WASHINGTON, DC – Last week, Congressman Delahunt joined his colleagues in sending a letter to President Bush, urging him to release the remaining $151.5 million from the FY ’07 Low Income Home Energy Assistance Program (LIHEAP) contingency fund.
"The release of these funds will be crucial in helping low-income families and seniors in Massachusetts pay for outstanding heating bills from last winter," Delahunt said.
The purpose of the contingency fund is to supplement LIHEAP funds to states in cases of emergency. These funds may only be released at the discretion of the President and the Secretary of Health and Human Services. According to a survey completed by the National Energy Directors Association, many families are still facing severe financial hardships from last winter’s high energy bills.
As a result of the large number of unpaid bills, more than one million households have seen their electric and natural gas service disconnected. As winter gets closer, these families will find themselves without any help at all. If the Bush Administration fails to release the remaining funding in this program, it will expire on September 30, 2007.
The text of the letter is as follows:
Dear Mr. President:
The Administration’s effort to address the higher than average temperatures experienced in several parts of the country this summer with the release of $50 million in late August from the Low Income Home Energy Assistance Program (LIHEAP) contingency fund was a crucial first step to helping low income families and seniors meet rising arrears and shutoff notices. We strongly urge you to immediately release the remaining $151.5 million in the LIHEAP contingency fund and provide funding to all states that must address this emergency. If the Administration fails to release the remaining funding, $131 million of that balance will expire on September 30.
Earlier this summer the National Energy Directors Association (NEADA) conducted a national survey of utility arrearages and shutoffs. The survey found that millions of low-income households this year are facing a severe hardship paying arrearages from last winter’s heating bills, coping with impending and actual shutoff of service, and meeting rising air conditioning costs. The survey estimated that at least 1.2 million households have been disconnected from electric and natural gas service during the three-month period following the end of state shutoff moratoriums. This was a conservative estimate as the level of shutoffs would likely increase as utilities completed credit and collection procedures. The statute specifically defines a significant increase in home energy disconnections as an emergency and reason for the release of funds.
According to the Energy Information Administration (EIA), U.S. residential electricity prices are expected to increase at a rate of 3 percent this year. States undergoing market restructuring continue to experience more rapid price increases as rate caps expire and higher fuel costs are passed through to consumers. In some instances, customers may see rate increases of up to 50 percent.
Low-income Americans experience a much higher energy burden than the average American household. Too many of these households face difficult financial choices in trying to meet basic human necessities on an income that simply won’t stretch far enough to cover it all. No family in our nation should be forced to choose between paying an energy bill and putting food on the table for themselves and their children. No senior citizen should have to decide between buying life-saving prescriptions and paying utility bills. For individuals and households that may have to face these difficult choices, LIHEAP makes a real difference in their ability to cope with adverse circumstances.
It would be unfortunate to permit $131 million in LIHEAP contingency funds to expire given the need to help families and seniors restore service and reduce energy burdens.
Thank you for your consideration.
For a pdf copy of this letter, please click here.
-30-