Published: December 01, 2008 10:28 am      

Amid recession fears, W.Va. braces for winter

CHARLESTON — As he helps disabled West Virginians stay in their homes, Larry Paxton has another worry: how they're going to keep those homes warm this winter.

Paxton is director of the Appalachian Center for Independent Living, which along with allied groups and community action agencies works with residents across the state. After a summer of high fuel prices, the looming recession has half the consumers Paxton works with concerned about home heating costs.

The ongoing economic downturn is also strapping churches, charities and other groups that previously offered assistance.

"We basically have to beat the bushes trying to find people help,'' Paxton said. "My staff has personally donated space heaters and delivered them to people.''

The disabled, elderly and low-income working families are all at risk this winter, officials say. Family breadwinners face layoff or wage cut fears. The rising cost of food, prescription drugs and other essentials may also eat into funds for utility bills.

"What we're seeing at our local community action agencies is that it's going to be as hard if not harder (this winter) for the elderly and disabled population,'' Lisa Kesecker, a weatherization program specialist at the Governor's Office of Economic Opportunity.

But two factors may work in consumers' favor: this winter is expected to be one-third warmer than normal, according to federal forecasts; and gas prices have eased greatly since their summer highs.

"That has given some low-income households some relief,'' Kesecker said of the latter.

Other fuel costs have declined, such as for home heating oil. But distributors find themselves locked into long-term supply contracts based on higher prices from earlier in the year. Kesecker cited phone calls from consumers who were expecting lower bills from the dipping fuel prices, only to learn that such contracts meant higher costs for them.

Only about 15 percent of West Virginia's 733,850 households rely on liquid fuels for heat, according to the U.S. Energy Information Administration. One-third heat their homes with electricity.

The largest segment, just under half, rely on natural gas. Those consumers can expect rate increases, following rulings by the state Public Service Commission.

The state's top provider, Mountaineer Gas, secured a higher rate from the utility regulator in the spring. The agency also approved hikes for eight others, including major players Dominion Hope and Equitable Gas, though after reducing their original requests.

The increases vary, but the average household faces paying between $80 and $215 a month depending on its provider, the PSC estimates.

Kesecker's agency helps eligible low-income residents insulate their homes and otherwise reduce their energy costs. It helps around 1,100 households annually, but faces a consistent backlog of around 1,200 applicants.

A new stimulus package under debate by Congress could contain additional funding for such weatherization efforts, Kesecker noted.

"They see it as a green jobs, carbon-reducing, energy-saving investment,'' she said.

Gov. Joe Manchin and lawmakers have already added money to the state Low Income Energy Assistance Program, which helps defray monthly heating bills. Kesecker said that Manchin has also helped create the new state Utility Assistance Program -- but it's starting to see demand test its resources.

Under the program, six major utility companies have provided more than $209,600 to 717 of their household customers so far this year to restore their gas, electricity or water or to prevent the shut-off of those utilities, Director Danielle Snidow said.

Snidow said American Electric Power has increased its funding for the program, and corporate donors include Wesbanco, International Coal Group and gas producer Chesapeake Energy Corp. But Allegheny Energy has maxed out its commitment, while Mountaineer Gas and Dominion Hope are heading that way, she said.

"We've had a steady stream of people approach us since October,'' Snidow said. "We can only help them if we have the funds.''