Governor Warner Announces State, Utilities to Boost Federal Winter Heating Assistance for Low-income Virginians by 70 Percent

Governor Warner Announces State, Utilities to Boost Federal Winter Heating Assistance for Low-income Virginians by 70 Percent

— Virginia to receive $30 million in federal funds: State will add $18 million, utilities contributing close to $3 million in aid —

Governor Mark R. Warner today announced three significant actions by the state government and private sector to help low-income Virginians bracing for significant and unexpected increases in winter home energy prices, highlighted by a historic $18 million state supplement to the expected $30 million Low-Income Home Energy Assistance Program (LIHEAP) federal grant that Virginia will receive this fiscal year.

The $17.9 million state supplement announced today, coupled with voluntary efforts approaching $3 million announced by several major Virginia utilities, is the first ever state and private sector supplement to the federal heating assistance program. The aid will boost the winter energy assistance available to Virginians on limited or fixed incomes by 70%, to a combined $51 million. The Governor also ordered new energy conservation measures throughout state government to reduce winter heating costs and save taxpayer dollars.

"Thankfully, gasoline prices have retreated in recent weeks, but many Virginians are still facing record home heating costs this winter. We are disappointed our federal partners have declined a request by 18 state governors to adjust the LIHEAP program to reflect higher energy prices and the increased demand for assistance," Governor Warner said. "Today, we are announcing a package of state actions and voluntarily assistance offered by our leading utility companies to respond to these higher energy prices."

"In addition, I am insisting on a special focus on steps we can take to help lower-income Virginians handle home heating costs over the long-term through improved weatherization of their homes. I am taking additional actions to promote energy conservation by state government," Governor Warner said.
Low Income Heating Assistance

According to the federal government, natural gas prices will increase by an average of 48 percent this winter; heating oil costs will increase by an average of 32 percent; propane costs will increase by an average of 30 percent.

Over the four-year period since 2002, the increases are even more significant. Natural gas and heating oil costs have more than doubled over this period. Heating oil costs are up 225 percent over this period and natural gas and propane are up nearly 200 percent.

There are three key programs under the LIHEAP umbrella to assist low-income people with heating costs:

* The fuel program pays a lump sum towards winter heating bills for low-income people starting in December. This is the largest program, and Governor Warner is taking action to provide $13.6 million in state general funds to supplement the $18.9 in anticipated federal funds, for a total funding of $32.5 million.
o The application period has now ended, and applications are still are being processed by local social services officials, but it appears requests for assistance have increased 13% over last year. In fiscal year 2004, 113,000 Virginia households applied for LIHEAP assistance, and about 100,000 met income eligibility requirements, with that assistance averaging about $220 per household. Year-to-date, 125,000 households have applied for LIHEAP assistance, and officials estimate 113,000 ultimately will be approved.
* The crisis program helps deal with emergency situations outside of the normal fuel assistance application cycle, if someone's furnace malfunctions and needs repair or if someone needs help paying a bill. Governor Warner is adding an additional $1.3 million in state general funds to this program, to supplement the anticipated $5.2 million in federal funds.
* The Governor also announced steps to provide additional assistance to the weatherization program, which helps make the homes of low-income people more energy efficient to help hold down their bills going forward. The Governor will provide about $2.1 million in additional funds to supplement the $10.2 million in federal funds for the Weatherization Program, for a total of $12.3 million. This funding will cover the costs for weatherizing 500 additional homes.

Private Sector Assistance

Overall, the Governor's funding package for low-income heating assistance is $17.9 million, a historic investment by the state. Since this is not a problem for government alone to solve, Governor Warner reached out to leaders of Virginia's major utility companies to encourage voluntary efforts to assist low and fixed income Virginians.

"I'm very pleased to announce private sector contributions totaling $2.7 million to assist our low income residents with their heating bills," Governor Warner said. "Utility companies large and small have stepped up to the plate and I'd like to acknowledge their contributions."

* Dominion Resources has committed $1 million companywide to supplement its customer contributions to its Energy Share Program, the majority of which will be distributed in their primary service area in Virginia.
* Virginia's electric cooperatives have stepped up by doubling their contribution to low income heating assistance from $600,000 to $1.2 million.
* Virginia Natural Gas has increased its typical yearly giving from $70,000 to $300,000. Virginia Natural Gas has also been very innovative in working through the faith-based community, such as its partnership with the Salvation Army, to help get this assistance to the people in its service territory that need it.
* Columbia Gas of Virginia has stepped up with $170,000, $100,000 over four years to the state's Weatherization Program and $70,000 to assist low income customers, a 40 percent increase.
* Roanoke Gas has doubled its contribution to assist low-income customers to $20,000.
* Appalachian Power will double its contributions to matching customer donations to energy assistance, from $37,500 to $75,000.
* Alleghany Power, working with not-for-profits like the Salvation Army, will more than double its energy assistance from $15,000 to $32,000.

Energy Conservation

In addition, Governor Warner has ordered additional energy conservation measures for state government.

The state will purchase 110 new, fuel efficient vehicles in the next biennium, to increase average miles per gallon to 34 miles per gallon, saving an estimated 100,000 gallons of gasoline over the next six years.

The Governor has directed his budget team to prioritize those capital projects that have tangible energy savings.

In addition, Governor Warner repeated a request that state agencies practice the strictest possible conservation.

"We expect to save $11 million in this budget year through energy conservation, everything from adjusting temperatures to making buildings more energy efficient to increased personal responsibility for conserving energy," Governor Warner said. "Having state government conserve energy sets a good example for all Virginians. It's also smart business and it saves money."

http://www.governor.virginia.gov/Press_Policy/Releases/2005/Nov05/1130.htm