CT Regulators Establish 5-Tier Low-Income Discount Rate for Gas Heating Customers

CONNECTICUT — The Connecticut Public Utilities Regulatory Authority Wednesday issued a Final Decision that establishes a five-tier low-income discount rate — or LIDR — program for residential gas heating customers of the state's three gas distribution companies.

They are The Southern Connecticut Gas Company, Connecticut Natural Gas and Yankee Gas Services Company .

The Decision, in PURA’s Docket No. 26-02-06, PURA Investigation into the Implementation of a Multi-Tiered Low-Income Discount Rate for Natural Gas Companies, provides that eligible customers, meaning those with a household income at or below 60 percent of state median income (SMI), will be placed on a progressive discount rate ranging from 4 percent to 71 percent, with the highest discount going to the lowest-income customers. Discounts will apply to gas usage of up to 105 hundred cubic feet each month.

The program is designed to achieve two primary objectives: energy affordability, defined as households spending no more than 6 percent of annual household income on building energy costs; and a reduction in uncollectible expenses paid by all ratepayers, in part by reducing the need for service disconnections and reconnections.

The gas program's design aligns with the existing five-tier electric LIDR program PURA established in 2024 for customers of Eversource and United Illuminating. To protect all ratepayers, the total cost to fund the gas program is targeted at 2% or less of each Company’s annual revenue. Together, the usage cap and budget limit help balance assistance to income-eligible customers with the costs borne by all ratepayers.

"Every Connecticut family deserves a safe and warm home and relief from the choice between heat and other necessities. Informed by the docket participants and analytical tools, the program design serves the public interest by delivering the deepest discounts to the vulnerable households facing the greatest energy burdens and meeting spending targets that will keep costs in check for all ratepayers," Commissioner Janice Beecher said.

The Companies are expected to begin enrolling qualifying customers by March 2027 and participants will receive written communications from their gas company no later than 30 days after program launch. In the meantime, SCG and CNG are enrolling all eligible customers on a 10 percent discount.

SCG and CNG customers should be aware that the Companies are no longer offering the Below Budget Payment option. Yankee will discontinue its Below Budget Payment option when it implements the LIDR program.

Customers with questions about eligibility or enrollment should contact their gas company’s customer service department, officials said.