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December 13, 2007

USA: Steep Heating Costs Hit Neediest

Matilda Winslow, 76, shivers in the living room of her home in Boston, December 6. Winslow buys discounted heating oil with help from the Low Income Home Energy Assistance Program. By Josh Reynolds, AP

CHICAGO (USA Today), December 13, 2007:

Soaring fuel prices are creating a crisis among low-income people and senior citizens who can't afford to heat their homes, say local agencies that distribute federal heating subsidies.

"This is a scary, scary winter. I don't know what folks are going to do," says Debbie Hambly of Rhode Island's East Bay Community Action Program. The average one-time, $325 grant there buys 100 gallons of heating oil — enough for about two weeks, she says.

Applications for heating aid are up and more working poor are seeking help, Hambly and other officials say. Without more federal funds, says Mark Wolfe, executive director of the National Energy Assistance Directors' Association, "we'll see an awful lot of people in difficult situations."

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The federal program helps users of all home-heating fuels. The Energy Information Administration (EIA), the Energy Department's analytical arm, says the average U.S. household will pay $986 this winter, up 10.9% from 2006-07.

Residential heating oil is expected to average $3.23 a gallon, a 30% increase over last winter, the EIA says. About 7% of U.S. homes use heating oil, mostly in the Northeast.

Propane is up almost 50 cents a gallon, to nearly $2.50, from a year ago, and average household natural gas costs are likely to be 7% higher.

Local agencies distribute federal funds from the Low Income Home Energy Assistance Program (LIHEAP) to those meeting income limits. About 5.87 million households received assistance in fiscal year 2007.

Last month, President Bush vetoed a spending bill that included $2.4 billion for the program. That was $480 million more than he requested and would have increased spending $250 million from fiscal year 2007. More than 30 U.S. senators want to add $1 billion in this year's budget; negotiations continue.

White House spokesman Tony Fratto says 22 states have received 100% of their LIHEAP funding for fiscal year 2008, and 28 states and the District of Columbia have received 75%. When Congress sends Bush "a bill he can sign, states will receive their full allocation," he says. Asked whether the administration supports spending more, he says, "We'll work with Congress."

States are helping. Massachusetts last month approved $15 million for heating aid. Others might make it harder for regulated utilities to shut off power to delinquent customers, Wolfe says.

Social service agencies are worried:

•"We've turned into a crisis center," says Melody Rodriguez of Central Missouri Community Action. So far, 569 people have asked for emergency aid — up from 159 a year ago.

•"This is the worst year I've seen in a long time," says Judith Engle of the Southern Iowa Economic Development Association, where 3,200 people have applied for aid. An elderly woman with no heat asked the agency to take her bird. She stayed in bed to keep warm, but worried her pet would freeze. She got a grant and weatherproofing for her home.

•Oregon's Mid-Columbia Community Action Council has filled all 800 appointment slots and has a waiting list. Margaret Davis says it's "a given" that they won't be able to help everyone who applies.

Hambly says this is the most dangerous situation she has seen: "We've all been hoping for a miracle."

By Judy Keen
Copyright 2007 USA TODAY,