The bill amends Section 39-1-27.12 of the General Laws to establish the Low Income Home Energy Assistance Program Enhancement Plan (LIHEAP Enhancement Plan), which aims to supplement federal LIHEAP funding for customers of Rhode Island's electric and gas distribution companies. The Department of Human Services is tasked with developing a recommended monthly "LIHEAP enhancement charge" rate, which cannot exceed $10 per year for both electric and natural gas customers. The total projected annual revenue from these charges is capped between $6.5 million and $7.5 million, with at least 5% allocated to assist customers seeking LIHEAP certification for arrearage plans. The bill also modifies the way funds are credited to qualifying customer accounts, replacing the previous requirement for federal LIHEAP assistance payments with a new requirement for customers enrolled in a percentage of income payment rate approved by the commission.

Additionally, the bill introduces Section 39-2-1.5, which allows the Public Utilities Commission to approve tiered percentage of income payment programs for residential customers of larger electric and gas distribution companies. These programs will provide discounts based on income levels for customers whose household income is at or below 150% of the federal poverty level and who are eligible for LIHEAP or Medicaid. The bill outlines the structure for these discounts, including fixed per bill discounts designed to keep energy expenses within a certain percentage of income, and mandates that the costs of these discounts, along with administrative expenses, be collected from other customers. The tiered discount rates must be established by December 31, 2025, and will be reviewed regularly thereafter.

Statutes affected:
5245: 39-1-27.12