{"id":41468,"date":"2024-10-04T12:32:09","date_gmt":"2024-10-04T17:32:09","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?p=41468"},"modified":"2025-12-17T10:06:18","modified_gmt":"2025-12-17T16:06:18","slug":"cub-qa-the-low-income-discount-rate-lidr-program","status":"publish","type":"post","link":"https:\/\/www.citizensutilityboard.org\/blog\/2024\/10\/04\/cub-qa-the-low-income-discount-rate-lidr-program\/","title":{"rendered":"Correction: CUB WatchBlog Update | Citizens Utility Board"},"content":{"rendered":"

[vc_row disable_element=”yes”][vc_column][vc_column_text]In November of 2023, the Illinois Commerce Commission (ICC) ordered the major Illinois gas utilities to launch the state’s first-ever income-based program that provides gas-bill discounts for eligible customers. The Low-Income Discount Rate (LIDR) program<\/strong><\/a>, which went into effect on Oct. 1, 2024, was advocated for by<\/span> Legal Action Chicago, Community Organizing and Family Issues (COFI) and the National Consumer Law Center.\u00a0\u00a0<\/span><\/p>\n

Who is eligible for these gas-bill discounts?<\/strong><\/p>\n

Customers of Ameren Illinois (gas), Nicor Gas, North Shore Gas and <\/span>Peoples Gas whose incomes are at or below 300 percent of the Federal Poverty Line (FPL).\u00a0<\/span><\/p>\n

Customers who receive Low Income Home Energy Assistance Program (LIHEAP)<\/a><\/strong> benefits (for households that are at or below 60 percent of the state median income) will be automatically enrolled in this discount program, so you should confirm if you qualify for LIHEAP.\u00a0 The LIDR discounts plus the LIHEAP benefits can make your gas bill more affordable.\u00a0<\/span><\/p>\n

Important: If you earn too much to qualify for LIHEAP, you might still qualify for the LIDR program. Please review the eligibility requirements below and explore applying.\u00a0 \u00a0<\/span><\/p>\n

How does the LIDR work?<\/strong><\/p>\n

The LIDR is funded by a charge on gas bills for residential, commercial and industrial customers. (See “How is the LIDR program funded?” below.) The LIDR program is a<\/span> five-tiered system in which the discounts range from 5 percent to 83 percent off the customer\u2019s total monthly gas bill. The amount of the discount will depend on the household\u2019s income.\u00a0<\/span>The chart below outlines the monthly discounts customers will receive on their gas bills once they are enrolled in the LIDR program:<\/span><\/p>\n\n\n\n\n\n\n\n\n
UTILITY<\/strong><\/td>\nDISCOUNT TIER<\/strong><\/td>\n<\/tr>\n
<\/td>\nTier 1: 0-50% of the Federal Poverty Level (FPL)<\/strong><\/td>\nTier 2: 51-100% of the FPL<\/strong><\/td>\nTier 3: 101-150% of the FPL<\/strong><\/td>\nTier 4: 151-200% of the FPL<\/strong><\/td>\nTier 5: 201-300% of the FPL<\/strong><\/td>\n<\/tr>\n
Peoples Gas<\/strong><\/td>\n83% Discount<\/span><\/td>\n68% Discount<\/span><\/td>\n45% Discount<\/span><\/td>\n20% Discount<\/span><\/td>\n5% Discount<\/span><\/td>\n<\/tr>\n
North Shore Gas<\/strong><\/td>\n79% Discount<\/span><\/td>\n60% Discount<\/span><\/td>\n36% Discount<\/span><\/td>\n12% Discount<\/span><\/td>\n5% Discount<\/span><\/td>\n<\/tr>\n
Nicor Gas<\/strong><\/td>\n75% Discount<\/span><\/td>\n55% Discount<\/span><\/td>\n25% Discount<\/span><\/td>\n10% Discount<\/span><\/td>\n5% Discount<\/span><\/td>\n<\/tr>\n
Ameren Illinois Gas<\/strong><\/td>\n75% Discount<\/span><\/td>\n55% Discount<\/span><\/td>\n25% Discount<\/span><\/td>\n10% Discount<\/span><\/td>\n5% Discount<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How do I know what Tier I\u2019m in?\u00a0<\/strong><\/p>\n

