Customer Assistance Programs / Universal Service Charge

Issue:

The Public Utility Commission staff has filed a report in Docket M-2017-2596907 regarding a review of the Universal Service and Energy Conservation Programs.  Click here for a copy of the report.  There are many parties, as well as PUC Vice Chairman Place who support a reallocation and collection of these program cost from all customer classes and not just residential as it is currently structured.  The total program cost are in the order of $400 million.  Therefore this could result in a significant cost increase to industrial and large energy users. 

IECPA Position:

IECPA supports utility rates based on cost of service - meaning the cost to serve each customer class should be collected from that customer class. Therefore these residential customer assistance program costs should continue to be recovered within the residential class. IECPA will be participating in these work group meetings and looking to protect industrial/large energy users from these increase cost.

Details:

At the end of March 2018, the Commission issued a Secretarial Letter announcing the formation of a statewide Universal Service Workgroup in order to further discuss and provide ongoing recommendations relating to the future framework and structure of Universal Service and Energy Conservation Programs.