Umair Gaines
The Percentage of Income Payment Plan (PIPP) is a four-year program that caps a customer's electric and/or gas charges at a set level plus taxes and fees monthly. PIPP is an extended payment plan where you pay a percentage of your income to your electric or natural gas company each month. The amount of your benefit will depend on your situation, like the size of your household and income level. If your income is higher than the income guidelines, your monthly bill will be higher. If you miss your PIPP payments, you may be dropped from the program.
| Characteristics | Values |
|---|---|
| Plan Name | Percentage of Income Payment Plan (PIPP) |
| Plan Type | Extended Payment Plan |
| Payment Type | Credit applied directly to the utility bill |
| Payment Amount | Percentage of income |
| Payment Frequency | Monthly |
| Utility Type | Electricity and/or Natural Gas |
| Eligibility | Based on household income, disconnection history, and zip code |
| Enrollment | Limited, with a waitlist for eligible customers |
| Bill Cap | Varies based on income and changes annually |
| Incentives | Arrearage credit for on-time and full payments |
| Duration | Four years |
| Providers | Varies by state and county |
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What You'll Learn
Percentage of Income Payment Plan (PIPP)
The Percentage of Income Payment Plan (PIPP) is a four-year program that helps low-income households by capping their monthly electric and gas charges at a set amount, plus taxes and fees. The amount paid under PIPP is based on a percentage of a household's income. For instance, if a household heats their home with gas, they pay 5% of their gross household income for their natural gas bill and another 5% for their electric bill. If they heat their home with electricity, they pay 10% of their gross household income. The minimum payment is $10 a month. PIPP is available to customers of regulated gas and electric companies in Ohio and California.
In Ohio, to be eligible for PIPP, customers must have a gross (before tax) income at or below 150-175% of the Federal Poverty Income Guidelines. Most major utility companies regulated by the Public Utilities Commission of Ohio (PUCO) offer PIPP, but some are not required to. Households may need to sign up for PIPP if they receive assistance from the Home Energy Assistance (HEAP) winter or summer crisis program. PIPP is also available to Low-Income Home Energy Assistance Program (LIHEAP) households.
In California, the program is only available to a limited number of eligible CARE customers. CARE-enrolled customers who reside in an area with higher volumes of disconnection due to non-payment or who have had their gas or electric disconnected due to non-payment are eligible for PIPP.
If a household misses their PIPP payments, they may be dropped from the program. To remain in the program, they must be current on their PIPP anniversary date, which is about 12 months from when they first enrolled.
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PIPP eligibility criteria
The Percentage of Income Payment Plan (PIPP) is a four-year program that caps a customer's electric and/or gas charges at a set level plus taxes and fees monthly. PIPP is designed to reduce the number of low-income households at risk of disconnection and encourage participation in energy-saving initiatives. The amount of your benefit will depend on your situation, including the size of your household and income level.
To be eligible for PIPP, you must meet certain criteria:
- You must have a low income that is at or below a certain percentage of the federal poverty guidelines. The specific percentage may vary by state or program, but it is typically around 150%-175%.
- You must be a customer of a participating utility company. Most major utility companies regulated by the Public Utilities Commission of Ohio (PUCO) offer PIPP, but some companies are not required to offer it.
- You must live in a qualifying zip code or area.
- Your household income must be within the qualifying guidelines for the number of people in your home.
- You must be the customer of record on the account.
- You must meet the disconnection criteria, meaning you are at risk of having your gas or electric service disconnected due to non-payment.
- You must not be claimed as a dependent on another person's income tax return.
- Your electric rate on your energy bill must be eligible for the program.
- You must not be a direct access customer, a Net Energy Metering (NEM) customer, or a sub-metered tenant.
- You must not be on a specific payment plan that is incompatible with PIPP.
In addition, to maintain your eligibility for PIPP, you must:
- Stay current on your PIPP payments.
- Report any changes in your household income or household members.
- Re-verify your income each year.
- Be caught up on all your PIPP payments by your Anniversary Date, which is the date you signed up for PIPP.
If you meet the eligibility criteria and are enrolled in the PIPP program, you will pay a fixed amount each month for your gas and/or electric charges, plus taxes and fees. The specific amount you pay will depend on your income and primary heat source. For example, if you use electric heat, your monthly payment may be a higher percentage of your income than if you use another heat source.
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PIPP monthly bill amount
The PIPP monthly bill amount is calculated as a percentage of your income toward your gas or electric bill. If you heat your home with gas, your monthly payment will be 5% of your gross household income for your natural gas bill, plus 5% of your gross household income for your electric bill. If you heat your home with electricity, your monthly payment will be 10% of your gross household income. The minimum payment is $10 a month. The balance of your utility bill is subsidized by the state of Ohio.
