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4/26/2006 Consumer Protection (PIRG Fuel Buyers) Legislative Position Paper

Spending allotted LIHEAP dollars this year


Governor Edward G. Rendell

Dear Governor Rendell,

I have recently learned that the state does not plan to spend the remaining available funds for LIHEAP after the closing date on April 28, 2006. On behalf of 1,200 households and small businesses in Southeastern Pennsylvania that use oil to heat their properties, over 40% of which are low-income, LIHEAP-eligible households, I want to express our deepest concern.

While the energy crisis worsens and hundreds of thousands of Pennsylvanians continue to struggle to catch up on heating bills from this past winter, not spending available assistance funds would be counterproductive and sends a terrible message to the low-income community.

As an energy advocate, I was part of a coalition that fought hard to get Pennsylvania to add state funds to the LIHEAP program as all of our neighboring states do. Every dollar that is disbursed through LIHEAP is sorely needed.

• We are not reaching all of those that need assistance. Only 30% of welfare recipients in PA have even submitted applications for LIHEAP.
• The average LIHEAP cash grant has barely changed from $237 for almost a decade, while energy prices have risen over 100% for many.
• Since February 2006, PGW alone has sent out about 45,000 termination notices to its customers. Since the shut-off moratorium for the poorest households ended on April 1st, many more households will face termination and need additional assistance.

While it is no longer cold in the commonwealth, many families are still far behind on their utility bills. 2005 saw record numbers of utility shut-offs, reaching 245,885 households. Many of these households were shut off in the spring and summer months, and still had no utility service going into the winter.

There are many ways the additional LIHEAP dollars could be used at this point in the year:

• Raise the level of this year’s Cash Grant allocation. $237 will only be a fraction of total utility costs for most households this year, and any additional dollars will help households recover.
• Target public assistance households, who are already in our records as qualifying for LIHEAP to enroll them and increase their grants.
• Add more resources to the weatherization program to help households conserve energy year-round and repair furnace and heating systems now for next winter.
• Give out funds for summer cooling as well. Summer heat waves and hyperthermia are just as deadly as winter cold and hypothermia, if not more for seniors.

Low-income households in Pennsylvania are not without need of assistance simply because the weather has warmed up. We should use every dollar at our disposal to make sure that our citizens can pay their utility bills and don’t have to go without other necessities like prescription drugs or food.

We strongly urge you to reverse your position and spend the remaining LIHEAP dollars now. I can be reached at 215-893-3835 if necessary.

Sincerely,

Emily Schiller
Director