The amp program works by forgiving past due balances over a 12 month period.
The AMP program is also known as the Arrearage Management Plan and is a debt forgiveness program that is offered by many utility companies.
The AMP program helps eligible, low income customers who are struggling with overdue energy or utility bills by forgiving their past due balances over a 12 month period.
With the AMP program, for every month you pay your current bill in full and on time, the utility company will forgive 1/12 of your outstanding balance that is past due.
And if you make 12 consecutive payments that are on time of your current monthly bills, then your entire eligible debt, which is often up to a maximum of $8,000.00 will be wiped clean completely.
And while you're enrolled in an actively participating in the AMP program, your utility service is protected against shutoff as long as you continue to make the payments.
But if you miss a payment, are late or make only a partial two months payment in a row, or three times in a single year, you will be removed from the AMP program and any remaining forgiven debt will be added back to your account.
The exact eligibility requirements for the AMP program vary by provider and region, but you often need to be enrolled in an income qualified program like LIHEAP, FERA or CARE.
And you must owe a specific minimum amount in past due bills like $300.00 or $500.00 or more, depending on the state and gas or electricity utility.
If you're having trouble paying an electric bill for example, your electric utility may have a pay as you go program where you can pay upfront for the electricity that you use and then part of the added funds go to pay off the past due balance.
Or your electric utility or other utility company may have a payment plan or other programs to help keep your utilities on.