New Schumer Report: If Upstate New Yorkers Thought Gas Prices Were Bad Now, Wait Until They Have To Heat Their Homes This Winter - Upstate Families Will Spend $720 More On Home Heating Oil Alone, A Shocking $570 Million Increase Across Upstate
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New Schumer Report: If Upstate New Yorkers Thought Gas Prices Were Bad Now, Wait Until They Have To Heat Their Homes This Winter - Upstate Families Will Spend $720 More On Home Heating Oil Alone, A Shocking $570 Million Increase Across Upstate
Schumer Report Shows that Sky High Oil Prices Will Send Home Heating Bills Through the Roof this Winter As Prices Reach Record Levels - Expected to Be at Least $1 per Gallon More Cap Region Families Will Spend $77 Million More, CNY Families $41m More, WNY Families $25m More, North Country Families $69m More; Rochester-Finger Lakes Area Families $37m More, Southern Tier Families $48m More, Hudson Valley Families $275m More Schumer: Senate Must Act Now to Help Seniors and Low Income Families this Winter - Pushes Legislation to Expand Emergency Heat Assistance Programs, Details Tips New Yorkers Can Use to Easily Bring Down Sky High Bills
With oil prices expected to soar to record levels when the weather gets colder, U.S. Senator Charles E. Schumer today released a new report detailing the astronomical prices Upstate New Yorkers will pay to heat their homes this winter. Schumer's report showed how Upstate New Yorkers relying on home heating oil can expect to pay at least $720 more this winter to heat their homes, as skyrocketing oil prices are expected to rise at least 25% over last year. This increase will cost Upstate New York as a whole an additional $573 million more this winter.
Offering some relief, Schumer announced a plan to dramatically expand the federal Low Income Home Energy Assistance Program (LIHEAP) that provides direct aid to help low-income families and the elderly cover high home heating bills. Schumer also said there are simple steps now that families can take to help reduce those bills well in advance of the winter freeze.
"Unless we take immediate action, families across New York State will be paying an arm and leg to heat their homes this winter," said Senator Schumer. "The energy crisis is not only hitting Upstate New Yorkers at the pump, but also hitting right at home this winter."
With crude oil prices spiking to over $140 a barrel earlier this weekand some energy analysts are predicting it could hit $150 a barrel this winterestimates are showing that the average American household will once again face ever-increasing home heating bills this winter. The average Upstate New York household using home heating oil will consume 631.7 gallons of oil per winter season. Last year, at an average cost of $3.16 per gallon, Upstate New York families paid approximately $1,996 per household to heat their homes over the course of the winter season. This year, the U.S. Department of Energy expects prices per gallon will be at least 25% higher - putting the average cost for heating oil in Upstate New York at a shocking $4.30 per gallon. This would result in an increased expense of $720 per household this winter.
Schumer today said that Upstate New York as a whole will spend an additional $573 million on home heating oil this year as a result of the skyrocketing prices. In addition, Schumer said estimates of the price per gallon of home heating oilhave increased significantly in just the last month. Because the price of a barrel of oil has spiked so precipitously in the last month, Upstate New York is expected to pay$70 million more than they were when estimates were released by the Energy Department in June.
Home heating oil price estimates from NYSERDA show an even more shocking price increase. Because many Upstate New Yorkers were locked into oil contracts last year, NYSERDA estimates that families in Upstate New York were paying an average of $2.58 per gallon for heating oil last winter. But they predict a new contract this year will cost an average of $4.58 per gallon. This means the average family will pay $1,260 more this winter for heating oil than last winter. Upstate New York in total will spend over $1 billion more this winter than they did last winter if these estimates hold true.
Below are numbers across Upstate New York
· The 107,300households in the Capital Regionare expected pay a total of $77,279,000(based on DOE estimates) to $133,409,000 (based on NYSERDA estimates) more this winter to heat their homes.
· The 57,500households in Central New Yorkare expected pay a total of $41,383,000 (based on DOE estimates) to $71,004,000 (based on NYSERDA estimates) more this winter to heat their homes.
· The 381,600households in the Hudson Valleyare expected pay a total of $274,798,000 (based on DOE estimates) to $491,587,500 (based on NYSERDA estimates) more this winter to heat their homes.
· The 96,000households in the North Countryare expected pay a total of $69,071,000(based on DOE estimates) to $121,896,000 (based on NYSERDA estimates) more this winter to heat their homes.
· The 51,000households in Rochester-Finger Lakes areaare expected pay a total of $36,677,000 (based on DOE estimates) to $64,032,000 (based on NYSERDA estimates) more this winter to heat their homes.
· The 67,200households in Southern Tierare expected pay a total of $48,421,000 (based on DOE estimates) to $83,398,000 (based on NYSERDA estimates) more this winter to heat their homes.
· The 35,000households in Western New Yorkare expected pay a total of $25,249,700 to $44,342,000 (based on NYSERDA estimates) more this winter to heat their homes.
Earlier this summer the National Energy Directors Association (NEADA) conducted a national survey of utility arrearages and shutoffs. The survey found that millions of elderly households this year are facing a severe hardship paying arrearages from last winter's heating bills, coping with impending and actual shutoff of service, and meeting rising air conditioning costs. The survey estimated that at least 1.2 million households have been disconnected from electric and natural gas service during the three-month period following the end of state shutoff moratoriums.
This was a conservative estimate as the level of shutoffs was likely to go higher as utilities completed credit and collection procedures. The statute specifically defines a significant increase in home energy disconnections as an emergency and reason for the release of funds.
According to the Energy Information Administration (EIA), U.S. residential electricity prices are also expected to increase at a rate of 3 percent this year. States undergoing market restructuring continue to experience more rapid price increases as rate caps expire and higher fuel costs are passed through to consumers. In some instances, customers may see rate increases of up to 50 percent.
Schumer unveiled his plan to dramatically expand the Low Income Home Energy Assistance Program (LIHEAP), which provides direct assistance to low-income families and seniors who are struggling to pay their bills. Schumer is joining with a bi-partisan group of Senators and introducing new legislation, S.3186, the Warm in Winter and Cool in Summer Act, which would provide $2.53 billion in additional emergency LIHEAP funding for this winter.
Schumer is also requesting the President release an additional $120 million in emergency LIHEAP aid right to get the money flowing in to the system right away. Schumer argued today that opening up LIHEAP is essential to assisting New York State households meet rising bills this winter. "No family across New York State should be forced to choose between paying an energy bill and putting food on the table for themselves and their children. And no senior citizen should have to decide between buying life-saving prescriptions and paying utility bills," Schumer added.
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