13400 Benefit Levels And Payment Methods

 

13410 Benefit Levels - Annual benefit levels vary each year according to the federal block grant funds appropriated for energy assistance. The benefit levels also vary depending upon household income, type of dwelling, type of primary heating fuel, household size, and the household's utility rates. Benefits are based on the amount of funding received and could be terminated at any time in which funding is exhausted or unavailable.

 

13420 Payments

 

13421 Payments Methods - Applicants have the flexibility of selecting which vendors are paid according to the following options:

 

  1. The entire annual benefit may be issued to the primary heating vendor, or

  2.  The household may elect to split the benefit with half going to the primary heating vendor and half to a secondary energy vendor. Households having difficulty paying their electric account in the summer should be encouraged to split their annual energy benefit between their heating fuel provider and their cooling provider. The benefit may only be split if both utility accounts are listing the same primary account holder, or

  3.  If neither option is selected, the entire benefit amount will be issued for the purchase of the primary heating fuel.

 

The billing name on any vendor accounts paid must be the name of the adult household member whose name appears first on the primary heating source account.

 

13422 Payment Mechanisms - Benefits are paid using the following payment mechanisms:

 

  1. Credit on Utility Account - The utility account is credited using an electronic match process if the vendor is setup to receive LIEAP payments through electronic fund transfers. These households are notified three times that the benefit has been credited to the account:
     
    1. The DCF Notice of LIEAP Eligibility indicates that "the benefit will appear as credit on your next utility bill,"
       
    2. the utility bill posts the credit as "DCF-Low Income Energy Assistance Program benefit," and
       
    3. the utility bill contains a stuffer announcing "The enclosed bill reflects a credit resulting from your DCF LIEAP benefit."


In order to make accurate electronic payments to the vendors receiving payments via electronic funds transfers, both the case name and utility account number entered must match identically to the utility billing information. If the utility is unable to match the DCF information to their client accounts, the payment will be rejected by the vendor and returned for correction by the DCF Regional LIEAP processing office.


  1. Check Payable to the Vendor - A check is sent on behalf of the recipient directly to the energy vendor for the benefit of the recipient if the household makes energy payments to a gas, electric, wood or deliverable propane vendor other than one of the vendors receiving their payment via electronic funds transfers.
     
  2. Check Payable to Household - A check is issued to the household in the following circumstances:
     
    1. The household pays its landlord for energy costs either in the unsubsidized rent or in addition to the unsubsidized rent;
       
    2. The household lives in subsidized housing and is billed an energy surcharge for "excess" heating costs (additional costs other than the normal heating costs which are paid by the HUD utility allowance); or

    3. The household utilizes a primary fuel type other than those listed in Item 2. Examples include: pellets, propane bottles, kerosene, etc.

13430 Allowable Uses - Benefits may be applied against utility deposits, disconnect/reconnect fees, bulk fuel delivery charges, and past, current or future energy costs. Federal law prohibits using the benefits for appliances, water, sewer, trash or other services or goods which the vendor may sell.

 

13440 Reserved

 

13450 Overpayment Adjustments - Recovery efforts are made against overpayments resulting from applicant misrepresentation or agency error. The household is advised of the overpayment at the time it is identified. Agency first attempts to recover funds directly from the vendor paid on behalf of the household. Failing that, the household is given the option of paying any remaining balance through monthly installments or lump sum repayment. If neither recovered directly from vendor or fully repaid by household prior to issuance of future benefits, overpayments up to the amount of the overpayment or the future benefit whichever is less until overpayment is fully recovered are withheld automatically at issuance. Referral to the Area Fraud/Recoupment Office is made if the misrepresentation appears to have been intentional.


Overpayments are entered into KEES where the status is tracked form year to year. Client payments received by LIEAP staff are posted as a repayment transaction in KEES. The funds are then deposited into the LIEAP fund. Any overpayment balances still owed will be recouped from subsequent benefits until the balance is repaid. Overpayment activity and status may be reviewed at any time by checking the recovery account status in KEES.

 

Households are exempt from overpayment recovery when all of the following circumstances are met:

 

Recipient is deceased, mentally incapacitated, or now living in nursing home,

 

Household is unable to repay through existing resources, and

 

Debt setoff or other automatic collection process is not possible.