IllinoisHB4456104th General Assembly (2025–2026)House

LOW-INCOME UTILITY RATES

Sponsored By: Sponsor information unavailable

Signed by Governor

Summary

Amends the Public Utilities Act. In provisions concerning nondiscrimination, provides that the Commission is authorized to approve a low-income discount rate for residential electric and natural gas customers that applies to the entirety of a qualifying customer's bill, including, but not limited to, a qualifying customer's delivery service charges and energy supply charges. Provides that an electric or natural gas utility may fund low-income discount rates through a surcharge on customers' electric and natural gas bills. Provides that the changes to the Act apply retroactively on and after January 1, 2023. Amends the Energy Assistance Act. In provisions concerning eligibility under the Act, provides that, in setting the annual eligibility level for the use of State funds from the Supplemental Low-Income Energy Assistance Fund, the Department of Commerce and Economic Opportunity shall consider the amount of available funding and may not set a limit higher than 300% of the federal nonfarm poverty level. In provisions concerning the Supplemental Low-Income Energy Assistance Fund, provides that the yearly administrative expenses of the Fund may not exceed 15% (rather than 13%) of the amount collected during that year, except when unspent funds from the Fund are reallocated from a previous year. Provides that any unspent balance of the 15% administrative allowance may be utilized for administrative expenses in the year they are reallocated. Provides that, of the 15% administrative allowance, no less than 9% (rather than 8%) shall be provided to Local Administrative Agencies for administrative expenses. Provides that, beginning January 1, 2027, the Base Energy Assistance Charge shall be $0.80 per month for each utility that is required by the Illinois Commerce Commission to implement a low-income discount rate and shall be $0.40 per month for each utility that is not required to implement a low-income discount rate and that contributes to the Supplemental Low-Income Energy Assistance Fund. Makes other changes.

public utilitiesassignmentsenergy and public utilities

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

More energy help for low-income households

The law lets Illinois approve electric and gas bill discounts for qualifying residential customers of utilities serving more than 100,000 customers. To qualify, a customer must meet energy assistance rules and have household income at or below 300% of the federal poverty level. Discounts can cover supply and delivery charges, but not taxes or certain required charges; other energy assistance is applied first. The state also sets an annual income limit for State-funded assistance, which can reach 300% of the federal nonfarm poverty level depending on available funds. Utilities without a discount program must file a tariff within 30 days after the Act’s effective date and implement approved changes within 12 months of the final order; one additional 12-month period is available upon notice.

Fixed utility charges fund energy help

Utilities can use fixed per-customer charges to help pay for low-income discounts. These charges may differ by customer class, but cannot be based on energy use, demand, or deliveries. Beginning January 1, 2027, the monthly base Energy Assistance Charge is $0.80 for utilities required to offer low-income discounts and $0.40 for contributing utilities not required to offer them. Extra charge increases made by earlier laws can only fund direct customer help, and do not apply to utilities that served fewer than 100,000 Illinois customers on January 1, 2021.

More funding for local energy agencies

The law raises the annual cap for Fund administrative costs from 13% to 15% of collections. At least 9% of that administrative allowance must go to Local Administrative Agencies, up from 8%. Reallocated unused allowance can also pay administrative costs.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Adriane L. Johnson

    Democratic • Senate

  • Barbara Hernandez

    Democratic • House

  • Dagmara Avelar

    Democratic • House

  • Lakesia Collins

    Democratic • Senate

  • Laura Ellman

    Democratic • Senate

  • Laura Faver Dias

    Democratic • House

  • Mary Edly-Allen

    Democratic • Senate

  • Maura Hirschauer

    Democratic • House

  • Nabeela Syed

    Democratic • House

  • Sara Feigenholtz

    Democratic • Senate

  • Willie Preston

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 148 • No: 72

Senate vote • 5/19/2026

Third Reading - Passed;

Yes: 42 • No: 17

Senate vote • 5/7/2026

Do Pass Energy and Public Utilities;

Yes: 8 • No: 5

House vote • 4/15/2026

Third Reading - Standard Debate - Passed

Yes: 74 • No: 37

House vote • 4/14/2026

House Floor Amendment No. 2 Recommends Be Adopted Public Utilities Committee;

Yes: 13 • No: 6

House vote • 3/18/2026

Do Pass / Short Debate Public Utilities Committee;

Yes: 11 • No: 7

Actions Timeline

  1. Public Act . . . . . . . . . 104-0540

    7/9/2026House
  2. Effective Date July 9, 2026

    7/9/2026House
  3. Governor Approved

    7/9/2026House
  4. Sent to the Governor

    6/18/2026House
  5. Added as Alternate Co-Sponsor Sen. Laura Ellman

    5/19/2026Senate
  6. Added as Alternate Co-Sponsor Sen. Sara Feigenholtz

    5/19/2026Senate
  7. Added as Alternate Co-Sponsor Sen. Mary Edly-Allen

    5/19/2026Senate
  8. Added as Alternate Co-Sponsor Sen. Lakesia Collins

    5/19/2026Senate
  9. Added as Alternate Chief Co-Sponsor Sen. Willie Preston

    5/19/2026Senate
  10. Passed Both Houses

    5/19/2026House
  11. Third Reading - Passed; 042-017-000

    5/19/2026Senate
  12. Placed on Calendar Order of 3rd Reading May 18, 2026

    5/14/2026Senate
  13. Second Reading

    5/14/2026Senate
  14. Placed on Calendar Order of 2nd Reading May 12, 2026

    5/7/2026Senate
  15. Do Pass Energy and Public Utilities; 008-005-000

    5/7/2026Senate
  16. Alternate Chief Sponsor Changed to Sen. Adriane L. Johnson

    5/4/2026Senate
  17. Assigned to Energy and Public Utilities

    4/29/2026Senate
  18. Referred to Assignments

    4/16/2026Senate
  19. First Reading

    4/16/2026Senate
  20. Chief Senate Sponsor Sen. Mary Edly-Allen

    4/16/2026Senate
  21. Placed on Calendar Order of First Reading

    4/16/2026Senate
  22. Arrive in Senate

    4/16/2026Senate
  23. Added Co-Sponsor Rep. Barbara Hernandez

    4/15/2026House
  24. Added Chief Co-Sponsor Rep. Maura Hirschauer

    4/15/2026House
  25. House Floor Amendment No. 1 Tabled

    4/15/2026House

Bill Text

  • Engrossed

  • Enrolled

  • House Amendment 1

  • House Amendment 2

  • Introduced

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