Texas Sets Low-Income Discount Provided Through Retail Providers

The Public Utility Commission of Texas has adopted a Staff recommendation for the level of the discount provided under the low-income discount program.

The Commission set the discount percentage at 31%.

Staff will use the 31% low-income discount and apply it to the POLR rate for each service territory to calculate the discount factors pursuant to §24.454(e), and post the discount factors on the Public Utility Commission (PUC) website prior to July 31, 2015.

As the current POLR rates are approximately $0.157/kWh, a 31% discount factor will result in a discount of about $0.049/kWh.

Staff expects that the average customer will experience about a $52 reduction on the monthly bill under the program.

Retail electric providers will be required to begin providing discounts on customers' bills starting on September 1, 2015 through August 31, 2016

Consistent with PURA, the PUCT also maintained the current nonbypassable System Benefit fund fee of $0.00 per megawatt-hour (MWh)