June 25, 2012
HOME ENERGY SOLUTIONS PROGRAM AND MUNICIPAL UTILITIES
By: Kevin E. McCarthy, Principal Analyst
You asked whether municipal electric utility customers are eligible for the Home Energy Solutions audit program under the provisions of PA 12-2 of the June 12 Special Session.
This program provides energy audits and related services to electric and gas company customers. Municipal electric utility customers are only eligible for the program if they are also gas company customers.
PA 12-2, June Special Session, does not affect program eligibility; instead it modifies the charge that applies to customers who participate in the program. Although the program is funded by charges on gas and electric bills, prior law required that the audit charge be the same, regardless of how the property owner heated his or her home. The act instead requires that the charge reflect the contributions made to the Energy Efficiency Fund by each type of customer, subject to a $99 cap.
Prior law limited the subsidy that customers who heat with gas or electricity provide to those who heat with oil or other nonutility fuels to $500,000 per year. The act eliminates the subsidy cap until August 1, 2013.