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VIRGINIA DEPARTMENT

OF SOCIAL SERVICES ENERGY ASSISTANCE

06/03 VOLUME IX, CHAPTER J, APPENDIX A, PAGE 1

SECURITY DEPOSIT OPTION PLAN

The Virginia Department of Social Services has signed an agreement with electric utility companies to waive the payment from Cooling Assistance dollars for security deposits authorized if the recipient makes regular and timely payments for heating utility service for a one year period. (Refer to your local EAP Vendor List to verify if individual vendor has agreed to participate in the Security Deposit Option.) The process is as follows:

1. The LDSS will accept applications for assistance from June 15 to August 15 unless otherwise directed.

2. Determine eligibility of the applicant and the maximum amount of assistance for each applicant based on policy.

3. Verify the security deposit amount only and the account number prior to approving the application.

4. Enter case information in the EAP computer system. The computer will generate a Client Notice of Action and Credit Authorization (approved cases).

5. The system requires the entry of account number and name.

6. The system will not allow entry of a bill check amount on these cases. Payment requests will be sent to VDSS by the vendor.

7. The case record will count the security deposit as being received and paid upon acceptance. The participant will not be eligible to receive another security deposit for the authorized fuel type.

8. Only system generated credit authorizations will be accepted by the vendors.

9. Any questions/concerns regarding this process should be e-mailed to your Program contact.

10. The customer is responsible for paying the monthly bills timely. If service is disconnected within a 365 day time period, the utility will attempt to collect from the customer. If the customer fails to pay, the utility will bill VDSS for the bill amount or deposit amount, whichever is less.

11. A letter of explanation is sent to the customer and a copy to the LDSS.

12. If the amount paid from cooling dollars is less than the deposit amount, the difference is counted as a savings for leveraging purposes.

TRANSMITTAL #03-2