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New Resources Help with Low-Income Heating Bills in 2001NEW STATE FUNDING New Mexico: Legislation passed during the winter of 2001 provided the New Mexico LIHEAP with $2 million in state funds. The only stipulation was that the state had to spend the money by June 30, 2001. With the increased funding, the LIHEAP program was able to stay open longer and enroll additional households, according to Loretta Williams, state LIHEAP coordinator. The program served 45,000 households compared to 24,000 the previous year. She added that this was the first time that state money had been allocated to the LIHEAP. Nevada: On Feb 21, 2001, AB 209 was enacted, which made a one-time $4 million appropriation to the Welfare Division of Department of Human Resources, the administrator of Nevada's LIHEAP. The money, left over from the last fiscal year, will be used to increase the number of low-income households served. Eligibility will remain at its present level, 150 percent of the federal poverty level. According to Linda Mercer, Acting Nevada LIHEAP Director, the money appropriated will be used to extend LIHEAP assistance after the Federal grant monies run out - probably at the end of August. "We've had over 80 percent increase in applications," Mercer said. "We've had over 4,000 applicants in a six-week period, as compared to 11,000 last year for the entire year." Mercer explained that the money has been released, is in the Welfare Department's account and will be used when federal dollars are depleted. A second piece of legislation, AB 661, was passed during the Seventeenth Special Session, held June 14 - 15, 2001. However, the state programs were delayed due to controversy over whether the Legislature passed AB 661 before the mandatory end of the session. The Nevada Supreme Court on July 17 ruled the Legislature beat the deadline with its vote on AB 661, and Governor Guinn signed the bill the same day of the court ruling. Among other things, AB 661 contained provisions for low-income energy assistance programs. This legislation:
As of early August, the Public Utilities Commission of Nevada (PUCN) had started collecting the universal energy charge from customers of Nevada Power, Sierra Pacific Power and Southwest Gas to pay for the programs. The charge is based on consumption and the revenue is placed in a fund, 75 percent of which will be distributed to the state's LIHEAP on a quarterly basis. The remainder will be distributed to the state weatherization grantee, the Nevada Housing Division. The monthly charge averages about 43 cents on the typical residential electric bill and 16 cents on the typical residential gas bill. The charge is expected to generate $10 million annually for low-income energy assistance and conservation and it will be an ongoing source of revenue. Linda Mercer, program manager for the Welfare Division's LIHEAP, said she anticipates it will be the end of October before any funds are available under AB 661 because that's the end of the first quarter when the first installment is due. She estimates $1.3 million will be available on a quarterly basis. "These non-federal funds will enable us to serve over 30,000 low-income households. The federal funding allows us to serve from 8,000 to 9,000 low-income households. There are currently between 147,000 to 150,000 households within the state that meet the poverty guidelines," Mercer said. California: Legislation passed and signed into law last month creates a new state-funded California Low-Income Home Energy Assistance Program and provides it a one-time allocation that surpasses the state's federal LIHEAP allocation. It also gives a substantial boost to the existing ratepayer funded low-income utility discount known as CARE or California Alternate Rates for Energy. Declaring that "California is currently experiencing an energy crisis which threatens to adversely affect the economic and environmental well-being of the state" and that "one of the most cost-effective, efficient, and environmentally beneficial methods of meeting the state's energy needs is to encourage the efficient use of energy," the legislature allocated the money as part of a massive $850 million electricity conservation bill. SBX1 5 allocates $120 million for the newly-created state LIHEAP program, adds $100 million for the CARE discounts, provides $20 million more to the ratepayer funded Low-Income Energy Efficiency program (LIEE), and gives $50 million to an energy-efficient appliance purchase and replacement program that must be targeted to low-income households. The new allocation for a California LIHEAP doubles existing funding. The state's 2001 regular and emergency LIHEAP funding totaled $102 million. CARE funding from the major regulated gas and electric utilities is about $128 million; municipals also operate discount programs estimated at another $50 million. Current LIEE funding is about $56 million annually. The new California LIHEAP