Frequently Asked Questions

Q: What is the Universal Service Fund (USF)?
The New Jersey Board of Public Utilities has created a new Universal Service Fund (USF) program that will help low-income households pay for electric and natural gas service. The goal of the USF program is to ensure that New Jersey utility customers pay an affordable portion of their household income for energy utility costs. Under USF, low-income households will pay no more than 6% of their income for their natural gas and electric service combined.

The USF program will be administered by the New Jersey Department of Human Services (DHS).

Q: Who is eligible for USF?
To be eligible for USF you must meet two qualifications:
    1)   you must have a total household income that is equal to or less than 175% of the
          Federal Poverty Level (FPL) (see below), and
    2)   you must pay more than 3% of your income on electric bills or more than 3% of  
          your income on your gas bill. If you have electric heat in your home you must pay
          more than 6% of your income on electricity.

Please Note: USF recipients must reside at the address provided under their utility account, and USF benefits will only be offered to the person/head of household listed on the utility account.

Q: How much is 175% of the Federal Poverty Level (FPL)?

Q: How much money will I receive from USF? How is the USF benefit calculated?

If you are found eligible for the USF program, you will receive a benefit to make your energy utility bills affordable. Specifically, the benefit will ensure that you pay no more than 3% of your income on gas bills alone and no more than 3% on electricity bills alone (or, if you heat with electricity, no more than 6% of your income on electricity bills).

When calculating how much a household pays for energy each year, DHS considers benefits the household receives from other programs, such as Lifeline or the Low Income Home Energy Assistance Program (LIHEAP).

Here is an example of how a USF benefit would be calculated for a customer's gas bill:

Step #1 - Determine the customer's current natural gas burden

Step #2 - Determine what the customer should be paying for gas under USF

Step #3 - USF will pay the difference

Please Note: A similar calculation would be made using a customer's electricity costs. However, the LIHEAP credit is not applied a second time, it is applied only once to the heating utility. If the customer also has a Lifeline benefit, it is applied to the gas and/or electric utility bill based on the information the State has about a customer's utility accounts.

The maximum total annual USF benefit for any given household is $1,800.

Q: When does the USF program begin?

The USF program will begin in two phases. Those who have been automatically enrolled in the first phase of USF will begin receiving benefits in October 2003. If you were not automatically enrolled, you will be able to apply for USF in the second phase, which begins when a system for collecting and processing applications has been developed. This second phase is expected to begin by November 2004.

USF was implemented in two phases so that as many customers could be enrolled as quickly as possible. Developing a system for processing applications (phase two) is a complex process that takes some time to develop. Therefore, the automatic enrollment phase allowed the State to enroll nearly 100,000 households before the full system for processing applications was complete.

If you were not automatically enrolled during the automatic enrollment process, that does not necessarily mean you will not be found eligible for USF if you apply during phase two of the program, when manual enrollment begins.

Q: What is automatic enrollment?

During the automatic enrollment process, the Department of Human Services reviews information that the State already has on file about customers who were enrolled in either Lifeline or LIHEAP over the past year (from 9/1/02 through 8/31/03). Using this data, plus information provided by the utility companies, DHS automatically enrolled any customers that it found who met the USF eligibility criteria.

Q: Where does DHS get the information to calculate my USF benefit?

For the automatic enrollment process, DHS uses income information that is already on file from when you applied for either LIHEAP or Lifeline last year. DHS then gets information from your electric and/or gas utility about how much energy you have used over the last calendar year. Using this information, DHS determines your eligibility and calculates your benefit.

When the manual enrollment process begins next year, customers will provide their income information on the application. DHS will combine this information with data provided by the customer's utility to determine if a customer is eligible for a USF benefit.

Q: Does the USF benefit take into account the fact that electricity prices have increased this year?

Yes. A customer's energy burden is calculated using the price of electricity customers will be paying this coming year.

Q: If I heat with oil or propane will I be eligible for USF benefits?

Expenses for oil or propane are not eligible for USF benefits. However, if you heat with oil or propane, any expenses you have for electric and/or gas utility service will potentially be eligible for a USF benefit.

Q: If I rent, will I be covered under USF?

Yes. Renters and homeowners are both eligible for USF. Even if your heat is included in your rent, you may be eligible for USF for your electricity if you have an electric account in your name.

Q: Does everyone who receives Lifeline or LIHEAP qualify for a USF benefit?

