-3-106 (1)(d)(II).6
(h) "INVESTOR-OWNED UTILITY" OR "UTILITY" MEANS A RETAIL7
ELECTRIC UTILITY, RETAIL GAS UTILITY, OR A COMBINED RETAIL ELECTRIC8
AND GAS UTILITY IN THE STATE THAT IS REGULATED BY THE COMMISSION9
AND IS NOT A COOPERATIVE ELECTRIC ASSOCIATION OR A MUNICIPALLY10
OWNED UTILITY.11
(i) "P ARTICIPANT" MEANS AN INCOME -QUALIFIED UTILITY12
CUSTOMER WHO IS APPROVED FOR PARTICIPATION IN A UTILITY 'S13
PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM.14
(j) "PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM" OR "PIPP15
PROGRAM" MEANS A PAYMENT PLAN PROGRAM FOR RESIDENTIAL16
PARTICIPANTS IN WHICH A PARTICIPANT'S UTILITY BILL DOES NOT EXCEED17
AN AFFORDABLE PERCENTAGE OF INCOME.18
(k) "PIPP CHARGE " MEANS A FEE CHARGED TO AN19
INVESTOR-OWNED UTILITY 'S CUSTOMERS IN ACCORDANCE WITH20
SUBSECTION (7) OF THIS SECTION TO RECOVER COSTS ASSOCIATED WITH21
THE UTILITY'S PIPP PROGRAM.22
(l) "U NAFFORDABLE PORTION " MEANS THE AMOUNT OF A23
PARTICIPANT'S ESTIMATED FULL ANNUAL BILL THAT EXCEEDS THE24
AFFORDABLE PERCENTAGE OF INCOME PAID BY THE PARTICIPANT.25
(2) Percentage-of-income payment plan program.26
(a) A N INVESTOR -OWNED UTILITY SHALL ESTABLISH A27
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PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM FOR RESIDENTIAL1
INCOME-QUALIFIED UTILITY CUSTOMERS.2
(b) AN INVESTOR-OWNED UTILITY SHALL USE CONSISTENT NAMING3
FOR THE PIPP PROGRAM IN TARIFFS, RATES, CUSTOMER COMMUNICATIONS,4
AND BILL STATEMENTS , WHICH NAME MUST INCLUDE THE WORDS5
"PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM".6
(c) AN INVESTOR-OWNED UTILITY SHALL PUBLISH THE FOLLOWING7
INFORMATION RELATED TO THE PIPP PROGRAM ON THE UTILITY'S PUBLIC8
WEBSITE:9
(I) THE INCOME ELIGIBILITY CRITERIA FOR THE PIPP PROGRAM;10
(II) AN EXPLANATION OF WHAT THE PIPP PROGRAM DOES;11
(III) THE APPLICATION AND ENROLLMENT PROCESSES;12
(IV) AN ESTIMATED TIME FRAME FOR WHEN AN APPLICANT WILL13
RECEIVE NOTICE OF THEIR ACCEPTANCE INTO OR DENIAL FROM THE PIPP14
PROGRAM;15
(V) A FFORDABLE PERCENTAGE OF INCOME AMOUNTS FOR16
DIFFERENT TYPES OF CUSTOMERS , AS DESCRIBED IN SUBSECTION (4) OF17
THIS SECTION;18
(VI) PIPP CHARGE AMOUNTS; AND19
(VII) T HE TERMS AND C ONDITIONS FOR THE UTILITY 'S PIPP20
PROGRAM.21
(3) Eligibility and participation.22
(a) A N INCOME -QUALIFIED UTILITY CUSTOMER IS ELIGIBLE TO23
PARTICIPATE IN THE PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM24
IF THE CUSTOMER:25
(I) MEETS THE INCOME ELIGIBILITY CRITERIA, AS DETERMINED BY26
THE COMMISSION BY ORDER OR BY RULE;27
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(II) EITHER:1
(A) SUBMITS AN APPLICATION TO THE INVESTOR-OWNED UTILITY2
TO PARTICIPATE IN THE PIPP PROGRAM; OR3
(B) I S REFERRED BY ANOTHER INCOME -ELIGIBLE ASSISTANCE4
