Connecticut Sets Low-Income Gas Discount Rates
Regulators approved a five-tier discount program for residential gas heating customers of three utilities in Connecticut.
Updated on Nov. 4, 2026 in Utilities
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The Connecticut Public Utilities Regulatory Authority issued a final decision establishing a five-tier low-income discount rate for residential gas heating customers. The program covers customers of The Southern Connecticut Gas Company, Connecticut Natural Gas, and Yankee Gas Services Company.
Why it matters
The program targets households with income at or below 60 percent of state median income, aiming to make home energy more affordable across Connecticut. Lower disconnections are also expected to reduce uncollectible costs that all ratepayers otherwise absorb.
Discounts range from 4 percent to 71 percent for customers at or below 60 percent of state median income, with program funding capped at 2 percent or less of each company's annual revenue. The extraction does not specify how many households are eligible or the total dollar cost to ratepayers.
The players
Connecticut Public Utilities Regulatory Authority
The state agency that regulates utilities in Connecticut and issued the final decision establishing the gas discount program.
The Southern Connecticut Gas Company
A natural gas distribution utility serving customers in southern Connecticut, one of three companies covered by the program.
Connecticut Natural Gas
A natural gas distribution utility serving parts of Connecticut, included among the companies covered by the new discount program.
Yankee Gas Services Company
A natural gas distribution company in Connecticut, which will discontinue its Below Budget Payment option when the program launches.
The details
The discount applies to residential gas heating customers and is calculated on usage of up to 105 hundred cubic feet each month, with the highest discount going to the lowest-income households. Southern Connecticut Gas and Connecticut Natural Gas are enrolling all eligible customers at a 10 percent discount in the interim, and they have stopped offering the Below Budget Payment option.
Timeline
2024: Regulators established a five-tier electric discount program for Eversource and United Illuminating customers.
November 4, 2026: The Public Utilities Regulatory Authority issued its final decision on the gas program.
March 2027: The gas companies are expected to begin enrolling qualifying customers.
Roadmap
The gas discount program follows the design of the five-tier electric low-income discount rate program that Connecticut adopted in 2024 for Eversource and United Illuminating customers. It extends that same framework to residential gas heating customers of three gas distributors.
Eligible residential gas heating customers with household income at or below 60 percent of state median income could see bill discounts ranging from 4 percent to 71 percent once enrollment begins. Customers of Yankee Gas will lose the Below Budget Payment option when the new program launches.
The takeaway
Connecticut's gas discount program is designed to lower uncollectible costs while keeping home energy within reach, and eligible households should watch for enrollment notices from their gas company beginning in early 2027.
What happens next
The gas companies are expected to begin enrolling qualifying customers by March 2027, and participants will receive written communications within 30 days after launch.
Further reading
For related coverage, see Connecticut Utilities news.
Source note: This article includes information reported by Patch.
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