No. All LIHEAP recipients and most Lifeline recipients meet the income eligibility criteria. However, USF eligibility is also based on how much you pay for energy each year. Some LIHEAP and Lifeline recipients might not meet this eligibility requirement. If you receive LIHEAP or Lifeline, but you pay less than 3% of your household income for electricity and less than 3% for natural gas, you will not receive a USF benefit.

Q: Why is my USF credit different than my friend/neighbor?

The USF credit is calculated based on a household's income and utility energy burden. Since the income and utility energy burden of each USF recipient is different, the benefit that each USF recipient receives will be different.

Q: Will receiving USF affect or make me lose any other assistance I get?

No. Your participation in USF will not affect the benefits you are now receiving from other benefit programs. Please make sure you continue to maintain your current benefit program enrollments.

Q: How will I receive my USF credit? Will I get a check?

The USF benefit will appear on your utility bill in the form of a credit listed as either "USF Credit" of "Universal Service Fund Credit" (or "Misc. Adjustment" for Rockland Electric Company customers). This credit will be subtracted from what you owe your utility company. You will only be responsible for paying the balance that remains after the USF credit is subtracted. No actual cash benefit will be given to customers to ensure that the benefit is used only for utility expenses.

Q: Will I get a USF benefit for both my gas bill and my electric bill?

Some people are eligible for a credit on their gas bill, others are eligible for a credit on their electric bill, and some are eligible for both a gas and an electric credit. If you get separate gas and electric bills you may get a USF credit on your gas bill and another on your electric bill. The actual calculation of a benefit will depend on how much electricity and natural gas you use in comparison to your household income.

Q: Do I have to do anything different to continue to receive a USF credit on my monthly utility bill?

No. Simply continue to pay the monthly amount due that appears on your utility bill after your USF credit has been applied.

Q: How do I apply for the USF?

Those who currently receive Lifeline or LIHEAP will be screened for eligibility during the first phase of the USF program (the automatic enrollment phase). If you are found eligible, you will automatically receive a USF benefit. Those who are not automatically enrolled will be able to apply for USF during the next phase of the program when the application process is developed. This is expected to be in place by November 2004.

Q: How much does the entire USF program cost?

The BPU initially allocated $30 million, plus additional administrative expenses, to fund the first year of the USF program. This was the Board's estimate of initial program costs. However, this is a new program and our experience this year will be used to determine future funding.

Q: How is the USF program funded?

All electric and natural gas customers contribute funding for the USF program through your utility rates.

Q: What should I do if I am still having trouble paying my bill?

If you have a large balance on your utility bill from before the USF program began, you have the right to negotiate a long-term payment plan for these older balances with your utility. You should contact your utility company and attempt to set up a payment program that you can afford.

Also, ask your utility about other assistance programs that are available to help you pay your bills, such as:

•  New Jersey Comfort Partners (provides energy management and, in some cases, arrears forgiveness programs for overdue utility balances)
  
•  LIHEAP
  
•  Lifeline
  
•  Gift of Warmth (New Jersey Natural Gas customers only)

You can also contact some of the numbers listed below for more information about other utility assistance programs. Finally, please note that under USF you retain your protections against having your service disconnected during the winter months.

Q: How can I get additional information?

USF/LIHEAP Hotline:
1-866-240-1347

USF/LIHEAP Hotline for out-of-state callers:
1-609-826-4780

Please call your utility company if: a) you have routine questions about your utility bill, b) you need information about an affordable payment plan for your utility bill, or c) you need information about an affordable payment plan for any arrearages you may have (which are old bills a customer owes to his/her utility company).

Please contact the Board of Public Utilities Division of Customer Assistance if: a) your utility has discontinued, or threatened to discontinue, your energy service and you need assistance, b) you want to dispute a service shutoff, or c) your utility has refused to negotiate a reasonable payment plan. You can reach the BPU Division of Customer Assistance at:

1-800-624-0241

To obtain more information about other assistance programs call the numbers below:

1-800-510-3102 (LIHEAP)
1-800-792-9745 (Lifeline)
1-888-773-8326 (New Jersey Comfort Partners)

Whom does it help?
Elderly, disabled and low-income residents.

How do I qualify?
To qualify for HEAP you must:

• be a New Jersey resident
• pay heating and/or cooling costs to a fuel supplier
• pay a landlord for gas or electric or pay rent including utilities
• have a personal income level that doesn't exceed 225% of the poverty level

What assistance does HEAP offer?
HEAP has four types of payments available:

•     Automatic payments to Food Stamp recipients
•     Emergency energy assistance
•     Special energy assistance to other eligible households applying for assistance
•     Medically necessary cooling assistance

How much money can I receive?
Payments vary depending on your income, household size, fuel type and heating region.

