WASHINGTON, DC - As temperatures continue to soar across the nation, U.S. Senators Jack Reed (D-RI) and Susan Collins (R-ME) today sent a letter to President Bush calling on him to release $201.52 million in emergency funds from the Low Income Home Energy Assistance Program (LIHEAP) to help alleviate the burden high energy prices have placed on working families and seniors throughout the country. Reed and Collins were joined by 36 of their Senate colleagues in making the request.

LIHEAP is a federal block grant program that provides states with annual funding to operate home energy assistance programs for low-income households. In addition to helping to pay energy bills for low-income families and the elderly, LIHEAP helps to fund energy crisis intervention programs, low-cost residential weatherization and other energy-related home repairs, and can provide life-saving assistance to provide air-conditioning and fans to the elderly and disabled. Each year, almost 5 million low-income families rely on LIHEAP to assist with the costs of heating and/or cooling their homes.

In February, Congress approved an additional $181.17 million in emergency LIHEAP funding for fiscal year 2007, adding to an existing balance of $20.35 million. The President has not yet released any of this contingency funding this year.

"Congress has given President Bush the ability to help working families and seniors who are struggling to keep up with their energy bills," said Reed, the Chairman of the Northeast-Midwest Coalition. "As temperatures rise, Americans continue to face record high energy bills, and many are facing the prospect of having their electricity and gas turned off because they are unable to pay. It is time that the President does the right thing and releases this additional funding."

Collins, also a Chair of the Coalition, stated, "With the increased costs of heating and cooling our homes, we must provide adequate funding for this essential program that serves as the lifeline to some of our most vulnerable citizens. It is my hope that the President will support our request to immediately release these emergency funds. For low-income families, this money can literally be a matter of life and death."

In their letter, Reed and Collins noted that a recent survey conducted by the National Energy Assistance Directors' Association (NEADA) found that at least 1.2 million households across the United States were disconnected from electric and natural gas service from March through May of this year, with numbers expected to rise as utilities complete credit and collection procedures and states continue to undergo energy market restructuring.

Reed concluded, "No one should have to choose between paying their energy bill and putting food on the table or buying life-saving prescription drugs. Unfortunately, millions of American households are facing these difficult decisions and the Bush Administration is not providing the resources needed to help. I will continue to work with Senator Collins and my Senate colleagues to increase federal energy assistance to provide relief to millions of low-income families and seniors."

Text of the letter follows:

July 13, 007

The President

The White House

Washington DC

Dear Mr. President:

The FY2007 Continuing Resolution (PL 110-5) provided $181.17 million in Low-Income Home Energy Assistance Program (LIHEAP) contingency fund, increasing its balance to $201.52 million. We strongly urge you to release LIHEAP contingency funds to help low-income seniors and families address their energy burden, especially given this week's national heat wave.

The National Energy Assistance Directors' Association (NEADA) recently completed a national survey of utility arrearages and shutoffs. The survey found that millions of low-income 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 estimates that at least 1.2 million households have been disconnected from electric and natural gas service during the March through May period following the expiration of state shutoff moratoriums. This is a conservative estimate as the level of shutoffs is likely to go higher as utilities complete credit and collection procedures.

According to the Energy Information Administration (EIA), U.S. residential electricity prices are expected to increase at a rate of 3 percent during 2007. 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.

Low-income Americans experience a much higher energy burden than the average American household. On top of rising home energy costs, prices at the pump are placing an additional burden on low-income Americans this summer. Gasoline prices have reached their highest level ever and are projected by EIA to average 21 cents higher than last summer. Too many of these households face difficult financial choices trying to meet basic human necessities on an income that simply won't stretch far enough to cover it all. No family in our nation should be forced to choose between paying a home energy bill and putting food on the table for themselves and their children. No senior citizen should have to decide between buying life-saving prescriptions and paying utility bills. For individuals and households that may have to face these difficult choices, LIHEAP makes a real difference in their ability to cope with adverse circumstances.

We request the federal government release funding from the LIHEAP contingency fund to help low-income seniors and families with their home energy expenses. Releasing this money now will not solve the problem fully, but it will certainly help.

Sincerely,