DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Merger of REAP and WARM Utility Assistance Funds
SUMMARY:
This ordinance would terminate the Project Winter Assistance Relief Mobilization (WARM) Program and authorize the transfer of WARM funds from CPS Energy to the Residential Energy Assistance Partnership, Inc. (REAP) for efficient administration of a single utility assistance program under Project REAP. The ordinance would also authorize all actions and agreements necessary to effectuate the transfer and termination, including an extension of the current agreement with REAP to December 31, 2023, and two automatic annual renewals to December 31, 2025.
BACKGROUND INFORMATION:
Established in 1983, Project Winter Assistance Relief Mobilization (Project WARM) provides funding for utility bill assistance to residential customers of CPS Energy who qualify under certain eligibility requirements. Project WARM is funded from investment income generated by a $7.5 million endowment fund from two Texas oil and gas producing partnerships. In addition, the Residential Energy Assistance Partnership, Inc. (REAP) also funds utility bill assistance through an annual allocation, currently $800,000, from CPS Energy, plus additional funding that can be drawn from the REAP endowment corpus. In 2019, the City drew down approximately $2.1 million from the REAP corpus to fully fund emergency utility assistance requests. The current estimated balance of the REAP corpus allocated for the City is $2.5 million.
Under the present Project WARM agreement, income-eligible customers may receive CPS Energy bill assistance not to exceed $150. In 2019, the program served an estimated 400 residents with up to $150 each using Project WARM funds and more than 9,000 residents with up to $400 each using REAP funds. The programs are administered by the Department of Human Services Emergency Assistance Program.
ISSUE:
Due to the cur...
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