Cold winter, world events lead to record high heating costs

www.delmarvanow.com By John Duffy Staff Reporter

The combination of an unusually cold winter in the Northeast as well as national and world events are conspiring to make home heating costs nearly twice as high as last year, according to the U.S. Department of Energy.

While colder temperatures usually mean higher heating bills, that is not the only reason many Delmarva region residents have seen home heating costs skyrocket. Interruption of crude oil shipments from Venezuela because of political and labor unrest and the uncertain future of war in the Middle East are also adding to oil prices. These factors contribute to the costs of home heating oil and gasoline.

According to the Department of Energy, the average price paid by consumers for No. 2 heating oil the week of Feb. 10 was $1.71 per gallon.

In Delaware, homeowners paid $1.68 per gallon. The week of Nov. 25, 2002, the price was $1.21 statewide. Inquiries the week of Feb. 21 in Sussex County found heating oil prices averaged between $1.57 and $1.79.

Much of the price depended on the size of the order. For example, orders more than 150 gallons cost less than smaller orders, and orders under 100 gallons often included a $10 shipping charge.

The rise in the cost of oil for heat, as well as electric heat, has led to an increased demand on statewide energy assistance programs.

In December 2002, U.S. Rep. Mike Castle (R) requested the release of some $200 million in a strategic reserve for federal Low Income Home Energy Assistance Program (LIHEAP).

The money is used to help low-income families with energy needs both in summer and in winter, but traditionally the funds are used more for heating than cooling assistance.

On Jan. 24, Castle secured $867,954 for Delawareans who require assistance with energy bills.

"Typically, some funding for LIHEAP is held in reserve, because you cannot really predict energy costs," Castle explained. "I think given the situation this year it was handled very well."

Castle said funding for fiscal year 2003 for LIHEAP should be around $1.8 billion nationwide, up from $1.3 billion in 2002. "That's a pretty significant increase," he said, "so I think Delaware will see a lot more of this money available for low-income families."

LIHEAP funding is distributed via local nonprofit groups in each state. In Delaware, Catholic Charities doles out LIHEAP funds. In 2002, it helped 11,796 Delaware families with between $150 and $500 in emergency assistance paid directly to utility providers. Delaware currently has 335,200 residential energy consumers.

Reach John Duffy at (302) 537-1881, ext. 106, or by e-mail at jduffy@smgpo.gannett.com.

Originally published Wednesday, February 26, 2003