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FOR IMMEDIATE RELEASE:
14-Jul-2008
CONTACT: Press Office
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Mikulski Continues Fight for Families Facing Rising Energy Costs

WASHINGTON, D.C. – As American families face record-high energy costs and a struggling economy, Senator Barbara A. Mikulski (D-Md.) today continued her fight for increased funding for the federal Low-Income House Energy Assistance Program (LIHEAP) by urging Senate Majority Leader Harry Reid (D-Nev.), Senate Minority Leader Mitch McConnell (R-Ky.), and Senate Appropriations Chairman Robert C. Byrd (D-W.Va) and Ranking Member Thad Cochran (R-Miss.) to make sure increased funding for LIHEAP is included in any future economic stimulus package. Congressional Democrats are currently working on a new stimulus proposal to provide Americans with much needed relief. The letter was coordinated by Senators Jack Reed (D-R.I.) and Susan Collins (R-Maine).

“Families and businesses in Maryland and across the country need our help. They are feeling stretched and strained by high energy costs and we need to show them that we are on their side,” said Senator Mikulski. “No one should have to choose between cooling their home and feeding their family. I will keep fighting in the U.S. Senate to make sure LIHEAP funding is a priority in the federal checkbook.”

LIHEAP helps low-income families with children, seniors with fixed incomes and people with disabilities pay for heating costs through bitter winters and cooling costs through sweltering summers. Without additional LIHEAP funding, millions of families across the nation could face utility shutoffs.

The text of the letter sent to Sens. Reid, McConnell, Byrd and Cochran is below:

Dear Majority Leader Reid, Republican Leader McConnell, Chairman Byrd and Ranking Member Cochran:

We are writing to request that any future economic stimulus package, or any other appropriate legislative vehicle, include at least $2.5 billion in FY2008 funding for the Low Income Home Energy Assistance Program (LIHEAP). We believe that the funds are not only needed to help families currently facing utility shutoffs from the high home heating costs of the last Winter, but also for families coping with the costs associated with current high temperatures and those to come this Summer.

Record high energy costs have resulted in record amounts of households facing utility disconnection. The National Energy Assistance Directors Association (NEADA) estimates that more than 15.6 million households could face utility shutoffs because they cannot pay their energy bill. Shutoff moratoria have run out in the states that have them. Many families are already experiencing this difficult situation and many more will face this prospect without additional LIHEAP funding.

Additionally, families in cold weather states who were able to pay this winter’s bill are already preparing for next winter and are finding the costs of home heating to be out of reach. In its most recent Short-Term Energy Outlook, the Energy Information Administration (EIA) predicted that the cost of home heating oil will increase more than 41 percent from the 4th quarter of 2007 to the 4th quarter of 2008. These families are trying to be prudent and save money by locking in lower fuel prices, but cannot afford payments now, much less when costs are even higher. An influx of LIHEAP money now will help those families and be a more efficient use of federal funds.

Furthermore, we have already seen unseasonably high temperatures across the nation. LIHEAP helps both families in cold-weather states through bitter winters, but also families in warmer-weather states through hot summers. Low-income families, individuals with disabilities and seniors on fixed incomes in all 50 states who are struggling with the costs of high energy should not be forced to choose between heating or cooling their home and buying food or prescription medicine.

Finally, already-high energy costs are predicted to further increase this summer. Many utility companies have already or will soon increase their rates. In Virginia, Dominion Power has applied to raise rates 18 percent; in Missouri, AmerenUE asked for a 12.1 percent increase; in Oklahoma, Public Service Co. implemented a 25 percent increase on June 1; and in New York City, Con Edison expects a 13 percent increase this summer on the heels of a 4.7 percent rate increase in April.

Emergency LIHEAP funding has enjoyed strong bipartisan support on several legislative vehicles this year, but none yet have been signed into law.

In a January 23, 2008 letter sent to you regarding a first economic stimulus package, 37 Senators indicated that LIHEAP funding was a preferable stimulus vehicle because those funds would be spent quickly and immediately by families facing the toughest economic times. The Reid Substitute on that first stimulus package included $1 billion in FY2008 LIHEAP funds and received 58 votes.

In May 2008, $1 billion in FY2008 LIHEAP funding was included in the Senate version of the Supplemental Appropriations Bill, following a 20 to 9 bipartisan vote in the Senate Appropriations Committee. That bill passed the full Senate on a veto-proof 75 to 22 vote.

Unfortunately, that funding was not retained in the final version of the Supplemental. In light of the clear need of more LIHEAP funding and bipartisan support for it, we urge you to include at least $2.5 billion for this vital program in any upcoming economic stimulus package, or any other appropriate legislative vehicle.

Thank you for your consideration of this request.

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