Texas PUC To Await Legislative Guidance on Question of Determining Customer Eligibility for Ancillary Low-Income Benefits (Late Payment Fee Waivers, Deposit Installments) In Light of SBF Expiration

Commissioners of the Public Utility Commission of Texas at yesterday's open meeting agreed to await any potential legislative action on the question of determining low-income customer eligibility for certain retail electricity customer protections (late payment fee waivers and deposit installments) in light of the existing criteria, eligibility for the System Benefit Fund rate reduction program, being rendered inapplicable with the expiration of the SBF

HB 1101 sunsets the SBF on September 1, 2017. By this date, the Commission is required to exhaust the balance of the SBF, and the Commission's relationship with the Health and Human Services Commission (HHSC) for the purposes of identifying eligible low-income electric customers will cease. Currently, a customer's eligibility for the late payment fee waivers and deposit installments is based on their eligibility for the SBF, but without the HHSC-facilitated identification process, the Commission will no longer be able to apply its current method of automatically identifying low-income electric customers.

Commissioners noted that various options presented by Staff -- use of the telecomm Lifeline list for eligibility, self-enrollment, or termination of the benefits -- are problematic or have various shortcomings

In light of such conclusions, Commissioners agreed not to take immediate rulemaking action, and allow the legislature to provide guidance in 2017. Commissioners said that they would raise the issue in the scope of competition report prior to the next legislative session

If it becomes apparent that the legislature will not address the issue, Commissioners will open a rulemaking to address eligibility at that time.

Project 45189