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Consumers Sweating Over Home Heating Bills

Natural Gas Costs Double in Some States

January 20, 2006

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As frigid winter weather finally arrived in the northeast U.S., many low-income consumers are feeling winter's double whammy especially hard.

Even turning down the thermostat and shivering with less heat has done little to reduce soaring energy bills.

In Michigan, some natural gas customers are enrolling in emergency installment payment plans to prevent their service from being shut off for non-payment. Some, struggling to make ends meet, simply can?t afford the 50 percent spike in natural gas prices this winter.

Utility companies operating in the state have repeatedly said that no consumers should lose their gas service because they can't afford to pay. They're urged customers to make arrangements for delayed payments before their service is terminated.

State officials say the average monthly heating bill in Michigan now exceeds $200.

In Massachusetts, energy costs are up nearly 40 percent over last year, forcing some low-income consumers to seek assistance. Massachusetts' Office of Consumer Affairs estimates the average family's fuel costs will exceed $2,200 this year.

A study commissioned by Massachusetts Congressman Marty Meehan suggests 80 percent of households eligible for federal fuel assistance are unlikely to receive help.

Mark Wolf of the National Energy Assistance Director's Association says relief agencies in several cold-weather states began running out of funds in late December. He said the number of relief applications for heating assistance is up over 10 percent and is expected to reach 5.6 million, which would be the highest level in 12 years.

Wolf said 12 states are projecting applications to increase 25 percent or more.

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