Order 25579 - Dept. of Human Services: Proposed LIHEAP Enhancement Plan

This matter is before the Public Utilities Commission (Commission) upon the Department of Human Services’ (DHS) October 1, 2025, filing of Low-Income Home Energy Assistance Program (LIHEAP) Enhancement Charge for calendar year (CY) 2026 pursuant to R.I. Gen. Laws § 39-1-27.12.  In this filing, DHS requested that the Commission set the 2026 LIHEAP Enhancement Charge at $0.81 per month for each electric or gas customer.[1]  Alternatively, DHS requested that the charge be set at an equivalent amount per month that does not exceed an annual collection of $7.5 million for calendar year 2026.[2]

By way of brief background, the LIHEAP Enhancement Charge was enacted by the Rhode Island General Assembly after the federal government reduced available funds through the federal LIHEAP program.[3]  It was created to supplement federal LIHEAP funding that is received by Rhode Island electric and gas distribution customers.[4]  Pursuant to the Enhancement Charge statute, Rhode Island electric and natural gas distribution companies conduct an annual collection through a monthly charge of customers, excluding Clear River Electric and Water District (CREW)—formerly known as Pascoag Utility District—and Block Island Utility District customers.[5]  The statute mandates a minimum annual collection from electric and gas customers of $6.5 million and a maximum annual collection of $7.5 million.  In addition, there is a statutory cap that can be collected from each electric or gas customer of $10.00 per year.[6] 

As of August 31, 2024, the Narragansett Electric Company d/b/a Rhode Island Energy (Company) reported that the LIHEAP Enhancement Fund had an over-recovery balance of $1,908,046.[7]  The Company projected revenue collection of $7,572,738 through December 2025.[8]  Moreover, in response to the Commission’s data requests, the Company projected that, if DHS’s proposal was approved for calendar year 2026, it would generate approximately $7.7 million.  This projection included $5.04 million of revenue from electric customers and $2.73 million in revenue from gas customers.[9]  Further, the Company estimated that a factor of $0.78 in calendar year 2026 would generate as close as possible, but not greater than, $7.5 million.[10]  Specifically, the Company projected that a factor of $0.78 in calendar year 2026 would yield a revenue amount of $7,477, 564.[11]

The Division of Public Utilities and Carriers (Division) reviewed DHS’s proposal and recommended approval of a LIHEAP Enhancement Charge of $0.78 per month, effective January 1, 2026.[12]  As supported by the Company’s response to the Commission’s data request 1-3, a monthly charge of $0.81 would be a slight over-collection above the $7.5 million cap as set by the LIHEAP Enhancement Charge statute.  The Division also took notice that a monthly charge of $0.78 would generate approximately $7.48 million.[13]  Moreover, in response to the Division’s data requests, DHS indicated that the LIHEAP Enhancement Grant amounts for the upcoming federal fiscal year heating season were set at $350 per recipient; total expenditures are estimated to be $7.4 million.[14]  As such, the Division determined that “there is a continuing need to fund the LIHEAP Enhancement Program close to the maximum level permitted by statute.”[15]

Decision

            After a review of the filings and the Division’s memorandum, the Commission approves a monthly charge of $0.78 per month for each customer for calendar year 2026.  The Commission finds the Division’s recommendation to set the monthly charge that generates as close as possible to the $7.5 million statutory maximum without exceeding it to be supported by the evidence. 

            Accordingly, it is hereby:

1.      The LIHEAP Enhancement Charge of $0.78 per month for each electric and gas distribution customer for the calendar year 2026 is hereby approved, effective January 1, 2026.

EFFECTIVE AT WARWICK, RHODE ISLAND ON DECEMBER 1, 2025, PURSUANT TO OPEN MEETING DECISIONS ON DECEMBER 1, 2025, WRITTEN ORDER ISSUED JANUARY 8, 2025.