Background

The Low Income Home Energy Assistance Program (LIHEAP) was authorized by Congress in 1981.  Its purpose is to assist low-income households in meeting their home energy needs.  Federal dollars for LIHEAP are allocated by the U.S. Department of Health and Human Services to the individual states as a block grant, and are disbursed under programs designed by the individual states.  Program funds are distributed to the states by a formula, which is weighted towards relative cold-weather conditions and households living in poverty.

In Anaheim, LIHEAP funds are distributed by the Community Action Partnership (CAP).  Eligible families must be at or below 200 percent of the Federal poverty level to qualify.  The Federal poverty level changes annually: for 2008, the qualifying annual income level for a family of four (200 percent of the Federal poverty level) was $42,400 or less.

Anaheim Public Utilities refers customers to CAP when they indicate that they require assistance in paying their bill.  When a customer has been approved for assistance, either through a LIHEAP grant or another form of assistance, Anaheim Public Utilities is notified and the customer’s account is flagged so the service will not be disconnected while awaiting the assistance payment.

Recent Developments

On September 30, 2008 the President signed a Resolution that increased LIHEAP funding to the congressionally authorized level of $5.1 billion; in recent years the funding has been as low as $2 billion.  The bill directed that the federal government obligate funds to the states within 30 days of enactment. 

California’s allocation of LIHEAP funds for 2008 was $103.1 million.  In 2009 the allocation increases to $225.3 million. 

Benefit to Anaheim Customers

With the current economic situation, many of Anaheim’s residents are struggling financially.  This is evidenced by the increase in the number of utility disconnection notices sent.  Utility bills are due on 20^th day after mailing; a Past Due notice is mailed on the 21^st day if the bill has not been paid.  If the bill is still unpaid, a Disconnect notice is sent on the 40^th day after mailing, giving another five days to pay.  This is one of the most flexible payment structures available in our industry. Nevertheless, history shows that about 78,000 Disconnect notices are sent each year.  That number increased to 93,400 in 2007.  In 2008, through October, 92,598 notices have been sent. 

In 2001 Anaheim Public Utilities entered into an agreement to receive LIHEAP payments directly from the state and apply them to customer accounts; previously checks were mailed to the customer directly and were often lost or never cashed.

Since 2001, LIHEAP payments received directly by Anaheim Public Utilities have ranged from a high of 1,898 payments representing $772,674 in 2002 to a low of 751 payments totaling $186,398 in 2005, dependent upon Congressional funding.  Through October of 2008 we have received 898 payments totaling $301,942.  The impact of the additional funding approved by Congress in September was immediately apparent when we received twice the number and dollar amount of LIHEAP payments in October.  This additional funding will be of great benefit to our customers who are struggling to make ends meet in this difficult economy.

For more information, call 714.839.6199.