Bill could help residents to pay for heat, Gloucester Daily Times, November 10, 2005 page A1
By Catherine Williams, Correspondent

BOSTON — Irene Cerasuolo wears gloves to bed and keeps her thermostat at 55 degrees during the day. She always tells her three sons to bundle up in sweaters at home and she never likes to turn her heat on before Nov. 1.

The Cerasuolos are in the habit of using heat sparingly. Heating bills are expensive for the 36-year-old single mother of three.

"If I did not have fuel assistance, I would have no heat," Cerasuolo, of Haverhill, said.

High fuel costs projected for this winter may force some Massachusetts residents to turn down their thermostats. But yesterday lawmakers took one step closer to providing some relief for families and businesses facing big heating bills this winter.

The House voted unanimously for an $85 million home heating assistance bill. The centerpiece of the bill is the $20 million set aside for low-income fuel assistance. The figure was $7.5 million in 2004. The bill would also increase the income eligibility for the program by 25 percent. That would bring it to twice the national poverty level, approximately $38,000 a year.

The Massachusetts Department of Energy is projecting a 34 percent increase in natural gas prices this winter. Home heating bills could increase by up to $500 per household.

"With experts predicting that the average home-heating bill will rise ... Massachusetts residents need relief now," said Rep. Anthony Verga, D-Gloucester.

Marie Sanviti, director of Cape Ann's fuel assistance program at Action, Inc., said the calls from people asking for aid have been astronomical this year.

"People are fighting to get in here this year," she said. "It'll be scary in here right after the first storm."

Sanviti said because of skyrocketing fuel costs, middle-class people are feeling the pinch and low-income residents are panicking. The program has received more calls for aid than any other year Sanviti has worked at Action, she said.

A large number of calls come from people who don't qualify for fuel aid but are asking for weatherization services, including insulating homes to keep energy costs down.

Sanviti added Action is looking for donations from the community to help those who need fuel assistance.

The bill approved by the House includes an $800 tax deduction for oil and natural gas expenses for individuals with annual incomes up to $50,000 and families with annual incomes up to $75,000. The bill would reward all homeowners with up to $600 in tax credits for buying energy-efficient furnaces, insulation or digital thermostats. It also would provide zero interest rate loans for energy-efficient home improvement projects.

According to legislative aides, the tax breaks would cost $39 million.

Another section of the proposal would require utility companies to give low-income customers more time to pay their bills. It would also establish plans to develop fuel cell technology, encourage energy-efficient building technologies and provide tax credits to businesses that install solar water heaters.

The bill is expected to go to the Senate for a vote today and reach the governor's desk before Thanksgiving, according to a spokeswoman for House Speaker Salvatore F. DiMasi, D-Boston.

"By pairing assistance with incentives, we are taking an important first step towards addressing the high cost of energy and reducing the overall economic impact on Massachusetts families," Verga said.

Staff writer Jason Simpson contributed to this report.

By the numbers

Here are some figures about the home heating assistance bill the House passed yesterday:

$85 million — amount in the home heating assistance bill

$20 million — money set aside for low-income fuel assistance

$7.5 million — increase in money set aside from 2004

25 percent — the percentage by which the bill would increase income eligibility for the program

$38,000, twice the national poverty-level — the new maximum income for a family to be eligible for the program

34 percent — how much the Massachusetts Department of Energy is projecting for the increase in natural gas prices this winter, and $500 — how much home heating bills could increase per household

1,800 — number of Cape Ann residents who received assistance for heating fuel last year