NJ Board of Public Utilities expands access to low-income energy assistance

The New Jersey Board of Public Utilities (NJBPU) recently raised the income eligibility limit to the Universal Service Fund (USF) program, expanding access to low-income energy assistance in the state.

NJBPU raised the limit from 175 percent to 185 percent of the Federal Poverty Level, a monthly gross income of $3,870 for a family of four. The changes, which become effective Oct. 1, will expand the eligibility criteria to approximately 5,700 additional households in New Jersey.

“Several months ago I asked our staff to look into how the Universal Service Fund could better help residents keep their gas and electric on through financial hardship,” NJBPU President Joseph L. Fiordaliso said. “Updating the income threshold to make more residents eligible for support is an important step in furthering our mission of ensuring affordable utility service for all customers in the Garden State.”

In April, NJBPU sought public input on how the program could better serve the needs of New Jersey’s low-income population. The commission accepted comments during a public stakeholder meeting in May as well as via written submission.

Raising the USF income eligibility limit to 185 percent of Federal Poverty Level brings it in line with the current Supplemental Nutrition Assistance Program (SNAP) income limit.

The USF was establiished in 2003 and is funded by the Societal Benefits Charge on ratepayers’ utility bills. It is administered by the Department of Community Affairs. In 2018, the program assisted 174,943 New Jersey households with benefits totaling over $115 million.

To be eligible for USF assistance, applicants must be income-eligible and spend more than 3 percent of their annual income for each electric and gas utility service or more than 6 percent of annual income on electric heat. Assistance benefits are distributed directly to the utility companies and reflected as monthly bill credits for eligible USF customers with a benefit cap of $150 per month or $1,800 per year. First-time USF enrollees are also eligible for the Fresh Start program, which provides debt forgiveness for overdue energy balances of $60 or more.

The USF program is administered by the Department of Community Affairs and shares an application with the Federal Low Income Home Energy Assistance Program (LIHEAP).