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Utilities
Definition [63-502.351c]
Utility expenses are defined as the costs billed for:
- Heating and cooking fuel; cooling and electric, such as:
- Gas,
- Electricity,
- Butane,
- Propane (and tank rental),
- Coal oil,
- Coal, or
- Firewood.
- Water.
- Sewage.
- Garbage and trash collection fees.
- Basic service for one telephone. This includes tax on basic service and telephone rental fee. However, telephone purchase costs are not allowable.
Homeless Households
Homeless households which choose the Homeless Shelter Deduction are not entitled to a separate deduction for utilities (i.e. SUA, LUA or TUA). Refer to Homeless Households for further information.
SUA [63-502.363(a)]
The SUA is allowed for ALL households which incur heating or cooling costs when that expense is:
- Separate and apart from the household's rent or mortgage payment.
- Billed to the household (the cost does not have to be paid to allow the deduction).
- Verified, if questionable, before allowing the deduction.
- Based on actual metered utility usage.
Metered usage means that the actual amount of utility services used at a residence is measured by an individual meter.
Households which choose to average these costs over a period of months, and to pay the same amount each month with a periodic adjustment based on metered usage, are eligible to SUA.
The household pays PG&E and telephone separately from its rent payment. The PG&E bill is determined each month by measuring the amount of gas and electricity used which is shown on a meter. The household is eligible to receive SUA.
If the house or apartment complex provides a primary heating source and the cost is included in the rent, the household's decision to use a different or supplemental source of heating does not qualify the household for SUA. A household which chooses to use only one heat source still qualifies for SUA if it is responsible for paying for both heat services.
A household lives in a cottage behind the landlord's house. The cottage has a gas furnace and a stove fueled by wood. If the household has a separate gas meter, is billed for gas separately from rent, and is responsible for paying for the gas used, the household qualifies for SUA even though it only uses the wood stove. If, however, there is not a separate gas meter and the household does not receive a separate bill for the gas, the household is not entitled to SUA.
If the household is responsible for the cost of heating and/or cooling separate and apart from the rent and the HH’s only heat source is an alternative or non-traditional source, the household is entitled to SUA.
A household lives in a cottage behind the landlord’s house. The cottage’s only heat source is a wood burning stove. The household is responsible for providing the firewood per the rental contract. The household chooses to cut its own firewood. Since the household is responsible for the heating/cooling costs, it is entitled to SUA.
Energy Assistance Vendor Payments [63-502.363]
SUA is allowed for households which receive payments (either direct or by vendor) made under an Energy Assistance Program funded by LIHEAA. Households receiving these payments are automatically entitled to SUA for the period of time the payment is intended to cover.
SUA may be allowed for households which receive Energy Assistance vendor payments, other than LIHEAA, only if:
- The household incurs out-of-pocket expenses for heating or cooling.
- To determine if out-of-pocket expenses are incurred, both the actual expenses and the energy assistance payment must be verified when the deduction is first allowed. The payment is prorated over the time it is intended to be covered. This amount is then compared with the actual expenses.
A household receives $300 in Energy Assistance payments from REACH for a three-month heating period.
$300 divided by 3 = $100 per month
The actual heating bill for one of the three months was $150. Therefore, the household is eligible to SUA.
Thorough documentation is required to substantiate the calculation.
- Most energy assistance payments are intended to cover the entire year.
LUA [63-502.363(d)]
The LUA is allowed for households that are not eligible for the SUA, but incur expenses for at least two separate types of utilities (other than heating and cooling). Allowable utilities include telephone, water, sewage, and garbage or trash collection.
TUA [63-502.363(e)]
The TUA is allowed for households that are not eligible for either the SUA or LUA, but incur telephone costs only. The TUA must only be used in instances where the household has a telephone or in its absence, an equivalent form of communication (i.e. cell phone, pre-paid phone cards, $10/month to use the neighbor’s home phone, etc.).
If the telephone or cell phone bill is not in the client’s name, the household is still entitled to TUA as long as the household incurs the cost.
Related Topics
State Utility Assistance Subsidy (SUAS) Payment