Families struggling to pay heating costs

BANGOR – 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.