funding will be administered by the Department of Community Services and Development, the federal LIHEAP grantee, to supplement that program. However, the law imposes different guidelines for the new program. For example, no less than 50 percent of the funds must be spent on weatherization assistance with the balance for cash assistance and energy crisis intervention. Households up to 250 percent of federal poverty guidelines may be served. Additionally, the agency must met a variety of requirements pertaining to expanded outreach to vulnerable households, coordination with other low-income energy programs, and distribution of the funds to local agencies. The state has until January 1, 2005 to spend the money, but its goal is to distribute as much money and to install as many electricity-saving measures as possible this spring and summer, based upon expectations that California will continue to experience energy shortages. Toward that end the California Public Utility Commission on May 3 issued "Interim Opinion: Rapid Deployment of Low Income Assistance Programs During the Energy Crisis," with directions on implementation to utilities and the state. "The key focus of today's decision is to make low-income assistance programs available to those who need it the most during the energy crisis, as rapidly and extensive as possible," the opinion stated. Ohio: On March 27, Ohio Governor Bob Taft signed a bill (HB 9) to provide an additional $20 million in state funding to help Ohioans pay high home heating bills that resulted from lower-than-normal temperatures and higher-than-normal fuel costs. This appropriation is in addition to the $25 million that was allocated in late January to Project THAW (Temporary Heating Assistance for Warmth) through Temporary Assistance for Needy Families (TANF) funds. This portion of Project THAW will be for non-TANF households who meet the income guidelines. Project THAW provides a one-time credit of up to $250 for Ohio households whose income does not exceed 200 percent of the poverty level. The credit is paid directly to the utility companies to cover any heating bill from Oct. 1, 2000 to March 31, 2001. Project THAW has been administered through the Ohio Department of Job and Family Services since Jan. 29, 2001 for households with children through the TANF fund. The signing of HB 9 allows counties to provide benefits to households without children through the state's General Revenue Fund. Oklahoma: On March 26 Governor Frank Keating signed a bill allocating $13.6 million to supplement the state's LIHEAP and assist low-income households with their heating bills. The money is being used to make a supplemental LIHEAP payment to the 85,306 households already authorized under the program. Additionally, the state LIHEAP has reserved $500,000 for crisis payments and $1 million for a summer cooling program. Washington: On March 12, Washington's Governor signed the first bill to be passed by the state legislature, which allots $1 million from the state's emergency reserve fund for low-income energy assistance. The money will be administered by the Department of Community, Trade and Economic Development, the LIHEAP grantee, which will match it with federal funds. Supporters said the energy fund will help 2,500 households with their electric and heating bills, which they said doesn't begin to fully meet the need, but is still a great help. New Jersey: New Jersey's Statewide Heating Assistance and Referral for Energy Services (SHARES) was recently awarded $1.6 million from a new funding source - unclaimed utility deposits, called escheats. This amount is equal to seventy-five percent of the unclaimed utility deposits received from each of the electric and gas utilities in 1998 and 1999. The other twenty-five percent is held in a trust fund in order to pay those customers who do claim their refunds. In February, another $700,000 is expected, which adds up to $2.3 million this year to assist needy customers who are having difficulty paying their utilities. There will be no income guidelines; but, in order to qualify for energy assistance, the customer must demonstrate a need to the intake agency. This could be a one-time utility bill crisis due to a temporary financial reversal, medical crisis, or other family problem. New Jersey is the fourth state to pass legislation that provides the use of uncollected utility deposits for energy assistance. The other three states that have tapped into this resource include Arizona, Colorado, and New Hampshire. New Hampshire: In mid-December (before additional regular and emergency LIHEAP funds had been authorized) the Department of Health and Human Services, the TANF grantee, tapped an emergency funding source for heating money for TANF recipients. The department implemented an emergency rule and policy change to allow families to access more energy assistance under TANF's emergency assistance provisions. Qualifying households could receive a $450 grant (up from $150) and