Plan to hold $13M in LIHEAP aid draws fire

With the April 1 deadline rapidly approaching for utility shutoffs for unpaid bills, a furor has arisen over state plans to put $13 million in unused energy-assistance grants away for next year.

"All of the money should be spent this year, because energy prices have skyrocketed, the winter's been cold, and if we don't use all the money now we're less likely to get more money from Congress in the future," Lance Haver, of the city's office of Consumer Affairs, said yesterday.

Steve Hershey, vice president for external and regulatory affairs at the Philadelphia Gas Works, estimated that "in the neighborhood" of 70,000 customers could receive termination of services notices for unpaid bills this year.

Despite utility and consumer-advocate concerns, a spokeswoman for the Pennsylvania Department of Welfare says that the state doesn't intend to leave anybody out in the cold.

DPW administers heating grants provided by the federal government through the Low Income Home Energy Assistance Program (LIHEAP). The grants this past winter amounted to $133 million.

"We are already working with utility providers statewide on what are called termination notices, to see if any of those who have received termination notices qualify for the [LIHEAP] program," said DPW spokeswoman Stacey Witalec. If they do qualify, they could get aid from the $13 million, she said.

The deadline for applying for LIHEAP grants was last Friday. LIHEAP provides grants to utility customers based on need, and crisis grants of up to $500 for those in danger of having their utilities shut off.

Witalec said that it was not unusual for LIHEAP to have money left over since the amount disbursed is based on the number of requests for aid.

Hershey said that PGW had contacted the state, urging it to keep LIHEAP going, citing "vulnerable people who need the money."

Of the possible 70,000 terminaton notices, Hershey said, "clearly, we won't get to all of them right away."

"The experience has been that beginning April 1, when people get shutoff notices, they pay in full or make payment arrangements," he said.

Witalec said that the commonwealth, like the rest of the nation, is "living with some pretty tight economic times."

"What we are trying to do is plan for next year because we never know how much of a federal grant we are going to get," she added. *