Since Mason PUD 3 added the Low-Income Assistance Surcharge line item on electric bills in January 2023, the fund has supported programs that Project Share donations alone could not fund. In 2024, the surcharge collected $1.7 million, supporting 3,505 households.
PUD 3 first began discussing the surcharge at public meetings in 2022, with a few goals in mind:
- Comply with the new Washington State Clean Energy Transformation Act (CETA) legislation (RCW 19.405, section 120), which requires utilities to provide energy assistance to low-income households, particularly those with a high energy burden (meaning 6% or more of income is spent on energy costs). Our existing programs at the time did not fulfil all aspects of the state mandate. Through 2050, the amount of funding required by the state increases. The method of funding these programs is not specified, and the state has not set aside funds to support these programs. The law states: “An electric utility must make programs and funding available for energy assistance to low-income households.” Each utility must determine how to gather those funds and design those programs.
- Show the surcharge as a line item on customer bills so that ratepayers can see how much of their bill goes toward these state requirements. Some utilities might decide to embed the cost in their rates, but in the interests of transparency, the PUD 3 staff and board decided to show this amount specifically on bills.
- Simplify the accounting processes so that we can both easily track the funds and easily exempt low-income customers from the surcharge. PUD 3 is mandated to exempt highly-impacted communities, vulnerable populations, and low-income qualified customers from the surcharge. Surcharge funds are held in a separate general ledger which is audited monthly and annually to adjust for any over-funding or under-funding. This is why the amount fluctuates slightly, although it remains below $5 per month.
Donation-based Project Share has funded programs for nearly 40 years and is a tax-deductible way to contribute to low-income assistance. In 2024, Project Share gathered $70,076.27 in donations from customers. The surcharge, however, supports more than Project Share alone – customers can ask their tax professional if it could qualify to be tax-deductible.
As a not-for-profit, community-owned public utility, PUD 3 seeks to juggle affordability with the need to keep the electric system safe and reliable for customers. At the same time PUD 3 must comply with legal mandates from both the state and federal levels.