they could also tap these funds up to six times, instead of just once a year. New Jersey: Additional legislation was passed by New Jersey's legislature that will provide another source of funding for SHARES. New Jersey's natural gas utilities recently requested a 22 percent rate increase. The utilities proposed that a certain percentage of the state income tax paid on the monies generated from this rate increase be appropriated to SHARES, which could be as much as $10 million. This one-time appropriation was signed into law on February 2, 2001 by New Jersey's Acting Governor, Donald Difrancesco. Iowa: During the last week of January, the Iowa legislature passed measures to help low-income Iowans and the general public with their heating bills. One law allocates $10.5 million to the state LIHEAP program for low-income heating assistance; the other suspends the state's 5 percent sales tax on natural gas, propane and heating oil for two months starting in February. The bill also phases out the tax on those energy sources, plus electricity over a period of five years starting next January. The last two measures apply to all residents, regardless of income. The Governor signed the first measure into law February 6, the last two measures were signed February 5. Mississippi: The state Department of Health and Human Services (DHS) will use funds from the Temporary Aid for Needy Families (TANF) to make utility payments for those receiving TANF benefits and for families who have at least one child and live below federal poverty level guidelines. Starting February 5, cash payments, based on individual needs, will be made to utility providers. DHS expects to help pay utility bills for 50,000 households. Ohio: On January 25, Governor Bob Taft created a new energy assistance credit program, Temporary Heating Assistance for Warmth (Project THAW), to provide a one-time credit of up to $250 to households up to 200 POP, regardless of fuel type. The program will be funded with $25 million of TANF (Temporary Assistance for Needy Families) funds that are immediately available for use, as well as up to a $20 million general fund appropriation that the Governor will request. Administered through the Ohio Department of Job and Family Services, Project THAW began January 29. The Governor also challenged the state's natural gas utilities to create a $5 million fund to help offset their low-income customers' heating bills. Colorado: On January 17, Colorado's Governor signed a $10 million bill that had been fast-tracked through the legislature to help low-income Coloradans pay their heating bills. Funding comes from surplus revenues from taxes on oil and gas production. The funds were transferred to the state LIHEAP office and distributed through its networks. An additional 20,000 households could be served and the average LIHEAP benefit will double. Massachusetts: In mid-November, the Massachusetts legislature authorized $12 million in state funds for a heating oil assistance program and $5 million for a program that provides incentives for wholesalers to increase the supply of heating oil in the state. OTHER FUNDING Nevada: On July 23, Nevada Power and Sierra Pacific Power Company announced their combined contribution of $5 million would be available to help low-income customers in their service areas. Distribution of this funding began on August 1, 2001 through the utilities' existing programs, the Special Assistance Fund for Energy (S.A.F.E.) and the Low Income Funding Together (LIFT), that provide direct financial support to low-income residents for paying their utility bills. However, Tim Hay, Nevada's Consumer Advocate, was critical of the way the money will be dispersed because the $5 million is going to be spread out in monthly increments of $200,000. Oklahoma: Volunteers will be out holding red buckets to collect money for Home Energy Aid Week beginning July 19 and going through July 25. Money raised will go to The Salvation Army's home energy assistance program. The event is sponsored by Public Service Company of Oklahoma, Oklahoma Natural Gas, Oklahoma Gas & Electric and The Salvation Army. Each utility company has a year-round program to raise money for needy families. The companies agreed to come together for the week of activities to raise money for The Salvation Army's program. The programs help Oklahomans who are temporarily in a financial crisis and are in cut-off status with utility service. Last year, the event raised $18,031. Virginia: On April 27, the Salvation Army's Utility Relief Fund received $10,000 from Ukrop's Super Markets Inc. and First Market Bank to provide utility assistance to residents of Richmond, Henrico, and Chesterfield counties. Philip Morris USA pledged another $10,000. Dominion Virginia Power also announced that it would donate $10,000 to its Energy Share program, which is funded by donations from customers and employees. The $10,000 will be distributed to about 70 agencies across the state. Kentucky: