Lowey Unveils Proposals to Lower Home Heating Costs

LOWEY UNVEILS PROPOSALS TO LOWER HOME HEATING COSTS
October 24, 2005

WHITE PLAINS, NY - With home heating prices skyrocketing in the aftermath of Hurricanes Katrina and Rita, Congresswoman Nita Lowey (D-Westchester/Rockland) is working to lighten the financial burden on New York families. Today, she unveiled new legislation to assist families in weatherizing their homes to conserve energy and lower heating costs. She also discussed her efforts to ease the supply shortage of home heating oil by tapping the Northeast Home Heating Oil Reserve.

"Our families are already feeling the pinch of high gas prices; high heating oil and natural gas prices will only cause more pain," said Lowey. "I'm working to ease the effects of soaring heating costs by introducing legislation to encourage conservation and by pushing the Administration to do more to stabilize home heating oil costs."

Supply disruptions caused by Katrina and Rita in the Gulf Coast region have had a major impact on the price of home heating oil and natural gas. These supply constraints have already driven the price of home heating oil up to a national average of over $2.64 per gallon, an increase of 32% over the price at this time last year. The Department of Energy is predicting that an average household using heating oil will pay $378 more this winter than it did last year and $712 more than the average over the past five years. Natural gas consumers are also expected to see price increases. This month, the Energy Information Administration estimated that the average family is expected to spend forty-eight percent more on natural gas this year over last year.

Congresswoman Nita Lowey is taking several steps to lower the costs of home heating. Today, she announced the Weatherization Assistance Act, which authorizes $200 million to provide weatherization consultations and audits for small businesses and households. The audits would be available to families with incomes below 200% of the state median. These consultations would help residents and business owners assess inexpensive ways to decrease their energy bill as well as long-term savings that could make more costly improvements affordable.

Lowey also discussed a letter she is sending to President George W. Bush to urge him to tap the Northeast Home Heating Oil Reserve. When the Reserve was established in 2000, the President was given the authority to release oil from the reserve on one of two conditions: either a relative price trigger or a significant regional supply shortage. Lowey stated today that the price trigger has been met for each of the past three weeks. Releasing oil from the reserve would increase the available supply and bring down oil prices.

"We need to work on multiple fronts to lower the cost of home heating as winter approaches. I support continued efforts to increase funding for the Low-Income Home Energy Assistance Program (LIHEAP)," said Lowey. "In addition, the Weatherization Assistance Act will help families who do not qualify for LIHEAP identify potential savings through free weatherization audits. We must use every tool at our disposal, including a release from the Northeast Home Heating Oil Reserve, to make sure heating costs don't go through the roof this winter."

http://www.house.gov/apps/list/press/ny18_lowey/en102405.html