Universal Service Fund Program & Home Energy Assistance Program

Overview NJ Dept. of Community Affairs

PSE&G LIHEAP Agency Conferences

2015

Funding Source for the USF Program

• The USF program was created by the NJ Board of Public Utilities to help low income households pay for their electric and natural gas costs

• Funding source – – Societal Benefit Fund – Rate payers

What criteria are used to establish benefit eligibility and amount?

Universal Service Fund• Eligibility

– Annual energy burden ( how much is spent in electric and gas)

– Household income = or < 175% of FPL

– Head of household or spouse name on utility bill

• Monthly Benefits are calculated

– Household energy burden exceeds 3% of Household annual income for Gas expense or 3% for Electric expense. If you heat your house with electricity, you must spend more than 6% of your income on Electricity.

Universal Service Fund

• Only seven large Gas & Electric Utility companies regulated by BPU can participate

• Electronic data Transfers between USFHEA system and the utilities

(Send & Receive Process)

How USF benefits are paid?

• USF benefits are paid as a monthly direct credit to the utility account

• Maximum USF benefit monthly of $150, combined gas and electric, up to $1,800 a year

• Fresh Start Component – Handled between BPU and Utility company

Home Energy Assistance

• The Low Income Home Energy Assistance Program (LIHEAP) is designed to help low-income families and individuals meet home heating and medically necessary cooling costs

• US Department of Health & Human Services

• Fiscal year 2015 was $126 Million

• Fiscal year 2016 allocation? We expect to be around 2015 level.

Funding Source for the Home Energy Assistance Program

What criteria are used to establish benefit eligibility and amount?

H E A

• Eligibility– Household size

– Household income = or < than 200% FPL

– Applicant or household member must be responsible for heating payments

– Social Security Numbers Automatic Validated through the Social Security Administration

What criteria are used to establish benefit eligibility and amount?

H E A

• Benefit amount– Household income – Size– Fuel type– Region in NJ

• Cooling– Meet income guidelines for HEA– Doctor’s note

How is the information acquired?Electronic File Transfer from DHS - FAMIS

• The following program participants will be automatically processed for HEA and USF:

• SNAP (Food Stamp) applications.

• PAAD applications.

• Electronic file transfer from FAMIS to USF/HEA System

USFHEA Recertification & Paper Applications- CAP/CBO Offices

• Home Energy Assistance – Universal Service Fund and Weatherization Program Applications

CAP/CBO agency staff enters information Verifications provided by client

• Recertification Process –

Only clients who submitted an application and received benefit the previous year will receive a recertification

• Clients who received a cooling benefit the previous year will automatically receive benefits thorough the recertification process.

When are applications accepted?

USF• Any time during the year• Applicant must reapply

each year

HEA• October 1st to April 30

• Applicant must reapply each year

• Cooling – automatic recertification – Credits will be sent to an active electric account

Maximum HEA benefit amount per household per year

Heating Assistance up to $2,000.00

which includes the regular HEA benefit and…emergency fuel purchase up to $450.00 restoration of service (one per year) up to $100.00cold air infiltration (one per year) up to $100.00supplemental payments If funds are

available Cooling $200.00 Heating Repairs up to $1,000.00

What Emergency Benefits can HEA provide?

Deliverable Fuels • EA period starts after first regular HEA payment• Emergency benefit for a fuel delivery if

– Client brings a statement certifying fuel has run out – Local CAP/CBO agency verifies lack of fuel

Gas/Electric• Emergency benefit to cancel pending service

interruption – Shutoff notice to the CAP/CBO– No emergency payments before March 16th

LIHEAP & USF

• All information about these programs can be found at the Department of Community Affairs website:

• www.energyassistance.nj.gov

• Applications and local agency information can be obtained at this site

• 1-800-510-3102