Programs for energy assistance gain steam

 

 

Cheaper natural gas prices are expected to mean most households will see lower heating bills this winter, although the price break may not apply to some low-income families.

Reduced state and federal funding for energy-assistance programs mean low-income residents will be paying up to 45 percent more out of their own pockets than last winter to cover the cost of utilities, said Skip Arnold, executive director of the nonprofit group Energy Outreach Colorado.

 

The result could be "catastrophic" for residents who have to choose between buying food and medicine or paying their electric and gas bills, he said.  

"It's going to be a very, very difficult winter for low-income families and seniors," Arnold said.

Local energy-assistance programs are expecting to help approximately the same number of households with their heating bills as last year.

The demand for help is likely to be determined by the severity of the weather, said Patty Bigner, spokeswoman for Fort Collins Utilities.

The utility is including donation requests in its monthly statements to customers for its program that assists customers with their electricity bills.

The program is administered by Catholic Charities Northern. To be eligible, a Fort Collins Utilities customer must have received a shut-off notice. Help is available once in a 12-month period.

Last year the city's payment assistance program helped 313 families and distributed $27,044, Bigner said. About 700 utilities customers out of 55,000 electric customers contributed to the program.

In 2004, the program helped 218 households, Bigner said.

"A lot of people like to contribute to this because the money stays right here," she said. "Even small contributions help a lot."

One-time donations will be accepted as well as monthly additions to utility bills, Bigner said. Donations are tax deductible.

The city also has funding available for the REACH program, which helps qualified residents with home weatherization and energy-efficiency projects.

Residents who receive energy-assistance funds are encouraged to improve the energy efficiency of their homes, said Helen Somersall, regional director of Catholic Charities Northern.

The United Way of Larimer County has again established a fund to supplement the work of local agencies that distribute energy-assistance funds, said executive director Gordan Thibedeau.

United Way 211 directs callers to energy assistance programs across the county.

“We’re anticipating the need will continue to grow,” he said.

With natural gas prices down after a post-Hurricane Katrina spike last fall, most households will see heating bills about 3 percent to 5 percent lower this year, Arnold said.

But federal funding for the Low-income Energy Assistance Program, or LEAP, which is administered by states, has been reduced from $3.1 billion last year to an estimated $1.98 billion this winter, Arnold said.

As a result, Colorado is likely to see a $12 million cut in federal energy assistance fund, Arnold said. The state Legislature also reduced its energy-assistance funding from $20 million last winter to $7 million this year.

A low-income person who paid $530 in out-of-pocket heating expenses from November through March last winter will probably have to pay about $765 this winter because of reduced subsidies, Arnold said.

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