Deal reached to keep heat on for low-income families

"MN Governor"

11/10/2005

Associated Press
Last update: November 10, 2005 at 3:02 PM

Minnesota’s dominant energy providers promised Thursday to give more leeway to low-income families who can’t afford their heat this winter.

Xcel Energy and CenterPoint Energy executives said they’ve reached an agreement with Gov. Tim Pawlenty’s administration to go beyond the requirements in the state’s Cold Weather Rule. The governor said he is seeking similar assurances from other utilities.

The Cold Weather Rule requires utilities to provide heat to delinquent customers between Oct. 15 and April 15 as long as they meet income requirements and agree to a payment plan. The utilities, which provide natural gas for 85 percent of Minnesota households that use it, pledged not to disconnect eligible customers even if they don’t reach a front-end payment agreement.

“There is not one reason why a low-income family should be left out in the cold this winter,’’ said Gary Cerny, president and chief operating officer of CenterPoint’s Minnesota operations.

Cerny and Xcel vice president David Sparby said the customer must get in touch with the utilities, though. Sparby said Xcel is making a greater effort to reach vulnerable customers this year.

Pawlenty flew around the state to promote the agreement, along with several other steps he said his administration is taking to deal with heating costs expected to grow significantly this winter.

Last week, state Sen. Ellen Anderson asked Pawlenty to order a special session so lawmakers can pass bills providing more heating help through tax breaks, broader aid eligibility and increased spending on conservation programs.

Pawlenty said he’s not inclined to call a session for now.

Anderson, chairwoman of a Senate energy committee, applauded the utilities for agreeing to be more flexible with needy customers. But she said the governor’s overall package “doesn’t get us all the way there.’’

Pawlenty redirected $13 million from a federal welfare bonus to a low-income heating assistance account, which already has $70 million from the federal government. Other money will also be moved around.

All told, Pawlenty expects the low income heating program to serve 126,000 households this year, up from 118,000 a year ago. He said the average assistance amount will climb to $500 from $400 a year ago.

Eligibility criteria for the heating assistance wouldn’t change. A family of four making no more than about $38,000, or 50 percent of the state’s median income, is eligible for aid.

Pawlenty also ordered state agencies to cut their energy use by 10 percent, by keeping government buildings at lower temperatures and taking other efficiency steps.