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

(Revised 10/1/17 ML #3512)

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

 

This method should be the most widely used when the household buys their fuel regularly from the same vendor. Generally, if the household uses two forms of heating fuel, one will be designated as the primary fuel, and the provider of that fuel will be the designated primary vendor.

 

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

 

Step 1:

The eligible case is established in the computer file on the "Household Data" screen.

 

The "Household Data" screen is completed with a payment type of Code 01 (Vendor), the vendor's ID number, and the dates he is authorized to bill. The designated vendor will be notified by the county office using a "Notice of Action," that his customer is eligible for LIHEAP benefits, including the benefit level and the authorized time period covered. The county social service board will instruct all vendors in their service area NOT to expect any LIHEAP payments unless they have first received a "Notice of Action."

 

Step 2:

For New Vendors Only

When a LIHEAP household designates a heating vendor that is not already listed in the computer vendor file, the county will need to request the State Office assign a vendor ID and enter the new vendor into the computer file. The county also needs to tell the State Office when the household file using the new vendor ID will be entered on the computer.

 

The State Office will automatically send the vendor a computer printout entitled "Request for Payment" along with a copy of the LIHEAP Heating Vendors Billing Procedures Manual. This printout will have the names of all the vendor's LIHEAP-approved customers currently on file up to the date the "Request for Payment" is printed. It will repeat the benefit level and authorization period for each approved customer and will also be used by the vendor to bill LIHEAP for heating energy supplied to the customer.

 

This printout will be sent automatically from the State only when the vendor first has a customer approved for LIHEAP. From then on, a new "Request for Payment" will only be sent when a payment is made to the vendor.

 

For Vendors Carried Over From Previous Heating Season

All vendors carried on file at the end of the previous heating season will be transferred automatically into the vendor file of the new heating season. These vendors will automatically receive in mid October four blank pages with only their name, address, I.D. number, and the column headings printed on it. They will use this form to write in the names, billing number and billing information for their very first approved LIHEAP customers. When they send these in for payment, the automatic process described in Step 4 will take over. If counties have already entered some cases on the file, those customers will have pre-printed customer information on the billing form.

 

Step 3:

Manual Billing Method

The vendor uses the columns in the center of the printout to submit his bill for those customers who have had fuel delivered, and the vendor sends the original copy of the "Request for Payment" to the State Office for payment. He retains a copy for his records.

 

Secure Web File Transfer Billing Method

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 computer once per week via electronic file.

 

Each local office of the utilities will continue to receive all the documents identified in Step 4, but they will no longer need to submit the billing information by hand for current bills. Montana Dakota Utilities and Ottertail are not able, however, to submit back bills via electronic file and will have to manually submit back bills with the "Request for Payment" printout.

 

Xcel Energy will send an electronic file from the Minneapolis office. Local Xcel Energy offices will continue to receive their check and all other documents identified in step 4 including a printed copy of the Remittance Advice. Xcel Energy will have the capability to use the computerized billing for current and back bills.

 

Step 4:

One check will be issued for all the vendor's customers for whom he is receiving payments, and a "Remittance Advice" will break down the amounts that are to be credited to each customer's account. At the same time, the vendor will receive from the State Office a new "Request for Payment" showing all LIHEAP-approved customers on file up to the date the report is printed. In this way, newly approved applicants will be added to the "Request for Payment" so the vendor can submit bills for new LIHEAP customers.

 

Each vendor will also receive with the check an electronically produced printout of bills submitted which were rejected by the computer for payment. This "Rejection List" will tell the vendor why the bills were rejected. There will continue to be some rejected bills which cannot be identified by this electronic system, and these will be handled manually by the State Office staff. The manually generated rejection notices will NOT be mailed with the check, however, but will be mailed separately within a week following the computer run.

 

If the vendor does not receive all the payments requested, he should be advised to wait for the rejection notice before calling in to the State Office.

 

Step 4 will be repeated until the end of the program. As individual customers have their cases closed, their names will no longer appear on updated "Request for Payment" reports. Only the names of customers who have designated the vendor as the primary vendor for on-going bills will appear on the "Request for Payment." If miscellaneous payments only are authorized to go to this vendor for a particular customer, that customer's name does not appear in the "Request for Payment." If a non-authorized vendor submits a bill for a customer, that bill will be rejected.