AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.

Plain English Breakdown

The effective date is not provided in the source material, so start dates remain unknown.

Discounted Utility Rates for Low-Income Delaware Residents

This law allows the Public Service Commission to approve a 20% discount on gas or electric distribution rates for low-income households, with program costs shared by all utility customers.

What This Bill Does

• Allows the Public Service Commission to authorize a discounted rate for residential gas and electricity if it is in the public interest.
• Requires that approved discounts equal exactly 20% of standard residential distribution rates.
• Mandates that utilities check customer eligibility every year.
• Spreads program costs across all utility customers through a surcharge on their bills.
• Requires the Public Service Commission to review the discount rate every five years.

Who It Names or Affects

• Low-income residential customers eligible for the Low Income Home Energy Assistance Program or an equivalent program
• Electric and gas public utilities in Delaware that offer this discounted rate
• All utility customer classes who will pay a surcharge to fund the program

Terms To Know

Public Service Commission

The state agency that regulates utility rates and approves this discount program.

Low Income Home Energy Assistance Program (LIHEAP)

A federal aid program used to determine which customers qualify for the discounted rate, or an equivalent program.

Regulatory asset

An accounting method that allows utilities to save up costs now and recover them later through customer bills.

Limits and Unknowns

• The law does not state when the program will officially begin.
• Utilities must choose whether to offer this rate, as the Commission only has the power to authorize it if requested or considered.
• The specific amount of money collected from all customers is not listed in the text.

Official Summary Text

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.
This Act provides the Public Service Commission with the flexibility to consider and approve a discounted gas or electric residential utility rate for qualified low-income customers (those eligible to participate in the Low Income Home Energy Assistance Program), provided the discount is 20% of standard residential distribution rates. This permits low-income customers to receive utility distribution services at a lower cost. The cost of credits and incremental administrative costs to manage the program would be deferred to a regulatory asset and recovered via a surcharge applicable to all customer classes. A utility offering a discounted low-income rate is responsible for annually determining customer eligibility. The Public Service Commission must review any discount rate approved under this Act every five years to determine if the discount rate should be re-authorized.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Heffernan & Rep. Minor-Brown & Rep. Griffith & Rep. Bush & Sen. Paradee & Sen. Hansen

Reps. Cooke, Morrison, Neal, Ross Levin, Snyder-Hall; Sens. Cruce, Hoffner

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 116

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 1, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 303. Unjust or unreasonable rates and preferences; change in fuel adjustment rate; economic development credit for qualifying corporations.

(e) (1) The Commission may authorize an electric or gas public utility to establish an individual or joint rate for any product supplied or service rendered within the State for the purpose of ensuring basic utility service for the State’s low-income residential customers, qualified by eligibility for the Low Income Home Energy Assistance Program or other equivalent program, where prior to authorizing such individual or joint rate, the Commission finds all of the following:

a. That such rate is in the public interest.

b.

The cost of credits and incremental administrative costs to manage the program would be deferred to a regulatory asset and recovered via a surcharge applicable to all customer classes.

c. That such rate provides a 20% discount from standard residential distribution costs.

(2) Eligibility for a low-income rate under this section will be determined annually by any participating electric or gas utility

.

(3) The Public Service Commission must review a discount rate authorized under paragraph (e)(1) of this section every five years and determine whether such rate should be re-authorized.

SYNOPSIS

This Act provides the Public Service Commission with the flexibility to consider and approve a discounted gas or electric residential utility rate for qualified low-income customers (those eligible to participate in the Low Income Home Energy Assistance Program), provided the discount is 20% of standard residential distribution rates. This permits low-income customers to receive utility distribution services at a lower cost. The cost of credits and incremental administrative costs to manage the program would be deferred to a regulatory asset and recovered via a surcharge applicable to all customer classes. A utility offering a discounted low-income rate is responsible for annually determining customer eligibility. The Public Service Commission must review any discount rate approved under this Act every five years to determine if the discount rate should be re-authorized.