NOW THAT that the leaves have fallen and
the temperatures are dropping, Rhode Islanders' anxieties
about high heating bills are rising. All of us will be
affected by these increased costs. But those already
struggling with their bills, particularly the low-income
elderly and families, are going to be hurt the most.
Some will be forced to make impossible choices between heating
their homes and paying for vital medicines and food.
It will be a priority of the leadership of the Rhode Island
House this coming session to help the state's most vulnerable
citizens stay warm, and to make sure that the state is taking
the necessary steps to increase conservation and efficiency in
our homes and businesses. Our first order of business when the
House reconvenes, in January, will be to introduce a
comprehensive energy package, which will include the following
initiatives:
Assistance for Low-Income Households. The steep increases in
electric and natural-gas prices threaten to financially
overwhelm low-income families and seniors this winter. To
relieve this situation, we support a program that would reduce
low-income families' utility bills to a set percentage of
their income (a percentage-of-income payment plan, or PIPP).
To pay for the program, we are considering using some of the
proceeds from a recent $16.5 million settlement with National
Grid and other possible funding sources, such as equalizing
the gross-receipts tax on natural gas and electricity.
PIPP programs have been successful in New Jersey and New
Hampshire, helping families pay their electric and natural-gas
bills, reducing the number of disconnections and the amount of
bad debt for the utilities, and providing rate relief for all
utility consumers. A similar program was introduced by state
Rep. Arthur Handy (D.-Cranston) last year, and supported by
advocates for the poor, including Henry Shelton, of the Wiley
Center.
This program would also free up more funds to help low-income
oil customers. Because the PIPP program would help gas- and
electric-heating customers, the federal Low Income Home Energy
Assistance Program (LIHEAP) money that Rhode Island receives
could be targeted to help oil customers.
The Keep R.I. Warm Fund. The PIPP program would take some time
to get up and running, so this winter people would need to
rely on LIHEAP. Unfortunately, the program has been
flat-funded, despite the dramatic increase in heating costs
and pleas from our congressional delegation to increase funds.
We will continue to press for adequate federal funding for
this program, but we cannot sit idle and wait for Washington
to act. Over the next few weeks, House Speaker William Murphy
and I will investigate state-revenue streams to provide
short-term assistance to Rhode Islanders. We will also
approach Rhode Island corporations and other businesses to
contribute to a new charitable fund, the Keep R.I. Warm Fund,
which would supplement the LIHEAP program.
With more dollars from the state and the private sector, we
will be able to increase the number of households served. This
program is similar to the Keep Maine Warm charitable fund,
created by Gov. John Baldacci.
Help for Middle-Class Households. No one is shielded from
these record-breaking energy prices, not even those of us who
consider ourselves to be comfortably middle class. We are
investigating ways to relieve middle-class families from the
financial pressure of high utility bills. Proposals include a
$50 tax credit per household for heating-equipment tune-ups,
programmable thermostats or water-heater wrappers. We are also
considering a $350 tax deduction for families earning up to
$75,000 to help defray heating costs. The average gas bill
will increase $350 this year.
Many Rhode Islanders rent their homes and so have little
control over the efficiency of their heating systems. To
encourage landlords to update the mechanicals in rental units,
we are researching tax credits for landlords to replace
windows, furnaces and water heaters with Energy Star models.
Lead by Example. We urge Governor Carcieri to take a
leadership role in ensuring that steps are taken to make our
government more energy-efficient. If the state sets a strong
example, individuals and business are likely to follow.
Governor Carcieri and his administration need to create a
statewide energy plan and initiate an energy audit of
government buildings. We need to educate state employees about
simple measures they can take to save fuel and money, such as
turning down thermostats, keeping radiators clear, turning off
unnecessary lights and reporting problems such as broken
thermostats and leaky windows. State transportation policies
must be reviewed, to make sure the most efficient vehicles are
being used. Our team will draft legislation to mandate that
these actions take place.
Tax Holiday for Energy-Conservation Products. Updating older
appliances with more efficient models is an effective way to
reduce our consumption of energy. To encourage this, we
propose a temporary sales-tax holiday on Energy Star and
weatherization products. Air conditioners, ceiling fans,
clothes washers, compact fluorescent light bulbs, programmable
thermostats, refrigerators with the Energy Star label, and
weatherization products such as caulk and insulation valued at
less than $1,500 will be exempted from the state sales tax for
a specified period. Georgia exempted sales tax on these
products for a weekend in October, and the response was very
positive. Connecticut recently passed a similar measure, and
other Northeastern states are considering it.
Prudent Energy Purchasing. In 1996, the General Assembly
passed the Utility Restructuring Act, which lets electricity
customers switch to private energy suppliers to lower their
costs. While few individual customers have found cheaper
electricity than the price offered by National Grid, the Rhode
Island League of Towns and Cities has created a purchasing
pool of municipalities and saved its 35 member cities and
towns over $7.4 million in electricity costs since 1999. We
need to investigate these innovative purchasing pools to see
if Rhode Island should develop a similar plan for electricity
purchases.
A purchasing pool can also be used for oil. People's Power and
Light Discount Heating Oil Service in Rhode Island can
negotiate lower prices from dealers for its members. Again, we
must look at how these programs work, and possibly use their
model to buy fuel for the state's energy-assistance program.
Joint Committee on Energy Oversight. With the cooperation of
the Senate, we will propose a Joint Committee on Energy
Oversight. This committee would be charged with providing
oversight and formulating a comprehensive energy plan to
address affordability, efficiency and conservation. The
committee would also make recommendations to create an
emergency energy plan for hurricanes and other disasters.
The committee's first item should be to call for the Rhode
Island Public Utilities Commission (PUC) to testify on the
rationale behind the most recent electric and gas rate
increases. The committee would also be charged with
considering what process changes and additional powers might
be required by the PUC to help lower-income households and
reduce price spikes for all energy consumers, by requiring
utilities to exercise due diligence in their energy-purchasing
activities.
The leadership of the Rhode Island House is committed to
acting quickly to alleviate the impending heating crisis and
address the state's long-term energy needs. This initiative is
a first step in ensuring that all Rhode Islanders stay warm
this winter.
Gordon Fox is the majority leader of the Rhode Island House of
Representatives.
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