TO:	Commissioners; TA & FS Directors; Finance Directors; CAP Coordinators, Resource and Recovery Staff, HEAP Coordinators

FROM:	Patricia A. Stevens, Deputy Commissioner, Division of Temporary Assistance

SUBJECT: Honoring Verbal Commitments to Energy Providers

EFFECTIVE DATE:	Immediately

CONTACT PERSON:	Central Regional Team @ 1-800-343-8859, extension 4-9344	

The purpose of this message is to remind local districts of their obligation to make temporary assistance (TA) payments to utility and non-utility energy providers to meet energy related immediate needs of applicants for or recipients of temporary assistance once the local district gives a verbal commitment to the energy provider.  This is important when the energy provider agrees to continue or restore natural gas or electric service, or makes a fuel delivery based on this verbal commitment.

In accordance with 02 ADM-2, “Meeting the Emergency/Immediate Needs of Temporary Assistance (TA) Applicants/Recipients”, when determining if an applicant’s eligibility for assistance to meet an immediate need, local districts must attempt to obtain as much verification as possible from the applicant or through collateral contacts. However, at a minimum, local districts must verify identity, family composition and citizenship/alien status prior to meeting an immediate need.  Applicants must demonstrate a good faith effort to obtain documentation, including providing appropriate collateral contacts to verify the basic information required.  Collateral contacts may include neighbors, religious leaders, shelter providers, etc.  Applicants who cooperate but lack required information are granted short-term assistance until verification can be obtained or until ineligibility is determined.  Local districts must assist applicants when they are unable to obtain documentation despite their cooperation.  For example, a local district may contact a utility company for disconnection information, a fuel dealer for customer of record verification, a landlord for residence information, religious leaders to help determine marital status, etc.  Immediate needs must be dealt with the same day the applicant presents with an emergency. If the district determines that an immediate need exists and that the person is eligible for immediate need assistance, that need must be met that same day.  The need can be met by a verbal commitment to an energy provider. 

If, after giving the verbal commitment, further investigation determines that someone was not eligible for the immediate needs assistance, local districts must still make the payment that they committed to and then pursue recovery from the recipient.  The only exception is if the local district contacts the energy provider and the energy provider agrees to allow the local district to rescind the verbal commitment. In this situation, the local district is not obligated to make the payment.

HEAP Implications

Please note that Home Energy Assistance Program (HEAP) policy also requires local districts to issue HEAP payments to utility and non-utility vendors once a promise of payment (either verbal or written) has been made in order to obtain non-utility heating fuel or to prevent utility service termination or to restore service that has been terminated.  As with TA policy, the only exception is when the vendor agrees to allow the district to rescind the committed benefit.  In these cases, the local district is not obligated to issue the payment to the vendor.