State low-income assistance fee

Since 2000, customer bills have included a 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 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 programs for low-income households. Programs include bill payment assistance for income-qualified households, weatherization and early identification and prevention of energy crises.

Adjustments to charge

DOA reviews the fee 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, 2018, the charge is the lower of the 3 percent of the total electric bill or the fee listed below:

Customer class Rate category Rate per service line
Residential and farm Rg1, Rg2, Fg1 $3.15/month
Small commercial nondemand Cg1, Cg6, TssM $9.83/month
Small commercial demand Cg2 $9.83/month
Large commercial demand Cg3, Cg3C, Cg3S $32.22/month
General primary demand Cp1, Cp3, Cp3S, Cp1R, Cp4, CpFN $260.71/month

Each customer is subject to a monthly limit of $750. If total public benefits charges for all electric metered services billed under one customer exceed $750 in any month, customers can apply for a refund. Call 800-714-7777 8 a.m. to 5 p.m. Monday-Friday for more information.

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 nontaxable 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 nonresidential customers and varying numbers of customers in each rate class, fees vary by utility.

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

All residential customers in Wisconsin pay the same monthly amount regardless of their electric utility, but differences occur between rate classes.

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 nonpayment. Utilities cannot cancel or waive the nontaxable customer charge.

Payment assistance

If you have difficulty paying your bill and qualify for assistance:
Payment assistance
800-842-4565