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CASE EXAMPLE

Regulatory Intervention

Reversal of Rate increase for Some Low-Income Housing Customers.

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The Full Story -  Despite strong opposition from the utility company, UCM prevailed and costs were reduced for low-income customers.

When electricity regulators adopted a new policy that was touted as a major rate reduction “for all customers”, no one would have thought that some customers – namely, certain low-income multifamily housing properties – would actually pay more under the new rates.  UCM spotted this “quirk” in the new rate structure, and petitioned regulators on behalf of one of its clients to correct the situation.

 

The key issue was that eligibility for electric rate subsidies available to low-income housing customers had not been expanded in conjunction with the new rate structure, forcing some customers to choose between giving up their low-income discount or adopting a less favorable rate structure.  UCM was confident that regulators never intended to put low-income housing customers in this position, and filed briefs that explained the intricacies of the rates and the surprising outcome for some customers. 

 

Despite strong opposition to UCM’s position from the utility company, regulators granted UCM’s petition, and the rate increase experienced by low-income housing projects under the new rates was eliminated.