Connecticut ratepayers will be covering roughly $137 million in automatic discounts given to low-income residents under a data-sharing agreement between the Department of Social Services (DSS) and the utility companies, part of a program initiated by the Public Utilities Regulatory Authority (PURA) that cost far more than estimated and forced the regulator to scale back the program until a more permanent solution can be found.
The costs of the Low-Income Discount Rate program (LIDR), combined with other public benefits requirements like the Millstone nuclear deal and the Innovative Energy Solutions program, means that, despite assurances by lawmakers, the public benefits charges to ratepayers’ bills won’t be going down much, if at all.
Following a massive spike in the public benefits charges in 2024, amounting to roughly $48 for the average residential customer, Eversource customers can expect a small decrease of a couple dollars; UI customers will actually see an increase of a few cents.
The LIDR program was launched in 2024 and requires Eversource and UI to use DSS data to automatically enroll qualifying customers into a program that gives them a 10 percent discount if household income is 60 percent or less (Tier 1) of the state’s median income, can demonstrate financial hardship, are in the Connecticut Energy Assistance Program, or have at least one person in the household covered under Husky Medicaid A.
A 50 percent discount (Tier 2) is applied if their total household income is 160 percent or less of the federal poverty guidelines, or if at least one person in the household is enrolled in the Supplemental Security Income Program, Supplemental Nutrition Assistance Program, Temporary Family Assistance Program, or Husky Medicaid A or D, according to PURA’s decision.
PURA ordered the LIDR be mandated as “opt-out,” meaning everyone in DSS’s data who qualifies is automatically enrolled in the program. The discounts are covered by Connecticut ratepayers through charges on the public benefits portion of their bill.
The stated goal of the program was to reduce hardship uncollectible rates, but the results of the data sharing agreement blew past PURA’s expectations, with 100,000 new customers enrolled into the LIDR program for Eversource, and 95,000 of them qualifying for the 50 percent discount, according to docket information.
That pushed costs for the program to an estimated $170 million for Eversource, orders of magnitude higher than the $32 million estimated in PURA’s original final decision. Similarly, the data sharing increased UI’s number of LIDR customers by 30,000. However, most UI’s new customers were enrolled in Tier 1, qualifying only for the 10 percent discount.
“The Authority was previously made aware that the 2024 LIDR costs would likely be higher than originally anticipated from the Authority’s October 19, 2022, decision,” PURA Executive Secretary Jeffrey Gaudiosi wrote in March 21, 2025, letters to UI and Eversource. “In February 2024, Eversource notified the Authority and Parties and Intervenors that due to the beginning of data sharing with the Department of Social Services (DSS), approximately 100,000 additional customers were eligible for the LIDR, of which about 95,000 were eligible for the Tier 2 50% discount.”
The $170 million in Eversource costs, however, proved too much for the regulator to impose on ratepayers, and PURA modified its original decision so that anyone automatically enrolled into LIDR through the data sharing agreement would only be placed in the 10 percent discount tier, regardless of their eligibility for the 50 percent discount. Customers would only be moved to the higher discount if they contacted their utility and opted in, according to PURA’s motion ruling on April 8, 2024.
“The Authority endeavored to provide affordable electric bills to residential customers while balancing the overall cost to all ratepayers. Indeed, one of the established LIDR objectives is to reduce uncollectable expenses for all ratepayers,” PURA wrote. “…the Authority hereby directs the EDCs to enroll all customers identified as eligible for a LIDR through DSS opt-out data sharing onto Tier 1 of the LIDR until such time as may be otherwise directed by PURA. Notwithstanding this direction, however, such customers shall remain able to contact the Companies directly to verify their eligibility to enroll in Tier 2.”
The change meant far fewer people enrolled in the Tier 2 50 percent discount and shaving roughly $70 million off the public benefits costs, but that still meant $101.25 million for Eversource customers and $37 million for UI customers, which would ultimately affect their electric bills.
In a February 18, 2025, press release, UI announced their rates would increase slightly because of the public benefits charge; “The increase belies claims from some state legislators that the 2024 increase will end by May 2025.”
“The increase in the Public Benefits Charge is primarily driven by an $18.1 million increase in the System Benefit Charge (SBC), which pays for energy assistance costs, energy efficiency programs, and other state-mandated programs,” the UI press release stated. “The most significant driver of the SBC increase is arrearage forgiveness programs, including uncollectible billing, bill forgiveness, and the Low-Income Discount Rate, which had its first full year of implementation in 2024.”
