Flame Burns Low for U.S. Assistance on Energy Bills for the Poor

By Jack Naudi, St. Louis Post-Dispatch Knight Ridder/Tribune Business News

Advocates for the poor face a daunting task when it comes to finding assistance to pay for heating and cooling bills.

Federal funding for the nation's primary energy-assistance program has failed to keep pace with heating costs. Today, the government's $2 billion annual allotment covers just 16 percent of eligible low-income families.

Several hundred energy-assistance advocates are at the Hyatt Regency in St. Louis this week to share some of the best ideas from around the country. Most are members of one of three groups holding annual meetings and conferences.

The focus Monday was on the annual conference by the National Fuel Funds Network. Fuel funds supplement the federal Low Income Home Energy Assistance Program, Liheap. The two major fuel funds in the St. Louis area are Dollar More and Dollar-Help.

Last year, fuel funds nationwide raised about $150 million to supplement Liheap. But the total amount provided by fuel funds and Liheap doesn't come close to meeting the need, Steve Gaw, chairman of the Missouri Public Service Commission, told network members.

Gaw said he expects natural gas prices, which have doubled in the last three years, will remain high. "I would like to say it's an aberration, but that's not so."

With higher gas prices come higher heating bills and more families in need of assistance. Calls for energy assistance increased more than 50 percent last winter in some urban areas, Gaw said.

The fuel funds network wants Congress to boost federal funding to $3.4 billion a year. Even that isn't enough, however, said speakers at the conference, so fuel funds will continue to be a critical back-up.

Locally, that falls to Dollar-Help, which assists primarily Laclede Gas customers, and Dollar More, directed toward Ameren Corp. customers in Missouri and Illinois. The two programs are considered models, in part because of their efficiency: Virtually all of the money they raise from customers and the utilities goes to needy customers.

They are also among the oldest fuel funds in the nation.

Both Laclede and Ameren "have good, solid local programs and are viewed by their peers as national leaders," said George Coling, executive director of the fuel fund network. On Monday, Laclede was singled out for the network's corporate excellence award.

Douglas Yaeger, Laclede's chairman, chief executive and president, said his company does not look at its contributions to Dollar-More as an obligation.

"Many of our customers really do try to keep up with all of their bills," Yaeger said. "If we can help get them out of a jam, it's good business."

Indeed, one speaker said fuel funds can and should make the case that utilities will help their bottom lines by increasing their donations to fuel funds.

Utilities pay $132 to $357 to collect on each delinquent account, said David Ewing, president of the San Francisco Consulting Group, a marketing and sales consulting group that works with fuel funds.

By helping to prevent delinquencies and late payments, fuel funds can save utilities $2 to $40 for every dollar invested, Ewing said.

"Collections can be expensive," he said. "If you step in quickly, it has a big payoff for a utility."

Other speakers said fuel funds need to do more to promote themselves, especially to utilities.

"Very often, you end up being a voice in the wilderness," said David Fox, communications director for Campaign for Home Energy Assistance, a Washington-based program to promote Liheap.

"If you don't have a good relationship, you need to establish it," Fox said. "If you do have a good relationship, you need to strengthen it."

 

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