District of Columbia Ratepayer Funded Rate Assistance

Eligible Pepco customers receive the Residential Aid Discount (RAD) — a 63 percent discount on the first 400 kWhs in summer months (June - October) and a 32 percent discount on the first 400 kWhs in winter months (November - May) for a total savings of $102 per year. Eligible all-electric customers receive a $20 per month discount year-round and save $240. Annual funding for RAD is about $2.7 million.

Eligible Washington Gas customers receive Residential Essential Service (RES) that offers discount rates to customers during the winter months from November through April. The amount of the discount is based on household size and income level. The D.C. State Energy Office, the LIHEAP grantee, performs outreach, determines customer eligibility and refers potential clients to the utility. Annual funding for RES is about $1.8 million.

The Universal Service Discount Program (USDP) was established through the enactment of the Retail Electric Competition and Consumer Protection Act of 1999. The programs are funded through the Energy Assistance Trust Fund (EATF) , a public benefit fund that supports universal service for low-income customers and residential energy efficiency and renewable resources programs.

The EATF funds the ongoing RAD and RES expansions and the expanded LIHEAP program. The expansion programs increase the awareness and availability of the existing RAD and RES discounts to more LIHEAP-eligible customer. The LIHEAP Expansion is an addition to the current LIHEAP program and includes bill payment assistance and educates residents about energy efficiency programs. See electric utility restructuring.

LEVERAGING

2004: $1.6 million
2002: $744,000
2001: $837,000