Anger in U.S. over rising winter heating bills

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Anger in U.S. over rising winter heating bills December 8, 2000

By Karen Pierog

CHICAGO (Reuters) - As a light snow fell on their hand-lettered signs, a group of about 20 demonstrators picketed outside their local gas company's downtown Chicago bill payment center this week, chanting ``People have a right to be warm.''

Braving below-freezing temperatures and under the watchful eye of Chicago police, the protesters vented their anger over rising natural gas prices that will cost Americans millions of dollars more this winter to heat their homes.

``Stop the insanity -- lower gas prices,'' said one sign. ''Don't leave us out in the cold,'' said another.

Particularly hard hit will be those with low or fixed incomes who are already struggling to come up with payments for their inflated bills.

``It's expensive,'' said Rosa Hernandez, a 55-year-old factory worker and one of the protesters. The walls in her apartment are so poorly insulated they are wet, she said. After paying for gas, rent and other utilities, there was little left of her paycheck, she added.

Protests like the one in Chicago are likely to spread in the northern United States as the shock sets in once consumers open their winter gas bills. The Midwest is hard hit because of its cold winters and dependency on natural gas for heating.

The price for natural gas has already reached record highs and home heating bills are expected to jump 62 percent this winter to an average of $834 compared to $540 last year, according to the U.S. Energy Information Administration.

In Chicago, Mayor Richard Daley has weighed in with plans to ask the Illinois Commerce Commission to force the local gas company, Peoples Energy Corp., to make it easier for customers to spread out their payments, according to Jessica Rio, spokeswoman for the city's environment department.

Protester Maria Soledad Mora, 34, said she was trying to deal with a $251 gas bill to heat a small, one-bedroom apartment. ``I turn the gas on for only a couple of hours to get warm,'' she said.

Luis Diaz-Perez, a Peoples spokesman, said the utility, which serves nearly 1 million Chicago and suburban customers, is continuing to work with the city on the unusually high gas prices it is forced to pass onto customers. The utility has projected gas bills will climb by 64 percent this winter.

HEATING CRISIS SEEN

``This could be an extremely big crisis,'' said Kim Rezek, who heads Minnesota's energy assistance program.

While the state has $58.7 million in federal low-income home energy assistance program funds, an $11 million increase over last year, those funds will be stretched given a combination of higher natural gas prices and forecasts for a return to lower winter temperatures this season, she said.

``It may be the first time in several, several years that we have to turn people away,'' Rezek said.

She added that Congress was considering an increase in funding, while President Clinton, who released an additional $400 million in contingency funds to states in September, could send more money before he leaves office.

Running out of funds also worries Mike Kelly, a program specialist in Nebraska's health and human services department. That state, which has only run of energy assistance money one time in 20 years, has $14.5 million to spend this year.

``It's going to be tough,'' Kelly said.

Indiana has already seen an alarming increase in the number of people applying for crisis heating assistance due to the threatened or actual shut off of service.

Applications have risen to 5,226 households over the last month, compared to 2,833 households during the same period in 1999, according to Tom Reel, assistant manager of housing and community services for the state.

``That's a pretty significant increase,'' he said.

With about $48 million in federal and state funds available, Indiana Gov. Frank O'Bannon has expanded the state's assistance program, raising the average per household benefit to $275 from $250 and expanding the eligibility level to qualify for funds.

Meanwhile, governments could be seeing a tax windfall as a result of high natural gas prices and increased gas usage.

A bill to suspend Illinois' natural gas tax failed to advance in the legislature's recently concluded fall session. Republicans in the Iowa House are hoping winter gas bills will spur action early next year on their proposal to eliminate the state's 5 percent sales tax on residential energy bills, said Dan Fogelman, their spokesman.

^ REUTERS@

http://www.individual.com/story.shtml?story=d1208125.401

-- Martin Thompson (mthom1927@aol.com), December 10, 2000


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