Gov. Gregoire seeks emergency funding to help low income Washingtonians pay heating bills

For Immediate Release: September 29, 2005

OLYMPIA � Sept. 29, 2005 � In response to increasing natural gas and home energy prices, Gov. Christine Gregoire today said she will seek a $7.6 million increase in funding to help low income families pay heating bills this winter. The governor is also calling on Congress to appropriate almost $1.3 billion in emergency heating funds.

In her supplemental budget proposal, Gov. Gregoire will propose using $7.6 million available in the public service revolving fund as a result of enforcement actions by the Washington Utilities and Transportation Commission (WUTC) to supplement federal funds available for low-income energy consumers.

In a bipartisan letter to Congressional leadership, Gov. Gregoire and 27 other governors requested Congress approve additional spending of $1.3 billion nationally to help low-income families deal with higher energy costs resulting from the Gulf coast hurricanes.

�Even before the tragedies of Hurricanes Katrina and Rita, low income residents in our state faced increases in energy costs of 15 percent or more this winter,� said Gov. Gregoire.

The devastation caused by the Gulf coast hurricanes will keep natural gas and heating oil prices high throughout the winter. As a result, the Low Income Home Energy Assistance Program (LIHEAP) expects to see a surge in applications.

This funding will allow the states to aid an estimated additional 17,000 households on top of the existing caseload of about 72,000.

Washington�s Department of Community, Trade and Economic Development (CTED) administers the LIHEAP using about $36 million in federal funds.

The $7.6 million went into the public service revolving fund as a result of enforcement actions. The fund is used for WUTC operations. Since regulatory fees are sufficient to cover agency appropriations, the penalty funds are a surplus.

The governor said congressional leaders should recognize that covering dramatic increases in natural gas and heating oil prices will pose an immense challenge for our citizens as winter arrives.

�We encourage you to give strong consideration to our requests. Immediate emergency funding, and a significant increase in regular LIHEAP funding for fiscal year 2006 would allow critical energy needs to be addressed before a crisis develops,� she wrote to members of Congress.

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