|
Energy |
|
|
A charge added to a customer billing which is intended to cover costs related to services that a utility provides in the public interest. A utility may be mandated by legislation or regulations to provide some or all of the services covered by this charge, and these services range from educational initiatives to funding for low-income customers to environmental and efficiency programs. Public benefits charges typically range from 2.5% to 5% of a customer's total energy bill.
Prior to deregulation, these fees were collected by local utilities who also dispersed the funds, typically under the direction of regulatory agencies or public-interest organizations. Following deregulation, utilities most regions where these charges are still levied are required to deposit funds collected from this charge into a public trust. The funds are then dispersed by an independent third party or advisory board.
See also:
public benefits, nonbypassable charge, stranded costs, affordability programs