PROGRAM OFFERED BY THE DEPARTMENT OF HUMAN SERVICES, CREATED5
IN SECTION 26-1-105; THE COLORADO ENERGY OFFICE , CREATED IN6
SECTION 24-38.5-101; THE ORGANIZATION DEFINED IN SECTION 40-8.7-1037
(4); OR OTHER ENERGY ASSISTANCE PROGRAM APPROVED BY THE8
COMMISSION; AND9
(III) LIVES IN THE SERVICE AREA OF AN INVESTOR-OWNED UTILITY10
THAT HAS ESTABLISHED A PIPP PROGRAM.11
(b) (I) A N APPLICANT THAT SUBMITS A PIPP PROGRAM12
APPLICATION TO AN INVESTOR -OWNED UTILITY MAY SUBMIT13
DOCUMENTATION WITH THE APPLICATION VERIFYING THAT THE APPLICANT14
MEETS THE INCOME ELIGIBILITY CRITERIA, INCLUDING:15
(A) D OCUMENTATION THAT THE APPLICANT IS ENROLLED IN16
ANOTHER INCOME -ELIGIBLE ASSISTANCE PROGRAM OFFERED BY THE17
DEPARTMENT OF HUMAN SERVICES, CREATED IN SECTION 26-1-105; THE18
COLORADO ENERGY OFFICE , CREATED IN SECTION 24-38.5-101; THE19
ORGANIZATION DEFINED IN SECTION 40-8.7-103 (4); OR OTHER ENERGY20
ASSISTANCE PROGRAM APPROVED BY THE COMMISSION; OR21
(B) INFORMATION REQUIRED TO VERIFY THE APPLICANT'S INCOME22
ELIGIBILITY, WHICH MAY INCLUDE SELF-ATTESTATION, AS DETERMINED BY23
THE UTILITY THAT HAS ESTABLISHED THE PIPP PROGRAM.24
(II) IF AN APPLICANT'S HOUSEHOLD INCOME IS ZERO DOLLARS, THE25
UTILITY MAY ESTABLISH A PROCESS THAT VERIFIES THE APPLICANT 'S26
HOUSEHOLD INCOME ON A MORE FREQUENT THAN ANNUAL BASIS.27
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(c) AN APPLICANT IS NOT REQUIRED TO MAKE A PAYMENT ON THE1
APPLICANT'S ACCOUNT AS A CONDITION OF ACCEPTANCE INTO A PIPP2
PROGRAM.3
(d) AN INVESTOR-OWNED UTILITY SHALL ESTABLISH APPLICATION4
AND PARTICIPATION PROCEDURES THAT ARE EFFICIENT , AVAILABLE TO5
APPLICANTS IN PLAIN LANGUAGE , AND INTENDED TO MAXIMIZE6
PARTICIPATION IN THE UTILITY'S PIPP PROGRAM.7
(e) (I) WITHIN THIRTY DAYS AFTER RECEIVING A PIPP PROGRAM8
APPLICATION FROM AN INCOME -QUALIFIED UTILITY CUSTOMER , AN9
INVESTOR -OWNED UTILITY SHALL APPROVE OR DENY THE10
INCOME-QUALIFIED UTILITY CUSTOMER'S APPLICATION.11
(II) I F THE INVESTOR -OWNED UTILITY APPROVES AN12
INCOME-QUALIFIED UTILITY CUSTOMER'S APPLICATION FOR PARTICIPATION13
IN THE PIPP PROGRAM, THE UTILITY SHALL PROVIDE AN EXPLANATION OF14
THE PIPP PROGRAM BENEFITS, INCLUDING:15
(A) THE PARTICIPANT'S ESTIMATED FULL ANNUAL BILL AMOUNT;16
(B) THE PARTICIPANT'S FIXED CREDIT AMOUNT;17
(C) T HE AFFORDABLE PERCENTAGE OF INCOME FOR WHICH THE18
PARTICIPANT IS RESPONSIBLE FOR PAYING, LISTED AS BOTH A PERCENTAGE19
AND AN ESTIMATED MONTHLY AMOUNT; AND20
(D) A COPY OF THE TERMS AND CONDITIONS OF PARTICIPATION IN21
THE PIPP PROGRAM.22
(III) I F THE INVESTOR -OWNED UTILITY DENIES AN APPLICANT 'S23
APPLICATION FOR PARTICIPATION IN THE PIPP PROGRAM , THE UTILITY24
SHALL PROVIDE THE APPLICANT AN EXPLANATION FOR THE DENIAL AND,25
IF THE REASON FOR THE DENIAL WAS BASED ON THE UTILITY 'S26
