E&C Democrats Seek Answers on How Energy Utilities are Handling Increased Need for LIHEAP Assistance Amid Extreme Weather and Fossil Fuel Price Volatility This Winter

Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ), Energy, Climate, and Grid Security Subcommittee Ranking Member Diana DeGette (D-CO), and Oversight and Investigations Subcommittee Ranking Member Kathy Castor (D-FL) wrote to five electric and gas utility associations today expressing deep concern over Americans' struggle to afford increasing home energy costs amid fossil fuel price volatility this winter. The Committee leaders requested answers from the American Gas Association (AGA), American Public Gas Association (APGA), American Public Power Association (APPA), Edison Electric Institute (EEI), and the National Rural Electric Cooperative Association (NRECA) on how the industry is managing rising prices and the Low-Income Home Energy Assistance Program (LIHEAP).

"The impact of rising fossil fuel costs on Americans is a major concern to the Committee. We write you today to understand how your member utilities are handling the increase in home energy costs for this winter, and the related increase in need for energy assistance," Pallone, DeGette, and Castor wrote to leadership of the five energy associations representing our nation's energy utilities.

The three Committee leaders highlighted Democrats' sweeping investments in LIHEAP last year, noting the $5 billion in additional funds that was included for the program in the 2023 Consolidated Appropriations Act. In addition, the Inflation Reduction Act and the Bipartisan Infrastructure Law both included programs to reduce home energy bills, including new Weatherization Assistance Program funding and the establishment of home energy efficiency and electrification rebates and grants.

Pallone, DeGette, and Castor wrote that while these are significant steps toward helping struggling families, additional immediate action is needed.

"Unexpectedly harsh winter conditions, like the Christmas Eve storms and the historically cold conditions that hit large portions of the nation earlier this month, led to record-high energy consumption in some regions," the three Committee leaders continued. "Extreme weather events can exacerbate the financial stress that customers are already facing, putting vulnerable customers at even greater risk."

The Committee leaders pointed to the fact that LIHEAP has seen the highest increase in applications since 2009, and the highest total rate of applications since 2011, with over six million households currently receiving energy assistance. They wrote that this trend is particularly harmful to low-income households.

Last year, Committee leaders wrote to several utilities to gather data on shutoffs, arrearages, customer programs, and experiences with energy assistance programs like LIHEAP during the COVID-19 pandemic.

"From the utility responses to the letters, and from follow-up conversations and continued research, it is clear that there is still a long way to go to ensure that the most vulnerable customers are not left with their lights off or suffering in extreme temperatures," Pallone, DeGette, and Castor continued in the letter.

To ensure that LIHEAP and other assistance programs are working as efficiently and effectively as possible, Pallone, DeGette, and Castor requested a host of information, including:

• How utilities have planned for this winter season, including any customer assistance programs and program enrollment strategies that have been employed;
• How LIHEAP can better account for heating and cooling needs that result from climate change and extreme weather;
• What, if any, long-term strategies are being developed to mitigate the impact of increasing extreme weather events on customers' bills;
• Examples of partnerships between utilities and other community organizations that increase awareness and enrollment in assistance programs;
• How utilities are addressing the specific needs of low-income, marginalized, and underserved communities;
• What is being done to facilitate discussions between utilities about energy assistance, need, energy equity, and energy burden;
• What, if any, LIHEAP reforms may be necessary to reduce the overall number of shutoffs;
• What, if any, changes could be made to the existing program to ease the path for customers of smaller utilities to benefit from LIHEAP; and
• What, if any, additional recommendations the utilities may have for energy assistance reform.

Full text of the letters are available below:

• American Gas Association
• American Public Gas Association
• American Public Power Association
• Edison Electric Institute
• National Rural Electric Cooperative Association

###