Section 12.00 Vendors
The questions below apply to the Vendors section of the LIHEAP Policy and Procedures Manual.
* We have money left over from summer pre-buy funds (funds we couldn't contract). Do we need to return this money or can we just reduce our monthly request by this amount?
The funds must be returned to avoid having excess cash on-hand.
A client was a late pay in the past with a propane vendor but paid off their debt. That vendor is now requiring the client to pay a deposit. Can the vendor do that?
Unfortunately, yes. Propane vendors are not regulated utilities and can require deposits if they so choose.
(added 10/06/17) If it is the practice of the propane company to give a discount (10 cents per gallon) when the account is paid in 10 days and the LIHEAP money is in their account, why doesn't the customer get the discount? This would make their LIHEAP benefit last longer.
More than likely, the reason the client wouldn't receive the discount is because the vendor locked-in a price with the agency and that is the final price. Typically, a locked-in price is lower than the market price at time of delivery. If the vendor did not enter an agreement with a locked-in price (went with market price instead), the vendor may not give the discount simply because of the agreed-to market price without discounts.
(added 01/23/18) Is Amerigas included in the weekly SHOPP Report that gives us the statewide heating oil and propane prices? I'm asking because they didn't lock-in a price with us and are telling us that truck price is $2.53/gallon, which is well over the statewide average of $1.51/gallon. Is there anything we can do?
Because Amerigas and Ferrellgas are always much higher than the statewide average, they are not included in the survey done by the Dept. of Agriculture each week during the heating season, and monthly during the rest of the year. All you can do is attempt to obtain a better price, quoting the statewide average.
(added 09/06/18) A municipal utility is asking for $243 upfront payment today in order to start a first-time payment agreement. Can a utility require this?
Yes, per the IUB (Iowa Utilities Board).
(added 11/16/18) We have a client who wants to come for heating assistance but because of their poor credit the vendor has told them that they can only do a cash account. My question is, will the LIHEAP award be considered “cash” so she can get some propane?
If the vendor has signed an agreement with the agency, then they must deliver to the customer.
(added 11/16/18) A client doesn’t have a specific propane vendor to service her tank. She calls around for the best price. Can you tell me how this works?
When a customer rents a tank, the vendor they rent from is the only one who will service that tank. It would be really rare for another vendor to come in and say, yeah, I fill someone else's tank. However, when a customer owns the tank, they can get anyone they want (and whoever is willing) to fill it, which can be a great thing for them, especially if they've burnt some bridges.
If the vendor of the customer's choosing has an agreement with the agency, then payment goes to the vendor. If the vendor doesn't have an agreement with the agency, call the vendor and try to enter an agreement. They would only need to complete the General Agreement because the Addendums are for pre-paid vendors. If the vendor refuses to enter into an agreement, ask the customer if they would be willing to go with a vendor who has an agreement with the agency. If they don't want to, then a direct pay to the client is in order (no state approval required).
(added 03/15/19) Vendor received $30,000 in Summer Pre-Buy. Client received $500 in benefit. Vendor provided a fill but only needed to use $200. Client moved and can't be located. We told the vendor to keep the $300 that wasn't used for the client and use it for a different client. Are we okay with this process?
Yes. Ensure detailed notes are maintained.