VERIFICATION OF THE APPLICANT'S HOUSEHOLD INCOME IN ACCORDANCE27
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WITH SUBSECTION (3)(b) OF THIS SECTION, THE DEPARTMENT, AGENCY, OR1
ORGANIZATION THAT THE UTILITY CONTACTED TO VERIFY THE2
APPLICANT'S HOUSEHOLD INCOME.3
(IV) I F AN INCOME -QUALIFIED UTILITY CUSTOMER IS ACCEPTED4
INTO THE PIPP PROGRAM, THE CUSTOMER SHALL REMAIN QUALIFIED FOR5
THE PIPP PROGRAM FOR TWO PROGRAM YEARS AFTER THE DATE ON WHICH6
THE CUSTOMER IS ACCEPTED INTO THE PROGRAM.7
(f) (I) A N INVESTOR -OWNED UTILITY IS RESPONSIBLE FOR8
ESTABLISHING AND ADMINISTERING THE PROCESS FOR INCOME-QUALIFIED9
UTILITY CUSTOMERS TO APPLY FOR PARTICIPATION AND MAINTAINING10
ENROLLMENT IN THE PIPP PROGRAM.11
(II) A PARTICIPANT MAY REMAIN ENROLLED IN A UTILITY 'S PIPP12
PROGRAM IF THE PARTICIPANT MOVES WITHIN THE SAME UTILITY SERVICE13
TERRITORY WITHOUT REAPPLYING FOR PARTICIPATION IN THE PIPP14
PROGRAM, AND THE PARTICIPANT SHALL NOTIFY THE UTILITY OF THE15
PARTICIPANT'S CHANGE OF ADDRESS AND NEW ACCOUNT NUMBER.16
(III) I F A PARTICIPANT MOVES OUTSIDE OF A UTILITY 'S SERVICE17
TERRITORY, THE PARTICIPANT IS NO LONGER ELIGIBLE FOR THE UTILITY'S18
PIPP PROGRAM AND THE UTILITY SHALL SEND NOTICE TO THE PARTICIPANT19
THAT THE PARTICIPANT'S ELIGIBILITY FOR AND ENROLLMENT IN THE PIPP20
PROGRAM HAS ENDED.21
(g) I F A PARTICIPANT MAKES PARTIAL OR LATE PAYMENTS ON22
THEIR UTILITY BILL , THE INVESTOR -OWNED UTILITY SHALL NOT23
TERMINATE THE PARTICIPANT 'S PARTICIPATION IN THE PIPP PROGRAM24
SOLELY FOR THAT REASON . HOWEVER, THE UTILITY MAY PURSUE25
COLLECTION EFFORTS FOR THE UNPAID AMOUNTS.26
(4) Affordable percentage of income calculation.27
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(a) (I) A N INVESTOR -OWNED UTILITY SHALL ESTIMATE A1
PARTICIPANT'S FULL ANNUAL BILL IN ORDER TO DETERMINE A2
PARTICIPANT'S AFFORDABLE PERCENTAGE OF INCOME PAYMENT IN3
ACCORDANCE WITH SUBSECTIONS (4)(b) AND (4)(c) OF THIS SECTION.4
(II) A N INVESTOR -OWNED UTILITY SHALL INCLUDE THE5
DIFFERENCE BETWEEN A PARTICIPANT 'S AFFORDABLE PERCENTAGE OF6
INCOME PAYMENT AND THE PROJECTED FULL ANNUAL BILL ON THE7
PARTICIPANT'S UTILITY BILL AS A FIXED CREDIT.8
(III) AN INVESTOR-OWNED UTILITY MAY ADJUST THE FIXED CREDIT9
AMOUNT IF RESIDENTIAL RATES FOR ELECTRICITY OR GAS SIGNIFICANTLY10
CHANGE FROM THE RATE USED TO ESTIMATE THE PARTICIPANT 'S FULL11
ANNUAL BILL OR IF THE PARTICIPANT'S ACTUAL BILL AMOUNT VARIES BY12
TWENTY-FIVE PERCENT OR MORE FROM THE PARTICIPANT 'S ESTIMATED13
FULL ANNUAL BILL.14
(b) U NLESS OTHERWISE DETERMINED BY THE COMMISSION BY15
ORDER OR BY RULE, IF A PARTICIPANT'S ANNUAL HOUSEHOLD INCOME IS16
ABOVE ZERO DOLLARS , A PARTICIPANT 'S AFFORDABLE PERCENTAGE OF17
INCOME MUST NOT EXCEED THE APPLICABLE PERCENTAGE OF HOUSEHOLD18
