TO:	Local Social Services Commissioners and HEAP Coordinators 

FROM:	Deputy Commissioner Russell Sykes, Division of Employment & Transitional Supports, OTDA

SUBJECT:	Citizens Energy Oil Heat Program

EFFECTIVE DATE:  Immediately

CONTACT PERSON:	Phyllis Morris, Home Energy Assistance Program Director at 1-800-343-8859, ext. 3-0332 or (518) 473-0332

The purpose of this GIS is to alert local social services districts that you may be contacted directly by Citizens Energy Corporation regarding participation in the Citizens Energy Oil Heat Program.  This program provides a one-time delivery to eligible households of up to 200 gallons of home heating oil at a 40% discount off the retail price (which currently equates to 80 gallons of free oil).  Citizens Energy is currently operating this program in a number of states, and in the Bronx in New York City.  Our understanding is that Citizens Energy is planning to approach districts in New York that have the highest heating oil demand to determine whether they are interested in participating, and if so, Citizens Energy would then authorize dealers in those counties to make a free 80 gallon delivery to their HEAP customers and bill Citizens Energy directly for $200.

While you are free to make your own decisions about whether to have your district participate in this program, we wanted to ensure that you were aware that our understanding is that Citizens Energy is able to provide heating oil at such a discount because CITGO Petroleum (which is owned by the controversial Venezuelan government) provides oil at a heavily discounted price to Citizens Energy, which Citizens Energy then sells on the open market at a profit and uses a portion of the proceeds to provide the discount.
 
If you have any questions, please feel free to contact New York’s Home Energy Assistance Program Director, Phyllis Morris, as noted above.