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Montana Gov ponders
heat solutions
By Mike Dennison - IR
State Bureau - 09/13/05
HELENA
- Warning of potential huge increases in home-heating costs this winter,
Gov. Brian Schweitzer said he's eyeing ways to help Montana households -
including an increase in state funding for assistance.
The
administration stopped short Monday of saying it might ask the
Legislature this year for the funding, if lawmakers meet in special
session this December.
But David Ewer, the governor's budget director, said the administration
is "monitoring this energy situation" to see what actions might be
needed.
The Schweitzer administration asked the 2005 Legislature's regular
session this spring to approve $10 million for home-heating assistance
over the next two years. Lawmakers declined, cutting the funding to $1
million.
Now, analysts are predicting potential soaring prices this winter for
natural gas and other home-heating resources, such as propane and
electricity.
"Many in our state could be facing a crisis as our Montana
winter nears," Schweitzer said. "I am asking Montana citizens
(and the) state and federal government to all do their part."
Households most at risk are those using natural gas provided by
NorthWestern Energy, Montana-Dakota Utilities and Energy West,
or electricity provided by NorthWestern Energy. These sources
are most affected by market prices.
Rural electric cooperative customers in Montana generally are
unaffected by the current rising energy market. Most co-ops
entered into fixed-price, long-term contracts many years ago,
and are continuing to provide power at stable rates.
For customers at risk of rising prices, however, Schweitzer
noted two key actions on the horizon:
n Congress may increase federal home-heating assistance funding,
but has yet to ink a final bill. Some lawmakers are proposing to
double the amount, which could mean an additional $10 million
for Montana.
n The Montana Public Service Commission is deciding whether to
spend more of a special fund on home-heating assistance for poor
households. The fund is financed by a tax on Montana electric
and natural gas ratepayers. Schweitzer is supporting the change
that directs more of the fund toward home-heating assistance.
Montana received $12.5 million in federal home-heating
assistance money for the past winter. That money paid an average
of $432 per eligible household, helping about 20,000 families.
The Bush administration proposed cutting that spending in the
federal budget year that begins Oct. 1. However, proposals are
before Congress to double the funding or increase it by about 65
percent, with an emergency appropriation.
U.S. Sen. Max Baucus, D-Mont., said Monday he's committed to
pushing for more money for the program to "help ease the blow
and literally mean the difference for some people between food
on the table and heating their homes."
Jim Nolan, state director for the Low Income Energy Assistance
Program, said he hopes Congress agrees to increase the funding.
"Nobody knows where heating costs are going to go this winter"
he said.
NorthWestern Energy just increased its natural gas rates by 27
percent, and gas for its customers stands at about $8 per
thousand cubic feet (mcf). An average household uses about 10
mcf per month.
Market prices for natural gas have been hitting $11 to $12 per
mcf in the past week, after Hurricane Katrina, said Claudia
Rapkoch, a spokeswoman for NorthWestern Energy.
"The markets are too volatile to say what the winter is going to
bring," she said. "We're still working on our numbers for the
winter." |
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