Consumers, oil companies, and state officials are bracing for the upcoming heating season.
Last year was the busiest ever for the state’s fuel assistance program.
Federal money has helped thousands of families in New Hampshire, but fuel prices have doubled what they were a year ago
Those same funds are not going to be enough.
NHPR’s Katie Ahern has the story.
Local Community Action Programs began taking fuel assistance applications on July first for seniors and families with children under 6.
And the calls are already flooding in.
One of them came from Joan Thomas of Plymouth.
The 56-year-old is disabled and lives on a fixed income from her widows benefits.
Last October she sold her home because she could no longer afford it and moved into a mobile home.
But she is still having a hard time paying her heating bill on her allotted $660 a month.
[1200oil.wav] :10 “If I were to get the 239 gallons that the 275 gallon tank holds it would be $1243.73.”
Thomas plans to apply for state fuel assistance this year but she worries that the aid won’t be coming until December 1st.
She says that’s just too late.
[cold.wav] :14 “It gets cold at the end of September. What do we do from September till December first when they can release the funds, that doesn’t mean you get them on that day, you have to wait for them to get to you after they’ve been released.”
New Hampshire’s fuel assistance program determines aid based on income, the number of people living in the home and how much it costs to heat it.
The benefits range from $120 to $975 but the average is $500.
It’s a one shot deal.
Applicants can not re-apply.
And at around $5 a gallon, the average aid recipient could buy just about 100 gallons.
Louise Bergeron is the energy director at Southern New Hampshire Services in Manchester.
[Louisefuel.wav] :19 “People will be struggling this year because of the high cost, and I think we will just see a magnification of problems that already existed. People choosing between food and heat, people choosing between medication and heat those are standard things I believe, that’s going to be a bigger need this year.”
Last week Governor John Lynch joined his counterparts at the New England Governor’s conference in Boston.
There they discussed trying to get additional funds for LIHEAP, the federal fuel assistance program.
Last year, New Hampshire distributed $25 Million in LIHEAP funds to 33,ooo families.
But with increased demand and rising oil prices, Lynch believes New Hampshire will need at least $50 million this year.
[Lynchfunds.wav] :16 “During these difficult economic times, I think it’s important that we all agree that there is an increase in demand for LIHEAP assistance, and we need the federal government to step up, in terms of what I believe is the possibility of a real crisis.”
In the past consumers were able to hedge against possible fuel price increases by locking in a rate with their oil company.
But this year, consumers seem to be shying away from fixed price contracts, even if they could find one.
The problem is that oil companies want up-front payments that can be as high as $4000.
Bob Garside, president of the New Hampshire Oil Heat Council says that pre-buy contracts are not the way to go for most consumers.
[fixedprice.wav] :12 “There are very few fixed price contracts on the market today. They’re too volatile, the prices are rising as you well know, precipitously, and there’s no handle on where it’s going.”
Garside recommends contacting your oil dealer because most have budget plans that are more reasonable for average consumers.
But even with a budget plan, families will still be struggling to pay their heating bill this year more than in the past.
Over the next weeks, the Governor’s office is scheduling meetings with state agencies, legislators, and community action agencies to consider alternatives and plans.
For NHPR News, I’m Katie Ahern