INCOME AS FOLLOWS:19
(I) FOR UTILITIES WITH FIVE HUNDRED THOUSAND CUSTOMERS OR20
FEWER:21
(A) F OR ELECTRIC ACCOUNTS THAT HAVE ELECTRICITY AS THE22
PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF23
INCOME PAYMENT MUST NOT BE GREATER THAN SIX PERCENT OF THE24
PARTICIPANT'S HOUSEHOLD INCOME;25
(B) FOR ELECTRIC ACCOUNTS THAT DO NOT HAVE ELECTRICITY AS26
THE PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE27
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OF INCOME PAYMENT MUST NOT BE GREATER THAN THREE PERCENT OF THE1
PARTICIPANT'S HOUSEHOLD INCOME;2
(C) FOR ACCOUNTS THAT HAVE BOTH NATURAL GAS SERVICE AND3
ELECTRIC SERVICE FROM A SINGLE UTILITY, A PARTICIPANT'S AFFORDABLE4
PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER THAN FIVE5
PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME;6
(D) F OR ACCOUNTS THAT HAVE NEITHER ELECTRICITY NOR7
NATURAL GAS AS A PRIMARY HEATING SOURCE , A PARTICIPANT 'S8
AFFORDABLE PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER9
THAN FIVE PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME; OR10
(E) FOR ACCOUNTS THAT HAVE NATURAL GAS AS THE PRIMARY11
HEAT SOURCE , A PARTICIPANT 'S AFFORDABLE PERCENTAGE OF INCOME12
PAYMENT MUST NOT BE GREATER THAN THREE PERCENT OF THE13
PARTICIPANT'S HOUSEHOLD INCOME; AND14
(II) FOR UTILITIES WITH MORE THAN FIVE HUNDRED T HOUSAND15
CUSTOMERS:16
(A) F OR ELECTRIC ACCOUNTS THAT HAVE ELECTRICITY AS THE17
PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE OF18
INCOME PAYMENT MUST NOT BE GREATER THAN FOUR PERCENT OF THE19
PARTICIPANT'S HOUSEHOLD INCOME;20
(B) FOR ELECTRIC ACCOUNTS THAT DO NOT HAVE ELECTRICITY AS21
THE PRIMARY HEATING FUEL, A PARTICIPANT'S AFFORDABLE PERCENTAGE22
OF INCOME PAYMENT MUST NOT BE GREATER THAN TWO PERCENT OF THE23
PARTICIPANT'S HOUSEHOLD INCOME;24
(C) FOR ACCOUNTS THAT HAVE BOTH NATURAL GAS SERVICE AND25
ELECTRIC SERVICE FROM A SINGLE UTILITY, A PARTICIPANT'S AFFORDABLE26
PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER THAN FIVE27
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PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME; OR1
(D) F OR ACCOUNTS THAT HAVE NEITHER ELECTRICITY NOR2
NATURAL GAS AS A PRIMARY HEATING SOURCE , A PARTICIPANT 'S3
AFFORDABLE PERCENTAGE OF INCOME PAYMENT MUST NOT BE GREATER4
THAN FIVE PERCENT OF THE PARTICIPANT'S HOUSEHOLD INCOME.5
(c) I F A PARTICIPANT 'S ANNUAL HOUSEHOLD INCOME IS ZERO6
DOLLARS, THE COMMISSION SHALL SET THE PARTICIPANT 'S AFFORDABLE7
PERCENTAGE OF INCOME BY ORDER OR RULE.8
(5) Arrearage credits.9
(a) (I) A N INVESTOR-OWNED UTILITY SHALL APPLY ARREARAGE10
CREDITS TO A PARTICIPANT 'S ARREARAGES THAT EXISTED BEFORE THE11
PARTICIPANT INITIALLY APPLIED FOR THE PIPP PROGRAM.12
(II) ARREARAGE CREDITS MUST BE ESTABLISHED AND APPLIED TO13
