Dive Brief:
- A Texas program which helped low-income customers pay their power bills has run out of money and will cease to operate, according to The Star-Telegram.
- Three years ago, the state's legislature rescinded a surcharge, which funded the Lite-Up Texas program. With $350 million leftover from the 2015 legislature, Gov. Greg Abbott (R) signed a bill extending the life of the program until funds are depleted.
- According to the newspaper, Lite-Up Texas helped some 700,000 customer reduce their bills by 25% to 31% last year.
Dive Insight:
When Texas deregulated electricity markets in 1999, lawmakers approved a per-MWh surcharge of about 65 cents to aid low-income customers. Three years ago, the state's legislature rescinded the charge, which funded the Lite-Up Texas program.
Now, low-income advocates say the fund's depletion will likely catch some residents unaware. While the fund could have continued to disperse funds through next summer, the Public Utilities Commission of Texas opted for larger payments to use up the fund this year.
An announcement on the Public Utility Commission of Texas' website tells customers "if you are a current participant in the LITE-UP TEXAS program, the discounts you have been receiving in 2016 on your electric bill will end with your August 2016 electric bill."
According to the LIHEAP Clearing House, a 2015 law ending the program ensured almost $330 million remaining in the fund would be distributed to low-income customers. While the original law qualified low-income families for assistance with up to 15% of their electricity bills during the summer months, the law signed last year raised that amount to up to 40% as the funds were depleted.