Consumers in New Jersey are facing big increases in their utility bills this year. Fortunately, New Jersey has gas, electric, water, and even wastewater assistance programs in place that help keep your utility bills affordable and can prevent shut-offs of crucial utility services. This article provides an overview of these programs.

Energy Assistance Programs

The Universal Service Fund (USF) and the Low-Income Home Energy Assistance Program (LIHEAP) are two programs that work together to provide assistance with heating and cooling costs. There is a single application system for the USF and LIHEAP programs. Another program, called Lifeline, can also provide assistance with energy bills to seniors and people with disabilities.

Universal Service Fund (USF)

The USF program assists customers of the seven New Jersey gas and electric public utility companies:

• Public Service Electric & Gas Company (PSE&G)
• Atlantic City Electric
• Jersey Central Power & Light (JCP&L)
• Rockland Electric Company
• New Jersey Natural Gas Company
• South Jersey Gas Company
• Elizabethtown Gas Company

USF provides two key types of benefits: (1) a monthly USF credit on your bill; and (2) Fresh Start arrearage forgiveness.

USF/LIHEAP Monthly Income Eligibility Chart 2024/2025

If your monthly gross income is at or below the levels in this USF/LIHEAP chart (60% of State Median Income), you should be eligible for USF and/or LIHEAP assistance.

Household Size	USF/LIHEAP Income Limit
1	$3,991
2	$5,219
3	$6,448
4	$7,676
5	$8,904
6	$10,132
7	$10,362
8	$10,592
9	$10,823
10	$11,053
11	$11,283
12	$11,514
For each additional person	add $231

How does the USF monthly credit work?

USF assistance reduces your utility bill every month. Each customer receiving USF assistance gets a monthly credit. The credit is based on an estimate of the amount of energy the household will use in the next year. Usually, this estimate reflects past energy use at the same property.

All eligible customers will get a monthly credit on their utility bills of at least $5. You will get a larger monthly credit, up to $180 per month, if your expected utility costs over the next year will be:

• More than 2% of your annual household income for electric service;
• More than 2% of your annual household income for natural gas; or
• More than 4% of your annual household income for all-electric heat customers.

Your utility company will subtract the amount of your USF credit from your utility bill each month. It’s that simple!

What if I have overdue bills?

If you have past-due electric or gas bills over $60, you may also qualify for arrearage forgiveness. This part of the program is called Fresh Start. USF will forgive your outstanding balance if you keep up with your current monthly bills for one year after you become eligible. Each time you make a monthly payment, 1/12 of your overdue balance will be forgiven.

If you are eligible, you should be placed in the Fresh Start program automatically. Your utility company cannot disconnect your service for nonpayment of overdue bills that are part of the Fresh Start program.

If you miss monthly payments during the year you are on Fresh Start, your utility company should send you reminder letters. This will give you a chance to catch up. You will have three more months after the end of the initial 12-month period to make up any missed payments. This means that each eligible Fresh Start customer gets a 15-month period in which to get rid of their overdue bills.

Will my utility bills be the same each month on USF?

Only if you are on your utility company’s budget billing plan. Then, the utility company will charge you a flat amount each month, based on its estimate of your household’s annual usage, less your monthly USF credit.

But there may still be surprises. Your actual gas or electric usage will probably turn out to be different from the amount the utility estimated. If that is the case, your bill will be adjusted to reflect the difference. This process of “truing up” should take place at least once every six months.

The beginning of the heating season can be a good time to get on a budget billing plan, because the budget billing plan will spread some heating costs into the following summer. There is no effect on LIHEAP or USF eligibility or benefits.

If you do not join your utility’s budget billing plan, your bill will vary from month to month. It will reflect the amount of your utility use each month, less your USF credit.
The good news is that either way, if you use less energy, you will have to pay less. But you will have to pay more if you use more energy than estimated.

Weatherization: One thing that you can do to keep costs down is to contact your local weatherization program office to find out if you are eligible for free improvements to your home. For more information about applying for weatherization assistance, contact the state USF/LIHEAP hotline at 1-800-510-3102, or contact the LSNJLAW^SM Hotline at www.lsnjlawhotline.org or 1-888-LSNJ-LAW (1-888-576-5529).

Are there any other limits on USF benefits?

There are two other limits to the amount of a recipient’s USF credit. One limit is that the largest credit a customer can receive is $180 each month, or $2,160 each year. The other is that all customers must pay at least $8 per month, even if that is more than 4% of their income.

If one of these limits causes a hardship for you, call the Board of Public Utilities, Division of Customer Assistance, at 1-800-624-0241, and contact the LSNJLAW^SM Hotline at www.lsnjlawhotline.org or 1-888-LSNJ-LAW (1-888-576-5529). There may be additional sources of assistance that can help, and it is important to let the board know that these limits can cause hardships.

