“Record home heating costs are one of the most pressing issues facing Pennsylvania families. From seniors on fixed incomes to working parents, rising energy costs are hitting families hard. The report’s findings echo what I have seen in my own home heating bill, and what my constituents tell me – home heating costs are skyrocketing out of control and need to be addressed by Congress,” said U.S. Representative Allyson Y. Schwartz.

The report, “The Impact on Rising Home Heating Costs on Pennsylvania Families,” details the impact of rising home energy costs, including natural gas, propane, and electric, and the subsequent financial consequences on Pennsylvania families’ pocketbooks. In addition to overall state-based numbers, the report provides data on the financial impact of increased prices across the state’s 12 geographic areas. The report was prepared by the House of Representatives Committee on Government Reform Minority Staff at the request of Representative Schwartz.

Overall findings from the report include:

Increased heating costs will cost Pennsylvania families almost $3 billion. In Pennsylvania, nearly 4 million families rely on natural gas, propane, and/or heating oil for home heating needs. These families’ average heating costs are expected to be $700 higher this year than four years ago. Collectively rising home heating expenses will cost Pennsylvania families an estimated $2.8 billion more than four years ago.

Increased heating costs will affect almost four million Pennsylvania families. 2.5 million Pennsylvania families rely on natural gas for their home heating. Natural gas costs for these families are expected to be almost $650 higher than they were four years ago — and over $200 higher than they were just last year. Over the last four years, natural gas heating costs have risen by approximately 100% for Pennsylvania families, over eight times faster than the inflation rate. In addition, 1.3 million families in the state use heating oil or propane to heat their homes. These families will also face steep price increases.

An estimated one million Pennsylvania families eligible for federal heating assistance are unlikely to receive this help due to budget cuts. The federal Low Income Heating and Energy Assistance Program (LIHEAP) was created to provide financial assistance to low-income seniors and families that would otherwise struggle to pay their heating bills. The program has been severely underfunded by Congress, and as a result an estimated one million families in Pennsylvania that are eligible for such assistance will not receive it.

“This report underscores how critical it is for the Administration and Congress to establish a national energy policy to reduce our dependence on foreign oil. America’s reliance on foreign oil is not only one of the gravest national security issues facing us, but it also has very real consequences on our national economy and individual family budgets,” said Representative Schwartz.

“Just last week in his State of the Union address, President Bush called for our nation to reduce our dependence on Middle East oil, and he promised to increase funding for the research and development of new energy technologies to meet this goal. Yet only a week later, the White House released its Fiscal Year 2007 budget, which fell far short of the President’s State of the Union promise to end our nations’ dependence on foreign oil,” said Schwartz.

The Administration’s FY07 budget:

·        Requests nearly a quarter less in funding for energy research and development than what is authorized under law;

·        Slashes funding to help low income and working families heat their homes by cutting funding for the Low Income Home Energy Assistance Program (LIHEAP) by $200 million; and

·        Cuts investments in the two programs cited by the Energy Department as among the most cost-effective ways to save energy. The budget cuts weatherization assistance grants, which helps low-income families weatherize their homes, by nearly a third from $243 million to $164.2 million, and cuts the Energy Star program, which promotes energy-efficient products, by 9 percent.

“President Bush called for significant investment for energy research and development in his State of the Union address, but his budget calls for $2.1 billion for research and development into clean energy technologies. This number amounts to only 6 percent of the profits earned by Exxon Mobile in 2005,” said Schwartz.

“Only with a real commitment to invest for the future will we be able to move our country forward towards greater energy independence. The American people deserve a national energy policy that ends our nation’s dependence on foreign oil, cracks down on price gouging, and invests in energy research and development. We cannot wait any longer – the price of our dependence on foreign oil is too high, for both families and for our national security interests,” concluded Schwartz.

Schwartz has been a leader in Congress to reduce the nation’s dependence on foreign oil and expand alternative sources of energy, while reducing the cost of home heating and gasoline prices for everyday Americans.  Her record includes successfully requiring federal authorities to investigate whether American consumers have been gouged by oil and gas companies, fighting for additional LIHEAP funds, and leading the effort to invest in renewable energy and energy efficiency technologies.  

U.S. Representative Schwartz represents the 13^th Congressional District of Pennsylvania which includes Northeast Philadelphia and the majority of Montgomery County.

To download a full copy of the report please visit www.house.gov/Schwartz or contact Rachel Magnuson at Rachel.Magnuson@mail.house.gov.

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