Seniors may suffer most from rate hikes

Those on fixed incomes have to cut back on thermostat use

Saturday, December 23, 2000

By BETH DOVE Standard-Examiner Staff

OGDEN -- It could be a cold, cold winter for senior citizens and others living on fixed incomes when forecast utility hikes take hold.

Some residents have already seen significant increases in home heating bills caused by frosty temperatures.

Gerry Greenwell, 78, who lives on Social Security checks, said her monthly gas bill jumped by $10 and her electric bill by $5.

"And I know that next time, it's going to be worse," she said.

Greenwell had even planned ahead by setting her thermostat to 65 degrees and cutting back on electricity use. She and her husband try to adjust to always feeling a little chilly.

"We use a blanket when we're sitting," she said. "We get up and move around a little bit to try to keep warm."

The worst may be yet to come, locally and nationally.

In Utah, Questar Gas has asked the Utah Public Service Commission for permission to raise rates by 30 percent, blaming cold temperatures and rising natural gas prices. If approved, the hike would take effect Jan. 1.

Questar customers already saw a 12.7 percent increase Oct. 1.

Utah Power has announced plans to file a similar request. Also, Gov. Mike Leavitt has warned that state residents are likely to see boosts to electrical rates due to an energy crunch that started in California.

Donna Krumperman, secretary at the Golden Hours Senior Citizen Center in Ogden, expects meeting higher rates will prove a struggle for her friends.

"Many, many, many of them live below the poverty level," Krumperman said.

One agency that provides one-time assistance based on income is cautiously observing the trend.

The Home Energy Assistance Target program, administered through the Utah Department of Community and Economic Development, helps 4,300 eligible low-income, elderly or disabled residents pay a portion of their home heating bills each winter

While the number of people calling for assistance has not increased substantially, "the people are more desperate this year," said Eulogio Alejandre, HEAT project director in Weber, Morgan and Davis counties.

Alejandre took a phone call from a resident panicked over his current gas bill of $272. Last year, the same resident's highest bill was $118, Alejandre said. "And he's not the only one."

But the real cause for concern is the rate hikes haven't even gone into effect yet.

When that happens, Alejandre fears seeing bills of $300 to $400 a month. The average applicant qualifies for around $200, he said.

"We're concerned ... We hope to be able serve as many people as we can get in here."

His main fear is those already using the service may ask for more money.

"Unfortunately, we're only able to help them once during the winter season," he said.

Some low-income residents shun assistance programs because they want to take care of themselves. Others find they barely miss the eligibility mark.

Carol Petersen applied for assistance but was turned down because she earned $800 too much to qualify. The 73-year-old Ogden resident said prescription costs eat up much of her income, leaving little left over.

"I think it's terrible," Petersen said. "I just try not to use my lights very much. When I get up in the night, I just go in the dark."

To complicate matters, a national program could leave millions out in the cold if additional funding isn't found.

The Low Income Home Energy Assistance Program, created in 1982 after the energy crisis of the 1970s, gives each state millions every year to help its poorest residents cover energy costs.

This year, the combination of a colder-than-average December and heating bills that are up to 50 percent higher than last year's means only the most desperate households in some areas will see any government dollars.

The frustration has been experienced by related agencies across the country.

http://www1.standard.net/stories/local/12-2000/23rates@Ogden.asp

-- Martin Thompson (mthom1927@aol.com), December 23, 2000