New Jersey USF Gets 2004-05 Funding at $78 Million

New Jersey's Board of Public Utilities (BPU) on June 23 approved funding for the state's 2004-2005 Universal Service Fund (USF) low-income energy assistance program, which began in October 2003. Data on the first six months of the program indicate that, with assistance from USF, a significantly greater number of customers are paying their full monthly bills, the BPU said in a press release.

The 2004-2005 program budget approved by the Board includes $78 million for USF benefits; $12.5 million for the USF Fresh Start program, which helps USF customers pay off their arrearages, and $19 million in under recoveries for the first year of USF, costs of which have been estimated at over $65 million.

"The USF program is one of the most important consumer- focused initiatives the Board has undertaken," said BPU President Jeanne M. Fox, "This program is a win-win. It ensures that low-income customers have affordable energy bills, and because their bills are affordable, customers are paying them at a much higher rate. This relieves the burden on all ratepayers who must pick up the tab when people don't pay their bills."

The USF ensures that low-income customers pay no more than 6 percent of their income on energy. Preliminary data shows that over 70 percent of initial USF enrollees were able to fully pay their energy bills through last winter, a time when many low- income customers fall behind on their payments. Utilities have reported that this is a high payment rate for these customers.

For the average residential electric customer using 6000 kilowatt- hours per year, this new budget, paid for through an assessment on all electric and gas customers, will result in an increase of 38 cents per month, or a total of $4.56 per year. Customers will be able to apply directly for USF when the State's new direct application system is completed toward the end of 2004.

Source: New Jersey BPU, New Jersey AARP

Page Last Updated: September 12, 2007