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Ohio Public Benefit Funds for Rate Assistance

Ohio Public Benefit Funds for Rate Assistance

On November 1, 2010, Ohio began an updated Percentage of Income Payment Plan (PIPP) for low-income households. Called "PIPP Plus," it revamped the PIPP that had been in place in Ohio since 1983 (the oldest and largest PIPP in the nation). The new program makes customers' monthly payments more affordable on a year-round basis. Participating households pay six percent of their monthly income or $10 per month to both electric and natural gas utilities, whichever is greater. All-electric customers pay 10 percent of their income or $10 as their monthly payment, whichever is greater. This compares to a maximum energy bill payment of 15 percent of income (generally 10 percent for gas and five percent for electric) for participants in the original PIPP. The shortfall between the PIPP payment and other energy assistance the customer may receive and the actual bill is recovered through a ratepayer surcharge on gas customers or a PIPP rider on electric customers. During 2010 the electric PIPP enrolled about 290,000 households and covered a PIPP customer shortfall of around $170 million. Security deposit waivers for electric PIPP customers amounted to another $6.2 million in 2010. Costs for the gas PIPP were not available.

See electric utility restructuring legislation, which establishes a Universal Service Fund that will incorporate existing programs including State Energy Credit, PIPP and weatherization.


LEVERAGING

2010: $176.2 million
2009: $153 million
2007: $283.9 million
2006: $252.3 million
2005: $210.4 million
2004: $200.4 million
2003: $201.6 million
2002: $173 million
2001: $163.2 million
2000: $6.9 million (Energy Credit Program - 2000 and before)
1999: $6.1 million
1998: $5.5 million
1997: $5.6 million
1996: $4.6 million
1995: $5.7 million
1994: $7.1 million
1993: $7.6 million
1992: $7 million
1991: $9.5 million

LEGISLATIVE CODE

1998, Ohio Revised Code, Section 5117.09