Home heating bills exceeding affordability

HARTFORD, Conn. (AP) — A new report released Thursday shows that the gap between what lower income households in Connecticut pay for their energy bills and what they can actually afford is widening — a problem that could get worse if Congress approves proposed cuts in federal aid.
The study commissioned by Operation Fuel, a statewide fuel assistance program, determined the gap comes to $505 million, or nearly $2,200 per household — mainly low-income families and elderly residents on fixed incomes. The figure represents how much actual home energy bills exceed what’s affordable for those households.
In 2010, the gap was about $480 million, or about $2,000 per household.
“The affordability gap in Connecticut is tremendous. It’s crushing and it’s getting bigger,” said Roger Colton, an economist who conducted the annual study.
The growing affordability problem comes as states are poised to receive reductions in how much aid they receive this winter season from the federal Low-Income Home Energy Assistance Program. U.S. Rep. Rosa DeLauro, D-Conn., said Thursday that Connecticut should expect to receive $79.5 million. Last winter, the state spent more than $115 million in aid.
The Obama administration had proposed cutting the program in half, to about $2.5 billion nationwide. Connecticut would have received less than $50 million. But in a tentative, bipartisan, spending compromise, DeLauro said the program will be funded at nearly $3.5 billion.
DeLauro said she hopes to fully restore the program, which she said serves about 117,000 Connecticut residents.
“I believe that we have a moral obligation to care for our most vulnerable citizens, and that means fully funding the LIHEAP program,” she said. “So, while I am disappointed we could not keep the same funding level as last year, I will continue to look for ways to supplement this program as needed through emergency spending.”
Benjamin Barnes, Gov. Dannel P. Malloy’s budget director, said the state currently has no plan to spend its own money to make up for any decrease in federal heating aid, but that could change if the governor and state legislators somehow find extra dollars in the already tight state budget.
The state has committed $1 million to Operation Fuel, which helps people who do not qualify for LIHEAP assistance or whose LIHEAP benefits have expired. Also, officials hope that a new earned income tax credit program for the working poor in Connecticut will help cover energy costs. At least 190,000 households are expected to be eligible for the credits, which will average $540. The maximum credit is $1,700.
Despite those efforts by the state, House Speaker Christopher Donovan, D-Meriden and a candidate in the 5th Congressional District race, didn’t rule out the possibility that the state might eventually have to help make up the difference financially.
“We would have to address it. It’s the right thing to do,” said Donovan, who is still hoping Washington will come through with the full funding for the federal program.
Patrice Wrice, executive director of Operation Fuel, said she hopes the state will cover the cost if the federal funding is drastically cut. “I don’t know where folks will go (for assistance), to be honest with you,” she added.
Colton’s report also found that more moderate income households are struggling to pay their energy bills in Connecticut.
Source http://www.mohavedailynews.com