Released: March 07, 2007

Heating oil assistance funds drying up

Source: Barbara Hagenbaugh, USA Today

Some states are running out of money to help low-income homeowners pay their heating bills, putting millions of people who rely on energy assistance at risk of falling behind on their payments, or even having their service shut off. States are straining under strong demand while at the same time federal funds are far lower than they were a year ago.

Alabama, Indiana, Iowa, Minnesota, Nebraska, Tennessee, Washington and West Virginia are either out of money or are close to the bottom of their energy assistance funds, according to a report from the National Energy Assistance Directors’ Association to be released today. Several other states are rapidly depleting funds and are serving fewer clients or are reducing average payments, the report says.

Average energy bills are lower this winter than a year ago. But they are still expected to be 14% higher than two years ago, according to new data from the Energy Department out Tuesday. “The number of people who can’t afford energy has been increasing rather quickly,” NEADA executive director Mark Wolfe says.

An estimated 6 million families are expected to receive heating assistance this year, up from 4 million families four years ago.

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