The LIHEAP Program

The Low-Income Energy Assistance Program (LIHEAP) provides an annual heating assistance grant during the heating season and, in some cases, other one-time grants. The income eligibility limits for the LIHEAP program are the same as those for USF—60% of New Jersey’s state median income. The LIHEAP eligibility limits are shown in the above chart.

Who is eligible for LIHEAP?

LIHEAP covers more households than USF. You can be eligible for LIHEAP:

• No matter what fuel source you use (oil, propane, and wood heat, for example, are included);
• If you are a customer of a municipal electric company or the Sussex Rural Electric Cooperative; and
• If you are a tenant with utilities included in your rent.

To be eligible for LIHEAP benefits, you must be responsible for home heating or cooling costs. This means either that you pay utility bills yourself, or that your utilities are included in the rent. You must also have gross income below 60% of the state median income (see above for monthly income guidelines). While almost all income received by anyone in the household is counted, some is not. For example, most income received by a full-time student is not counted. Also excluded are payments received from SNAP (food stamps), or from other energy assistance programs, such as Lifeline.

How do LIHEAP benefits work?

LIHEAP provides single-payment grants to help with energy costs. The amount of the basic LIHEAP heating benefit varies from about $100 to more than $1,000, based on income, household size, fuel type, and heating region. Benefits are highest for homeowners with electric heat, or who heat with oil, propane, wood, and other “deliverable” fuels. See the LIHEAP Benefit Grid (from the NJ Department of Community Affairs) for a chart of LIHEAP benefit levels. The DCA website also has links to the USF/LIHEAP application form, contact information for intake agencies, and other information about New Jersey energy assistance programs.

How are LIHEAP benefits paid?

If your home is heated with natural gas or electricity, you may have your LIHEAP payment sent directly to the utility company. Otherwise, in most cases, a two-party check (made out to you and to your fuel supplier) will be sent to you. If your heat is included in the rent, the check will be made out directly to you.

I live in public housing. Can I still get LIHEAP assistance?

People who live in public housing and/or receive rental assistance are eligible for LIHEAP if they pay their own utility costs directly to the utility company.

LIHEAP Emergency Crisis and Medically Necessary Cooling Assistance

LIHEAP can sometimes provide additional emergency assistance if you have no heat or are in danger of losing your heat, and don’t have enough money to solve the problem yourself. You may be able to get help with an emergency fuel delivery or have utility service restored. If you are a homeowner, you may be able to get emergency help to fix your furnace. A tenant who pays for utilities can get assistance for emergency help to restart a furnace. In some energy-related emergencies, LIHEAP can even provide temporary shelter or help in preventing an eviction.

An eligible household that shows a medical need can also receive an additional LIHEAP grant to help with summer cooling costs.

For more information about USF and LIHEAP, call 1-866-240-1347, visit Energy Assistance (from the NJ Department of Community Affairs) or contact the LSNJLAW^SM Hotline at www.lsnjlawhotline.org or 1-888-LSNJ-LAW (1-888-576-5529).

How to Apply for USF and LIHEAP

You can apply for USF and LIHEAP online directly through the USF/LIHEAP Online Application Portal.

You can also apply through a USF/LIHEAP application agency in your area. If you need help finding an agency that accepts applications, call 1-800-510-3102. You can also get a printable copy of the USF/LIHEAP application form on the NJ Department of Community Affairs (DCA) website.

Unless you are automatically enrolled from another program, you need to file a USF/LIHEAP recertification each year, even if you received benefits before.

Many applicants for food stamps, Pharmaceutical Assistance to the Aged, Blind and Disabled (PAAD), Lifeline Energy Assistance, and Medicare Part D are automatically screened for USF benefits and/or enrolled in LIHEAP and do not have to fill out a separate USF/LIHEAP application. If you are not sure whether you have been considered for USF and LIHEAP benefits, call the USF/LIHEAP program information number above to find out whether you should submit a USF/LIHEAP application.

Lifeline Energy Assistance Program

Lifeline refers to three different state programs for seniors and people with disabilities:

• Lifeline Credit Program;
• Tenants’ Lifeline Assistance Program; and
• Special Utility Supplement.

How does Lifeline work?

You can be eligible for the Lifeline Credit Program or Tenants’ Lifeline Assistance Program if you are a residential electric or gas customer or a tenant with utilities included in the rent, and are in one of the following categories:

• You receive Pharmaceutical Assistance to the Aged, Blind and Disabled (PAAD);
• You meet the eligibility requirements for PAAD;
• You receive Medical Assistance to the Aged (MAA);
• You receive Medical Assistance Only (MAO); or
• You receive New Jersey Care (NJ Medicaid based on your age or disability).

The Lifeline Credit Program makes a one-time payment, currently $225, on a yearly basis toward an eligible customer’s gas and electric bill. If you receive service from two different utility companies, then the benefit is split between the two.

