Utility Rate Reduction Incentive in Public Housing

The United States Department of Housing and Urban Development has guidance regarding use and eligibility of the Rate Reduction Incentive (RRI).  The RRI is a financial incentive for Public Housing Authorities (PHAs) to pursue special and significant efforts beyond what is required by statute or regulation to reduce their utility rate.  PHAs that take an eligible action will be eligible to retain one-half of the annual savings realized from their actions.  The lower rate cannot be result of factor that do not require PHA action such as market changes, rate changes for all customers or consuming energy at a different time of day.

Eligible activities include special rate negotiated by and for the PHA, wellhead purchase of natural gas, power purchase agreement using a third-party energy supplier, energy efficiency investments that lead to lower utility rates, investments to allow for fuel switching capability in order to participate in an interruptible utility rate, commodity purchases of regulated utilities in a deregulated market that result in a lower utility rate, active commodity trading and on-site renewable energy.

Activities ineligible to receive RRI include energy investments that lower utility consumption but not the rate, selecting the best available utility rate, combining or removing meters to prohibit individual tenant metering, and fuel switching to obtain a better rate when new equipment is not required.  (PIH Notice 2019-24, September 3, 2019.)