NJ Low-Income Program Enrolls 130,000

New Jersey Governor James E. McGreevey has announced that over 130,000 New Jersey residents are receiving benefits from the recently implemented Universal Service Fund (USF) program. The USF, which began in August, helps low-income New Jersey residents pay for gas and electric utility services through a fixed credit percentage of income payment plan.

"Prior to the creation of this new program, thousands of hard-working New Jersey residents were paying 10 percent, 15 percent and even 20 percent of their income on energy bills. Now, qualified individuals will only pay 6 percent for energy costs," McGreevey said in a press release dated December 18.

During its first year, the USF will issue roughly $65 million in benefits. Funding for USF comes from the Societal Benefits Charge, a small charge on all utility rates that helps fund environmental, renewable energy and low-income programming.

Under the USF, residents earning 175 percent or less of FPG are eligible to receive a credit toward their energy bills. This credit insures that each participant pays no more than 6 percent of his or her income on gas and electric utility expenses

The Governor also announced that residents can apply for the USF by signing up for New Jersey's LIHEAP. Over the next year the state will review its LIHEAP database and automatically enroll any additional eligible customers that are found. He added that by the end of next year, the State will have a new USF application process in place, allowing residents to apply for the USF at social service agencies. The USF application system will have features such as web-based application processing that will greatly decrease the time it takes to determine eligibility and for customers to start receiving benefits.

For more background, see the LIHEAP Networker, Issue 48.

Page Last Updated: August 23, 2007