(a) {Reserved}.

1. (1) A public utility shall include proposed annual LIURP budgets for the term of a proposed USECP that is filed with the Commission for review and approval.

2. (2) Upon approval of the USECP by the Commission, the public utility shall continue providing program services at the LIURP budget levels approved in the USECP until the LIURP budget is revised in a future Commission proceeding.

   (a.2) Special needs customers. A public utility may spend up to 25% of its annual LIURP budget on eligible special needs customers as defined in § 58.2 (relating to definitions).

(a.1) General.

(c) Guidelines for establishing or revising a LIURP budget. A public utility’s LIURP funding level shall be computed based upon the following factors:

1. (1) The estimated number of customers by FPIG levels identified through census data:

   1. (i) 0%—50%.
   2. (ii) 51%—100%.
   3. (iii) 101%—150%.
   4. (iv) 151%—200%.

2. (2) The number of confirmed low-income customers by FPIG levels:

   1. (i) 0%—50%.
   2. (ii) 51%—100%.
   3. (iii) 101%—150%.
   4. (iv) 151%—200%.
3. (3) The number of special needs customers.
4. (4) The number of eligible confirmed low-income customers that could be provided program services. The calculation shall take into consideration the number of customer dwellings that have already received, or are not otherwise in need of, program services.
5. (5) The number of eligible special needs customers that could be provided program services. The calculation shall take into consideration the number of customer dwellings that have already received, or are not otherwise in need of, program services.
6. (6) The expected customer participation rates for eligible customers. Expected participation rates shall be based on the number of eligible confirmed low-income customers and historical participation rates.
7. (7) The total expense of providing program services, including costs of program measures, energy conservation education and training expenses and prorated expenses for LIURP administration.
8. (8) A plan for providing program services to eligible customers within a reasonable period of time, with consideration given to ESP capacity necessary for provision of services, including time and materials, and the impact on public utility rates.

(d) {Reserved}.

(d.1) Unspent LIURP funds. A public utility shall annually reallocate unspent LIURP funds to the LIURP budget for the following program year unless an alternate use is approved by the Commission. An alternate use may include using unspent LIURP funds to provide program services to eligible customers with household income up to 250% of the FPIG.

(e) Recovery of LIURP costs.

1. (1) LIURP costs incurred by a public utility are to be funded by a nonbypassable, competitively neutral cost mechanism under 66 Pa.C.S. § 2203 (relating to standards for restructuring of natural gas utility industry) or under 66 Pa.C.S. § 2804 (relating to standards for restructuring of electric industry) allotted among ratepayers. The precise method of allocation between capital and expense accounts shall be determined in future rate proceedings.
2. (2) Recovery of LIURP costs will be subject to Commission review of the prudence and effectiveness of a public utility’s administration of its LIURP.
3. (3) The LIURP funding mechanism and the allocation between capital and expense accounts will be determined in a public utility’s rate proceeding.