MADISON HEIGHTS - Amid projections that heating costs will skyrocket this winter, Oakland County Democrats today announced an emergency energy plan to help families cope. Key components of the package include banning utilities from shutting off heat to homes during winter months, providing payment assistance through emergency funds and offering incentives to help families make their homes more energy-efficient.
"With home-heating costs projected to be so high this winter, we can't just cut off families who get behind on their bills in the dead of winter," said State Representative Marie Donigan (D-Royal Oak). "Michigan is facing a potentially dire situation when the snow flies. This legislation helps ensure that we are prepared to help people cope with expensive heating bills."
The Democratic legislation will:
* Ban utility companies from shutting off heat service during winter;
* Provide additional funding for energy assistance funds;
* Give the Michigan Public Service Commission (MPSC) the power to shift $5 million from research into a fund to help people pay heating bills;
* Set up a database to coordinate volunteers willing to help with winterization efforts; and
* Give residents a tax deduction if they winterize their homes.
The MPSC announced this week that natural gas heating bills this coming winter will jump 46 percent or $59 a month on average. The average winter bill in 2005-06 is projected to be close to $200, the MPSC said in its report released Tuesday.
"Heat should not be a luxury," said Senator Gilda Jacobs (D-Huntington Woods). "Our new legislative package, the WARM plan, will provide relief for citizens who would otherwise have to choose between eating dinner and heating their homes."
The legislation bans utility companies from shutting off service between Dec. 1, 2005, and March 31, 2006, to households earning up to 200 percent above the poverty level, or approximately $40,000 for a family of four.
It will also expand the Home Heating Credit so people who earn 125 percent of the federal poverty level ($24,000 for a family of four in 2005) can qualify. The current threshold is 110 percent of the federal poverty level. The legislation will also return more money to eligible families, from an average of $210 a year to $250.
"Michigan residents who are living on a fixed income are especially vulnerable during the winter months," said State Representative Aldo Vagnozzi (D-Farmington/Farmington Hills). "Cold weather often translates into unexpected expenses, and this year we've already been warned that gas rates could be up to 50 percent higher. With such a dramatic cost increase, we have to make sure our families have access to home-heating assistance."
Under the legislation, people who winterize their homes and install energy-efficient appliances can get 50 percent of their expenses back in tax credits, up to $2,500. The credit is available to households that make up to 300 percent of the poverty level, or approximately $58,000 for a family of four.
Other bills in the package let tax filers donate to an energy fund; call for an energy summit to find long-term solutions to heating issues; and call for more federal funds to help with heating costs.
"While we expect the federal government to step up to the plate and help with heating costs, we're not going to wait to offer the people of Michigan protection," said State Representative Paul Condino (D-Southfield). "Winter is nearly upon us; House Democrats agreed that the time to act is now."