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This is the archive for December 2007

Tuesday, December 18, 2007

Republican Senator Susan Collins blames market failure

Senator Susan Collins of Maine recently has taken an interest in the fuel price situation in Maine. Last week, an article in the Bangor Daily News described a "desperate" home heating crisis before the calendar has even passed winter solstice:

Home heating crisis in Maine now 'desperate'
By Anne Ravana - Saturday, December 08, 2007 - Bangor Daily News
BANGOR - Toys for Tots? How about Oil for Tots?

Many, if not most, of the state's neediest families are now in crisis when it comes to finding a way to pay for home heating oil, and assistance agencies are running so low on fuel funds that they are desperate for private donations.

That was the consensus at a fuel assistance resource meeting at U.S. Sen. Susan Collins's office Friday [Dec. 7]. Collins's office called the meeting to gather representatives from more than 10 social service agencies from area counties to determine how to use their existing resources most efficiently.

"A majority of people I see are in an emergency situation. They are out of oil when they call," said Harold Conners, director of social services for the Salvation Army office in Bangor.

Conners said he believes it is "a matter of weeks" before the state sees an overwhelming number of residents with empty oil tanks and no money to fill them. All the meeting attendees expressed concern that low-income families have little choice but to cut back on food, medicine and other essentials when their home energy costs rise.

The federal Low Income Home Energy Assistance Program is the primary source of aid for families whose income is 150 percent to 170 percent of the federal poverty limit. This year, the program is expected to help about 47,000 Maine households with average annual incomes of $13,000, according to Joanne Choate, LIHEAP manager for the Maine State Housing Authority.

This year, applications are pouring in in record numbers, and at least 51,000 people are expected to apply, Choate said. The Penquis program in Bangor already has denied at least 600 applications.

"We're seeing more and more requests from the working poor, people who work more than 40 hours a week and still can't pay their bills," said Nathalie Perry, director of Brewer Health and Human Services.

On average, families receive $580 in assistance, which is not enough to fill a 250-gallon tank with local prices for oil hovering around $3.20 a gallon.
In response, the Republican senator offered the following analysis, and proposals for hearings and legislative action: