Jacob Moore / jacob@chronline.com
State legislation could mean changes for a Lewis County Public Utility District (PUD) program that provides major discounts to low-income seniors in the area.
However, for the time being, the program is unchanged, and those who qualify will continue to benefit from the financial assistance.
Lewis County PUD commissioners on Tuesday, Sept. 2, approved directly funding its low-income senior support program with an additional $300,000 while PUD staff looks at ways to make the program comply with state law.
While the county is looking to continue the low-income senior reduction program after the two-year pilot period comes to an end, General Manager David Plotz informed the commissioners that under state law the utility will need to adapt the current program or create a new one to comply with state law under the Clean Energy Transformation Act (CETA), which requires reductions for low-income rate payers.
“My suspicion at this point is they will make us take out the senior aspect and just say all low income,” Plotz said. “But let's find out, because I have talked with a few utilities, and they’ve kept the senior aspect, but it's one of a few different applications to meet the CETA requirements.”
According to PUD staff, a program that complies with the state needs to be implemented by 2028. In addition to adjusting parameters for who qualifies for the low-income support, the utility might be looking at how to sustainably fund the program moving forward, as support for low-income customers until now has been funded by grant funds from TransAlta. Those funds have now run out.
Before approving the money, PUD Commissioner Dave Muller asked if the $300,000 would support the program long enough for PUD staff to identify the changes needed to make the program qualify with state requirements. Plotz said he hoped the utility would have an answer on the necessary changes in about a month.
Plotz added that the utility has put $600,000 into the program since it started in June 2023, with roughly $89,000 left to continue the program. That money is expected to run out by the end of October.
While passing the resolution for the additional funding unanimously, the commissioners cited the need to comply with state law. However, they also aired frustration over the prospect of trying to implement support for low-income ratepayers without any funding assistance from the state.
During the meeting, Plotz gave some examples of public utility districts that have already implemented programs that seemingly comply with state requirements. He added that, to his knowledge, those programs are able to reduce rates for low-income ratepayers by adding a charge to ratepayers who don’t qualify for low-income support.
“So a few utilities have essentially put a line item under bills saying if you qualify you get this positive credit to your bill, whatever dollar amount,” Plotz said. “But that has to come from somewhere, so those who don't qualify have this charge. So they're essentially reallocating funds from those who don't qualify to those who are low income and qualify.”
The current low-income senior discount pilot program was first created by the Lewis County PUD in May 2023 and went into effect June 15 of that year. The program was meant to be a two-year pilot program with the utility able to pull the plug at any time if the program did not go as planned.
As part of the program, the utility partners with the Community Action Council of Lewis, Mason and Thurston Counties, which handles the applications and paperwork for residents while the utility simply covers the bill.
Under the program, ratepayers are still on the hook for a number of fees, but the program covers between 50% and 100% of the cost of daily utility services. The criteria for those who qualify for the program based on income is based on federally established poverty guidelines. Seniors with a household income at or below 225% of the poverty guidelines qualify for a 50% reduction in the daily rate costs while those with a household income at or below 150% of the poverty guidelines qualify for a 100% reduction.
According to previous reporting from The Chronicle, the utility expected at the outset of the program to save low-income seniors who qualify for the 50% reduction about $15 a month and those qualifying for 100% reduction about $29 a month.
According to statistics offered by Lewis County PUD staff, the program so far has paid 100% of the daily service charge for 622 customers who qualify for the program and 50% of the daily service charge for another 169 customers.
Staff added that there might be some overlap in the numbers as many who are already signed up for the program have signed up to renew the support beyond the two-year plot program.
During the meeting, commissioners asked if the program seemed to be growing and would cost more to fund in the future; however, PUD staff said the program seems to be stable where it is, adding they have an occasional new customer apply for the program, but expect that the majority of residents who qualify for the program and care to sign up have already done so.
