65-407-314 Me. Code R. § 5

Current through 2024-25, June 19, 2024
Section 407-314-5 - STATEWIDE LOW-INCOME ASSISTANCE PLAN FUNDING
A.Creation of a Statewide Low-Income Assistance Plan Fund
1.Purpose of the Fund

A Statewide Low-Income Assistance Plan fund (the Fund) shall be established by the MSHA to:

1) reimburse each transmission and distribution utility whose funding obligation for the operation of its LIAPs exceeds its assessment;
2) reimburse each transmission and distribution utility for funds expended for the Oxygen Pump and Ventilator Benefit Program; and
3) fund the MSHA's costs to administer the Statewide Low-Income Assistance Plan and the individual LIAPs pursuant to Section 6 of this Chapter.
2.Sources for the Fund

The Fund will consist of contributions by transmission and distribution utilities as directed by this Chapter; all money appropriated by the State for inclusion in the Fund; all interest, dividends and pecuniary gains from the investment of money in the Fund; and any other monies deposited in the Fund to implement the provisions of this Chapter.

3.Separate Accounts of Fund

The Fund will consist of three separate accounts: one dedicated to LIAP benefits; one dedicated to Oxygen Pump and Ventilator benefits; and one dedicated to administrative expenses. Funds may not be exchanged between the accounts unless approved by the Commission.

B.Transmission and Distribution Utilities' Funding Obligation for the Statewide Low- Income Assistance Plan for LIAP Program
1.LIAP Benefits

The total statewide spending for the LIAP benefits for the program year beginning October 1, 2022, shall be $15,000,000. This funding amount will continue each year thereafter unless modified by the Commission pursuant to this section. Funds owed to the MSHA pursuant to Section 5(E) shall be transferred in a form specified by the MSHA and will be forwarded in two installments, the first on December 15 and the second on March 15, annually for the program year that begins October 1 and placed into the "benefits account" within the Fund. The Commission shall, by November 1 of each program year, specify the amounts to be contributed by transmission and distribution utilities to the MSHA on December 15 and March 15 of each program year. Transmission and distribution utilities may also choose to forward the entire amount owed to MSHA pursuant to Section 5(E) on December 15.

2.Oxygen Pump and Ventilator Benefits

The annual statewide spending for Oxygen Pump and Ventilator benefits shall be based upon the spending for the last completed program year for this program and will be established by Commission Order. Funds transferred pursuant to this section shall be remitted to the MSHA by October 7 of each program year and placed in the "Oxygen Pump and Ventilator benefit account" of the fund.

3.Administrative Costs

The total statewide spending for administrative costs for the LIAPs for the year beginning October 1, 2001, shall be $291,164.00. This funding amount will continue each year thereafter unless modified by the Commission pursuant to this section. All funds transferred pursuant to this section shall be remitted to the MSHA by October 7 of each program year and placed in the "administrative account" of the Fund. The Commission may adjust the transmission and distribution utilities' contribution for administrative costs during a program year as necessary to ensure that the MSHA has sufficient funds to fully administer the LIAPs.

C.Modifications to Assessment Level
1.Overall Program Costs

The Commission will monitor the needs of Maine's low-income electric customers and will evaluate annual LIAP funding and expenditure levels and program design features. The Commission may, by April 1 of each year, adjust the overall assessment, each transmission and distribution utility's assessment, and the Lump Sum Benefit Allocation Model as necessary to ensure that the assistance provided by the LIAPs is consistent with the provisions of 35-A M.R.S. §3214.

2.Oxygen Pump and Ventilator Benefit Costs

The Commission will, by April 1 of each year, set the funding level for the Oxygen Pump and Ventilator Benefit Program. When setting the funding level, the Commission will consider the level of spending for the previous completed program year, as well as any other factors affecting the cost of electricity. The assessment process for this program will use the same methods as used to determine the assessment of the overall LIAP fund by multiplying the percentage of residential customers residing in each transmission and distribution utility's service territory by the total statewide benefit.

D.Apportionment of Funds

Each transmission and distribution utility shall be apportioned a specific funding amount for its LIAP pursuant to this section. The apportionment amount shall be calculated by multiplying the combined percentage of the LIHEAP and DHHS program eligible people in the State residing in each transmission and distribution utility's service territory by the total LIAP funding amount for benefits (established in Section 5(B)(1) ). A transmission and distribution utility may petition the Commission by March 1 for the upcoming program year to modify the apportionment rates used to establish the apportionments due to demographic changes in the LIHEAP and DHHS populations. The Commission may itself order a change in the apportionment rates if LIHEAP and DHHS demographic statistics indicate that the percentage of the State's LIAP eligible customers residing in each transmission and distribution utility's service territory has changed.

E.Transfer of Funds
1.For Each Transmission and Distribution Utility whose LIAP Assessment Exceeds its Apportionment

Each transmission and distribution utility whose LIAP assessment exceeds its apportionment pursuant to this section shall transfer the difference to the MSHA pursuant to Section 5(B)(1) of this Chapter.

2.For Each Transmission and Distribution Utility whose LIAP Assessment is Less than its Apportionment

Each transmission and distribution utility whose LIAP assessment is less than its apportionment is entitled to receive funds from the MSHA in an amount equal to the amount of actual expenditures for LIAP benefits that exceed the transmission and distribution utility's assessment level, up to, but not exceeding, the transmission and distribution utility's apportionment level. No transmission and distribution utility will be eligible to receive reimbursement from the MSHA until its LIAP expenditures exceed its assessment amount. Transmission and distribution utilities will receive reimbursement from the MSHA on a quarterly basis, to the extent that the MSHA has sufficient funding for the individual transmission and distribution utility expenditures available for this purpose.

Reimbursement will be on a quarterly basis. The MSHA is not responsible or liable for a lack of funding and no transmission and distribution utility shall have any right or cause of action against the MSHA as a result of a lack of funding.

Any shortfalls in funding will be considered by the Commission in its review of funding needs for the Statewide Low-Income Assistance Plan as described in Section 5(C)(1).

3.For Each Transmission and Distribution Utility whose LIAP Expenditures Exceed its Apportionment

No transmission and distribution utility will be reimbursed from the Fund for LIAP expenditures that exceed the transmission and distribution utility's apportionment. Each transmission and distribution utility whose LIAP expenditures exceed its apportionment may make adjustments to its LIAP program to reduce spending levels pursuant to Section 3(B).

4.Oxygen Pump and Ventilator Benefits

Transmission and distribution utilities may request reimbursement from the MSHA on a quarterly basis for expenditures incurred in the previous quarter. Transmission and distribution utilities will receive reimbursement from the MSHA on a quarterly basis, to the extent that the MSHA has sufficient funding available for this purpose. Any shortfalls in funding will be considered by the Commission in reviewing funding needs for the Oxygen Pump and Ventilator Benefits as described in Section 5(C)(2).

65-407 C.M.R. ch. 314, § 5