The PIPP monthly bill amount is subject to a minimum threshold, whereby you pay whichever is greater: the calculated percentage of your income or $10. For example, if the calculated percentage of your income for your gas bill is $8, you will pay $10.
The PIPP monthly bill amount is also subject to a cap. The PIPP program sets a cap on electricity and natural gas service charges on your monthly bill. This means that you will pay a fixed amount each month for your gas and/or electric charges, plus taxes and fees. The PIPP bill cap amount will change each year or if your income changes.
The PIPP monthly bill amount can also be influenced by your participation in other energy assistance programs. For example, if you receive assistance from the HEAP Winter or Summer Crisis Program, you may need to sign up for PIPP. Additionally, your PIPP bill amount may be impacted by your enrollment status, as some PIPP programs are limited to a certain number of participants.
It is important to note that the PIPP monthly bill amount is expected to increase each year based on the Federal Poverty Guidelines. This means that even if your income remains the same, your PIPP bill amount may increase over time.
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PIPP application process
The Percentage of Income Payment Plan (PIPP) is a four-year program that helps eligible individuals manage their energy bills by offering affordable monthly payments. The plan is available to those who reside in an area with higher volumes of disconnection due to non-payment or who have had their gas or electric disconnected due to non-payment. PIPP is also available to those who are new to the program or have a PIPP default.
To apply for the PIPP program, you can apply online at energyhelp.ohio.gov, in person at your local Community Action Agency (HEAP department), or over the phone. You will need to complete the Energy Assistance Application (available in English or Spanish) and submit a copy of the following documents:
- A copy of your most recent utility bills (gas and/or electric)
- A list of all household members (including birth dates and Social Security numbers)
- Proof of income for the last 30 days for each member (12 months preferred)
- Proof of citizenship or legal residency for all household members
If you are applying by mail, you can print and fill out the application or pick up an application at the Community Action Agency or local library and send the required documents to the Ohio Office of Community Assistance. You can also contact your utility company for an application that can be mailed.
It is important to note that applying for the PIPP program does not guarantee enrollment, as space is limited. If the program is full, you will be placed on a waitlist. Once your application is processed, you will receive a communication regarding your enrollment status.
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PIPP vs. other assistance programs
The Percentage of Income Payment Plan (PIPP) is a billing program that helps low-income customers manage their electric and gas bills. It is available to those whose household income is at or below 175% of the federal poverty guidelines. Under PIPP, customers pay a percentage of their income toward their gas or electric bill. The specific percentage depends on the customer's income and primary heat source. For instance, if a customer's monthly income is $1,000 and their primary heat source is electric, their monthly PIPP payment would be capped at $100 (10% of their income). The minimum payment is $10 a month.
PIPP is distinct from other assistance programs in several ways. Firstly, it is an extended payment plan, typically lasting four years, where customers pay a fixed amount each month for their gas and/or electric charges, plus taxes and fees. This differs from programs like the Home Energy Assistance Program (HEAP), which provides a one-time payment to the utility company during the summer or winter to help lower cooling or heating costs. Secondly, PIPP participants are not charged deposits or late payment fees, and if they stay current on their payments, they may be able to reduce or eliminate their arrearage. However, it's important to note that PIPP participants may not be eligible for other billing programs offered by the same energy provider.
While PIPP can provide significant benefits, it is important to consider other available assistance programs and their specific requirements and benefits. For instance, the HEAP Winter Crisis Program and Summer Crisis Program are designed to prevent heat or cooling shut-offs or help restart these services. Customers may also be eligible for both PIPP and HEAP programs, depending on their circumstances. Additionally, other emergency assistance programs may be available through local community action agencies or other organizations. These programs can provide further support with utility bills or address other essential needs.
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Frequently asked questions
The monthly bill amounts for the Percentage of Income Payment Plan (PIPP) are expected to increase each year based on the Federal Poverty Guidelines.
PIPP is the Percentage of Income Payment Plan. It is a four-year program that caps a customer's electric and/or gas charges at a set level plus taxes and fees monthly.
If the utility provides both gas and electric services, the customer will pay $10 or 5% of their gross monthly household income, whichever is greater. If the customer has an all-electric home, the payment is $10 or 10% of the gross monthly income, whichever is greater.
To qualify for PIPP, you must be currently enrolled in the California Alternate Rates for Energy (CARE) program and reside in a qualifying zip code. You may also qualify if you have been disconnected two or more times due to non-payment between March 2019 and February 2020.
You can apply for PIPP by submitting an application form and providing proof of your household income.
