An Illinois Commerce Commission Staff Report is recommending that low-income residents in Illinois receive discount rates for electric and natural gas.
The recommendation comes from a study conducted as part of the Climate and Equitable Jobs Act. The commission further requested that large electric and gas utilities file low-income discount rates in their next rate design case. The ICC wants to see tiered discounts for different income levels which will only be applicable to the delivery service charges. While not required, smaller utilities are being encouraged to participate.
ICC Commissioner Michael Carrigan notes the average percentage of gross household income spent on energy costs is nearly three times higher for low-income households than for non-low-income households and the discount rates could ease the disproportionate energy burden on low-income families.
ICC Chair Carrie Zalewski added that utility affordability is always top-of-mind at the commission as they consider decisions impacting consumers. She says as they move through the Climate and Equitable Jobs Act implementation process and the transition to a greener, cleaner grid, discount rates will help them ensure no one is left behind.
