Public Utilities Commission
The implementation of this bill would impact existing state laws by mandating the Public Utilities Commission (PUC) to establish and approve these enhancement charges. The collaboration between the PUC and the Department of Human Services (DHS) in creating a pilot outreach program aims to expand the reach of LIHEAP, encouraging eligible residents who are not yet enrolled in the program to participate. The report on the effectiveness of this program is due by December 1, 2023, which would provide lawmakers with data on its success and possible recommendations for future funding or program enhancements.
House Bill 5346 proposes the establishment of a Low Income Home Energy Assistance Program (LIHEAP) Enhancement Plan aimed at increasing energy assistance for low-income residents in Rhode Island. This initiative is designed to supplement federal LIHEAP funding, providing additional support through a newly created monthly 'LIHEAP enhancement charge'. The charge is limited to a maximum of $10 per year for both electric and natural gas distribution customers, with an estimated annual revenue target of $6.5 million to $7.5 million. Notably, a portion of the collected funds is reserved for assisting homeless families or individuals seeking energy assistance certification.
While the bill is intended to enhance support for low-income energy program participants, it may face scrutiny regarding the administrative overhead associated with the new charges and their potential effectiveness in expanding enrollment. Critics may argue that the charge, even at a modest amount, could pose an additional burden on already struggling households. Furthermore, there could be discussions on whether the approach of supplementing LIHEAP is the best means to achieve broader energy equity and assistance in the state.