According to a report released today by the Administration's own Energy Information Administration, American families will face significant price increases in home heating costs this winter. Households with natural gas heat - 55 percent of all households nationwide - are expected to spend about 48 percent more this winter in fuel expenditures. Households in the Northeast - where 30 percent of households use heating oil as their primary heating fuel- are projected to pay about 30 percent more in heating costs.

Last week, John Kerry authored an amendment to fully fund LIHEAP. The amendment was blocked 50-49 by a procedural vote.

Senator Kerry said, “If Washington has learned anything from Hurricane Katrina, it’s that we need to prepare for looming trouble before disaster strikes. Now even the Administration's own experts are telling us that this upcoming cold New England winter threatens families and seniors who can't afford skyrocketing energy prices. We can't let another cold New England winter leave low income families and seniors shivering in their homes because Washington failed to act. Congress must act now, and the Administration needs to join us.”

"The forecast for a cold winter and high fuel costs means that the elderly, the disabled, and many others will be forced to make painful choices between heating their homes and paying for food, healthcare, and rent - unless we act and act now,” Senator Kennedy said. “Instead of working to lower high heating bills for low-income Americans President Bush has increased profits for his oil executive friends. America can do better - we must always put the interests of the American people ahead of special interests."

“With prices of heating oil expected to reach $3 a gallon, we must provide adequate funding for an essential program that serves as a lifeline to some of our must vulnerable citizens,” said Senator Snowe. “This report should provide added impetus for making sure that the 78 percent of Mainers who use home heating oil to make it through our long, cold winters are able to afford to heat their homes this year. I call on the Bush Administration to support $3.1 billion in additional LIHEAP funding so that families in New England and across the country do not have to choose between the necessities of life and keeping warm this winter.”

Senator Collins said, “The EIA report reaffirms that the LIHEAP program will be as critical as ever for low income families and seniors. It is imperative that we continue to work to ensure that the program is funded at a level that helps meet the needs of those who will not be able to afford to heat their homes this winter because of historically high energy prices.”

Below is the text of the letter.

October 12, 2005

Secretary Mike Leavitt The U.S. Department of Health and Human Services

Director Joshua B. Bolten The Office of Management and Budget

Dear Secretary Leavitt and Director Bolten:

Today the Energy Information Administration (EIA) released its Short-Term Energy Outlook. The report shows that families – particularly low income families and seniors – are facing an increasingly more expensive heating season. According to the EIA, this winter, residential space-heating expenditures are projected to increase for all fuel types compared to last year. On average, households heating primarily with natural gas are expected to spend about $350 (48 percent) more this winter in fuel expenditures. Households heating primarily with heating oil are expected to pay $378 (32 percent) more this winter. Households heating primarily with propane can expect to pay $325 (30 percent) more this winter. If our weather is colder than usual, expenditures will be significantly higher.

Just last week, 50 Senators from across the country and across political parties joined together to support $3.1 billion for the Low Income Home Energy Assistance Program (LIHEAP). That $3.1 billion in emergency funding coupled with the President’s budget request of $2 billion would bring LIHEAP funding to its fully authorized level. The amendment had broad support from state energy officials who have made clear that additional funding is urgently needed. Unfortunately, due to a procedural maneuver, the amendment failed.

The State Energy Directors released a survey about the difficult choices that LIHEAP households make when they face unaffordable energy bills. Seventy-three percent of the households surveyed reported that they cut back on and even go without other necessities, like food, prescription drugs, rent, or mortgage payments. One-in-five LIHEAP households reported that they went without food for at least one day over the last five years because of unaffordable energy bills. Twenty-four percent used their stove or oven to provide heat. The Mortgage Bankers Association expects steep energy costs to increase the number of missed payments and lost homes beginning later this year.

To date, the Administration has indicated that it does not intend to seek additional funding for LIHEAP. As today’s report from the EIA points out: the warning has been issued. We can all foretell the next disaster facing American families. What will we do to protect Americans from this upcoming energy storm? We believe the answer is to provide $5.1 billion in LIHEAP assistance and we hope that you will work with us to secure this funding.

Sincerely, Senator John Kerry Senator Olympia Snowe Senator Edward Kennedy Senator Jack Reed Senator Susan Collins

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