How do I apply?
Contact or visit your local Community Action Program agency. For more information, call 1-800-510-3102. In Cape May, dial 609-522-0231.

Whom does it help?
Low-income residents.

How do I qualify?
To qualify for Lifeline you must:

• be a New Jersey resident AND
• meet certain income requirements AND
• be at least 65 years of age OR at least 18 years of age and receive Social Security Disability benefits*

You're automatically eligible for Lifeline if enrolled in:

• Pharmaceutical Assistance to the Aged and Disabled (PAAD)
• Medicaid Only
• Medical Assistance to the Aged
• New Jersey Care Special Medicaid

* If you are under 65 and receiving Social Security benefits on behalf of someone other than yourself, you are NOT eligible.

How much money can I receive?
You can receive $225 total credit toward a single utility account. If you have both electric and gas, you can receive $112.50 for each account.

How do I apply?
To enroll for Lifeline, call 1-800-792-9745.

Whom does it help?
Any resident who needs temporary help paying his/her utility bill.

How do I qualify?
Eligibility energy assistance grants are capped at 400% of the Federal Poverty level.

How much money can I receive?
Grants may be available to those who are eligible.

How do I apply?
Contact any of the following agencies:

Click here for more information on NJ Shares.
Click here to donate to NJ Shares.

Whom does it help?
Low-income residents

How do I qualify?
To qualify, you must:

• be a New Jersey resident
• have a personal income level that doesn't exceed 225% of the poverty level

You're eligible if you participate in any of the following programs:

• Lifeline
• HEAP
• Temporary Assistance to Needy Families (TANF)
• Supplemental Security Income
• Pharmaceutical Assistance to the Aged and Disabled (PAAD)
• General Welfare Assistance
• Section 8 Housing Assistance

What type of assistance does the program offer?
This program teaches you about conserving energy and shows you how energy saving products can lower your gas bill. For example, you’ll learn how to save money with efficient lighting products; hot water conservation measures (water heater insulation, water heater pipe insulation and energysaving showerheads and aerators); insulation upgrades (attic, wall, etc.); and heating/cooling equipment maintenance.

Do I pay for the program?
No. All efficiency measures and energy education services are provided free of charge. AND, if you owe money on your gas bill and are on a payment plan, you may qualify to receive some form of account balance reduction.

How do I apply?
For more information, call SJG's Conservation Hotline at 1-800-648-0138.

EQUAL PAYMENT PLAN
Whom does it help?
Any SJG customer interested in a budget payment plan.

What assistance does EPP offer?

• yearly gas costs are divided into 12 equal monthly payments
• same payment amount each month regardless of the weather

How much does it cost to enroll in EPP?
Nothing. It is a free service for SJG customers.

What if I can't make my monthly payment?
If you are on our budget plan and you still have trouble making timely payments, please call us to establish payment arrangements.

How do I apply?
Click here for an online form, or call our Customer Care Center at 1-888-766-9900.

Help your neighbors pay their energy bills this winter through NJ SHARES

New Jersey residents who wish to help their less fortunate neighbors pay their energy bills this winter may do so by making a tax-deductible donation to NJ SHARES.

Click here for more information on NJ Shares.
Click here to donate to NJ Shares.

Checks or money orders made payable to NJ SHARES may be sent to:

New Jersey SHARES 1901 North Olden Avenue Extension Suite 1A Ewing, NJ 08618

Federal & State Earned Income Tax Credit

Do you work hard, but don’t earn a high income? You may qualify for the Federal and State Earned Income Tax Credit (EITC).

The amount of the EITC depends on your total earnings and family size. To get the state credit, you must file a federal tax form, be eligible for the federal EITC and file a state income tax return.

To see if you qualify and for more information:

• Click here to download a copy of the EITC flyer for more detailed information. 
      - English
      - Español

• Call 1-800-829-3676 for the federal EITC or 1-888-895-9179 for state EITC.

• Click here to visit the Internal Revenue Service at IRS.gov/eitc

• Click here to visit the State Division of Taxation website

• For free tax preparation, there are more than 4,500 Volunteer Tax Assistance (VITA) sites. For the nearest location, call New Jersey's hotline 2-1-1.