NC: Heating Costs Reaching Crisis

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Heating Costs Reaching Crisis

By: JOHN F. YOUMANS Of The Record Staff Source: The Daily Record 01-12-2001

The cost to heat a home today is reaching crisis proportions, prompting U.S. Rep. Bob Etheridge to call for a probe into the cause of rising propane and natural gas prices.

“No family in America should be forced to choose between buying food or heating their homes. This is a real pocketbook issue for thousands of North Carolinians and we have a duty to find out what is causing this spike in energy prices,” he said.

A check with local retail oil and gas companies reveals two things — a significant price hike in the last few months and discrepancies in prices between companies.

Locally, the fuel oil costs seem to have increased about 30 percent while the price of gas has more than doubled, with the most significant increase in the last month or so. The current cost of fuel oil ranges from $1.49 to $1.59 while last year the costs seemed to be about $1.05. The current price for kerosene is about $1.79 while last year it was $1.40, about a 22 percent increase.

Current propane prices for small tanks range from $2.05 to $2.21 and $1.85 to $1.99 for larger tanks. Gas retailers contacted refused to either look up the price or reveal the price last January. Consumers said the price last January was around 89 to 99 cents.

Inundated With Calls

Director of the Harnett County Department of Social Services Pat Cameron said his office is getting flooded with about 50 to 60 calls a day from people needing help paying their heating costs. DSS has a Crisis Intervention fund for those in need. However, he said he is waiting for $75,000 in assistance from the state before they can begin distributing the money.

“There is a problem with the eligibility rules concerning this program though,” he said. He explained a person must be threatened by the utility company to have their heating utility discontinued because of nonpayment to be eligible for the funds.

Mr. Cameron said the rule prevents many people needing the money from applying for it. He said some people would do anything to prevent their credit rating from being damaged. “I am especially concerned with the elderly and families with newborns,” he said. These families may be doing without necessities in other areas in order to keep paying their utility bills.

Heating Takes Up Income

One example Mr. Cameron gave was a mother with a disabled son from Erwin whose only income is about $700 from Social Security. She told Mr. Cameron her gas bill had been about $135 per month and now it is more than $500.

Mr. Cameron advised anyone who thinks they may be eligible for assistance to call DSS at 893-7500. Don‚’t be surprised if the lines are busy or it takes a while to get served. Residents can also visit DSS at the new county complex building on US 401 north in Lillington.

Some residents have had to take steps to conserve. Orres Havards of 2035 Cornelius Harnett Blvd., Lillington, said, “ I was paying $1.89 for oil, but I stopped. I burn wood now.” She said, “ I can’t afford to keep paying that price to keep my house warm and pay my bills.” Kermit Jernigan, 62, of 570 Christmas Tree Road, Dunn, said costs for gas heat have doubled. He said it has affected his budget and it is causing a hardship.

James Kennedy, 45, of 416 Spring Branch Road, Dunn, and Timmy Perry of McGee’s Crossroads echoed the same sentiment. Those with electric heat have seen an increase, too, but not because prices have increased, South River Electric Company officials said. It’s been cold.

Edna Messer of 151 OBJ Rd., Dunn, said her electric bill is usually around $100 per month and now it has gone up to $259. Mr. Cameron said people are doing whatever they can to meet the rising heating cost — they are turning their thermostats down, wearing more clothes, shifting budgets to pay heating bills and some have to buy less, including food.

These increases are getting Congressional attention. Rep. Etheridge (D-Lillington) said that while he was driving from Clinton to Dunn on U.S. 421, “I counted the number of homes with gas fuel tanks outside to heat their homes. There were 6 or 7 houses out of every ten that were heating with gas. That is a significant number.”

He was also concerned with the number of farms in the area that use gas to heat their homes, their barns and their green houses. “I want to help everyone, but I am especially concerned for the elderly and those on fixed income,” Rep. Etheridge said.

He has sent letters to the Federal Trade Commission Chairman Robert Pitofsky, House Energy and Commerce Committee Chairman Rep. Billy Tauzin and ranking Democrat Rep. John Dingell yesterday concerning the cause of the unusually high gas prices and he has called for investigations into the causes.

“I am calling for these investigations into unusually high energy prices because of the real economic hardship these costs are placing on millions of Americans, especially seniors on fixed income,” Rep. Etheridge said.

Can’t Be Just Demand

“I simply find it hard to believe that higher demand alone can account for the home heating costs that are double and in some cases triple what they were just a year or so ago. Families on limited and fixed incomes face enough challenges without the unexpected increase in the cost of this basic necessity,” he said.

“We may find that the solutions to high energy prices are hard to reach, but that doesn’t mean we shouldn’t try to identify the cause. High energy costs are a burden on our economy and are a real threat to the health and welfare of millions of Americans struggling to pay the bills. It is my hope that these investigations would lead to answers that will help us avoid a repeat of the expensive winter we are currently experiencing,” Rep. Etheridge said.

http://www.dunndailyrecord.com/index.php?template=news.view.subscriber&table=news&newsid=54151

-- Martin Thompson (mthom1927@aol.com), January 12, 2001


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