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WALL, N.J. – In the wake of record high natural gas prices, Laurence M. Downes, chairman and CEO of New Jersey Natural Gas (NJNG), has written to members of New Jersey’s Congressional delegation and urged them to increase funding for the Low Income Home Energy Assistance Program (LIHEAP). The program, funded by the federal government, provides eligible families assistance with paying their home energy bills.

Downes acknowledges that the Energy Policy Act of 2005, signed earlier this year, is a step in the right direction, but emphasizes that more needs to be done to help needed families throughout the country.

“It does little good to authorize $5.1 billion for a program and then fail to appropriate those funds,” Downes wrote. “It’s time to recognize that we are dealing with extraordinary circumstances, and make good on a promise to assist those who are truly in need this winter.”

The U.S. Energy Information Administration estimates customers may pay as much as 61 percent more for heating costs this winter. Funding LIHEAP at the full $5.1 billion level would still leave millions struggling to pay their bills, so Downes also called for an additional $1 billion emergency appropriation.

A copy of Downes’ letter follows:

Last month, I testified before the Senate Energy and Natural Resources Committee in my role as Chairman of the American Gas Association (AGA), which represents 195 natural gas utilities across the United States.  I expressed my concern for the financial burden many of our customers will face this winter, in light of the record increase in the cost of natural gas, as well as the lack of additional funding for the Low Income Home Energy Assistance Program (LIHEAP).

On that day, I emphasized that natural gas utilities around the country, including New Jersey Natural Gas (NJNG), have been doing all they can to ease the price burden on their customers. This includes purchasing natural gas during the summer months when prices are lower, offering stable billing plans, and promoting energy efficiency. Unfortunately, due to the unprecedented market conditions we are facing this winter, these efforts will not to be enough to protect those customers who live on a fixed- or low-income.

According to an AGA study, low-income households use considerably less energy today than in 1981, when LIHEAP was created; however, the energy used comes at a higher price, resulting in a 66 percent increase in eligible families.  And, over the last 20 years, as the consumer price index has risen by 81 percent, LIHEAP funding has only increased by four percent. 

In terms of LIHEAP funding, with an appropriation of $5.1 billion, the Energy Policy Act of 2005 was a step in the right direction.  It does little good, however, to authorize $5.1 billion for a program and then fail to appropriate those funds. It’s time to recognize that we are dealing with extraordinary circumstances, and make good on a promise to assist those who are truly in need this winter.

Currently, Congress has provided $2 billion in funding to the LIHEAP program for the winter heating season. Last year, $2 billion provided assistance for 15 percent of the 32 million eligible households. If funding were increased to the $5.1 billion authorized this year, we could assist two and a half times that number, which would still, unfortunately, leave millions of Americans struggling to pay their heating bills. That is why, in addition to appropriating the full $5.1 billion, I urge you to provide an additional emergency appropriation of $1 billion.

Like many other natural gas utilities, NJNG has already reached out to our local and state officials to make them aware of the many ways their constituents can reduce their energy bills. Through our company’s Speakers Bureau program, local organizations are learning ways to conserve energy and, in turn, lower their energy costs. We have encouraged our customers to enroll in the Budget Plan, which divides natural gas costs into 12 equal payments throughout the year so energy bills can be more easily managed. And visitors to our Web site, njliving.com, can find ways to make their homes more energy efficient, including low- and no-cost tips.

Educating our customers about the various ways to cope with rising natural gas prices, particularly through conservation and efficiency, is only half the battle. We must do all that we can to provide the necessary financial assistance to low-income customers throughout this nation.  

I am writing to respectfully request that you recognize the urgent need for additional funding to help those who need it most. Please feel free to call me with any questions you might have. I can be reached at 732-938-1483.

Thank you for your consideration

Very truly yours,

Laurence M. Downes
Chairman and CEO
New Jersey Natural Gas

New Jersey Natural Gas (NJNG) is the principal subsidiary of New Jersey Resources (NYSE: NJR), a Fortune 1000 company and a member of the Forbes Platinum 400. NJNG is one of the fastest-growing local distribution companies in the United States, serving more than 462,000 customers in New Jersey’s Monmouth, Ocean, Middlesex and Morris counties. This service area’s demographics and quality of life contribute greatly to NJNG’s growth. NJNG’s progress is a tribute to the dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make the company a leader in the competitive energy marketplace. For more information, visit NJNG’s Web site at njliving.com.