Louisville Gas & Electric Company (LG&E) increased contributions to the Community Winterhelp program that helps low-income customers pay their heating bills. In October 2000, LG&E pledged to double its donations by matching customer contributions on a dollar-for-dollar basis through March 2001. Previously, LG&E provided a 25-cent match throughout the year and a 50-cent match in January and February. In December 2000, a $25,000 donation to Winterhelp by Metro United Way was matched by LG&E, bringing the total to $50,000. In February 2001, LG&E launched a 60-day campaign to raise additional funds for Winterhelp. LG&E matched dollar-for-dollar contributions from customers, business and nonprofit organizations. Funds raised for Winterhelp totaled just under $500,000. Community Winterhelp is a nonprofit program promoted by the utility and managed by an independent third party. Last year Winterhelp raised more than $200,000 to assist 1,100 families with heating bills. New York: The City of New York has allocated $5 million for heating assistance for seniors aged 60 and older in New York City. The money will supplement LIHEAP, which contracts with the Department of Aging for the city's senior population. The City Aid to Seniors Energy Supplement Program will assist at least 50,000 additional seniors by increasing the income eligibility level. Seniors can apply for the program through May 31. New Orleans, Louisiana: In January, Entergy-New Orleans donated $3 million to be used for energy assistance for low-income households in that city, which is experiencing a colder winter than normal and has seen significantly higher gas bills. The funds were to be administered through two local agencies: the Elderly and Handicapped Emergency Assistance Fund and Helping Hands. Washington: In late February Seattle's City Council approved the expansion of Seattle City Light's rate assistance program -- in effect since 1989 and called Rate 27 -- to make eligible anyone with earnings up to 200 percent of the federal poverty level. For ten years, the threshold remained at 125 percent of the poverty level. The city anticipates 12,000 additional households will take advantage of the rate. The City Council agreed to spend $1 million on outreach to make Seattle City Light customers aware of the discount, which will reduce utiltiy bills by 50 percent. The Rate 27 Program will cost the city about $10 million a year. Georgia: AGL Resources, a regional holding company for energy and infrastructure related businesses in the Southeast, is donating $200,000 in matching funds to provide energy assistance to elderly and low-income natural gas customers in Georgia. This donation is in addition to $160,000, provided by AGL Resources and Williams Energy in September 2000, that help support a special fund established by the United Way of Metro Atlanta's 2-1-1 program. AGL Resources will match energy assistance contributions dollar for dollar, up to $200,000, from Georgia's nine certified marketers. To date, natural gas marketers and AT&T have responded with pledges of $218,000. St. Louis, Missouri: On February 2, the St. Louis Board of Aldermen approved spending nearly $1.13 million to help low-income city residents pay home heating bills. Beginning in six to eight weeks, the funds will be distributed by private, nonprofit agencies. The St. Louis Archdiocese announced February 2 that it will begin distributing $100,000 in grants to assist low-income families and individuals with winter heating bills. The grants are available immediately and are expected to benefit about 1,000 households. Ohio: In response to the Governor's challenge (see above under new funding), Columbia Gas of Ohio announced the creation of a $3.5 million emergency assistance fund that will help payment-troubled customers who do not usually qualify for regular energy assistance programs. East Ohio Gas and Cincinnati Gas & Electric Co. (part of Cinergy Corp.) agreed to provide the Salvation Army with $1 million and $500,000, respectively, for energy assistance to low-income families. City of Golden, Colorado: In January, the city government donated $10,000 to help residents pay for high heating bills, to be distributed through a local nonprofit. Indiana. In-mid December, the Lilly Endowment pledged $25 million in aid for low-income natural gas users through a program called HELP (Heating Emergency Linkup Program ) 2001, to run January through April in coordination with Goodwill Industries and gas utilities. The program is primarily for people in danger of disconnection from gas service, but whose income is too high to qualify for LIHEAP and other charitable programs. LIHEAP's eligibility level in Indiana was lifted to 150 percent of poverty this year; the HELP program is available for people between 150 and 175 percent of poverty. Goodwill estimated that up to 125,000 households statewide could qualify for HELP 2001 assistance. Illinois: The City of Chicago donated $250,000 to Share the Warmth, a gas