The bill proposes an amendment to Chapter 39-2 of the General Laws by adding a new section that establishes a Tiered Percentage of Income Payment Program for electric and gas distribution companies with over 100,000 customers. This program requires these companies to file a proposed income-based payment plan with the public utilities commission by January 2, 2025, for residential customers with household incomes at or below 150% of the federal poverty level. The commission has the authority to approve or amend the plan, which should ensure that eligible customers do not pay more than a fixed percentage of their income for utility costs, with discounts designed to limit annual electric expenses to 3% (or 6% for those using electric heating) and natural gas expenses to 3% for those using gas heating. The plan also includes a fixed monthly payment and forgiveness of pre-participation arrearages over a 24-month period.

The costs of the discount, including administrative expenses not covered by other sources, will be collected from all other customers through rates deemed just and reasonable by the commission. The commission is tasked with balancing the level of discounts against the administrative costs of implementing the plan and must make a decision on the proposed plan by January 15, 2026. The approved plan will be included in the next general rate filing for the electric and gas companies. Eligible customers will be enrolled in the appropriate tier upon income verification or through another efficient and cost-effective method determined by the commission. Additionally, customers enrolled in the tiered discount rate will be offered energy efficiency programs. The act will take effect upon passage.