Low-Income Discount Re-Instated in Texas

Low-income households in Texas will get a discount on their electricity bills starting next month.

The Texas Public Utility Commission (PUC) on June 22 authorized a summer discount of at least 12 percent for low-income residents in Houston, Dallas and parts of South and West Texas who are participating in retail electric competition. The discount reduces electric bills by $25 to $30 a month from July through October.

The PUC acted after the Texas legislature appropriated $30 million for this summer and $170 million for the discount over the next two years.  The money comes from a System Benefit Charge  (SBC) on electric bills that was approved in 1999 as part of electric restructuring.  From 2002 through August of 2005, the SBC funded the discount; however, the discount ended that August when the legislature shifted SBC funds to the general fund in order to balance the state budget.  At its peak during 2002 and most of  2003, discount spending averaged around $160 million and served as many as 800,000 households annually.

The PUC said customers who received the discounts prior to 2005 will be automatically re-enrolled in the discount, meaning about 316,000 will initially qualify.  Otherwise, households must be at or below 125 percent of federal poverty guidelines or receive certain means-tested  food, income or health benefits.

Source: Texas newspapers, PUC

Page Last Updated: June 25, 2007