IllinoisHB4456104th General Assembly (2025–2026)HouseWALLET

LOW-INCOME UTILITY RATES

Sponsored By: Sponsor information unavailable

Became Law

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

6 provisions identified: 4 benefits, 0 costs, 2 mixed.

Lower utility rates for low-income customers

The law lets the Commission approve discounted electric and gas bills for low‑income homes. You qualify if your utility serves over 100,000 customers, you are eligible for LIHEAP or state energy aid, and your income is at or below 300% of the federal poverty level. Discounts can be tiered by income or use a Percentage of Income Payment Plan. The Commission must issue a final order within 90 days of a filing. Utilities must start the approved discounts within 12 months, with one extra 12‑month extension allowed.

More energy aid for low-income households

To get state energy help, you must live in Illinois and meet income limits the Department sets. The base limit cannot be higher than 150% of the federal poverty level or 60% of State median income, but it can be up to 300% of the federal poverty level when State Supplemental Fund dollars are used. At least one‑third of funds go to the lowest‑income eligible homes, with priority periods for seniors, households with children under 6, and people with disabilities. If you are the utility account holder, the Department pays your provider and you must apply for other aid and sign a waiver so income can be verified. If you are not the account holder and your rent is over 30% of your income, you can get a direct payment. If energy is included in rent for subsidized or voucher housing and rent is 30% or less of your income, you can still apply; your landlord must provide energy cost records. You can also get emergency payments to restore or keep winter service. When funds allow, help can also cut past‑due bills, cover heat‑related needs, and pay for weatherization, home repairs, and renewable retrofits.

Stronger ban on unfair utility rates

The law bans utilities from giving preferences or creating unreasonable differences in rates, charges, or services. It also bars electric utilities from unreasonable rate differences in counties with 3,000,000 or more people. This strengthens fair treatment rules for all utility customers.

Special business utility rates with safeguards

The Commission can allow lower electric or gas rates for businesses that increase or create new usage, including in enterprise zones. Both existing and new businesses can qualify if they add load. The Commission must ensure the rates provide a net benefit to other customers in the service area.

Utilities must send savings info

Utilities must send information about rebates, discounts, credits, and other cost‑saving programs. They send this at least twice a year by mail and other approved ways. This helps more customers learn how to lower their energy bills.

Small monthly charge funds energy help

Starting January 1, 2021, utilities add a monthly Energy Assistance Charge to each account. The base charge is $0.48 per month for the calendar year starting January 1, 2022, and can rise by $0.16 in a later year if at least 80% of the prior fiscal year’s fund was used. Beginning January 1, 2027, the base is $0.80 per month for utilities required to run a low‑income discount program and $0.40 per month for others that contribute. Money goes into the Supplemental Low‑Income Energy Assistance Fund for bill help, arrearage reduction, weatherization, and program costs. Weatherization spending is capped at 10% of annual collections, and administrative costs at 13%, with at least 8% going to Local Administrative Agencies. Municipal utilities and co‑ops only add the charge if they opt in; if they do not, their customers cannot get Fund benefits. Utilities send collected charges to the Department of Revenue by the 20th of the next month, and there is also a one‑time $22 million utility payment for setup and arrearage programs. Utilities that run arrearage‑reduction programs may use part of the collected charges to cover those program costs up to allowed limits.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Adriane Johnson

    Affiliation unavailable

  • Barbara Hernandez

    Affiliation unavailable

  • Dagmara Avelar

    Affiliation unavailable

  • Lakesia Collins

    Affiliation unavailable

  • Laura Ellman

    Affiliation unavailable

  • Laura Faver Dias

    Affiliation unavailable

  • Mary Edly-Allen

    Affiliation unavailable

  • Maura Hirschauer

    Affiliation unavailable

  • Nabeela Syed

    Affiliation unavailable

  • Sara Feigenholtz

    Affiliation unavailable

  • Willie Preston

    Affiliation unavailable

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 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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