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?
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 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 is the LIDR program funded?
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.”
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.
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: 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, Nicor Gas, North Shore Gas and Peoples Gas. 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.
CUB believes utilities should be making a significant contribution of shareholder funds to this program. If you have questions/concerns about the LIDR program, please call the ICC, at 1-800-524-0795.
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. LIDR programs for Aqua Illinois and Illinois American Water were approved by the ICC late in 2024 and will be launched in July 2025.