NJBPU Establishes Statewide Universal Service Fund

The New Jersey Board of Public Utilities' (BPU) today approved establishment of a statewide Universal Service Fund (USF) to assist low-income customers who heat their homes with electricity and gas.

A budget of $30 million will be provided for the first year of the program, which has been under discussion and review by advocates and the BPU for over two years.

Enrollment will be open for all New Jersey customers under the following criteria:

• Eligibility will be based on 175 percent of the federal poverty guidelines with automatic screening for eligibility from means-tested financial assistance programs such as LIHEAP and Lifeline.
  
  
• The program will be implemented through a percentage of income payment plan designed to provide low-income customers with a USF credit on their utility bill based on an assessment of income and usage that reflects their ability to make affordable monthly payments.
  
  
• USF participants will be required to pay no more than six percent of their annual income towards electric and gas bills (3 percent for electric and 3 percent for gas or 6 percent for all-electric heat customers). Credit to customers will be capped at $1,800.

It is anticipated that the Department of Human Services, the state LIHEAP grantee, will be the administrator of the USF, since it has experience in administering statewide social service programs and already has the technology and community network infrastructure in place. Automatic enrollment for the USF under DHS is expected to be in place by July 2003.

Source: NJBPU

Page Last Updated: September 11, 2007