LOW-INCOME UTILITY RATES

Amends the Public Utilities Act. In provisions concerning nondiscrimination, provides that the Illinois Commerce Commission may approve a low-income discount for residential electric and natural gas customers that applies to the entirety of a qualifying customer's bill, including, but not limited to, a qualifying customer's delivery service charges, energy supply charges, and any other applicable charges. Provides that an electric or natural gas utility may fund its low-income discounts through a surcharge on both its residential and non-residential customers' electric and natural gas bills. Provides that any charges, surcharges, or cost recovery mechanisms authorized or approved by the Commission under the amendatory provisions shall be assessed solely on a fixed, per-customer basis and shall not be designed, implemented, or recovered on a volumetric, usage-based, demand-based, or throughput basis, whether directly or indirectly. Provides that charges authorized under certain provisions may vary by customer class or rate classification. Provides that any electric or natural gas public utility serving more than 100,000 customers in the State that does not have a low-income discount or that elects to implement a low-income discount that complies with the requirements of the amendatory provisions on or after the effective date of the amendatory Act shall, within 30 days after the effective date of the amendatory Act, file a new or amended tariff with the Commission to implement the new low-income discount or bring the utility's low-income discount into compliance with the amendatory provisions. Provides that, in reviewing and approving any low-income discount, the Commission shall take into consideration the effect of the low-income discount on, and shall endeavor to maximize, the allocation and receipt of federal LIHEAP grants, funds under certain provisions of the Energy Assistance Act, and other State and federal energy assistance funds that are available to the State. Amends the Energy Assistance Act. In provisions concerning eligibility under the Act, provides that, in setting the annual eligibility level for the use of State funds from the Supplemental Low-Income Energy Assistance Fund, the Department of Commerce and Economic Opportunity shall consider the amount of available funding and may not set a limit higher than 300% of the federal nonfarm poverty level. In provisions concerning the Supplemental Low-Income Energy Assistance Fund, provides that the yearly administrative expenses of the Fund may not exceed 15% (rather than 13%) of the amount collected during that year, except when unspent funds from the Fund are reallocated from a previous year. Provides that any unspent balance of the 15% administrative allowance may be utilized for administrative expenses in the year they are reallocated. Provides that, of the 15% administrative allowance, no less than 9% (rather than 8%) shall be provided to Local Administrative Agencies for administrative expenses. Provides that, beginning January 1, 2027, the Base Energy Assistance Charge shall be $0.80 per month, with no additional step-up provisions, for each utility that is required by the Commission to implement a low-income discount program and shall be $0.40 per month for each utility that is not required to implement a low-income discount program and that contributes to the Supplemental Low-Income Energy Assistance Fund. Makes other changes. Effective immediately.

Status

Passed

Signed or otherwise enacted

Status date

Jul 9, 2026

126 days ago

Current chamber

House of Representatives

Session

2025-2026 Regular Session