Utilities, Utility Districts

Plain English Breakdown

The official source material does not provide specific details about the sanctions that can be imposed on utilities, leaving this aspect open to interpretation.

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 through an age verification process established by the Tennessee Public Utilities Commission.

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 set by the Tennessee Public Utilities Commission (TPUC).
• Requires TPUC to create rules for an age verification and notification process that senior citizens can use to inform their utility about their eligibility.
• Mandates utilities to send written notice within 90 days after TPUC's rule takes effect, informing all customers aged 65 or older about the rate cap program.
• Allows TPUC to impose reasonable sanctions on utilities if they do not follow these rules.

Who It Names or Affects

• Senior citizens (aged 65 or older) who are utility customers in Tennessee.
• Public utilities that provide electric, water, wastewater, and natural gas services.
• The Tennessee Public Utilities Commission

Terms To Know

Rate cap

A limit on how much a utility can charge senior citizens for their service.

Age verification process

A system set by TPUC to confirm that customers are 65 or older and qualify for the rate cap.

Limits and Unknowns

• The bill does not specify what sanctions utilities might face if they do not comply with the rules.
• It is unclear how many senior citizens will take advantage of this program once it becomes available.
• The exact date when TPUC must establish its rules and when utilities must start providing notice to customers remains unspecified.

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

HOUSE BILL 1843
By Miller

SENATE BILL 1769
By Lamar
SB1769
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.