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) in Rhode Island. This plan aims to create an income-sensitive tiered subsidy program to ensure that home energy utility costs are affordable for eligible low-income households. The Department of Human Services is tasked with determining the manner in which eligible customers will receive credits on their accounts, specifically for those enrolled in a percentage of income payment rate approved by the Public Utilities Commission.

Additionally, the bill introduces a new section, 39-2-1.5, which authorizes the Public Utilities Commission to approve tiered percentage of income payment programs for residential customers of electric and gas distribution companies with more than 100,000 customers. These programs will provide one or more tiers of 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 assistance through LIHEAP or are enrolled in Medicaid. The bill outlines the structure for calculating discounts, ensuring that the average energy expenses remain affordable relative to household income, with specific discount rates based on whether customers use electric or gas as their primary source of heat.

The costs of these discounts, including administrative expenses not funded through other sources, will be collected from other customers of the electric and gas distribution companies in a manner determined to be just and reasonable by the commission. The tiers and percentage discount rates will be set initially no later than December 31, 2025, and will be reviewed no less frequently than during each respective base distribution rate case. The act is set to take effect upon passage.

Statutes affected:
5245: 39-1-27.12