DETROIT - Amid projections that heating costs will skyrocket this winter, Senate and House Democrats today announced an emergency energy plan to help families cope. Key components of the package include banning utilities from shutting off heat to homes during winter months, providing payment assistance through emergency funds and offering incentives to help families make their homes more energy efficient.
"We can and must do better for struggling families," said Sen. Hansen Clarke (D-Detroit) " Energy costs this year will have a greater effect than ever before on household budgets, and our legislation will go a long way to lessen the costly burden of heating during the harsh Michigan winter."
The Democratic legislation will:
* Ban utility companies from shutting off heat service during winter;
* Provide additional money for energy assistance funds;
* Give the Michigan Public Service Commission (MPSC) the power to shift $5 million from research into a fund to help people pay heating bills;
* Set up a database to coordinate volunteers willing to help with winterization efforts; and
* Give residents a tax deduction if they winterize their homes.
The MPSC announced this week that natural gas heating bills this coming winter will jump 46 percent or $59 a month on average. The average winter bill in 2005-06 is projected to be close to $200, the MPSC said in its report released Tuesday.
"Many families are going to have a tough time paying their heating bills this winter and we need to help them," said State Rep. Bill McConico (D-Detroit, Highland Park, Hamtramck). "We are taking a proactive approach and letting our families know 'We are here to help you.' "
The legislation bans utility companies from shutting off service between Dec. 1, 2005, and March 31, 2006, to households earning 200 percent above the poverty level, or approximately $40,000 for a family of four.
It also will expand the Home Heating Credit so people who earn 125 percent of the federal poverty level ($24,000 for a family of four in 2005) can qualify. The current threshold is 110 percent of the federal poverty level. The legislation will also return more money to eligible families, from an average of $210 a year to $250.
"Our state is expecting an emergency situation when winter hits," said Rep. Morris Hood III (D-Detroit, Dearborn). "This legislation will soften the blow families will feel when they open up their energy bills this winter. Families working through financial hardship should not have to worry about their homes freezing."
Under the legislation, people who winterize their homes and install energy-efficient appliances can get 50 percent of their expenses back in tax deductions, up to $2,500. The deduction is available to households that make up to 300 percent of the poverty level, or approximately $58,000 for a family of four.
Other bills in the package let tax filers donate to an energy fund; call for an energy summit to find long-term solutions to heating issues; and call for more federal funds to help with heating costs.
Additional comments from state Representatives:
"Michigan families are already having a tough time paying for expensive gasoline, auto and home insurance, and prescription drugs," said Rep. Marsha Cheeks (D-Detroit). "Families shouldn't have to worry about more high costs to heat their homes."
"Heating bills are expected to be high this winter and for many families, they simply won't be able to pay their bills," said Rep. Tupac Hunter (D-Detroit). "That's what the Legislature is here for. We have to provide some relief for our Michigan families."
"We have to make sure our families, especially the elderly and children, are going to be taken care of," said Rep. Gabe Leland (D-Detroit). "Energy bills are going to hit the roof and we have to protect our families from the expected devastating blow."
"Because we are expecting high energy bills this winter, this legislation only makes sense," said Rep. Virgil Smith (D-Detroit). "Many families are operating on a limited budget and the Legislature has to take an active role assisting them."
"In addition to helping families with their energy bills, it is important to help them winterize their homes to help keep cost down," said Rep. Steve Tobocman (D-Detroit). "This legislation does that. It provides relief in the pocketbook and it prepares homes for the cold winter, which is a good long-term solution to high cost. I encourage my colleagues on both sides of the aisle to pass this legislation."
"The state of Michigan has to come to the aide of these families struggling to make ends meet," said Rep. LaMar Lemmons III. "These bills will help ease the minds of our residents who will face these heavy energy costs in the winter."
"This bill helps those who especially need it," Rep. LaMar Lemmons Jr. said. "We have to provide some relief for these families."