SB156 amends the Public Utility Act to create a formal definition of “low-income customer” for electric public utility service. A low-income customer is defined as a residential electric customer whose household income is at or below 80% of the county area median income, as published by HUD. The bill also reorganizes and alphabetizes the definitions section of the Public Utility Act, while preserving the existing definitions for terms such as public utility, rate, renewable energy, and related utility transaction categories.
The bill changes the utility cost-recovery rules for interconnected customers by excluding low-income customers from rate riders for new interconnected customers. Under current law, investor-owned utilities may recover certain ancillary and standby service costs from new interconnected customers; SB156 would prevent those riders from applying to low-income customers. It also adds a new process for qualifying as a low-income customer, allowing proof through self-attestation, residence in low-income or affordable housing, or enrollment in specified public assistance programs such as Medicaid, SNAP, LIHEAP, SSI, Section 8, WIC, and other qualifying state or federal programs approved by the commission. Utilities must notify customers annually beginning December 31, 2025, and may not require requalification more often than every five years.
Impact
SB156 would amend Section 62-3-3 of the Public Utility Act to add a new statutory definition of low-income customer and to reorganize the definitions list. It would also amend Section 62-13-13.2 to carve low-income customers out of the category of “new interconnected customers” subject to utility rate riders for ancillary and standby services. In practical terms, the bill limits a utility’s ability to shift certain interconnection-related costs onto qualifying low-income residential customers and creates a standardized eligibility and notice framework for electric utilities. The bill affects investor-owned electric utilities, rural electric cooperatives to the extent they use customer-class rate structures, and low-income residential customers seeking protection from added utility charges.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate or formal opposition in the provided materials. Based on the bill text, the measure appears consumer-protective and aimed at reducing utility cost burdens for low-income households. The overall framing suggests support for affordability and access to distributed energy participation, while preserving utility cost-recovery authority in general.
Contention
The main policy tension is between protecting low-income customers from additional interconnection-related charges and preserving utility recovery of the costs of serving distributed generation customers. Utilities may be concerned that excluding low-income customers from rate riders could shift costs to other customers or limit recovery of standby and ancillary service expenses. Consumer advocates and low-income housing or energy assistance stakeholders would likely support the exemption and the broader, easier qualification pathways. Another possible point of discussion is the use of self-attestation and program-based proof, which simplifies enrollment but may raise administrative or verification concerns for utilities and regulators.