Friday, October 21, 2005
Contact: Spence Jackson, 573-751-0290
Blunt Secures Agreement to Help Missourians with Winter Heating Costs
JEFFERSON CITY—Gov. Matt Blunt today announced that his office, the Missouri Public Service Commission (PSC) and the Missouri Energy Development Association (MEDA) have reached an agreement that will help Missourians cope with expected record setting high winter heating prices.
The agreement initiated by Blunt will waive all reconnection fees and suspend deposit requirements for Missouri customers receiving Low-Income Home Energy Assistance Program (LIHEAP) or Utilicare assistance to pay winter heating bills. LIHEAP is a federal program with allocations made to states to assist with utility costs while Utilicare is authorized by state statute but has not been funded for several years. Blunt will work with the General Assembly to fund Utilicare from a portion of the unexpected revenues that will result from higher natural gas prices so that more money is available to help low-income Missourians pay their heating bills.
The PSC is the state agency charged with regulating most utility providers. MEDA is comprised of Missouri investor-owned natural gas, electric and water utilities. Its purpose is to develop, organize and promote measures that will advance the ability of investor-owned utilities to build, maintain, protect and provide the utility infrastructure and services that are critical to the economic well being of Missouri business and the health and safety of Missouri citizens.
"The action we have taken today will bring relief to Missourians who need assistance with what will likely be very high home heating bills," Blunt said. "I commend the responsible utility providers taking part in this effort and the Missouri Public Service Commission for working with me to find a solution to a challenge brought on by a host of natural and international factors. This is the kind of public-private partnership needed to assist the people of Missouri in a time of need."
"Governor Blunt and his administration have worked diligently with our industry over the past months to improve the ability of every Missourian to heat his or her home this winter," said Chuck Caisley, MEDA president. "In the wake of rapidly escalating natural gas prices, Governor Blunt has been working proactively with Missouri utilities and the PSC to create meaningful assistance for Missouri citizens. His actions today will have an immediate, significant and positive impact both on low income funding levels and the efficiency with which these limited resources are spent."
The Energy Information Administration (EIA) announced in September that home heating costs in the Midwest could rise as much as 71 percent for customers who use natural gas. Missouri utilities do not mark up the price of the natural gas they purchase which is subject to changes in supply and demand as well as national and international factors, like hurricanes, which impacts the price utility companies pay.
Missouri utilities do not earn a higher profit as a result of higher natural gas prices. Most investor-owned utility companies have additional programs to help customers deal with rising heating costs in addition to those announced by Blunt.
Blunt’s agreement with the PSC and MEDA will cover the period Nov. 1, 2005 to March 31, 2006.
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