Help is Available from the Universal Service Fund and LIHEAP

The Universal Service Fund (USF) and the Low-Income Home Energy Assistance Program (LIHEAP) can help you meet home heating and other energy costs.

• USF provides a monthly credit on gas and electric bills. The credit helps to ensure that eligible customers will only be required to pay about 6% of their household income for gas and electric service.
• LIHEAP provides a single annual heating assistance grant during the heating season and, in some circumstances, other one-time grants as well.

November can be a good time to apply for these important programs. USF enrollment is open year-round, but the application period for LIHEAP grants is limited. This year, the LIHEAP application period is scheduled to run from November 1, 2007, to March 30, 2008.

To apply for USF and LIHEAP, you can contact an authorized local community action agency or community-based organization in your area. (If you need help finding an agency that accepts applications, call 1-800-510-3102 or visit www.energyassistance.nj.gov.) You can also obtain an application directly from the Web site and mail it in to the LIHEAP Program. When you apply for LIHEAP, you are automatically considered for USF as well.

What kind of help is available for heating bills?

• USF provides assistance only to customers of the seven New Jersey gas and electric public utility companies. They are:
• Public Service Electric & Gas Company (PSE&G)
• Atlantic City Electric (or Conectiv)
• Jersey Central Power & Light (JCP&L or GPU)
• Rockland Electric Company
• New Jersey Natural Gas Company
• South Jersey Gas Company
• Elizabethtown Gas Company

The LIHEAP program covers more households. You can be eligible for LIHEAP no matter what fuel source you use.

Questions And Answers About USF

Who is eligible for help through USF?

Utility customers are eligible for a monthly USF credit on their utility bills if they meet two conditions.

• First, their household income must be at or below 175% of the federal poverty guidelines. (See the box on page 3 for the income limits that apply this year.)
• Second, their expected utility costs must be more than 3% of household income for electric service, 3% of household income for natural gas, or 6% of household income for all-electric heat customers.

Also, the name on the USF/LIHEAP application needs to be the same as the name on the utility bill.

Note: Even if you received USF or LIHEAP benefits last year, you need to reapply for benefits each year. (The Board of Public Utilities is currently deciding whether to continue automatic screening of Lifeline energy assistance recipients for USF benefits.)

What benefits does USF provide?

USF assistance reduces your utility bill. Here’s how it works:

Each customer receiving USF assistance gets a credit each month. The credit is based on an estimate of the amount of energy the household will use in the next year. Most often, this estimate reflects past energy use at the same property.

The utility then subtracts the amount of your USF credit from your utility bill each month. It’s that simple!

Will my utility bills be the same each month on USF?

Yes, but only if you sign up for your utility’s budget billing plan.

Under a budget billing plan, your utility will estimate the total amount you should expect to pay over the next year. Next, it will take into account the USF, LIHEAP, and other benefits you may be entitled to receive. It will then divide the resulting amount into 12 equal monthly payments. That will be the amount of your bill each month.

There still may be surprises, though. Your actual gas or electric usage will probably turn out to be different from the amount the utility estimated. If that is the case, your bill will be adjusted to reflect the difference. This process of “truing up” should take place at least once every six months.

Note: This may be a good time to get on a budget billing plan if you are not already on one. Energy costs are expected to be very high this winter, and a budget billing plan that starts now will spread some of those costs out until next summer. There is no effect on LIHEAP or USF eligibility or benefits.

If you do not choose to join your utility’s budget billing plan, your bill will vary from month to month. It will reflect the amount of your utility use each month, less your USF credit and LIHEAP benefits.

The good news is that if you use less energy than estimated, you will have to pay less.

But if you use more energy than estimated, you will have to pay more.

One thing that you can do is to contact your local weatherization program office to find out if you are eligible for free improvements to your home so that you can use less energy.

What if I have overdue bills from past years?

If you have past due bills over $60, USF will forgive that outstanding balance if you simply keep up with your current monthly bills for one year after you first start to receive a USF credit. This part of the program is called Fresh Start. You should be placed in the Fresh Start program automatically if you qualify. The utility company cannot disconnect your service for nonpayment of overdue bills that are part of the Fresh Start program.

If you miss monthly payments during the year you are on Fresh Start, your utility company should send you reminder letters. This will give you a chance to catch up.

You will have three more months at the end of the initial 12-month period to make up any missed payments. Each customer, though, gets just one 12-month period (with a three-month grace period at the end) in which to get rid of their overdue bills.

Are there any other limits on USF benefits?

There are two other limits to the amount of a recipient’s USF credit. One limit is that the largest credit a customer can receive is $150 each month, or $1,800 each year. The other is that all customers must pay at least $8 per month, even if that is more than 6% of their income.

If one of these limits applies to you, and that causes a hardship, call the Board of Public Utilities Division of Customer Assistance at 1-800-624-0241, and contact the LSNJ hotline at 1-888-LSNJ-LAW (1-888-576-5529) to let us know that this is the case. There may be additional sources of assistance that can help. If there are not, then it is important to let the Board know that these limits can cause hardships.

Questions and Answers about LIHEAP

What is the Low Income Home Energy Assistance Program (LIHEAP)?

As noted above, LIHEAP can provide assistance no matter how your home is heated (oil, propane, or wood, for example). To be eligible for LIHEAP benefits, you must be responsible for home heating or cooling costs, either directly or included in the rent. You must also have gross income below 175% of the federal poverty level (see the below chart for monthly income guidelines). While almost all income received by anyone in the household is counted, some is not. For example, income earned by a full-time student is not counted. Neither are payments received from other energy assistance programs, such as Lifeline.

LIHEAP provides single payment grants to help with energy costs. The amount of the basic LIHEAP heating benefit varies based on income, household size, fuel type, and heating region. Last year, the average was about $400. A household receiving medically necessary cooling benefits can also receive a check. This year, the cooling assistance benefit is set at $100.

If your home is heated with natural gas or electricity, you may have your LIHEAP check sent directly to the utility company. Otherwise, in most cases, a two-party check (made out to you and to your fuel supplier) will be sent to you. If your heat is included in the rent, your check will be made out directly to you.

LIHEAP can also provide emergency assistance if you have no heat or are in danger of losing your heat, and you don’t have enough money to solve the problem yourself. You may be able to get up to $400 for an emergency fuel delivery or to have utility service restored. A homeowner may be able to get emergency help to fix his or her furnace. A tenant who pays for utilities can get up to $100 for emergency help to restart a furnace. In some energy-related emergencies, LIHEAP can even provide temporary shelter or help in preventing an eviction.

I live in public housing. Can I still get help with utilities?

People who live in public housing and/or receive rental assistance are not eligible unless they pay for their own heating/cooling costs directly to the utility company. The amount of help you will receive depends on your total income, household size, fuel type, and heating region.

For further information on LIHEAP or to locate the nearest application agency, call 1-800-510-3102, or visit www.energyassistance.nj.gov.

This article originally appeared in the November 2007 edition of Looking Out for Your Legal Rights^®.