MN HF3493

Requires public utilities to fund an affordability program for low-income customers offering a 50 percent electric rate discount on the first 400 kilowatt-hours consumed per billing period, with enhanced discounts for customers age 62 or older or disabled.

Defines "low-income" customers as those receiving assistance from the federal low-income home energy assistance program (LIHEAP) and applies to public utilities serving more than 200,000 residential electric customers.

Authorizes the Public Utilities Commission to establish low-income affordability programs including inverted block rates with lower energy prices for lower usage customers, and requires utilities to file program evaluations measuring income percentage devoted to energy bills, disconnections, and collection costs.

Limits utility recovery of administrative costs to 5 percent of total program costs (excluding start-up costs) and program evaluation costs to 2 percent of total program costs, with permission for deferred accounting between rate cases.

Modifies state energy policy to include 1.5 percent annual energy savings goals through conservation programs and inverted block rates for lower usage residential customers.