State releasing funds to ease energy cost burden on low-income Texans

2010-01-08 / News

The Texas Department of Housing and Community Affairs has released $117.4 million in energy assistance funds designed to help low-income Texans pay their energy bills while providing the consumer education and case management needed to reduce their dependence on future government assistance.

The funds were awarded to 50 cities, counties and nonprofit organizations through the department’s Comprehensive Energy Assistance Program, a utility co-payment assistance program that also helps eligible households better manage their energy consumption for a safe, affordable environment. Funding contracts are effective Jan. 1, 2010.

According to Michael Gerber, TDHCA executive director, CEAP plays a critical role in the department’s mission of fostering affordable housing because energy costs consume a much greater percentage of a low-income family’s annual income than that of the average Texas household.

“The cost of heating and cooling a home significantly impacts a low-income household’s ability to afford their home,” said Gerber.

Studies indicate that the average family in Texas spends approximately 3.7 percent of their annual household income on utility costs, while low-income households can spend as much as 12.2 percent of their annual household income to pay their utility bills.

The department annually assists more than 68,000 low-income Texans through CEAP services, helping low-income households meet their immediate energy needs and control future energy costs through consumer education.

In addition, some households may qualify for the repair or replacement of inefficient heating and cooling equipment.

Services are provided at the local level by contract organizations serving all 254 counties in Texas and target households earning an annual income of less than $26,500 for a family of four. These organizations accept applications for assistance, determine eligibility and provide direct service to clients.

Service providers include community action agencies or other qualifying nonprofit organizations, councils of government and local city or county governments.

The U.S. Department of Health and Human Services is the funding source for CEAP through its Low- Income Home Energy Assistance Program. Funds are allocated as a block grant to states based on a formula which includes weather-related factors and low-income populations.

To find the nearest CEAP provider, phone toll-free (877) 399- 8939 Monday through Friday. Callers will automatically be connected with the CEAP service provider serving their county. However, callers must use a land-based phone when dialing the toll-free number. Cell phones will not make this automatic connection.

Included in the list of 2010 allocations is Hill Country Community Action Association which serves Bell, Coryell, Hamilton, Lampasas, Llano, Mason, Mills and San Saba counties. It is earmarked to receive $1,027,877 in energy assistance funding.

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