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07/01/2008

KERRY URGES TOP FIVE ENERGY COMPANIES TO HELP LOW INCOME FAMILIES IN MASSACHUSETTS WITH RISING COST OF HEATING OIL THIS WINTER




BOSTON – Senator John Kerry today wrote to the CEOs of the top five energy companies in the U.S., urging them to provide assistance to millions of American families suffering from the rising cost of home heating oil. Heating oil in Massachusetts currently averages $4.60 a gallon, and many households are currently entering into contracts for the winter heating season.

In the letters, Kerry requests a meeting with the energy company CEOs, Joe Kennedy, the CEO of Citizens Energy Corporation, and himself. Citizens Energy currently works in partnership with CITGO and thousands of oil heat dealers and local fuel assistance agencies in 16 states to provide deliveries of home heating oil to those in need.

“Last year, thousands of families across Massachusetts faced severe economic hardship as they tried to heat their homes. In fact, today more than 100,000 Massachusetts households still are having trouble paying their utility bills from last winter and are facing the prospect of utility shutoffs,” said Senator Kerry. “Congress is doing all it can to ease the burden, but I believe private companies should play a leadership role in providing assistance to low-income consumers. I strongly urge the CEOs of all five big oil companies to help low income families as they struggle to heat their homes this winter.”

Kerry wrote to the CEOs of Exxon Mobil Corporation, BP, Shell Oil Company, Chevron Corporation, and ConocoPhillips.

The text of his letter to Exxon Mobil is as follows:

Rex W. Tillerson
Chairman & Chief Executive Officer
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, Texas 75039

Dear Mr. Tillerson:

I am writing to request your cooperation in providing assistance to low income families facing record costs this winter to heat their homes.

Last year, many American families suffered from skyrocketing prices in home heating oil, natural gas, and electricity. In fact, over 100,000 Massachusetts households remain in arrears on their utility bills and are facing the prospect of utility shutoffs. This winter is likely to present even greater challenges. The Energy Information Administration recently released its heating oil forecast, which predicts that prices in the Northeast will average $4.46 per gallon during the upcoming heating season, compared to $3.26 per gallon last year. Last winter, families spent up to $3,900 to heat their homes, an increase of 30 percent from the previous year. Based on the latest projections, Northeastern homeowners could spend an additional 36 percent this winter, up to $1,400 more per family.

The U.S. Congress is taking essential steps to provide much-needed assistance. We are working to increase funding for the Low-Income Home Energy Assistance Program and the Weatherization Assistance Program, two programs that provide essential support for low-income energy consumers. We also included important nutrition programs in the Farm Bill – including essential reforms to the Food Stamp Program and significantly increased funding for food banks around the country. These programs will help families facing the impossible choice of whether to heat their homes or feed their children.

In conjunction with these important policies, I believe that there is a critical leadership role for private companies to play in providing assistance to low-income consumers. I would like to explore whether ExxonMobil might be willing to make a significant donation to assist low income families as they struggle to heat their homes this winter.

I would like to invite you participate in a meeting to discuss this issue with me and Joe Kennedy, the CEO of Citizens Energy Corporation. Citizens Energy currently works in partnership with CITGO and thousands of oil heat dealers and local fuel assistance agencies in 16 states to provide deliveries of home heating oil to those in need. We would like to meet at a mutually convenient time in Boston or Washington, DC, to discuss the challenges facing low income families this winter in Massachusetts and across the nation, and any opportunities that may exist for ExxonMobil to help ease the burden of skyrocketing energy prices on low-income homeowners.

Please feel free to contact me or my staff with any questions. I look forward to working together to address the serious and immediate needs of low-income energy consumers.

Sincerely,

John F. Kerry

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