States Tackle Low Income Energy Assistance
States Tackle Low Income Energy Assistance
THE COMPREHENSIVE REVIEW RECOMMENDATIONS called for states to adopt a funding mechanism to ensure that no low income household spends more than 5% of its income on electric bills. This recommendation called for funding in addition to the 3% of revenues recommended for conservation, renewables and low income weatherization.
Montana's restructuring legislation created one funding pool for all public purposes at 2.4% of electric revenues. Low income energy assistance will receive a minimum of 17% of the total 2.4% of the funding pool.
In Idaho , the Governor's Council on Hydroelectric and River Resources acknowledged that the need for energy assistance funding is significant, and that federal funding has declined by 30% in the past three years. The Council recommends stabilizing funding for low income energy services regardless of any action on utility restructuring and supports the same 5% of income standard as the Comprehensive Review. The Council's report now goes to the Governor and the legislature for action.
The Oregon Governor's Blue Ribbon Panel on Low Income Energy Services calculated the total energy assistance need in Oregon to be approximately $20 million annually and recommended that a Universal Service Fund be established. Proposed legislation then recommended a charge on all electric meters in the state to collect the funds. No further action is expected until January 1999.
A legislative proposal for the 1998 session in Washington state recommends a study of mechanisms to establish a universal electric service fund. The proposed study would evaluate collection and distribution methods for the funds. According to the Department of Community, Trade and Economic Development , the low income energy bill assistance need is approximately $52 million annually.