CEMA Presses DSS on LIHEAP Issues

CEMA President Chris Herb wrote to Connecticut’s Department of Social Services (DSS) regarding the elimination of county differentials in the Low-Income Home Energy Assistance Program (LIHEAP) plan that they had submitted to the Department of Health and Human Services (HHS) this summer.
Over a decade ago, CEMA successfully lobbied to have county differentials included in the Margin Over Rack Program (MOR) to reflect the operational cost differences between counties. In a clear misinterpretation of Public Act 23-204, DSS eliminated the county differentials after they added a regional pricing system for the upcoming heating season. Public Act 23-204 requires the department to establish both county and regional pricing; therefore, eliminating county pricing is a violation of the law and needs to be corrected before the program starts on November 1st.
CEMA testified before the Human Services, Energy, and Appropriations Committees, pointing out these flaws, and has formally requested that DSS add county pricing in the vendor agreement to ensure compliance with the law. However, CEMA reports that it was informed by Deputy Commissioner Peter Hadler that they will “be in touch soon” with CEMA to address its concerns.
CEMA also pointed out to the department another inconsistency between what DSS has done
and what is required in Public Act 24-145. This law established a new reimbursement option for the first time since the LIHEAP was established, where vendors could choose to be paid based on a discount off their retail price (DOR) instead of the MOR.
The department was supposed to align Connecticut with “best practices utilized in other states,”
but unfortunately, they have departed from regional models, where, for example, vendors in New York can discount the regular price by 13¢ per gallon. The Connecticut DOR requires vendors to provide a 35¢ per gallon off of their “lowest” price, which is more than three times greater than the New York program. Unlike any other state with a DOR, Connecticut vendors must post their prices on their websites so DSS can verify that the 35cpg is being applied to their lowest price. This standard does not exist in any other state that offers a DOR option.
CEMA continues to advocate for changes to the LIHEAP so that our customers are properly served and vendors are treated fairly.

Reprinted from the Oct. 2, 2025, issue of CEMA Pipeline, the newsletter of the Connecticut Energy Marketers Association.