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More heating aid expected for winter

By The Associated Press wire report December 19, 2007 02:07 PM

WASHINGTON - Cash-strapped families who depend on home heating assistance can expect more federal dollars this winter.

The government's Low Income Home Energy Assistance program would get roughly $409 million more in a year-end budget bill Congress is expected to approve Wednesday. Fuel aid advocates praised the increase, but warned it won't be enough to keep pace with record home heating oil prices, particularly in the Northeast.

"It's a step in the right direction," said Mark Wolfe, executive director of the National Energy Assistance Directors' Association, which represents state-run low income energy assistance programs. "But it's going to be a very tough winter even with this."

The Senate late Tuesday approved about $2.6 billion for the government's Low Income Home Energy Assistance program, which provides heating and cooling subsidies for the poor. Similar LIHEAP money is part of a massive $555 billion omnibus appropriations package the House was expected to pass Wednesday.

President Bush had proposed cutting the fuel aid program by $379 million.

Millions of poor and elderly people on fixed incomes rely on heating assistance to help pay their heating bills.

Lawmakers from cold-weather states pressed for extra money as Congress neared adjournment. They say aid dollars have been outpaced by high fuel prices.

"This is certainly an initial step, but in context of the historic prices of heating oil, we must provide additional resources to this vital program," Sen. Olympia Snowe said.

The Energy Department estimates heating oil costs will jump about 26 percent this winter. That's an average increase of $375 for customers. Propane costs will rise about 20 percent. Natural gas customers can expect to pay about 10 percent more.

Maine, one of the country's coldest states, is bracing for a potential crisis. Officials worry that poor, elderly and working families will be more vulnerable as winter wears on and they use up their fuel aid for the season.

Maine homes relying on oil use about 860 gallons a year, on average. State officials have predicted it will cost an average household about $2,750 for heating oil this winter.

That means Maine's average fuel aid benefit of $579 will only last most families about a month. Five or six years ago, the average benefit would cover about half of the heating season, officials said.