Lone Star Program
The System Benefit Fund Should Be Used as Intended: To Help Low-Income Texans
Legislators should take a simple, practical step to help thousands of low-income and disabled Texans by converting the System Benefit Fund to a dedicated fund that can only be used for its statutory purpose: helping low-income, elderly, disabled and critically ill Texans with electricity bills through the hot summer months and offering weatherization assistance to make their homes more energy-efficient.
Originally created in 1999 as part of Texas’ electric utility deregulation, the System Benefit Fund is a trust fund administered by the Public Utility Commission to help low-income Texans with their electricity bills through discounts, weatherization programs, and educational outreach. Since 2003, much of the fund balance in the SBF has been diverted and used to balance other areas of the state budget, rather than aiding Texas families. The SBF is financed through a maximum charge of 65¢ per megawatt hour of electricity, or about $9.75 annually for a typical Texas residential electric customer. According to the Public Utility Commission, the estimated balance in the SBF as of August 31, 2009 will be $530 million.
Weatherization along with the utility assistance program helps to decrease energy costs for all Texas consumers by decreasing energy demand in the state and minimizing the shared burden of uncompensated energy bills. In addition, weatherization creates healthier living environments, and makes homes more affordable. The program targets the elderly, families with young children, and others whose health makes them more susceptible to the state’s temperature extremes. According to the Department of Housing and Community Affairs, as of July 2008 there were over 14,000 households on weatherization waiting lists statewide.
Texas Impact supports HB 1182 by Representative Sylvester Turner, which would convert the System Benefit Fund to a dedicated account, thereby prohibiting the use of funds in the account for any purpose other than utility assistance and weatherization.
Track HB 1182 on the Capitol website
** If you are a Texan in need of assistance with your electric bill, please call the Public Utility Commission toll-free at 888-782-8477 or visit their website for more information. **
