Utility aid program expanded

The Department of Community and Cultural Affairs has expanded its energy assistance program, allowing more low-income families to claim utility aid.

DCCA recently adopted regulation that increased from $1,400 to $2,616 the salary threshold for eligibility for assistance in paying energy bills. The new regulation also increased the benefit available for certain household categories.

Adopted on an emergency basis, the new benefit schedule became effective May 19, 2006.

“The current monthly benefit schedule is insufficient to adequately assist low income families with their electrical bill. Due to the sudden and dramatic increase in electrical utility costs, the Department of Community and Cultural Affairs finds that the public interest mandates [immediate] adoption of this regulation…,” DCCA Secretary Daisy Villagomez-Bier explained in a public notice.

DCCA public information officer Cathy Anderson further explained that the emergency regulations were intended to address a recently discovered discrepancy between the benefit level set by the old regulations and the actual benefit amount already being issued by the Low Income Home Energy Assistance Program.

Anderson said that the regulations were initiated to implement a benefit level between what is provided in the official regulations and what LIHEAP had de facto been issuing.

“While the new benefit level is 50 percent less than what most clients have been receiving, it is still higher than the previous official level,” she said.

In addition, she noted that the new regulations would prevent LIHEAP from incurring a $44,000 deficit at the end of the fiscal year. Such deficit, she said, would force the department to cease all benefits.

“The new benefit level will allow LIHEAP to continue to provide benefits for the rest of the year despite the government budget reduction. It will also allow us to begin funding new applications,” Anderson said.

The previous benefit schedule allowed low income families with a maximum income to receive between $10 and $58, depending on the household size or the income level.

For instance, a person living alone who earns $200 or less was entitled to receive $21 monthly. However, a family of 11 or over who has the same income received $58. Meanwhile, a family with the same number of members, but a total income of $1,400, was entitled to receive $10 only.

However, the new benefit schedule set a minimum benefit of $21 and retained the maximum benefit at $58. It also increased the salary ceiling to $2,616.25.

For instance, a single person earning $747.50 a month may receive $21 a month. The same amount of benefit may also be granted to a family of 11 or over who earn up to $2,616.25.

The $58 maximum benefit is available to families of 11 or over, who earn $747.50 or less.