As the price of heating oil soars and the cold reality of winter settles in, many Lincoln County residents are scrambling to meet the very basic need for heat this year. Fuel prices are on average $.50 to $.60 higher than a year ago, an increase that can mean hundreds, if not thousands, of extra dollars for individual consumers.
While programs do exist to provide assistance, many people do not apply, either because they assume they don’t qualify, or a perceived stigma surrounding the process, or for the lack of information on available resources.
In 2005, three local businessmen, Todd Maurer of King Eider’s Pub, Robert Clifford of Colby & Gale, and Charles Ault, a financial advisor, formed the Community Energy Fund (CEF), and began raising funds to assist those in need. Help from CEF is currently available through the general assistance programs found at local town offices.
When CEF through local town offices fill a need, the fuel is delivered in the form to fit the customer’s needs, whether wood, coal, pellets, or heating oil.
Not too long ago, CEF self-administered their program, with guidelines for distribution. However, as the program grew and gained more and more local support, CEF turned over administration to local towns in Lincoln County, as part of their general assistance programs.
Statewide and nationally the most popular program is the Low Income Home Energy Assistance Program or LIHEAP, a grant-funded outreach of the federal government that is available to anyone in the country meeting eligibility/income requirements.
The 30-year-old program is designed to help those who fall within or below the poverty line. According to a U.S. Dept. of Human services website, an eligible household’s income must not exceed 150 percent of the poverty level, currently set at $22,050 for a family of four, or 60 percent of Maine’s median income.
Grantees may not set income eligibility standards below 110 percent of the poverty level but they may give priority to those households with the highest home energy costs or needs in relation to income.
The LIHEAP application deadline is typically in December which may leave some households out in the cold if a primary earner is laid off, an unexpected illness requiring hospitalization occurs, or if the price of fuel becomes prohibitively expensive. Households can, however, turn to their local town offices for help.
“The process is confidential and takes about 10 minutes. It’s considered emergency assistance and not a complete solution to a long-term need though it can serve as a bridge until a permanent answer is found,” said Boothbay Harbor’s finance officer Julia Latter.
While Latter has not seen an appreciable increase in those seeking general assistance for fuel, local oil companies have experienced a sharp up tick in vouchers from LIHEAP and other programs.
“I’m seeing more and more people take advantage of the programs, which is really crucial. The inquiries are up from customers so it’s definitely an issue,” said Heidi Murray of Midnight Oil in Newcastle.
Many do not fit income eligibility requirements for LIHEAP funding, and those individuals may then turn to their town office for CEF vouchers for fuel.
If unable or unwilling to receive assistance, households may resort to drastic measures such as using diesel fuel to supplement or supplant their oil tank reserves.
“I’ve seen people using a gas can full of diesel just to get through the morning. It is a number two fuel but obviously we don’t recommend it. It’s sad to see,” said one fuel deliveryman who requested anonymity.
For those unable to lock in a set price earlier in the summer with an oil company, the cash on the barrelhead reality can be an anxiety-inducing gamble.
“We set our customers at around $2.75 a gallon this summer when the price at the time was $2.50. It’s a gamble but with prices around $3 now it can be cheaper long term,” said Murray.
The cost of traditional alternatives to oil heat, such as wood, has also risen dramatically in recent years.
A survey of seasoned firewood prices in Maine ranged from $250 to $325 a cord-48 inch logs that are stacked four-ft. high by eight-ft. wide – representing a 50 percent jump from just three years ago.
While the exact math behind the fluctuating fuel prices is fuzzy, local oil companies insist they’re just being competitive and not capitalizing on a futures market that is designed to maximize profit and minimize a basic human need.
In Lincoln County prices are often higher, a fact Murray attributes to the cost of delivery along with other mitigating factors.
“It’s also political and not supply and demand. Ask a politician how much people are paying for fuel and they’ll give you a blank look. We, as an oil company, have no idea how high prices are going to be. People need help desperately and our government needs to understand that,” said Murray.
For more information on heating oil assistance please contact the Lincoln County Community Energy Fund at 563-3883 or the National Energy Assistance Referral at 1-800-674-6327.