The unexpectedly high cost of the program has sent PURA back to the drawing board, now requiring the utility companies to implement a five-tiered structure to grant discounts ranging from 5 percent to 50 percent, depending on eligibility, under a March 19, 2025, decision. Eversource already has a five-tiered discount program in Massachusetts; UI will have to create a new tool from scratch and will not be able to implement the new tiered system until July of 2026.
“Based on its reconsideration of record evidence in this proceeding, the Authority concludes that the Companies shall transition all LIDR customers to the customer’s correct LIDR tier when the Companies implement the five-tiered LIDR, rather than maintaining the customer’s tier discount level for the remainder of the customer’s initial 12-month enrollment period,” the PURA commissioners wrote.
But the change, when implemented, means some customers currently receiving a 10 percent discount may be moved into a tier with a higher or lower discount; while those who currently qualify for a 50 percent discount may receive a smaller discount. PURA believes this will “reduce LIDR costs, which are paid by all customers.”
According to the latest decision modification, Eversource estimates that of the 91,000 residents currently qualified to receive a 50 percent discount, only 14,000 would qualify under the five-tiered system. UI currently has 30,492 residents in the 50 percent discount tier; that will drop to only 1,597 under the five-tier program.
PURA states they implemented this program under the Take Back our Grid Act, passed under emergency certification during special session by the General Assembly in 2020. The act authorized PURA to implement low-income rates that “better aligns public policy with electric utility performance and cost, providing needed relief to our poorest citizens,” according to PURA’s decision.
“It’s important for our customers to know that, as a distribution-only company, we do not control or profit from the Public Benefits Charge, which funds sustainability and hardship programs that have been passed by state policymakers,” said President and CEO of UI Frank Reynolds in the February press release. “We are required by state law to implement the programs contained in the Public Benefits Charge. If customers have questions about these charges, we encourage them to contact their elected officials.”
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“estimated $170 million for Eversource, orders of magnitude higher than the $32 million estimated”
No, it’s not. 170 isn’t even AN order of magnitude, much less orderS. Leave the big words to people who own a dictionary, you sensationalist dipshit.
He was obviously using a bit of hyperbole to illustrate the fact that the actual amount is substantially more (5x) than originally claimed. Calm down. The point is that we are getting fleeced even worse than we thought.
Do I understand this correctly, “The Authority endeavored to provide affordable electric bills to residential customers while balancing the overall cost to all ratepayers. Indeed, one of the established LIDR objectives is to reduce uncollectable expenses for all ratepayers,” So, one of the objectives is “to reduce uncollectable expenses for all rate payers which means they are saving money in one cost category by shifting the cost to another category. How does that save any money?
Just another ploy of the ruling class virtue signaling to the people in order gain perpetual voters. Providing a benefit or getting something at a discount for little to no work while more and more of the burden to fund these “noble” endeavors fall on an ever smaller populace to fund. Eventually this and all the public benefits (Husky Plan, etc.) will collapse under their own weight as more and more decide not to work and instead live off the government.
Eversource charges as much and sometimes more for delivery than for the product, I have proof.
This extortion. We have no say what they do to us. I would say that 90 percent of seniors cannot afford their electric bill so they have to give up buying less food. It is not fair to us we pick up their costs of low income. NO ONE ever paid my electric bill when I had 2 small children and my husband was out of work!!! They should not offer this program if the electric company expects us to subsidize the charges. This is their cost of business!!! If I owned a restaurant and I put a diner with a discount for a meal. I have to endure the loss. I’m sick of this. $50. Pays for 4 home cooked meals for my husband and I. This is a real difficulty for many of us and we are really fed up
Kathleen, The power companies didn’t choose to give discounts. This is a State-mandated program initiated by PURA. PURA is headed up by Marissa Gillette, who has not produced any positive results over her 5 year term. She’s been overstepping her boundaries of authority in making decisions causing additional expense to CT Residents and yet, the legislators want to reappoint her to that position. (If you keep doing what you’re doing, you keep getting what you’re getting!) These “discounts” shouldn’t be hidden in our electric bills; they should be a line item in the State budget where all of the taxpayers can see them. Not happy with what’s happening with your electric rates? Then you won’t be happy when you check your vehicle registration and your homeowner’s insurance at renewal time. There are so many hidden taxes, it’s pathetic! Call your State legislators. Tell them you want transparency and accountability! It’s time for a change.