TO:	Commissioners; TA Directors; FS Directors; WMS Coordinators; CAP Coordinators, HEAP Coordinators

FROM:	Russell Sykes/rs
	Deputy Commissioner, Division of Temporary Assistance

SUBJECT:  Impact of Chapter 686 of the Laws of 2002 on Temporary Assistance (TA) Emergency Utility Payments

EFFECTIVE DATE:	Immediately

CONTACT PERSON:	Central Team (TA) at 1-800-343-8859; extension 4-9344
	
Amendments to Article 2 of the Public Service Law (PSL) took effect June 18, 2003.  These amendments, also known as Chapter 686 of the Laws of 2002 amended the Home Energy Fair Practices Act (HEFPA) rules in a manner that impacts local district operations in the provision of temporary assistance (TA) benefits.  As a result, several common terms were redefined and several new terms were introduced.  Local districts may encounter these changes during normal business transactions.

•	Utility now extends the traditional concept of a utility to mean any entity that, in any manner, sells or facilitates the sale, furnishing or provision of gas or electric commodity to residential customers
•	Commodity/Commodity Service means electricity or natural gas.
•	Distribution/Distribution Service means the act of transporting the electricity or natural gas to consumers by means of pipes, conduits, ducts, mains, poles or other gas or electricity distributing fixtures.
•	Distribution Utility means any utility that is authorized under law to lay down, erect or maintain pipes, conduits, ducts, mains, poles or other gas or electricity distributing fixtures.
•	Energy Services Company (ESCO) means an entity eligible to sell electricity and/or natural gas to customers using the transmission or distribution system of a distribution utility.
•	Terminate/Termination means when an ESCO stops providing commodity service to a customer.
•	Suspend/Suspension means the loss of distribution service at the request of an ESCO, if the distribution and commodity costs appear on one bill.  An ESCO may request suspension of distribution services from the distribution utility for a period up to 12 months from the date the ESCO terminated commodity service.
•	Disconnect/Disconnection means the distribution of commodity ends at the direction of the utility providing the distribution service.

Under Chapter 686, the protections offered under HEFPA are extended to ESCO customers when charges for a commodity (natural gas and electricity) and distribution of the commodity appear on a single bill.  An ESCO may now request suspension of distribution services for a previously terminated customer for up to 12 months from the date of termination.  This may even apply when the customer is no longer receiving commodity service from the suspending ESCO, or when the customer is receiving commodity service directly from the distribution utility or another ESCO, even when the customer is not in arrears on current distribution and commodity service.

Termination

A district must not make a utility arrears payment under SSL 131-s that includes any amounts owed to an ESCO when an ESCO stops providing commodity service (terminates service) to a customer since the commodity service seamlessly returns to the distribution utility or to another ESCO.

Suspension

Districts must not make a utility arrears payment under SSL 131-s when the ESCO requests suspension of distribution service.

Disconnection

A district can only make utility arrears payments under SSL 131-s that include arrears owed to an ESCO when:

•	The ESCO terminates commodity service and requests suspension of delivery service at the same time and the distribution utility simultaneously moves to disconnect distribution services.  Billing for commodity service owed to the ESCO must fall within the allowable periods covered by SSL 131-s.  For non-TA applicants, SSL 131-s requires districts to calculate arrears payments based on the most recent four months immediately preceding the month of application.  For TA recipients and recipients of Supplemental Security Income (SSI), SSL 131-s limits the arrears payment calculation to the most recent four months in which service was rendered immediately preceding the month that the application or request for such arrears payment is made within the prior 10 months, or
•	The distribution utility as a matter of agreement, purchases the accounts receivable from the ESCO and subsequently disconnects distribution services based on arrears owed to the distribution utility as a result of this purchase transaction, and
•	The ESCO and/or the distribution utility provides assurances to the local district that service will be restored for a period of at least 30 days from the date the local district assures payment of the calculated arrears to the billing entity.

Districts are reminded that before calculating and authorizing any utility arrears payment, local districts must explore alternative payment arrangements and/or alternative housing arrangements.  This change has no impact on restricted payments for recipients of recurring TA.  Districts can make restricted payments to an ESCO for current service.

The Energy Manual will reflect these changes in the next update.

Home Energy Assistance Program (HEAP)

Guidance on this issue was provided during the HEAP Regional Meetings and is included in the HEAP Manual.