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Telephone: (609) 561-9000
Contact: Joanne Brigandi
FOLSOM, N.J. -- According to a new study by the American Gas Association released today, Low-Income Energy Consumers: The Need For Assistance Continues, funding for the Low Income Home Energy Assistance Program should be increased from last year’s $3.2 billion to help avert a potential crisis as rising energy prices and the growing number of households living near poverty are set to converge. AGA is a Washington-based trade association representing the nation’s energy utilities that deliver natural gas.
Edward J. Graham, president and CEO of South Jersey Gas explained, “The help available to needy families to keep their homes warm and their lights on is not meeting demand. In view of government forecasts of home energy bills in the coming winter – it’s imperative that LIHEAP be fully funded at its authorized level of $5.1 billion.”
Last year, states distributed LIHEAP funds to 5.8 million households. While this number was higher than some past years, it is roughly 20 percent less than the number of households assisted in 1981. In 2005 New Jersey received approximately $72 million for LIHEAP, which helped154,000 income eligible households.
Graham said, “Utility programs provided more than $1.3 billion to help needy families manage their energy bills in 2005. That’s a significant amount of support, yet the need continues to be far greater than utilities are able to fulfill, despite our best efforts. South Jersey Gas provided just under $5.5 million in assistance to 20,270 customers in 2005,” he added.
The Need For Assistance Continues shows an increasing disconnect between the plight that lower-income households face in paying their energy bills and the assistance available to them. Despite last year’s record-level of federal funding, according to the report, only about 15 percent of 38 million eligible low-income households received federal assistance through LIHEAP. According to AGA’s report, if LIHEAP were funded at the full $5.1 billion level authorized by Congress, it could assist 3.6 million more households.
The Need For Assistance Continues chronicles an alarming trend between 1981 and 2005, as the need for assistance continues to exceed what is currently available. According to the study, there were 90 percent more households eligible for federal energy aid in FY 2006 than in 1981, and during a similar period, there was a126 percent increase in the consumer price index– and yet funding for LIHEAP increased only 59 percent.
Low-Income Energy Consumers: The Need For Assistance Continues is available on the AGA web site at www.aga.org.
South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to over 325,000 residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, and significant portions of Gloucester, Burlington and Camden counties in New Jersey. Visit http://www.southjerseygas.com to learn more about South Jersey Gas and its programs.
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