utility's fuel fund. In turn, the utility, People's Energy, matched the city's gift and added another $125,000 to the fund. Combining funds from previous years, customer donations and the utility's contribution brought the total amount of money in the program to more than $950,000. Share the Warmth, which is administered by the Salvation Army, makes grants up to $300 annually to households within 200 percent of the federal poverty level. Illinois: Nicor Gas, which serves part of northern Illinois, on January 9 increased the eligibility level for its Sharing fuel fund to persons earning from 170 to 200 percent of the poverty level. Over the winter, Nicor has also increased its grant amount from $200 to $325. The fuel fund is administered by the Salvation Army. Connecticut: Operation Fuel, a statewide fuel fund, increased the amount of its assistance grant from $250 to $350 this year. Virginia: In January, Virginia Natural Gas doubled the amount of assistance it provides to its fuel fund, EnergyShare, by adding another $40,000. DISCONNECTION MORATORIA and other UTILITY COMMISSION ORDERS: Kansas: The Kansas Corporation Commission issued an order May 3 that details distribution of a $29.3 million ad valorem tax refund. The refund is available for low-income energy assistance to households at or below 300 percent of federal poverty guidelines. Four natural gas distribution companies will have funds available beginning June 2001 through November 1, 2001. The Salvation Army is administering the distribution of $1.7 million in rebates for Peoples Natural Gas and Kansas Public Service. Eligible customers will receive credits of up to $325. Kansas Gas Service will provide credits of up to $495 to the first 9,000 eligible customers. The $4.5 million rebate program is administered by the American Red Cross. LIHEAP or Gas Assistance Program recipients are encouraged to apply, however, the amount of last winter's benefit may be deducted from rebates. Iowa: The Iowa Utilities Board extended by emergency rule the state's moratorium period for disconnections until May 1. The moratorium had been scheduled to expire April 1. This is the first time in the 17-year history of the moratorium that it has been extended. Kansas:OnMarch 20, the Kansas Corporation Commission (KCC) issued an order that extended the Cold Weather Rule through May 31. The Cold Weather Rule, normally in effect through March 31, prohibits the disconnection of residential utility service during extremely cold periods and requires that utility companies offer a 12-month payment plan for past and current bills. April 2, after a legal challenge, the KCC revised the extension of the disconnect date to April 30. Customers will still have until May 31 to set up a 12-month payment plan but are advised to make a payment arrangement before April 30 to avoid the risk of service disconnection. Texas: In December, the Railroad Commission of Texas adopted an emergency rule prohibiting discontinuance of natural gas service during winter months under certain conditions. Gas providers may not disconnect a customer on a day when the previous day's temperature in the county where the customer takes service fell below 40 degrees Fahrenheit, and when the National Weather Service predicts that the temperature in that county will fall below that level during the next 24 hours. Providers may not disconnect service to a delinquent residential customer for a billing period in which the provider receives a pledge, letter of intent, purchase order, or other notification from an energy assistance provider that it is forwarding sufficient payment to continue service. Finally, providers may not disconnect service to a delinquent residential customer on a day, or on a day immediately preceding a day, when personnel of the provider are not available for the purpose of receiving payment or making collections and reconnecting service. Providers are also encouraged to offer customers with delinquent bills a deferred payment plan or a level or average payment plan. The rule was to be in effect for 120 days. New York: The New York State Public Service Commission has approved a plan to partially offset rising natural gas rates for low-income Niagara Mohawk (NIMO) customers in upstate New York. Eligible low-income NIMO gas heating customers would receive monthly bill credits of $27.50 for four consecutive months (December through March) during the current heating season, totaling $110. All customers who are LIHEAP recipients (an estimated 32,500) would be automatically included in the program, which will cost about $3.6 million. Funding for the credits comes from the company's Contingency Reserve Account. The utility has estimated that average residential natural gas bills will rise by 33 percent this winter. Georgia: Under the Natural Gas Deregulation Act, the Public Service Commission (PSC) is allowed to refund excess money in the Universal Service Fund at the end of the fiscal year. Last year, the PSC directed