Press Releases
09/12/2023
Consumer Counsel Coleman, Consumer Advocates of New England Support Prioritization of Federal Funding for Low-Income Home Energy Assistance Program
NEW BRITAIN, CT – Today, Consumer Counsel Claire Coleman, along with fellow New England Consumer Advocates, sent a joint letter to leaders of the U.S. House and Senate Appropriations Committees in support of providing supplemental funding for the Low-Income Energy Assistance Program (LIHEAP) amidst federal budget negotiations. Consumer Advocates sent the letter ahead of what is expected to be a burdensome winter season for ratepayers across the region, where the average residential electricity price is projected to increase from around 27.5 to 30.6 cents per kilowatt-hour by the first quarter of 2024.
“LIHEAP has been a lifeline for consumers struggling to pay their home heating bills and Connecticut’s federal delegation has fought hard to deliver this critical relief to residents ahead of each winter season. I am grateful for the strong leadership of Ranking Member DeLauro and effective advocacy of the entire delegation for LIHEAP funding in the appropriations process. The proposed funding levels put forth by the 118th Congress simply will not suffice -- that’s why we’ve mobilized our fellow regional advocates to push for higher levels of assistance, which are necessary to address the growing energy burden felt by so many across New England and the country,” said Consumer Counsel Coleman.
In addition to the anticipated increase in the cost of electricity, the letter highlights several factors exacerbating the energy burden in the region, including global energy market volatility and the continuing economic impacts of COVID-19. The number of households behind on their utility bills, or having arrearages, has increased at an alarming rate over pre-pandemic levels, not only in Connecticut, but nationwide. National arrearage levels increased from approximately $10.5 billion to $19.5 billion from 2019 to March of 2023. In Connecticut, July 2023 data shows arrearages have surpassed $676 million, up from $571 million last July. This outstanding debt generally ends up in rates in Connecticut, which eventually will result in higher electric bills for all ratepayers.
Connecticut’s utility debt was a focal point of the recent joint meeting to approve the FFY 24 LIHEAP Block Grant Allocation Plan convened by leaders of Connecticut’s Appropriations, Energy & Technology, and Human Services Committees. Under the approved plan, Connecticut will have $84.8 million to spend on energy assistance this winter. Testimony submitted by the Low-Income Energy Advisory Board (LIEAB) -- of which Coleman was recently appointed Chair – warned that the benefit levels in the approved plan will fall short in providing adequate assistance to Connecticut residents and families in need.
Under Connecticut’s approved plan, customers with the lowest income as determined by Federal Poverty Guidelines would receive a Basic Benefit of $530 – a significant decrease from 2020 and 2021 Basic Benefits levels of $691 and $688 respectively. The impact of LIHEAP on overall energy affordability will be further diluted for Standard Service electricity customers with the coming January increase. Standard Service supply costs increased by nearly 50% from December 2022 to January 2023, and energy prices are expected to increase again at the end of this year for the same period (January 2024- June 2024). High electricity and oil prices will be problematic if New England experiences a particularly cold winter, which would hit lowest income clients on fixed incomes the hardest.
“As Consumer Counsel, and as the newly appointed Chair of the Low-Income Energy Advisory Board, reducing our state residents’ energy burden is the driving force behind my advocacy efforts for more LIHEAP funding on behalf Connecticut’s ratepayers,” said Coleman. “I understand there is a lot of need in our post pandemic world and federal and state lawmakers are working hard to connect our most vulnerable to resources. Volatility in global energy markets due to geopolitical factors, severe weather impacts on electrical systems from climate change, and the significant infrastructure investments needed to support long term sustainability will continue put upward pressure on energy prices and strain consumer pocketbooks. Energy assistance funding must be a top priority, and we’re calling for this Congress to meet the basic needs of their constituencies and help alleviate the energy affordability crisis.”
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CONTACT:
Brooke Parker
Communications & Legislative Program Manager