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The Maine Public Utilities Commission issues  a Notice Of Inquiry to obtain information from interested parties related to possible changes to its electric low-income assistance program. 

{***} The Commission opens this inquiry to explore ways to simplify and improve the program for electric utilities, participants and the Commission. The Commission notes that auto-enrollment of Department of Health and Human Services (DHHS) eligible customers next year is expected to increase program participation, perhaps significantly, which will likely decrease individual customer benefits. The current program is complicated. In addition, various changes have been made to the program in recent years, including adding alternative funding sources, and the Commission is concerned that the current program design makes it administratively cumbersome for the Commission, as well as utilities, to effectively address and incorporate these changes.  

Further, under the current program design, some customers are receiving a larger benefit than they actually need. In addition, the Electricity Ratepayer Advisory Council (ERAC)4 has recommended that the Commission explore monthly benefits, as opposed to the lump sum benefit process currently used.5 The Commission looks forward to working with stakeholders and utilities to explore alternative program designs.  {***}

The Commission initially requests comment on the following questions by close of business Tuesday, January 7, 2024. 

1. Based on feedback received from stakeholders and ERAC, the Commission is considering moving to a discount rate program (i.e., eligible customers would no longer receive a credit, they would instead receive a discounted rate) which would eliminate the lump sum benefit process and replace it with a reduced rate which functionally operates as a monthly benefit. This program design ensures that participants do not receive a credit for more than they need and eliminates the problems associated with a participant carrying a credit balance on their account. This program design, once established, is fairly easy to administer and could have tiered discounted rates where the lowest income customers would have the lowest rate. For example: the lowest income program participants (0-75% of the Federal Poverty Level (FPL) would get the lowest rate and program participants over 125% of the FPL would get the highest rate (which would still be less than the normal rate). 

1. Would the investor-owned utilities (IOUs) have any problems implementing this type of program? If so, please thoroughly explain the challenges presented by this type of program and suggest possible solutions. The Commission notes that Bangor-Hydro Electric had a discount rate program in the past. 
2. Would the consumer-owned utilities (COUs) be able to administer this type of program? If not, please explain why.
3. If the COUs do not have the expertise to operate such a program, should they be allowed to continue operating their current programs? Please explain.  
4. How should the electric utility determine what the rate(s) should be? What would the best method be to determine the rate so as not to significantly overspend or underspend the program?
5. How should the Commission handle situations of overspending by IOUs and COUs? 

1. Are there other program designs that stakeholders and the utilities think the Commission should explore? If yes, please thoroughly explain the various designs and explain whether these designs should apply to IOUs, COUs, or both. 
2. Should the Commission retain its current structure for establishing the amount each electric utility will pay into the fund (assessment) and how much each utility must provide in benefits from the fund (apportionment)? If commenters recommend a different approach to funding, please explain if the alternative approach is consistent with requirements of Title 35-A, Section 3214 and if not, explain what statutory changes would be necessary to adopt the alternative approach. {***}

Notice Of Inquiry  (12/09/2024)
2024-00363 (12/09/2024)
Commission Initiated Inquiry Regarding Electric Low-Income Assistance Program