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Disconnected electric customers face hardship, crisis this winter Last winter's high heating bills continue to have a devastating effect on Indiana's low-income households. Many customers saw the costs for natural gas and bulk fuels nearly double, leaving many households unable to pay their heating bills. Total arrears statewide have nearly doubled over 2000 levels, exceeding $30 million. A recent study indicates that low-income Midwestern households relying on natural gas for heat spent nearly one-third of their total winter income on energy bills alone. While many low- and fixed-income households did receive some assistance through the federally funded Low Income Home Energy Assistance Program (LIHEAP), the one-time payments did not cover sharp increases in the cost of heat. Due to the high demand, federal dollars began to run out in March, and agencies that distribute assistance were forced to turn people away. In April, natural gas utilities such as NIPSCO, Vectren, and Citizens Gas began disconnecting tens of thousands of households with unpaid bills. Some owe thousands of dollars that must be paid before they can be reconnected. Low-income customers who qualify for federal assistance are protected from disconnection during the winter months. But disconnected customers do not have to be reconnected before winter unless their debts are paid. This past legislative session, House Bill 1862 was introduced by State Representative Bill Crawford, D-Indianapolis, to address the heating crisis. It would have established an energy assistance contingency fund to help more families avoid being disconnected. The bill was introduced in the Health and Human Services Committee, chaired by Rep. Vanessa Summers, another Indianapolis Democrat, where it passed with unanimous support. H.B. 1862 was written to draw upon additional sales tax revenue that the state has generated because of the surge in natural gas prices. Since it earmarked state revenues for a specific purpose, it had to be heard in the House Ways and Means Committee, chaired by Rep. B. Patrick Bauer, D-South Bend. Ultimately, the bill was not given a hearing, and additional revenues generated by the sales tax on natural gas were directed to public schools to address their increased energy costs. Now, as another heating season approaches, customers are still paying higher rates to cover increases from last winter. Federal funding levels for the Low-Income Home Energy Assistance LIHEAP remain uncertain, with President Bush proposing spending levels that could lead to significant cutbacks in federal funding. And thousands of households remain disconnected and unable to pay their outstanding heating bills. Once winter arrives, many of these people will resort to desperate and often dangerous measures to stay warm, which could lead to the loss of life. We are clearly running the risk of a human tragedy unfolding unless action is taken now. CAC members are encouraged to write their elected state and federal officials, and remind them that there are many families who simply cannot afford current heating costs. Urge Congress to significantly increase federal funds for LIHEAP, and urge state legislators and Gov. O'Bannon to support a state funded energy assistance contingency fund. Waiting until people are freezing to address the basic human need for heat will be too late.
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