Four-Tiered Mandatory Standard Utility Allowance

Effective October 1, 2008, a four-tiered mandatory standard utility allowance deduction was implemented in determining a household’s excess shelter deduction. Households cannot claim actual utility expenses and are only entitled to one (1) of the four (4) utility allowances. The four (4) utility allowances shall be reviewed annually and adjusted each year, based on federal approval, to reflect Colorado's cost of utilities. No utility expenses can be allowed as an income exclusion for self-employed households when a mandatory utility allowance is given to the household. When determining expedited eligibility, the appropriate utility allowance shall be applied when establishing the household’s shelter costs. The four (4) allowances are as follows: A. Heating and Cooling Utility Allowance (HCUA) 1. “Cooling costs” are defined as utility costs relating to the operation of air conditioning systems, room air conditioners, swamp coolers, or evaporative coolers. Fans are not an allowable cooling cost. A heating and cooling utility allowance (HCUA) is available only to households that: a. Incur or anticipate heating or cooling costs separate and apart from their rent or mortgage; b. Received a Low-Income Energy Assistance Program (LEAP) or an Energy Electronic Benefit Transfer (E-EBT) payment within the previous twelve (12) month period, regardless of whether the individual is still residing at the address for which they received the LEAP or E-EBT payment; c. Live in private rental housing and are billed by their landlords on the basis of individual usage or charged a flat rate separately from their rent for heating and cooling; d. Share a residence and incur at least a portion of the heating or cooling cost, in which case each household will be entitled to the full HCUA; or, e. Live in public housing and are responsible for excess heating and/or cooling costs. 2. A SNAP household, which incurs or anticipates heating or cooling costs on an irregular basis, may continue to receive the HCUA between billing periods. 3. The operation of a space heater, electric blanket, heat lamp, cooking stove, and similar appliances, as a supplemental heating source, are allowable costs when determining eligibility for the basic utility allowance (BUA), but do not qualify a household for the HCUA. 4. The HCUA standard is as follows: HCUA Standard Effective October 1, 2025 $594 B. Basic Utility Allowance (BUA) 1. The Basic Utility Allowance (BUA) is mandated for any households that are not entitled to the HCUA and that incur at least two (2) non-heating or non-cooling utility costs, such as electricity, water, sewer, trash, cooking fuel, or telephone. 2. If more than one SNAP household shares in paying non-heating or non-cooling utility costs of the dwelling, the full BUA will be allowed for each SNAP household sharing in the utility costs. 3. The BUA standard is as follows: BUA Standard Effective October 1, 2025 $377 C. One Utility Allowance (OUA) 1. The OUA is mandated for any household that is not entitled to the HCUA or BUA but is responsible for only one (1) non-heating or one (1) non-cooling utility expense. The OUA is not allowed if the household’s only utility expense is a telephone. 2. If more than one (1) SNAP household shares in paying one (1) non-heating or one (1) non-cooling utility cost of the dwelling, the full OUA will be allowed for each SNAP household sharing in the utility cost. 3. The OUA standard is as follows: OUA Standard Effective October 1, 2025 $71 D. Telephone allowance 1. The telephone allowance is available to households whose only utility cost is for a telephone. If more than one SNAP household shares in paying the telephone costs, and that is the only utility cost of the dwelling, the full phone standard will be allowed for each SNAP household sharing in the telephone costs. 2. The telephone allowance is as follows: Telephone Standard Effective October 1, 2025 $97