PURA CT: Establishes 5-Tier Gas Heating LIDR for Low-Income Customers

• PURA established a five-tier low-income discount rate (LIDR) program for residential gas heating customers on November 4, 2026.
• The program applies to customers of Southern Connecticut Gas Company, Connecticut Natural Gas, and Yankee Gas Services Company.
• Eligible households with income at or below 60% of state median income will receive discounts ranging from 4% to 71% on gas usage up to 105 CCF monthly.
• The program aims for energy affordability and reduced uncollectible expenses, with costs capped at 2% or less of each company's annual revenue.
• Companies are expected to begin enrolling qualifying customers by March 2027, and the 'Below Budget Payment' option will be discontinued.

The PURA CT gas heating LIDR represents a significant step in Connecticut's ongoing efforts to ensure equitable access to essential utility services.

The Connecticut Public Utilities Regulatory Authority (PURA) has issued a Final Decision establishing a comprehensive five-tier low-income discount rate (LIDR) program for residential gas heating customers across the state. This significant regulatory update, formalized on November 4, 2026, impacts the operations of Southern Connecticut Gas Company (SCG), Connecticut Natural Gas (CNG), and Yankee Gas Services Company (Yankee). The decision, stemming from PURA's Docket No. 26-02-06, titled "PURA Investigation into the Implementation of a Multi-Tiered Low-Income Discount Rate for Natural Gas Companies," aims to enhance energy affordability for vulnerable households.

This new PURA CT gas heating LIDR framework is designed to provide substantial relief to eligible customers by structuring discounts based on income levels. It represents a critical step in addressing energy burdens for those who need it most, while also considering the broader financial implications for all ratepayers. The Authority's directive mandates a progressive discount structure, ensuring that the lowest-income households receive the most significant support.

Under the newly established program, residential gas heating customers qualify for assistance if their household income is at or below 60% of the state median income (SMI). Eligible participants will benefit from a progressive discount rate that spans from 4% to an impressive 71%, with the deepest reductions reserved for those with the lowest incomes. These discounts are specifically applied to gas usage, capped at 105 hundred cubic feet (CCF) per month, ensuring targeted relief for essential heating needs.

The PURA CT gas heating LIDR program is built upon two core objectives: fostering energy affordability and reducing uncollectible expenses. Energy affordability is defined as households allocating no more than 6% of their annual income to building energy costs. By mitigating the financial strain on low-income households, the program also seeks to decrease the necessity for service disconnections and subsequent reconnections, thereby lowering costs that would otherwise be absorbed by all ratepayers. To safeguard the interests of all customers, the total funding for this gas program is capped at 2% or less of each participating company's annual revenue, a measure designed to balance assistance with overall ratepayer burden.

Gas distribution companies, including Southern Connecticut Gas Company, Connecticut Natural Gas, and Yankee Gas Services Company, are expected to commence enrolling qualifying customers into the PURA CT gas heating LIDR program by March 2027. Following the program's launch, enrolled participants are slated to receive written communications from their respective gas providers within 30 days, detailing their specific discount information. In the interim period, SCG and CNG are already providing a 10% discount to eligible customers, serving as a transitional measure.

A significant operational change accompanying this new program is the discontinuation of previous payment options. Southern Connecticut Gas Company and Connecticut Natural Gas have already ceased offering the 'Below Budget Payment' option. Yankee Gas Services Company will also discontinue its 'Below Budget Payment' option concurrently with the implementation of the new LIDR program. These changes necessitate careful management by the gas distribution companies to ensure a smooth transition for customers and compliance with the regulatory mandate. Customers with inquiries regarding their eligibility or the enrollment process are advised to contact their gas company's customer service department directly.

The design of this new low-income discount rate gas program for heating customers mirrors an existing five-tier electric LIDR program that PURA introduced in 2024 for customers of Eversource and United Illuminating. This alignment underscores a consistent regulatory approach by the Connecticut Public Utilities Regulatory Authority to address energy affordability across different utility sectors. The Authority emphasizes that the combination of the usage cap and the budget limit for program funding is crucial for striking a balance between providing essential assistance to income-eligible customers and managing the financial impact on all ratepayers.

Commissioner Janice Beecher highlighted the public interest served by the program, stating that it delivers the deepest discounts to vulnerable households facing the greatest energy burdens while adhering to spending targets that control costs for all ratepayers. This strategic approach ensures that while critical support is extended to those in need, the overall financial stability and fairness for the broader customer base are maintained. The PURA CT gas heating LIDR represents a significant step in Connecticut's ongoing efforts to ensure equitable access to essential utility services.

Lawyers advising gas distribution companies in Connecticut must ensure their clients comply with the new five-tier low-income discount rate program, including accurate customer enrollment, billing adjustments, and the discontinuation of previous payment options like the 'Below Budget Payment'. Compliance officers should update internal protocols and customer communication strategies to reflect these regulatory changes and manage potential customer inquiries or disputes related to eligibility and discount application.

Source: Original reporting via CT.gov Public Utilities Regulatory Authority.