Kentucky PSC opens proceeding to increase consistency among ratepayer assistance programs

The Kentucky Public Service Commission (PSC) opened a proceeding Monday to examine the financial assistance programs that the state’s investor-owned electric, natural gas and water utilities offer to low-income residential ratepayers in an effort to increase consistency across the programs.

The PSC said in its order that it is concerned that the programs, broadly termed home energy assistance (HEA) programs, are not consistent with respect to funding, eligibility, benefits provided, oversight and administrative costs.

“We initiate this proceeding for the purpose of creating uniformity in HEA programs across the Commonwealth and ensuring effective and accountable HEA programs that are consistently applied, more beneficial to and easily accessed by eligible low-income customers, and result in increased benefits to all ratepayers,” the PSC said in Monday’s order.

The programs are generally funded by a small surcharge on residential bills, along with some level of matching funding from the utility’s shareholders and additional voluntary contributions from ratepayers and others.

Specific issues identified by the PSC included varying levels of funding; inconsistent requirements for eligibility and participation; unequal opportunity to apply for and receive assistance; variability in the amount, duration and allocation of assistance payments; inconsistent oversight and financial accountability; and varying administrative costs charged by third-party program administrators.

All investor-owned utilities that offer financial assistance programs for low-income ratepayers are being made parties to the proceeding. The PSC’s order directs these utilities to provide certain initial information to the Commission within 20 days and establishes a schedule for further proceedings in the case.

The PSC is not examining the Low-Income Home Energy Assistance Program (LIHEAP), as it is a federally funded program administered separately from the utility-sponsored programs. The PSC is also not reviewing utility-sponsored weatherization programs, which have a funding mechanism separate from the financial assistance programs.