WASHINGTON. D.C. – Senator John Kerry today, along with Senators Olympia J. Snowe (R-Maine) and Christopher Dodd (D-Conn.) introduced legislation that would stipulate that if the price of home heating oil was over $4 per gallon this winter that the Home Heating Oil Reserve would be released on a staggered schedule throughout the winter.

“Every expert in the world tells us that energy prices will keep skyrocketing and that means a dire situation this winter for more than six million households in Massachusetts and New England,” Senator Kerry said. “Washington can’t just sit back and wait. We must be proactive. Introducing legislation now that would release the home heating oil reserve on a staggered basis is the least we can do to prepare before the inevitable New England winter hits.”

“Maine and the entire Northeast are in the most precarious winter heating situation in a generation,” Senator Snowe said. “Mainers were tremendously burdened by record high oil and gas prices last winter. With prices continuing to escalate, that burden may be insurmountable this coming winter unless Congress takes some kind of preemptive action to prepare for the very worst. Currently, there are nearly 2 million gallons sitting in the Northeast, and it would be derelict for the government to withhold this vital heating source when the health and safety of our population is at risk. I implore my colleagues to join with me and take action in time so that this heating fuel may be utilized by the Northeast this winter.”

“Connecticut and the rest of the Northeast disproportionately depend on home heating oil to survive during long, harsh winters,” said Dodd. “Not long ago, low and moderate income families could struggle through the winter, but today, soaring heating oil prices are forcing people to choose between heating their homes, driving their cars to and from work, and putting food on the table for their families. With prices continuing to rise, we must act now to ensure that families in Connecticut and the Northeast remain safe and warm when the snow starts to fall this winter.”

Currently, under the Energy Policy and Conservation Act that established the Northeast Home Heating Oil Reserve, the heating oil may only be considered for release only if the price differential between crude oil and No. 2 heating oil increases by more than 60% over its five year rolling average for the months of mid-October through March. For example, on March 17th, 2008, heating oil prices were at $3.87 in New England. A barrel of oil cost $109.35, or $2.60 per gallon. The differential between these two figures is $1.27. However, the five year average differential is 93 cents, or 36 percent higher than the historic differential. In order for the President to consider releasing the heating oil the price of home heating oil would have needed to be $4.10 cents the day when oil prices were $109 per barrel.

Senators Snowe and Dodd had proposed legislation in December to allow the President the discretion to release the heating oil reserve if the “health and safety of the region was at risk.” With the prospects of $4.89 heating oil the health and safety of the region is indeed at risk. Accordingly, Senators Snowe, Dodd, and Kerry have introduced legislation that would sell the heating oil when heating oil is above $4 per gallon and use the proceeds to weatherize homes that utilize home heating oil.

Of the 8.0 million households in the United States that use heating oil to heat their homes, 6.2 million households or roughly 78 percent are located in the Northeast region of the country. - making this area especially vulnerable to heating oil prices. Heating prices in New England are currently is as high $4.65 per gallon, or $2 per gallon higher than last year.

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