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Families
Struggling to Pay Heating Costs
By: Deborah Turcotte
Rising heating
fuel costs and extremely low temperatures are
putting a strain on low-income families, causing
many to take unusual and possibly unsafe steps
to keep warm.
Heating fuel suppliers have reported that
numerous households not involved in a
cost-assistance program are buying only 100 or
so gallons at a time instead of filling up their
275-gallon tanks.
Low-income families sometimes buy enough fuel
for just a day or so, according to Jennifer
Giosia, a division manager at Penquis Community
Action Program. When their tanks run dry, the
families scrounge up money to buy more fuel and
then may try to restart their furnaces
themselves because getting an oil dealer to do
it "costs money," she said.
"We are hearing that they are getting 5 gallons
or 10 gallons at a time just to get by," Giosia
said. "People go down and get kerosene and dump
it into their tanks. It's a little scary because
people do not know what they're doing."
Applications for the federal Low-Income Heating
and Energy Assistance Program are expected to
top 50,000 this year statewide, up from
approximately 47,000 last year. Applications are
accepted at area community action programs
through April 30, and so far 39,000 have been
received. More low-income families, who in the
past may have thought they didn't qualify for
LIHEAP, now are seeking help to pay for heating
fuel.
Because of the increased demand, the amount of
annual LIHEAP benefits available per family has
declined to about $420 from $450 last year. The
money, not intended to pay a household's entire
winter heating bill, still needs to be stretched
to pay for either heating oil, which costs 34
percent more than last year, or propane, which
costs 22 percent more, Giosia said.
"I think people are in a bad situation this
year," she said.
According to the state Office of Energy
Independence and Security, the statewide average
cash price for No. 2 heating oil was $1.94 on
Monday, up four cents since last week and 39
cents higher than last year at this time.
The federal Department of Health and Human
Services manages LIHEAP and disburses
approximately $1 billion annually. Last fall,
Congress approved an additional $300 million in
contingency funds for the program, and President
Bush has released $100 million of that so far.
The rest of the money needs to be distributed,
according to Maine's congressional delegation
and Gov. John Baldacci. In separate letters,
Baldacci, as chairman of the Coalition of
Northeastern Governors, Sen. Olympia
Snowe,
and Reps. Michael Michaud and Tom Allen conveyed
to Bush the hardship many New England families
are experiencing because of high heating fuel
costs and low incomes.
Low-income families, they said, particularly the
elderly and the disabled on fixed incomes or
families with children, are having to choose
between heating their homes, seeking medical
attention, buying food or medication or paying
rent.
Baldacci, in his letter on behalf of the
governors' coalition, also said he did not
believe the annual federal LIHEAP appropriation,
along with the $300 million contingency fund,
was enough.
"Although LIHEAP has seen an increase in its
annual appropriation in recent years, the
soaring prices of home heating fuels have
dramatically decreased the program's purchasing
power," Baldacci wrote. "The [contingency fund]
provides valuable additional resources for the
program; yet the increased appropriation, while
welcome, barely covers the increased heating
costs attributed to rising energy prices."
Dan Simpson, spokesman for the Maine State
Housing Authority, which manages LIHEAP, said
Maine's share of the extra $200 million would
help ease the financial burden facing low-income
families.
"If the president were to release the emergency
funds, we'd probably be able to increase the
benefits," he said.
To qualify for LIHEAP, households must meet
certain income criteria which are based on the
federal poverty level, said Jo-Ann Choate,
MSHA's energy program manager. A family of four
cannot earn more than $7,069 in a three-month
period or $28,275 annually. A single person may
not earn more than $3,491 in a three-month
period or $13,965 annually, she said.
Most families now taking part in LIHEAP earn far
below the federally set income levels, Choate
said.
"The average income levels for the households we
serve is around $11,000," she said.
Those interested in receiving more information
about LIHEAP should contact their local
community action program.
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