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PSC: New Low-Income Mechanism Should "Consider" Application To Supply Charges
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The Maryland PSC directed a work group to propose a model mechanism to implement Public Utilities Article § 4-309 which requires utilities to develop a limited-income utility rate mechanism to benefit eligible limited-income customers
Among other things, the PSC directed that the model mechanism should apply to distribution charges, and that the workgroup may, "consider application to supply charges."
The model mechanism should not apply to arrearages at this time, the PSC said
The PSC directed that customer eligibility for the mechanism should be based on: (a) the statutory definition; (b) criteria used by the state's Department of Human Services (DHS) Office of Home Energy Programs (OHEP); or (c) another form of "automatic" eligibility
"Eligible limited-income customer," as defined by PUA § 4-309(a)(2)(i), "means a residential customer of a utility company with annual income that is at or below 175% of the federal poverty level; or for a customer at least 67 years of age, is at or below 200% of the federal poverty level."
This statutory criteria would encompass a broader group of customers than the group which is prohibited from receiving service from a competitive retail supplier (except where the supplier is specifically authorized by the PSC to serve assistance customers). Specifically, retail suppliers are prohibited from serving a customer who qualifies for, or who in the past fiscal year qualified for, "energy assistance", per the relevant OHEP criteria for such
The DHS Office of Home Energy Programs criteria for energy assistance is any household with an individual who meets the financial eligibility requirements established by DHS for a recipient of the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families, Supplemental Security Income, or means-tested Veterans Affairs benefits.
Per the PUC's directive, the work group should develop a model mechanism with a goal of providing a level of assistance which, along with other available assistance, limits the amount an eligible customer pays for applicable charges to approximately 6% of the customer’s annual income.
PC 59, PC59
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December 23, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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