Use the chart below to estimate your household income level for the past 30 days and your Tier in the LIDR program. The chart can help you estimate eligibility, and the application process will confirm it.\u00a0 (A more comprehensive chart is linked here.<\/strong><\/a>)<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Number of people in Household<\/strong><\/td>\nTier 1:<\/strong>0-50% FPL<\/strong><\/td>\nTier 2:<\/strong>51-100% FPL<\/strong><\/td>\nTier 3:<\/strong>101-150% FPL<\/strong><\/td>\nTier 4:<\/strong>151-200% FPL<\/strong><\/td>\nTier 5:<\/strong>201-300% FPL<\/strong><\/td>\n<\/tr>\n
1<\/strong><\/td>\nUp to $652<\/span><\/td>\n$653 to $1,304<\/span><\/td>\n$1,305 to $1,956<\/span><\/td>\n$1,957 to $2,608<\/span><\/td>\n$2,609 to $3,913<\/span><\/td>\n<\/tr>\n
2<\/strong><\/td>\nUp to $881<\/span><\/td>\n$882 to $1,763<\/span><\/td>\n$1,764 to $2,644<\/span><\/td>\n$2,645 to $3,525<\/span><\/td>\n$3,526 to $5,288<\/span><\/td>\n<\/tr>\n
3<\/strong><\/td>\nUp to $1,110<\/span><\/td>\n$1,111 to $2,221<\/span><\/td>\n$2,222 to $3,331<\/span><\/td>\n$3,332 to $4,442<\/span><\/td>\n$4,443 to $6,663<\/span><\/td>\n<\/tr>\n
4<\/strong><\/td>\nUp to $1,340<\/span><\/td>\n$1,341 to $2,679<\/span><\/td>\n$2,680 to $4,019<\/span><\/td>\n$4,020 to $5,358<\/span><\/td>\n$5,359 to $8,038<\/span><\/td>\n<\/tr>\n
5<\/strong><\/td>\nUp to $1,569<\/span><\/td>\n$1,570 to $3,138<\/span><\/td>\n$3,139 to $4,706<\/span><\/td>\n$4,707 to $6,275<\/span><\/td>\n$6,276 to $9,413<\/span><\/td>\n<\/tr>\n
6<\/strong><\/td>\nUp to $1,798<\/span><\/td>\n$1,799 to $3,596<\/span><\/td>\n$3,597 to $5,394<\/span><\/td>\n$5,395 to $7,192<\/span><\/td>\n$7,193 to $10,788<\/span><\/td>\n<\/tr>\n
7<\/strong><\/td>\nUp to $2,027<\/span><\/td>\n$2,028 to $4,054<\/span><\/td>\n$4,055 to $6,081<\/span><\/td>\n$6,082 to $8,108<\/span><\/td>\n$8,109 to $12,163<\/span><\/td>\n<\/tr>\n
8<\/strong><\/td>\nUp to $2,256<\/span><\/td>\n$2,257 to $4,513<\/span><\/td>\n$4,514 to $6,769<\/span><\/td>\n$6,770 to $9,025<\/span><\/td>\n$9,026 to $13,538<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Why do some utility customers get a larger discount than others?\u00a0<\/strong><\/p>\n

The discounts will differ by the recipient’s household income and also their utility. The discounts offered differ by utility because the cost of service differs for each company.\u00a0\u00a0\u00a0<\/span><\/p>\n

Advocates have said<\/a><\/strong> the goal of the LIDR was to ensure that people don\u2019t have to spend more than 3 percent of their monthly income on gas bills.\u00a0<\/span><\/p>\n

How is the LIDR program funded?\u00a0<\/strong><\/p>\n

The LIDR is funded by a charge on gas bills that differs according to your customer class: residential, small commercial or industrial. All residential customers pay this fee, including lower-income customers who qualify for the LIDR program. The charge may show up on your bills as “Rider LIDA,” the “Low Income Discount Adjustment” or the “Rider LICA – Low-Income Credit Adjustment.”<\/p>\n

The amount of the fee is determined by a formula that accounts for A) the difference between the discounted rates and the actual rates; B) an estimate of the number of customers who qualify for the LIDR program; and C) the number of customers each utility has to help cover the costs of the program. That’s why the LIDR fee is different for each utility.<\/p>\n

For example, for residential customers of Nicor Gas, the largest gas utility in the state, the initial fee was 79 cents a month ($7.93 for small commercial and $297.36 for industrial), but for Peoples Gas, which has fewer customers and a growing affordability crisis, the fee is $4.33 a month for residential customers; $43.30 for small commercial customers and $1,623.74 for industrial customers. (Note:<\/strong> These Peoples Gas numbers are the levels in 2025. They represent a reduction from what the levels were in 2024: $5.27 a month for residential; $52.72 for small commercial and $1,976.99 for industrial.) To see what the fee is for each utility, read the tariffs for Ameren Illinois<\/a><\/strong>,\u00a0Nicor Gas<\/a><\/strong>,\u00a0North Shore Gas<\/a><\/strong>\u00a0and\u00a0Peoples Gas<\/a><\/strong>. Please note that the amount of the charge is subject to change, based on an annual reconciliation process to true-up the estimates of how many people were expected to use the program versus how many actually did.<\/p>\n

CUB believes utilities should be making a significant contribution of shareholder\u00a0funds to this program.\u00a0If you have questions\/concerns about the LIDR program, please call the ICC, at\u00a01-800-524-0795<\/strong>.<\/p>\n

How do I apply?\u00a0<\/strong><\/p>\n

There are two ways to apply, if you think your household qualifies (at or below 300 percent of the FPL)<\/span>:<\/p>\n