A PARTICIPANT 'S UTILITY BILL IN AN AMOUNT SUFFICIENT TO REDUCE ,14
WHEN COMBINED WITH ANY REQUIRED PAYMENTS FROM THE PARTICIPANT,15
THE PARTICIPANT'S ARREARAGES TO ZERO DOLLARS OVER A PERIOD OF NOT16
LESS THAN ONE MONTH AND NOT MORE THAN TWENTY-FOUR MONTHS.17
(b) A N INVESTOR -OWNED UTILITY MAY CONDITION THE18
APPLICATION OF ARREARAGE CREDITS ON THE FOLLOWING:19
(I) A PARTICIPANT 'S TIMELY PAYMENT OF BILLS FOR CURRENT20
USAGE; OR21
(II) A PARTICIPANT 'S PAYMENT TOWARD PREEXISTING22
ARREARAGES, EXCEPT THAT THE TOTAL DOLLAR AMOUNT OF THE23
PAYMENT REQUIRED BY THE UTILITY MUST NOT EXCEED ONE PERCENT OF24
THE PARTICIPANT'S ANNUAL HOUSEHOLD INCOME.25
(c) IF A PARTICIPANT'S ENROLLMENT IN THE PIPP PROGRAM ENDS26
FOR ANY REASON PRIOR TO THE FORGIVENESS OF ALL ARREARAGES, ANY27
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REMAINING ARREARAGES BECOME DUE IN ACCORDANCE WITH THE1
UTILITY'S CURRENT TARIFF FILED WITH THE COMMISSION AT THE TIME OF2
THE TERMINATION.3
(d) W HILE A PARTICIPANT IS ENROLLED IN A UTILITY 'S PIPP4
PROGRAM, THE UTILITY SHALL NOT TERMINATE THE PARTICIPANT 'S5
SERVICE FOR NONPAYMENT OF THE ARREARAGES.6
(e) A PARTICIPANT MAY RECEIVE ARREARAGE CREDITS PURSUANT7
TO THIS SECTION REGARDLESS OF WHETHER THE PARTICIPANT RECEIVES A8
CREDIT TOWARD A UTILITY BILL FOR CURRENT USAGE.9
(6) Participation in other assistance programs.10
(a) T HIS SECTION DOES NOT PROHIBIT AN INCOME -QUALIFIED11
UTILITY CUSTOMER FROM PARTICIPATING IN OTHER ENERGY ASSISTANCE12
PROGRAMS WHILE ENROLLED IN A PERCENTAGE -OF-INCOME PAYMENT13
PLAN PROGRAM.14
(b) AN INVESTOR-OWNED UTILITY MAY APPLY ENERGY ASSISTANCE15
GRANTS PROVIDED TO A PARTICIPANT TO THE DOLLAR VALUE OF THE FIXED16
CREDITS PROVIDED TO THE PARTICIPANT TO COVER THE UNAFFORDABLE17
PORTION OF THE PARTICIPANT'S UTILITY BILL IN A MANNER DETERMINED18
BY THE COMMISSION BY RULE.19
(7) Cost recovery.20
(a) A N INVESTOR -OWNED UTILITY MAY RECOVER21
PERCENTAGE-OF-INCOME PAYMENT PLAN PROGRAM COSTS THROUGH A22
PIPP CHARGE ON THE UTILITY 'S CUSTOMERS , AS APPROVED BY THE23
COMMISSION.24
(b) IF AN INVESTOR-OWNED UTILITY IMPOSES A PIPP CHARGE, THE25
INVESTOR-OWNED UTILITY SHALL:26
(I) ASSESS THE PIPP CHARGE AS A SEPARATE LINE ITEM ON EVERY27
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CUSTOMER'S MONTHLY BILL AND IDENTIFY THE CHARGE AS A "PIPP1
CHARGE" OR, IF THE PIPP CHARGE IS COMBINED WITH ANOTHER LINE ITEM,2
ENSURE THAT THE PIPP CHARGE IS ITEMIZED AND NOTED ON THE3
CUSTOMER'S MONTHLY BILL AS SUCH;4
(II) COLLECT THE MONTHLY PIPP CHARGE IN THE SAME MANNER5
AS ALL OTHER CHARGES AND FEES ARE COLLECTED FROM A CUSTOMER;6
(III) STATE THE AMOUNT OF THE PIPP CHARGE, WHICH MUST BE7
APPROVED BY THE COMMISSION; AND8
(IV) INCLUDE THE AMOUNT OF PIPP CHARGES COLLECTED FROM9