The Tenants’ Lifeline Assistance Program provides a $225 check to tenants who have gas and electric costs included in the rent.

The Special Utility Supplement is for SSI recipients who are not eligible for Lifeline Credit or Tenants’ Lifeline Assistance. The yearly supplement is divided into monthly installments and is added to the recipient’s SSI check. The current supplement is up to $18.75 per month.

How do I apply for Lifeline?

People applying for PAAD also apply for a Lifeline benefit by answering the questions that pertain to Lifeline programs.

Beneficiaries of Medical Assistance to the Aged (MAA), Medical Assistance Only (MAO), or New Jersey Care are sent Lifeline applications automatically every August.

Supplemental Security Income (SSI) recipients do not need to file an application for Lifeline. The Lifeline benefit is automatically included in your monthly SSI payment.

For more information about Lifeline, call 1-800-792-9745, visit Lifeline (from the NJ Department of Human Services) or contact the LSNJLAW^SM Hotline at www.lsnjlawhotline.org or 1-888-LSNJ-LAW (1-888-576-5529).

Other Sources of Energy Assistance

New Jersey SHARES is a nonprofit organization that coordinates many additional assistance programs for energy utility customers, water utility customers, municipal utility customers, and telephone/internet customers. NJ SHARES can be reached at 1-866-657-4273 or [email protected].

Payment Assistance for Gas and Electric (PAGE) is a state-funded program, but it is currently closed to new applicants. Updated information may be available here.

Water (and Wastewater) Assistance Programs

While there have been some promising developments in recent years, New Jersey’s water assistance programs remain limited. That means for many low- and middle-income households with water arrears, the best plan may be to apply for USF and LIHEAP assistance (described above) to address gas and electric payment and arrears issues, in order to be able to devote scarce funds to pay down existing water arrears that can’t be addressed through available water assistance programs.

Here’s where things stand with respect to water assistance:

• Utility-Based Water Assistance Programs Available Through New Jersey SHARES—Customers of New Jersey American Water, Veolia Water (formerly SUEZ), and AQUA New Jersey, may be eligible for help with their water bills through programs administered by NJSHARES. More information is available at New Jersey Share’s Assistance Programs, or by calling 866-657-4273.
• Discount Water Rates
• New Jersey American Water recently began offering a discount program offering 15-60% off some monthly charges for water and wastewater customers with household incomes at or below 200% of the federal poverty level. This program is administered by NJ SHARES.
• Some municipal water and sewer utilities offer discount rates for seniors and people with disabilities. You may need to contact your municipal water department or tax office to request this discount.

Winter Termination Protections

Protections against utility service terminations are in place for many customers during the winter months. They are commonly referred to as the Winter Moratorium or the Winter Termination Program (WTP). A recent law extended Winter Moratorium protections to apply to all New Jersey water utilities, in addition to all gas and electric utilities.

How the Winter Moratorium Works

Between November 15 and March 15 each year, covered utility service to customers in either of the following categories cannot be shut off for nonpayment–and in some circumstances, if service is already disconnected, it must be reconnected.

The Winter Moratorium protects customers in the following groups:

• Recipients of benefits under a variety of programs, including the Universal Service Fund (USF), LIHEAP, Energy Lifeline, TANF, SSI, PAAD, or General Assistance (GA) programs; and
• Customers who notify their utility that they can’t afford to pay their utility bills because of circumstances beyond their control, including unemployment, illness, medically related expenses, recent death of an immediate family member, or any other circumstances that might cause financial hardship.

You should be sure to tell your utility provider if you may be eligible for the Winter Moratorium, since some utility providers may not know which of their customers qualify.

Residential Energy Assistance Payment for WTP Customers

In August and September 2024, New Jersey households with gas or electric accounts identified as eligible for WTP protection during the 2023-24 heating season received a one-time credit of $175 toward either their gas or electric account under the Residential Energy Assistance Payment (REAP) initiative.

Additional Shut-Off Protections

There are a number of other key shut-off protections in place for New Jersey public utility customers, including:

Extreme weather protections—shut-offs are prohibited on days that are very cold (forecast temperature below 32° all day), and also on days that are very hot (forecast temperature 90° or higher).

In-person contact—a utility representative must attempt to give you in-person notice, and provide an opportunity for you to give them information about special circumstances or to make payment arrangements, before service can be shut off.

Minimum past-due balance—a customer must be at least $200 behind or at least three months past due on their bill before service can be shut off.

Life-sustaining equipment—utility companies must ask customers at least four times a year whether there they have any life-sustaining equipment that would be impacted by a loss of utility service, and provide enhanced shut-off protections when they know that this is the case.

These protections under BPU regulations do not apply directly to municipal utility companies providing service within their municipal boundaries. At the same time, municipal water and electric utilities may provide similar protections under their own rules, so it can be worth asking what protections are in place if you are a municipal utility customer.

This information last reviewed: Nov 7, 2024