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CUB Q&A: The Low-Income Discount Rate (LIDR) program

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, which went into effect on Oct. 1, 2024, was advocated for by Legal Action Chicago, Community Organizing and Family Issues (COFI) and the National Consumer Law Center.  

Who is eligible for these gas-bill discounts?

Customers of Ameren Illinois (gas), Nicor Gas, North Shore Gas and Peoples Gas whose incomes are at or below 300 percent of the Federal Poverty Line (FPL). 

Customers who receive Low Income Home Energy Assistance Program (LIHEAP) benefits (for households that are at or below 200 percent of the Federal Poverty Level) will be automatically enrolled in this discount program, so you should confirm if you qualify for LIHEAP.  The LIDR discounts plus the LIHEAP benefits can make your gas bill more affordable. 

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.   

How does the LIDR work?

There is no charge to participate in the LIDR program. It is a five-tiered system in which the discounts range from 5 percent to 83 percent off the customer’s total monthly gas bill. The amount of the discount will depend on the household’s income. The chart below outlines the monthly discounts customers will receive on their gas bills once they are enrolled in the LIDR program:

UTILITY DISCOUNT TIER
Tier 1: 0-50% of the Federal Poverty Level (FPL) Tier 2: 51-100% of the FPL Tier 3: 101-150% of the FPL Tier 4: 151-200% of the FPL Tier 5: 201-300% of the FPL
Peoples Gas 83% Discount 68% Discount 45% Discount 20% Discount 5% Discount
North Shore Gas 79% Discount 60% Discount 36% Discount 12% Discount 5% Discount
Nicor Gas 75% Discount 55% Discount 25% Discount 10% Discount 5% Discount
Ameren Illinois Gas 75% Discount 55% Discount 25% Discount 10% Discount 5% Discount

How do I know what Tier I’m in? 

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.  

Number of people in Household Tier 1:

0-50% FPL

Tier 2:

51-100% FPL

Tier 3:

101-150% FPL

Tier 4:

151-200% FPL

Tier 5:

201-300% FPL

1 Up to $628 $629 to $1,255 $1,256 to $1,883 $1,884 to $2,510 $2,511 to $3,765
2 Up to $852 $853 to $1,703 $1,704 to $2,555 $2,556 to $3,407 $3,408 to $5,110
3 Up to $1,076 $1,077 to $2,152 $2,153 to $3,228 $3,229 to $4,303 $4,304 to $6,455
4 Up to $1,300 $1,301 to $2,600 $2,601 to $3,900 $3,901 to $5,200 $5,201 to $7,800
5 Up to $1,524 $1,525 to $3,048 $3,049 to $4,573 $4,574 to $6,097 $6,098 to $9,145
6 Up to $1,748 $1,749 to $3,497 $3,498 to $5,245 $5,246 to $6,993 $6,994 to $10,490
7 Up to $1,973 $1,974 to $3,945 $3,946 to $5,918 $5,919 to $7,890 $7,891 to $11,835
8 Up to $2,197 $2,198 to $4,393 $4,394 to $6,590 $6,591 to $8,427 $8,428 to $13,180

Why do some utility customers get a larger discount than others? 

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.   

Advocates have said the goal of the LIDR was to ensure that people don’t have to spend more than 3 percent of their monthly income on gas bills. 

How do I apply? 

There are two ways to apply, if you think your household qualifies (at or below 300 percent of the FPL):

  • Tiers 1-4 (10 percent to 83 percent Discounts): Eligible households with income at or below 200 percent of the federal poverty level are eligible for LIHEAP benefits and, additionally, will automatically receive the LIDR. To receive an LIDR discount, those households must apply for LIHEAP through their local Community Action Agency. To get more information on how to locate a household’s Community Action Agency, visit PowerBillDiscount.com. At this website, maintained by the Illinois Association of Community Action Agencies, visitors can input their address and find their Community Action Agency. Important: If you are 1) a gas customer of Ameren Illinois, Nicor, North Shore or Peoples, and 2) you have received LIHEAP benefits between Oct. 1, 2023 and Aug. 15, 2024, you will automatically receive the LIDR discount beginning on your October billing cycle (that means it will appear on the first bill you receive in November). Please continue to apply for LIHEAP to maintain your discount.
  • Tier 5 (5 percent Discount): Households with incomes that fall under Tier 5 do not qualify for LIHEAP, but can still receive the 5 percent discount. Those households should contact their gas utility to request the discount. (CUB has a list of major utility contact numbers, including gas utilities that offer the LIDR.)

Note: There is no charge to apply and receive a discount.

Is there a Low-Income Discount Rate for electric or water customers?

Electric utilities are required to offer an LIDR program, under the Climate and Equitable Jobs Act (CEJA). ComEd is looking to get state regulatory approval to implement their LIDR plan, and Ameren will file a plan also. Aqua Illinois and Illinois American Water have proposed LIDR programs in their latest rate cases. State regulators have yet to issue a final ruling on their LIDR proposals.