201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: APRIL 7, 2026
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM
DIRECT PAYMENT AGREEMENT WITH THE STATE OF
CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES
AND DEVELOPMENT
ATTACHMENT (Y/N): YES ITEM # 09
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve a Direct Payment Agreement No. 26Y-6006 (Agreement) with the State of California, Department of Community Services and Development to receive federally funded Low-Income Home Energy Assistance Program (LIHEAP) grant funding to be applied to accounts of eligible electric utility customers, with a 3- year term; and
2. Authorize the Public Utilities General Manager, or designees, on behalf of the City, to execute the Agreement and all related or implementing documents, including cost-neutral amendments and any documents contemplated by the Agreement, and to take all actions necessary or advisable to implement and administer the Agreement.
DISCUSSION:
At its March 25, 2026, meeting, the Public Utilities Board (Board) recommended that the City Council approve the proposed Direct Payment Agreement No. 26Y-6006.
Since 2003, Anaheim Public Utilities (APU) has assisted eligible qualified customers through receipt of federal grant funds administered through the California Department of Community Services and Development (CSD). The proposed Agreement permits APU to directly receive LIHEAP grants from CSD and apply these funds as credits to qualifying customers who experience difficulty paying their electric bills. Over the past three years, LIHEAP funding provided an annual average of approximately 1,000 households with $773,000 in assistance.
Residential customers are generally limited to one bill credit per year under LIHEAP. The Community Action Partnership of Orange County determines customer eligibility for this program on behalf of the State of California. The assistance provided is based on factors such as income, household size, and overdue balance. Currently, the household income qualification is based on 60% of the State Median Income – for a household of four, this equates to an annual income of approximately $76,886.
Low-Income Home Energy Assistance Program Direct Payment Agreement with the State of California Department of Community Services and Development
April 7, 2026
The new Direct Payment Agreement is valid through March 31, 2029. The Agreement is substantially similar to prior agreements, and there are no cost obligations to apply the funds on behalf of customers.
APU will continue to inform customers about available assistance programs, including LIHEAP, through community events, social media, website updates, bill inserts, and other customer notifications. Customer service representatives are trained to provide information about all available options, including emergency assistance, third-party grants, income-qualified discounts, payment plans, extensions, weatherization services, and other home efficiency programs to help lower customer bills and prevent service disruptions
The approval of the Agreement supports the Citywide Strategic Plan Goal A – Maintain Fiscal Responsibility, Strategy 2 – Continue proactive pursuit of state and federal grant funds.
IMPACT ON BUDGET:
LIHEAP grant funding availability is subject to federal allocations and helps reduce potential write-offs for APU’s Fiscal Year 2025/26 budget. Funding for subsequent years will depend on federal allocations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Direct Payment Agreement 26Y-6006