A UTILITY'S CUSTOMERS ON THE UTILITY'S TARIFF SHEET FILED WITH THE10
COMMISSION.11
(c) IF AN INVESTOR-OWNED UTILITY IMPOSES A PIPP CHARGE, THE12
UTILITY IS ENCOURAGED TO ANNUALLY CONTRIBUTE SHAREHOLDER13
PROFITS TO THE PIPP PROGRAM . ANY AMOUNT CONTRIBUTED BY THE14
UTILITY IS NOT TO BE DIRECTLY OR INDIRECTLY RECOVERED FROM15
CUSTOMERS.16
(d) A N INVESTOR -OWNED UTILITY MUST USE THE REVENUE17
GENERATED FROM THE PIPP CHARGE PLUS ANY AMOUNT CONTRIBUTED BY18
THE UTILITY PURSUANT TO SUBSECTION (7)(c) OF THIS SECTION ONLY FOR19
THE FOLLOWING PURPOSES:20
(I) TO PROVIDE CREDITS OR DISCOUNTS TO PARTICIPANTS APPLIED21
AGAINST THE PARTICIPANTS' BILL FOR CURRENT USAGE;22
(II) TO PROVIDE CREDITS TO PARTICIPANTS FOR THE PARTICIPANTS'23
ARREARAGES;24
(III) T O COVER ADMINISTRATIVE COSTS OF IMPLEMENTING AND25
ADMINISTERING THE PIPP PROGRAM; AND26
(IV) TO COVER PIPP PROGRAM EVALUATION COSTS REQUIRED BY27
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THE COMMISSION.1
(e) THE COMMISSION SHALL DETERMINE BY RULE THE AMOUNT OF2
THE PIPP CHARGE AND PROCEDURES BY WHICH A UTILITY MAY APPLY TO3
INCREASE OR DECREASE THE MONTHLY PIPP CHARGE.4
(f) (I) A N INVESTOR -OWNED UTILITY SHALL TRACK AND5
ANNUALLY REPORT THE FOLLOWING INFORMATION TO THE COMMISSION:6
(A) THE PIPP CHARGE REVENUE COLLECTED BY THE UTILITY;7
(B) T HE PIPP CHARGE UTILITY CONTRIBUTION AMOUNT8
DESCRIBED IN SUBSECTION (7)(c) OF THIS SECTION;9
(C) A DMINISTRATIVE COSTS ASSOCIATED WITH IMPLEMENTING10
AND ADMINISTERING THE PIPP PROGRAM;11
(D) T HE AMOUNT OF FIXED OR ANNUAL CREDITS PROVIDED TO12
PARTICIPANTS IN THE PIPP PROGRAM; AND13
(E) T HE AMOUNT OF ARREARAGE CREDITS PROVIDED TO14
PARTICIPANTS IN THE PIPP PROGRAM.15
(II) THE COMMISSION SHALL REPORT THE INFORMATION REPORTED16
BY AN INVESTOR-OWNED UTILITY PURSUANT TO SUBSECTION (7)(f)(I) OF17
THIS SECTION IN THE COMMISSION'S ANNUAL REPORTING REQUIREMENTS18
ESTABLISHED BY THE COMMISSION BY RULE.19
(8) Rules. THE COMMISSION SHALL ADOPT ANY RULES NECESSARY20
TO IMPLEMENT AND ENFORCE THIS SECTION.21
SECTION 2. Act subject to petition - effective date. This act22
takes effect at 12:01 a.m. on the day following the expiration of the23
ninety-day period after final adjournment of the general assembly (August24
12, 2026, if adjournment sine die is on May 13, 2026); ex cept that, if a25
referendum petition is filed pursuant to section 1 (3) of article V of the26
state constitution against this act or an item, section, or part of this act27
002-14-
within such period, then the act, item, section, or part will not take effect1
unless approved by the people at the general election to be held in2
November 2026 and, in such case, will take effect on the date of the3
official declaration of the vote thereon by the governor.4
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