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Energy Crisis: Low-Income Assistance Efforts Falling Short of Need
As rising energy rates and winter heating bills hit home, consumers living on low or fixed incomes are turning in force to assistance programs. And Northwest community action agencies expect more requests for help as additional rate increases take effect this month.
Ken Robinette , executive director of the South Central Community Action Agency in Twin Falls, Idaho , says his agency is just beginning to see the impacts of rate increases, primarily from natural gas prices. Those rates will be up 60% in his eight-county service territory if a recent increase from Intermountain Gas is approved. Robinette estimates his program will serve 4,000 households this year, up from 3,000 last year.
"I'm sure there will be a silver lining here because Congress is going to be looking at this," Robinette notes. "We are expecting an increase in weatherization funds in April. But that money typically comes from somewhere else. Something is going to have to be sacrificed."
Annette Desalvo , program manager for Community Resources at the Opportunity Council in Bellingham, Washington , says the high prices of oil and natural gas are bringing more people to her agency and earlier in the season than ever before. Desalvo hopes to offer assistance to about 2,200 households this year with a 27% increase in federal funds from the Low-Income Home Energy Assistance Program and a crisis fund from Cascade Natural Gas .
Many consumers already juggle expenses and higher utility bills make things more difficult, Desalvo explains. "And not just low-income folks. People on fixed or limited incomes are asking themselves, ÔDo I buy food? Do I pay rent?' "
Jay Formick , executive director of Oregon Home Energy Assistance Team (Oregon HEAT ), recently told The Oregonian he expects requests for assistance this year will significantly exceed his group's capabilities. Oregon HEAT, with an annual budget of about $800,000, helps approximately 5,000 families cover their home heating costs.
In Washington, Tacoma Power adopted a 43% surcharge on electric rates. Snohomish County consumers face a 33% rate increase for electricity and 25% for natural gas. Seattle City Light adopted a 10% increase and just announced another 18% hike. Puget Sound Energy requested a 25% increase for natural gas which, if approved, would represent a boost of 85% in 15 months. Utilities are passing rising natural gas costs up two to three times in one year to customers.
In Oregon, Portland General Electric withdrew a proposed increase of 16.5% but warned of impending increases for 2002. The Eugene Water & Electric Board is considering a 16% rate increase this year. The Oregon Public Utilities Commission is investigating a request from PacifiCorp to increase electric rates by 21%.
Avista requested a 35% increase for natural gas in Oregon and 29% in Washington and Idaho. The Washington Utilities and Transportation Commission (WUTC ) reports Avista natural gas customers will pay 70% more this year. The company's electric customers received a temporary rate decrease following a ruling from the WUTC, but those rates are not expected to last.
Don AndrŽ , assistant director at the Spokane Neighborhood Action Programs (SNAP ), says his agency hopes to assist 22% of the eligible low-income population with an increase in federal grants this year up from $2.4 million to $3.5 million. But with rising energy costs and a cold winter, that population is growing. "Even though it's a good kick up, it's not enough," he notes. "We are so far from serving the need."
SNAP is pushing Avista to increase funds for bill assistance and plans to expand conservation education efforts to help consumers reduce energy use and weatherize their homes. "Unfortunately, you can't just tell people to put on a hat, because they already have," he says.
Corinne Hollister