Prepare Now for Winter Heating Bills

INDIANAPOLIS, IN - The major natural gas utilities and electric utilities in Indiana expect average residential heating bills to vary throughout the state if temperatures are normal, but the average bill is expected to put a pinch on ratepayers' pocketbooks.

Indiana Utility Regulatory Commission (IURC) Chairman David Lott Hardy, Indiana Utility Consumer Counselor (OUCC) Susan Macey and Indiana Housing and Community Development Authority (IHCDA) Executive Director Sherry Seiwert joined executives from Indiana's largest natural gas and electric companies today at the home of Ms. Lillie Ford, as the group recognized the proclamation of Weatherize Indiana Month by Governor Mitch Daniels.

Ford expects her heating bill to be reduced by about 30-35 percent this winter because of the improvements that are underway.  Weatherization improvements to Ford's home include servicing her furnace, insulating the walls and attic, clearing ductwork, and installing a programmable thermostat.

In early October, IHCDA allocated nearly $44 million in federal heating assistance to Community Action Agencies throughout the state. Agencies meet individually with applicants to determine eligibility.

Also, the state's Energy Assistance Program has already started taking applications for winter heating assistance.  The funds are distributed by local Community Action Agencies on a first-come, first-served basis, and for the first time this year Hoosiers can mail in their applications for assistance.

A household qualifies for EAP funding if its annual income is at or below 150% of the federal poverty level. For example, a family of four making less than $30,975 annually would qualify, as well as an individual with a yearly income of $15,315 or less. The average benefit is around $250 per year and is paid in a lump sum directly to the applicant's utility company.  Last year, IHCDA's Energy Assistance Program served more than 143,000 households.

Customers who find themselves getting behind on energy bills this winter are urged to contact their local utilities as soon as possible to work out payment arrangements. Additional information on weatherization and budget billing is available from the Web sites of utilities and state agencies, as noted below.

 Weatherization tips:

• Make sure your home or business has proper insulation.
• Properly maintain your heating system (including changing the filter regularly).
• Use a programmable thermostat (or turn the temperature down a few degrees during bedtime and when the home or business is unoccupied).
• Check weather stripping, caulk and seals and make needed repairs.
• Make sure furnace ducts are properly sealed.
• Insulate your water heater (if the manufacturer's instructions allow).
• Purchase and use appliances with the Energy Star label.
• Wear appropriate winter clothing and adjust your thermostat accordingly.
• Take additional small steps to improve efficiency (such as opening draperies during the day but closing them at night and setting ceiling fans to run clockwise during winter).
• Be aware that federal income tax credits are available for specific energy efficiency upgrades made by Dec. 31, 2007. In addition, homeowners who make upgrades may qualify for the "insulation deduction" on Indiana state income taxes.

For more information on energy efficiency and/or budget billing:

• Indiana Office of Utility Consumer Counselor (OUCC): www.in.gov/oucc or 1-888-441-2494.
• Indiana Utility Regulatory Commission (IURC): www.in.gov/iurc.
• U.S. Department of Energy: www.energysavers.gov or 1-800-363-3732; an insulation fact sheet is available at www.ornl.gov/roofs+walls/insulation.
• Your local natural gas or electric utility.

Insulation deduction on state income taxes:

• Indiana Department of Revenue: IT-40 booklet, page 19, www.in.gov/dor

Federal income tax credits for energy efficiency:

• U.S. Department of Energy: www.energy.gov/taxbreaks.htm or 1-800-DIAL-DOE

   

Source: Indiana Office of Utility Consumer Counselor

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