ALJ/PVA/sid Mailed 1/10/2002

Decision 02-01-040 January 9, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Proposed Policies and Programs Governing Low-Income Assistance Programs.

Rulemaking 01-08-027 (Filed August 23, 2001)

INTERIM OPINION:

ELIGIBILITY CRITERIA AND RATE DISCOUNT LEVEL

FOR LOW-INCOME ASSISTANCE PROGRAMS

Summary

This decision changes the eligibility criteria for the California Alternative Rates for Energy (CARE) and Low-Income Energy Efficiency (LIEE) programs for customers of the smaller and multi-jurisdictional energy utilities¹ to be consistent with those adopted for the four large energy utilities in Decision (D.) 01-06-010. ² In addition, the CARE discount of 20% adopted in D.01-06-010 for the four large energy utilities is also made applicable to the smaller and multi-jurisdictional energy utilities.

In D.01-06-010, the Commission set income eligibility levels for the CARE and LIEE programs at 175% of the federal poverty guidelines, and increased the rate discount for CARE customers from 15% to 20%. For procedural reasons, those same changes were not made applicable to the smaller and multi-jurisdictional energy utilities. In that decision, we found that it was reasonable for CARE and LIEE eligibility criteria to be consistent between utilities, and that raising the CARE discount to 20% struck a reasonable balance of burdens to be borne by CARE and non-CARE ratepayers.

Today we make the same findings for those energy utilities we did not address in D.01-06-010, bringing into alignment the eligibility criteria and discount levels of all energy utilities under our jurisdiction. Eliminating inconsistencies between utilities, and between the CARE and LIEE programs' eligibility levels, will improve customer understanding and reduce perceptions of inequity. Furthermore, our action has the effect of increasing the number of customers eligible for the CARE and LIEE programs, and increasing the amount of the available CARE discount. While these changes do have their costs to non-participating ratepayers, the benefits to participating ratepayers outweigh those costs. Most significantly, more low-income customers will find it a little easier to pay their energy utility bills as a result of today's decision. D.01-06-010 also retained the pre-existing rule that households headed by a senior or a person with a disability are eligible for the LIEE program with incomes up to 200% of the federal poverty guidelines. We retain this provision for the smaller and multi-jurisdictional energy utilities.