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Published: December 10, 2008 11:00 pm    print this story  

Heating costs hard to meet

By Tom Grace
Cooperstown News Bureau

This year may see a record number of people sign up for heating assistance, even as the prices of heating oil and propane decline.

``We have a lot of applications for this early in the heating season,'' Cindy Lane, Otsego County's principal welfare examiner, said Tuesday. ``People are looking for anything that can help, with the economy in the shape it's in.''

During the summer, when oil prices seemed headed for $200 a barrel and gasoline cost more than $4 a gallon, state officials liberalized guidelines for the Home Energy Assistance Program.

Under new rules, a family of four with a household income as high as $45,312 a year may qualify for a heating subsidy. And the subsidy for propane and oil users, up to $800, is considerably more than last year's $540 maximum regular benefit.

Similar payments are available for people who heat with wood, pellets, natural gas or electricity.

HEAP eligibility depends on a number of household conditions; to find out in advance whether you qualify, log onto www.mybenefits.ny.gov/selfservice. There, the state has set out the rules not only for HEAP, but food stamps, earned income tax credits and other benefits, according to Joyce Boyd, Otsego County's commissioner of social services.

``It makes it easy for people to see if they qualify _ and a lot of people qualify,'' she said.

In addition to regular HEAP, counties provide emergency help for those who barely exceed income guidelines or have extenuating circumstances that should be considered, Boyd said.

Agencies that administer HEAP, such as Opportunities For Otsego and Delaware Opportunities, are reaching out to help those in need, and people have responded, according to Dan Maskin, OFO's executive director.

``Our applications are running about 25 percent ahead of last year,'' he said Tuesday.

Through the end of November, typically the slow start of the HEAP season, OFO had processed about 500 applications in advance of winter.

Heating prices falling slowly

From the summer peak, crude-oil prices have dropped dramatically. Gasoline prices have followed suit since July, and regular unleaded gasoline is now under $2 a gallon locally. Heating oil and propane prices are declining, but not as rapidly, according to local dealers.

John Roucek, manager of Delaware Valley Propane, said, ``The price of propane is influenced by the price of oil and natural gas, and natural gas is just starting to come down.''

Produced from natural-gas processing and crude-oil refining, propane is growing in popularity, but it is a problem fuel when bills aren't paid on time, Boyd noted.

Someone may owe one oil dealer money and still find another willing to deliver a load. But companies selling propane almost never service another firm's customers because the sleek, expensive tanks usually are owned by the company, Boyd said.

``You can be in trouble if you're behind on your propane bills, because no one will deliver until you pay what you owe,'' she said.

Roucek and Dave Harder, president of Reinhardt Home Heating in West Oneonta, noted that dealers have to warrant that propane tanks and regulators are safe before delivering fuel, and no one wants to assume someone else's liabilities.

Customers may buy their own tanks and avoid this situation, but tanks are expensive.

``I just sold a 1,000-gallon tank for $2,800,'' Roucek said.

Harder said his current retail propane price, $2.49 a gallon, is identical to what was charged last December, and it is 20 cents a gallon less than the February 2009 price. Roucek said his prices vary depending on how much gas someone buys and how often the tank will need to be filled, although prices are headed down.

Kizzi Casale, manager of the Citizen Action Fuel Group, said fuel oil prices are already considerably lower than last winter's average price of $3.33 a gallon.

``We're at $2.41 a gallon, on demand, and $2.36 for automatic delivery to Otsego County,'' she said.

Citizen Action contracts with Mohawk Home Comfort Services for oil delivery in this area and receives a discount off Mohawk's regular price, she said.

People needing help with their heat bill may call OFO at 433-8000 or Delaware Opportunities at 746-1615. People 60 or older may want to call their county Office on Aging.

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Photos


Propane, stored in tanks like this, is growing in popularity but can be a problem for customers behind on their bills. None/ (Click for larger image)



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