For Immediate Release, Wednesday, October 12, 2005
Contact:  David Fox, 202-331-2962

WASHINGTON — A new winter energy cost forecast released by the U.S. Energy Information Administration makes a strong case for Congress to increase funding for a federal program that helps at-risk Americans pay their home energy bills, a coalition of advocates for the program said today.

In a revised energy outlook taking into account the impact of Hurricanes Katrina and Rita on the energy production and distribution system, the EIA said Americans nationwide should be prepared to pay 48 percent more this winter than last for natural gas and 32 percent more for heating oil.  It said propane is likely to cost 30 percent more than a year ago, while electric costs may be 5 percent higher.

“What EIA is forecasting suggests that almost every American family will notice a big difference in their energy bills this winter,” said David Fox, executive director of the Campaign for Home Energy Assistance, a coalition of advocates for the Low Income Home Energy Assistance Program (LIHEAP).

“Unfortunately, those hurt the most will be those least able to pay more,” he added. “Higher energy costs will be devastating for senior citizens and disabled people living on fixed incomes and for low-income households with small children who are already struggling — and sometimes failing — to make ends meet.”

The Low Income Home Energy Assistance Program, or LIHEAP, was created to help our most vulnerable citizens when energy costs become more of a burden than they can handle.  But funding for the program has never kept pace with inflation, and the percentage of households it serves has declined steadily since LIHEAP began in 1982.

“This year, LIHEAP has been able to help less than 15 percent of the estimated 32 million households eligible for assistance,” said Skip Arnold, executive director of Energy Outreach Colorado, a member of the Campaign. “With the skyrocketing cost of energy we’re facing now, there’s simply no way for LIHEAP to keep up with the need unless Congress provides more money.”

Lawmakers provided $1.875 billion for LIHEAP in Fiscal Year 1982, the first year of the state block grant program as we know it today.  In FY 2005, LIHEAP was funded at $1.885 billion.
“The cost of living more than doubled during that period — even before energy costs began their sharp rise,” said David Rinebolt, executive director of Ohio Partners for Affordable Energy, also a member of the Campaign.  “Meanwhile, the number of people getting help has declined steadily, while the number eligible for assistance — and, therefore, having to make the difficult choice between paying for food and medicine or paying to heat or cool their homes — has been growing.”

The National Association of Utility Regulatory Commissioners and the U.S. Conference of Mayors both passed resolutions this year urging Congress to increase funding for LIHEAP, and 28 of the nation’s governors recently signed a letter to the House and Senate leadership seeking additional money for the program.

When the Senate took up the Department of Defense appropriations bill earlier this month, 50 senators supported an amendment to add $3.1 billion in emergency supplemental funding for LIHEAP in Fiscal Year 2006, which would have increased funding for the program to its authorized level of $5.1 billion.  The measure failed to win the 60 votes needed to overcome a procedural point of order.

“While advocates for LIHEAP are disappointed that the amendment failed, it was very encouraging that 50 senators supported full funding for the program,” Fox said.  “Our hope, now, is that Congress will find another legislative vehicle — perhaps as part of a hurricane relief package — through which it can add more money for LIHEAP.

“We’re facing an energy price crisis right now. While we certainly have to begin looking at long-term solutions, there is an immediate need that must be addressed.  LIHEAP is the one federal program that can provide some immediate relief.”

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