some of that refund to elderly and low-income citizens. The refunds will appear as $10 credits on gas bills in January, February and March 2001. In February 2001, the PSC approved an additional refund of $50 for low- income seniors which will appear on March gas bills. About 30,000 consumers currently participate, but another 30,000 who qualify haven't applied. Ohio: On January 25, upon urging from the Governor, the Public Utilities Commission of Ohio (PUCO) expanded a 60-day moratorium on utility disconnections for customers who can't pay their bills. The order prohibits Ohio's investor-owned gas, natural gas, and electric distribution companies from disconnecting residential consumers from their gas or electric service for non-payment of a bill for the next 60 days as long as the customer agrees to enroll in one of the Commission-ordered payment plans offered by the utility. Earlier in the winter, the PUCO had barred disconnections of LIHEAP customers. New Hampshire: On January 8, the Public Utilities Commission imposed a moratorium on gas and electric service disconnections during the period of January 9, 2001 to March 31, 2001. Also during the moratorium period, gas and electric utilities must issue late payment notices in lieu of disconnect notices. Georgia: In January, the Public Service Commission voted to prohibit any natural gas marketer from disconnecting a customer for nonpayment until April. Kansas: On January 2, the Kansas Corporation Commission (KCC) approved a plan to cut gas bills in half for low-income customers who do not qualify for other energy assistance programs. Under the plan, the American Red Cross will identify 7,500 qualifying customers of Kansas Gas Service, a utility serving eastern and central Kansas. For these customers, the cost of gas will be reduced by 50 percent on bills issued between January 2 and June 30, 2001. The cost of the $3 million program will come from a portion of the Kansas ad valorem tax refund. According to the KCC, after years of litigation the Federal Energy Regulatory Commission required gas producers to refund ad valorem taxes that they had passed through to consumers during the 1970s and 80s. On April 2, the KCC extended the application period through April 30. Massachusetts: On January 31, in the wake of its approval of utility gas price increases that could boost bills by as much as 35 percent, the Massachusetts Department of Telecommunications and Energy prohibited gas companies from shutting off service for non-payment before May 1. The date had been March 15. The DTE also directed gas companies to aggressively promote their energy conservation programs. Virginia: Virginia Natural Gas approved a moratorium on disconnecting gas service for all customers in February. This self-imposed moratorium is in addition to a regulation from the State Corporation Commission that doesn't allow the company to terminate a customer's service when sub-freezing weather is forecast. OTHER RESOURCES Washington: With the unanimous passage of SB 5540-S2 during the last week of April, a new Public Utility Tax Credit program has been created for gas and electric utilities that provide billing discounts to low-income customers or make direct contributions to existing community-based energy assistance programs. The program begins for discounts provided after July 1, 2001. The amount of the credit is equal to one-half of the amount the utility contributes to local energy assistance programs or offers in new billing discounts to low-income customers. To qualify for credit, the discounts must be equal to or greater than 125 percent of the discounts given in 2000. If no discounts were given in 2000, credit is allowed for all new discounts. The maximum credit available statewide through the program is $1.5 million per year, and each gas or electric company's maximum share of the available credit is proportionate to the amount of energy assistance grants received by its low-income customers. Administrative timelines and application deadlines are established. The Department of Community, Trade, and Economic Development must notify the Department of Revenue (DOR) of the amount of grants each electric or gas company receives annually by May, and DOR must publish the maximum amount of credit available to each utility by June of each year. Electric and gas utilities must apply for the credits by July 1, and DOR must act on the applications by August 1. Any unused credits may be distributed to other qualifying companies on a pro-rated basis. Ohio: In January Columbia Gas of Ohio began a statewide distribution of 10,000 free home energy conservation kits to its low-income customers. The kits, containing easily-installed energy conservation products such as weatherstripping, caulk, and materials to seal windows, doors and electric switch and outlet plates, will be distributed to clients served by local community action agencies throughout Columbia's territory. Page Last Updated: September 24, 2009 |
