District of Columbia Utility Restructuring Legislation
Legislation Cite and Date
Order No. 11876
Clean and Affordable Energy Act of 2008
Low-Income Provisions
"...establish a universal service program to assist low-income customers in the District of Columbia with their respective energy bills as well as programs to promote energy efficiency, and the use of electricity from renewable energy sources."
On October 22, 2008, the “Clean and Affordable Energy Act of 2008” (CAEA) became effective. This law establishes a Sustainable Energy Trust Fund (SETF) that replaces the previously-mandated Reliable Energy Trust Fund. The SETF pays for existing energy efficiency programs administered by the District Department of the Environment (DDOE).
The 2008 CAEA establishes another nonlapsing fund, the Energy Assistance Trust Fund (EATF) that will ensure the continuation of funding for rate assistance programs that were funded by the RETF and Natural Gas Trust Fund.
Low-Income Rate Assistance
The EATF helps support the Residential Aid Discount (RAD), which includes discounts on electricity, gas, telephone and water bills and funds an expansion of LIHEAP, arrearage forgiveness in conjunction with RAD and the existing Residential Essential Service, a discount rate for qualified Washington Gas customers that was established in 1986.
Low-Income Conservation
The SETF funds Weatherization Plus, the Low-Income Appliance Program, the Weatherization/ Rehabilitation program and a program that replaces or repairs natural gas heating systems .
Annual Funding (2009)
Rate Assistance: $6.3 million
Conservation: $6.5 million
Funding Mechanism
SETF: non-bypassable monthly surcharge assessed on Pepco and Washington Gas ratepayers (except those participating in RAD and RES programs,) estimated to be $18.50 in 2009; increasing to $21.20 in 2010 and $24.50 in 2011; then remaining at $24.50 beginning in 2012.
EATF: non-bypassable assessment on natural gas and electric sales amounting to $.006 per therm and .0004 per-kilowatt—applied to the sale of every kilowatt hour and therm in the District except sales to residents participating in the RAD and RES programs.
Administration
District Department of the Environment, the LIHEAP grantee and WAP grantee
Pre-Restructuring Funding
Rate Assistance: $1.4 million
Conservation: None
Page Last Updated: September 24, 2009
