Illinois’ major gas utilities have confirmed through August compliance filings that they are ready to launch Low-Income Discount Rate Programs starting on October 1st of this year, programs that Legal Action Chicago helped secure from the Illinois Commerce Commission in late 2023. Hundreds of thousands of Chicago and Cook County residents will soon be eligible to apply for a discount on their gas utility bills.
The new programs introduce a five-tiered system where discounts are proportionate to household income and are applied to customers’ entire gas bills. Customers of Peoples Gas, North Shore Gas, Ameren and Nicor Gas with household incomes at or below 300% of the Federal Poverty Line can apply through their local community action agency—such as Community and Economic Development Association of Cook County (CEDA)—starting October 1st. Customers who receive benefits under the Low Income Home Energy Assistance Program (LIHEAP) will also be automatically enrolled in these discounts, which are as follows:
The discounts are a result of advocacy by Legal Action Chicago, Community Organizing and Family Issues (COFI), and the National Consumer Law Center, who proposed the structure of these programs as part of rate increase requests filed by the gas utilities with the Illinois Commerce Commission in 2023. In these cases, the Commission rejected requests to raise customers’ fixed charges, sharply reduced the size of requested rate increases, and approved the first income-based gas utility discount programs in Illinois history.
“These are historic discount programs that are set to keep hundreds of millions of dollars in customers’ pockets,” said Daniel J. Schneider, Supervisory Attorney at Legal Action Chicago. “If you think you might qualify, my advice is simple: apply starting on October 1.”
Meanwhile, service providers, nonprofit organizations, and governmental agencies are encouraged to learn more about the enrollment process so they can refer their constituents to much needed resources. Legal Action Chicago will continue to support efforts to alleviate the financial stress utility bills impose on consumers, and is hopeful that these new discount rate programs will provide a model for future programs across the country.
