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WI Low-Income Assistance Fee
In 2006, the Wisconsin Legislature passed Act 141, which requires electric
utilities to collect a fee from their customers to help fund low-income energy
assistance programs. These funds are collected through the WI Low-Income
Assistance Fee — previously known as the Non-Taxable Customer Charge —
and then transferred to the Wisconsin Department of Administration to assist
low-income customers.
Answering Your Questions…
Like many of our customers, you may have questions about the WI Low-Income
Assistance Fee. To help explain the fee, we've gathered many of the questions
people have asked here, in one place. We hope this information is helpful in
answering questions you may have.
If your question is not answered here, or if you'd like further information,
please contact us.
- How much of the Wisconsin Low-Income Assistance Fee does Wisconsin
Public Service keep?
- WPSC doesn't keep any of the money collected through the WI
Low-Income Assistance Fee. All dollars collected are passed along to the
Wisconsin Department of Administration in Madison to help fund low-income
energy assistance programs.
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- So is some of the money collected used for utilities' uncollectible accounts?
- The fund is used as part of a comprehensive low-income assistance program,
along with the other programs that are already in place by utilities, to help
qualified customers pay their electric bills. If the state is successful in.
their efforts, utilities should experience lower uncollectibles.
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- Is it possible that the WI Low-Income Assistance Fee will ever change or end?
- Yes. The Department of Administration determines
annually whether the amount collected for public benefits is adequate and should be
continued, or whether the amount should be increased or decreased.
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- Why is the Department of Administration collecting a fee through the utilities?
- Because utilities already have collection
mechanisms in place, the Wisconsin legislature thought it would be efficient for
the utilities to collect these dollars from their customers and then transfer the
money to the Department of Administration. The department then administers the
low-income energy assistance programs on a statewide basis.
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- Is the charge the same from utility to utility?
- For residential customers the Department of
Administration determined a standard, statewide, maximum charge.
For non-residential customers, the charge varies based on the number of customers,
energy prices and customer classification differences between utilities.
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- Do all customers of a utility pay the same amount?
- No, the fee is different based on the type of
electric service you receive (for example, it varies greatly for a residential
customer in comparison with a large industrial customer).
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- How is the Wisconsin Low-Income Assistance Fee calculated?
- Residential customers pay the lower of these options:
- An amount equal to 3% of their total pre-tax electric bill, or
- $3.15 per month, which is the maximum monthly charge a residential electric
customer would pay, as determined by the Department of Administration.
The maximum charge for each customer group does not vary
from month to month, but the amount the customer is charged
may vary from month to month, depending on electric consumption.
Using the rates and maximum fee above,
the customer reaches the 3% cap at about 720 kWh. Any time
the customer's consumption is below this level, the charge
on the bill will be lower.
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- What are the maximum amounts for other types of customers?
- Customers pay the lower of these charges:
- For business customers on the Cg-1, Cg-2, Cg-5, Cg-3 OTOU, Cg-4 OTOU or
Cg-S1 rates, the maximum charge per month added to your electric bill is
$9.80.
- For business customers on the Cg-20 or Cg-RR rates, the maximum
charge per month added to your electric bill is $27.40.
- For business customers on the CCp, Cp Next Day or Cp-RR rates, the
maximum charge per month added to your electric bill is $113.47.
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- Does the fee appear all year-round?
- Yes, it's included on your electric bill every month.
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- What if I'm a seasonal customer?
- You will see double the fee during the six months that you receive a bill.
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- If I have more than one meter am I charged more than once?
- Yes. Every meter with a Customer Charge, whether
residential, farm, commercial or industrial, has the WI Low-Income Assistance Fee.
If you have multiple meters with multiple Customer Charges,
you will be charged the fee that corresponds to
the rate assigned to each meter.
The Department of Administration has developed a process so customers can apply
for a refund if their total public benefits charges for the month for
all of their metered electric services exceeds $750. Call 800-450-7260
for more information or to begin the refund process.
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- Am I going to see an additional fee for my gas meter, too?
- No. The WI Low-Income Assistance Fee on your bill is based on your pre-tax
electric bill only. There are no plans to assess a separate charge related to
gas.
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- If I'm low-income, can I be exempted from the WI Low-Income Assistance Fee?
- No, we cannot cancel or waive the charge, which
is part of Wisconsin law. If you are having difficulty paying your bill and think
you may qualify for low-income assistance, you can contact Wisconsin Public Service
at 800-450-7260.
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- Where can I get more information about the WI Low-Income Assistance Fee and the
programs the funds support?
- You can get more information by contacting one of the following:
- Wisconsin's Energy Help Initiative: 800-522-3014.
- Wisconsin's Home Energy Assistance Program: 866-432-8947 (866-432-HEATWIS)
Please note that financial assistance resources differ by country. For information
on what is available by county, visit
http://psc.wi.gov/apps/financialasst/default.aspx.
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