Automated Vendor Billing/Payment - Procedures for Designated Primary Vendors 415-35-10

(Revised 6/1/2025 ML #3914)

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Most households who pay heating costs directly to an energy vendor will have LIHEAP payments made on their behalf directly to their designated energy vendor.

 

This method should be the most widely used when the household purchases buys their fuel and/or electricity regularly from the same vendor. Generally, if the household uses two forms of heat sources, one fuel type will be designated as the primary with the other fuel type being designated as the secondary, and the vendors identified by the household should be associated to their respective fuel type. This also applies to the household’s electric utility.

 

Note: If the household identifies electric as a fuel type for heating, the system will auto populate that information in to the primary category and the household will NOT receive an additional electric utility benefit.

 

Making payments to the designated, primary vendors is a four-step process:

  1. View the Eligibility Determination Results screen to ensure the household is eligible.

  2. Vendor Pay – will send a notice to the vendor authorizing them to bill the state office.

    Note: Miscellaneous Pay – will not send a notice to the vendor as they are not authorized to bill the state office.

  3. Go to Vendor Management to associate the vendor

  4. Ensure correct vendor ID, heat type, name on bill, account number, and authorization dates.

 

When a LIHEAP household designates an energy vendor that is not already listed in vendor management, the Human Service Zone (HSZ) eligibility worker will need to refer the vendor to the State Office to obtain a vendor ID and enter the new vendor into the integrated eligibility system file.

 

The vendor can use the vendor portal or complete the paper ‘Request for Payment’ and mail it to the state office to request payment.

 

Some of the larger utility companies have elected to transmit bills for their LIHEAP customers by electronic file. Each local office of the company submits billing information to the company's central computer, and the bills for all the company's LIHEAP customers statewide are then transmitted to the State integrated eligibility system once per week via electronic file.

 

 

One check will be issued for all the vendor's customers for whom the vendor he is receiving payments, and a "Remittance Advice" will break down the amounts that are to be credited to each customer's account. The Remittance Advice will also show the payments that were rejected. This will tell the vendor why the bills were rejected and not paid during this check run.