Utilities, Utility Districts

Plain English Breakdown

The official source material does not provide specific details on how penalties will be enforced or what they might include.

Utility Rate Cap for Senior Citizens

This bill sets rules to prevent utilities from raising rates for senior citizens who have verified their age and notified the utility.

What This Bill Does

• Prevents public utilities from increasing rates for customers aged 65 or older after they notify the utility of their eligibility through a verification process established by the Tennessee Public Utilities Commission (TPUC).
• Requires TPUC to create rules for verifying senior citizen status and notifying them about rate caps.
• Mandates that each utility inform all its customers within 90 days of the final rule's effective date about the availability of rate caps for senior citizens.
• Allows TPUC to impose penalties on utilities that do not follow these rules.

Who It Names or Affects

• Senior citizen customers aged 65 or older who use electric, water, wastewater, or natural gas services from public utilities in Tennessee.
• Public utilities providing the mentioned services.
• The Tennessee Public Utilities Commission (TPUC).

Terms To Know

Senior citizen customer

A utility customer who is 65 years old or older.

Rate cap

The maximum rate a utility can charge senior citizens after they have verified their age and notified the utility.

Limits and Unknowns

• It does not specify what happens if a senior citizen customer fails to notify the utility of their eligibility.
• The bill's effectiveness depends on TPUC creating clear rules for verification and notification processes within the specified timeframe.
• There are no details about how penalties will be enforced or what they might include.

Official Summary Text

On and after January 1, 2027,
this bill prohibits
a public utility that provides electric, water, wastewater, or natural gas services
("
utility
")

from
increas
ing
the rate charged for
such
service
by
the utility to a senior citizen customer who has provided notice to the utility through the age verification and notification process established by the Tennessee public utilities commission
("commission")
by rule.

AGE VERIFICATION AND NOTIFICATION PROCESS

This bill requires the commission to
establish by rule an age verification and notification process through which a senior citizen customer may provide notice to the customer's utility that the customer is of age to qualify for the rate cap provided
above.

No later than 90

days after the effective date of the commission's final rule,
this bill requires
each utility
to
provide written notice to each utility customer of the availability of the rate cap for customer
s
of a utility who is 65 or older. Such written notice may be provided by bill insert, separate mailing, or electronic means for those customers who utilize electronic billing services.

REMEDIES

This bill provides that a
utility that fails to comply with this
bill
is subject to reasonable sanctions ordered by the commission as described in rule. The fees collected from
such
civil penalties must be remitted to the commission for enforcement of this
bill
.

RULEMAKING

This bill authorizes the commission to promulgate rules necessary to effectuate this bill.

Current Bill Text

SENATE BILL 1769
By Lamar

HOUSE BILL 1843
By Miller
HB1843
010495
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 7; Title 47, Chapter 18; Title 64; Title 65; Title
67 and Title 68, relative to utilities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 65, Chapter 4, Part 1, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Commission" means the Tennessee public utilities commission;
(2) "Senior citizen customer" means a customer of a utility who is sixty-
five (65) years of age or older; and
(3) "Utility" means a public utility that provides electric, water,
wastewater, or natural gas services.
(b) On and after January 1, 2027, a utility shall not increase the rate charged for
electric, water, wastewater, or natural gas service the utility provides to a senior citizen
customer who has provided notice to the utility through the age verification and
notification process established by the commission by rule.
(c) The commission shall establish by rule an age verification and notification
process through which a senior citizen customer may provide notice to the customer's
utility that the customer is of age to qualify for the rate cap provided in subsection (b).
(d) No later than ninety (90) days after the effective date of the commission's
final rule required by subsection (c), each utility shall provide written notice to each utility
customer of the availability of the rate cap for senior citizen customers created by this

- 2 - 010495

section. Such written notice may be provided by bill insert, separate mailing, or by
electronic means for those customers who utilize electronic billing services.
(e) A utility that fails to comply with this section is subject to reasonable
sanctions ordered by the commission as described in rule. The fees collected from civil
penalties under this section must be remitted to the commission for enforcement of this
section.
(f) The commission shall enforce this section and may promulgate rules
necessary to effectuate this section. The rules must be promulgated in accordance with
the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.