As heating costs rise, social service agencies can’t meet need

A dramatic 35 percent natural-gas price increase worries Dept. of Human Services, United Way

Last week I reported that DTE Energy (NYSE: DTE) had raised gas prices by 35 percent this month. With 80 percent of state households heating with natural gas, this price hike seemed to signal coming hardship.

According to DTE, 56 percent more people were in shut-off this year than last year at this time, and that was before this latest major price increase.

The Michigan Public Service Commission (MPSC), which must review and approve utility price hikes, told Michigan Messenger that the DTE price increase, which is already in effect, is expected to be approved and that all other natural gas providers will probably increase prices by a similar amount.

“Costs are going up because of an increase in price of natural gas across the board,“ MPSC spokeswoman Judy Palnau said.

Bill Sullivan, a spokesman for the United Way for Southeastern Michigan (where DTE’s CEO Tony Earley is a member of the board) called the problem of unaffordable heating bills “huge” and “astronomical.”

United Way runs the 211 help line, which connects people with programs to help them avoid shut-off.

“If someone is facing utility shut-off there is a great possibility that the kids are not eating as well as they should, that kids are not doing as well in school, because mom is working a third job and isn’t available to help with homework.” Sullivan said.

According to Sullivan, 37,354 people from Wayne, Oakland, Macomb, Washtenaw and Monroe counties have called the United Way 211 line seeking help with gas bills so far this year.

Even before this month’s price increase, the need for help with gas bills far outstripped the resources of social service agencies.

“Whatever the need is for utility assistance, the amount that is available is less than 25 percent,” Sullivan said.

The Michigan Department of Human Services (DHS) runs an emergency utility assistance program that offers a one-time emergency payment of up to $350 to people struggling to maintain gas service. Spokeswoman Colleen Steinman said that 106,582 households have received this assistance from last October through June.

“We definitely are seeing an increase in need. For example, early last fall in the first quarter of the fiscal year, applications rose 42 percent.”

DHS’s Steinman said that a large portion of her agency’s emergency assistance funds come from the federal Low Income Home Energy Assistance Program and that the state budget for the coming fiscal year has not yet been determined.

“We know energy costs are going up and we are very hopeful that the federal government will recognize the tremendous need here in Michigan and provide us with the funds we need,“ she said.

Steinman said that in some recent years, funds for emergency assistance have been exhausted before the heating season was over. She said she hopes Michigan representatives will respond to the increasing level of need by securing additional federal funding for heating assistance.