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EAP Policy Manual FFY24 Chapter 4 Primary Heat Page 8

Calculating a Benefit Using Actual Energy Costs To calculate a benefit using actual energy costs: • Determine the household’s total heating costs using the method described earlier in this chapter. • Determine the percentage of energy costs EAP will pay based on the household’s financial need. Multiply the household’s total energy costs by this percentage. The result is the household’s Primary Heat benefit. For example: An EAP household heats with propane and electricity. Their annual propane cost is $1,000 and their annual electric cost is $1,500, resulting in a total energy cost of $2,500. The household has two members and zero income. Because their income percentile is zero, EAP will pay the highest possible share of their heating costs. For the sake of example, say that this maximum percentage is 50% of energy costs. The household’s benefit is computed by multiplying this percentage by their total energy cost and rounding the result: $2,500 x 50% = $1,250. Calculating a Benefit Using the Backup Matrix The backup matrix is a table of fuel costs that can be used when actual energy costs are not available. Each row in the matrix contains the average energy cost (based on data from the previous program year) for a different combination of fuel type and housing type. To calculate a household’s benefit with the backup matrix: • Determine the household’s housing type and primary fuel type • Use the backup matrix to find the average energy cost for households with the same housing type and primary fuel • Compute the Primary Heat benefit as though the backup matrix energy cost were the household’s actual consumption For example: An EAP household lives in a mobile home and their energy costs are unknown. Their application says propane is their primary fuel. According to the backup matrix, mobile home dwellers using propane typically pay $1,900 per year in energy costs. The household has two members and zero income. Because their income percentile is zero, EAP will pay the highest possible share of their heating costs. For the sake of example, say that this maximum percentage is 50% of energy costs.