State low-income assistance fee

Since Oct. 2, 2000, customer bills have included a separate line item called state low-income assistance fee. The fee is a fixed charge assessed only to your electric bill and is capped at a certain rate, depending on customer class.

Reason for the charge

Wisconsin Act 9 transferred responsibility for administering and expanding public benefits programs from public utilities to the State of Wisconsin’s Department of Administration (DOA). We collect the charge for the DOA’s Utility Public Benefits Fund, which is used for energy assistance to low-income households, expansion of state energy conservation and efficiency programs, and renewable energy development.

Low-income assistance

Programs consist of bill payment assistance for income-qualified households, weatherization and early identification and prevention of energy crises.

Energy conservation

Programs administered by Wisconsin Focus on Energy target energy efficiency services and renewable resource and research programs.

Other fund uses

The legislature is considering the use of public benefits funds to address the state budget deficit. For more information, contact your state representative or state senator.

Adjusting the charge

DOA reviews the fees once a year and makes changes based on a formula that factors in the needs of low-income households in the state and whether or not current funding levels can satisfy those needs, along with funding the energy efficiency and renewable resource programs. Any changes take effect on July 1.

Cost

Effective July 1, 2011, residential and farm customers (Rg1, Rg2, Fg1) are charged whatever rate is lower - 3% of the total electric bill or a flat $3.15 per month. For other customers, the charge is whatever rate is lower – 3 percent of the total electric bill or the fee listed below.

Customer Class	Rate Description	Current Rate Per Service Line
Small Commercial Non-demand	Cg1, Cg6	$7.00/month
Small Commercial Demand	Cg2	$17.45/month
Large Commercial Demand	Cg3, Cg3A, Cg3C, Cg3S	$20.00/month
General Primary Demand	Cp1, Cp2V, Cp2M, Cp3, Cp3A, Cp3S, Cp1R, Cp4, CPFN	$195.00/month

Each customer is subject to a monthly limit of $750.

Sales tax

The state low income assistance fee is not subject to sales tax.

Charge differences among utilities

All residential customers in Wisconsin (Rg1, Rg2, Fg1) have the same maximum amount per month for the Non-taxable Customer Charge. Differences exist for other customers; however, the legislation states that the charge cannot vary within rate classes. Since each utility has different rate classes for their non-residential customers and varying numbers of customers in each rate class, fees vary by utility.

Multiple accounts (cottage, business, residence, etc.)

Every electric account with a facilities charge, whether residential or commercial, is charged a Non-taxable Customer Charge. If you have multiple accounts with multiple facilities charges, you are charged the Non-taxable Customer Charge that corresponds to the rate class assigned to each account.

Exemptions

No customers, including low-income customers, are exempt from this charge.

Payment refusal

The charge is subject to late payment charges. If a sufficiently large unpaid balance accumulates on a customer's account, the account may be subject to bill collection procedures and shut-off as for any other non-payment. Utilities cannot cancel or waive the Non-taxable Customer Charge.

Payment assistance

If you have difficulty paying your bill and qualify for assistance, call us at 800-842-4565.

More information

Customers can seek more information about programs and this fee at Focus on Energy, 800-762-7077.