NJ Moves Toward Permanent Low-Income Assistance

With a goal of having a program in place by March, the New Jersey Board of Public Utilities (NJBPU) has taken a major step toward  instituting a permanent Universal Service Fund (USF) that will provide low-income energy assistance.

On November 20, the Board approved the release of its staff's straw proposal for a one-month public comment period, followed by a two-week reply period on the staff proposed permanent USF. The staff's proposal is based on various positions submitted as part of the working group process. The purpose of the USF is to help low-income consumers have access to affordable energy and to provide additional energy assistance to people participating in the LIHEAP and Lifeline programs.

Some of the suggested parameters of the permanent program:

• All electric and gas utilities will participate in the USF program.

• Eligibility will be based on 175 percent of the Federal Poverty Guidelines.

• Residents who have their heat included in their rent will be eligible for the USF.

• USF participants will be required to pay no more than 6 percent of their annual income towards their natural gas and/or electric bill, which will be determined by of a customer's annual energy bill after deducting other benefits, such as LIHEAP and Lifeline.

• The development of one-stop shopping system so that a single application can be used to determine eligibility for the USF and other assistance programs.

• The Department of Human Services should administer the program with a 10 percent cap on the cost.

Page Last Updated: December 7, 2005