Energy Outreach Colorado    
 
 

New Report on Energy and Poverty in Colorado Shows $18.6 Million Shortfall

February 8, 2007
 

DENVER – Energy Outreach Colorado and the Colorado LEAP program will need to find an additional $18.6 million this winter to maintain a level of energy assistance comparable to what they provided last winter, according to a report recently released by Energy Outreach.

Without this additional funding, thousands more families, seniors and disabled residents will be unable to afford home energy this year and will be at-risk for a shutoff during Colorado’s coldest months.

“In my 30 years in the energy industry, I have never seen a situation more frightening for needy families who are struggling to stay warm at home,” said Skip Arnold, executive director for Energy Outreach Colorado.
“We need to address this energy cost crisis in Colorado this year and in the future by securing additional long-term sources of funding.”

Energy Outreach Colorado’s 2007 Report to the Community outlines how low-income families, seniors and people with disabilities are paying about 26 percent more of their total energy costs for November through April than last year because of funding reductions from both Congress and the State totaling $25 million. That equates to an average of $673 these households are paying out-of-pocket this winter, compared to $533 last year. The reason -- average energy assistance benefits have dropped from $550 to $280.

The situation has been exacerbated by the frigid temperatures experienced over the past several weeks, requiring most households to dramatically increase their energy usage. According to weather data, the month of January 2007 was the coldest experienced in Colorado since 1979 – about 20 percent colder than average and 55 percent colder than January 2006.

Energy Outreach Colorado’s 2007 Report to the Community also presents facts about the challenges facing the state’s poor, including:

  • Health care costs in Colorado have jumped 82.2 percent since 2000, more than five times the earnings increase for workers, according to a Families USA 2006 Report, “Premiums Versus Paychecks: A Growing Burden for Colorado’s Workers.”

  • The number of uninsured is growing. The Colorado Health Institute estimates 770,000 people in Colorado do not have health insurance.

  • 42.8% of Food Bank of the Rockies' clients report having to choose between paying for food and paying for utilities or heating fuel. “Hunger in the Rockies 2001” by Mathematica Policy Research Inc.

  • The resource and referral system (211) run by Mile High United Way listed energy assistance second only to rental assistance as the most requested need, and energy assistance requests have increased 1000 percent since 2002. (Mile High United Way, 2006)

  • The number of real estate foreclosures in Colorado this past year set a record and Colorado had the highest ratio of foreclosures in the country, according to RealtyTrac, an online provider of foreclosure listings.

“Every year across Colorado, thousands of families are forced to make difficult and heart-wrenching decisions between heat and food, or heat and medication, because they are unable to afford both,” said Arnold. “The high cost of energy, combined with other economic factors, make it nearly impossible for low-income Coloradans – more than one-fifth of the state’s population – to afford the most basic necessities.”

On Feb. 2, nationally recognized energy industry, business and state leaders gathered at an energy forum presented by Energy Outreach Colorado in Denver to discuss possible ways to reverse this disturbing trend and generate $18.96 million for energy assistance this year. Some of the suggestions include:

  • Petitioning U.S. legislators to increase national LIHEAP funding from $1.98 billion to $5 billion, as proposed in the new Federal Energy Bill. Colorado LEAP would receive a portion of that increase.

  • Permanently securing severance tax funding for low-income energy assistance programs; and

  • Strengthening outreach efforts to increase donations and raise awareness of the importance of weatherization and conservation.

“We’re hoping these efforts and others will help raise the funds necessary to help Colorado’s most needy,” Arnold said. “When we work together to find solutions, we can generate the power to help.”

Coloradans able to help neighbors in need are encouraged to access Energy Outreach Colorado’s website at www.EnergyOutreach.org, or call toll-free 1-866-HEAT-HELP (1-866-432-8435), to make a tax-deductible donation.

Residents unable to afford their energy bills also are encouraged to call the toll-free hotline to request a Colorado LEAP application or find a crisis assistance site near them with funds available for energy assistance.

The 2007 Report to the Community is available in its entirety at www.EnergyOutreach.org.

About Energy Outreach Colorado
Energy Outreach Colorado is the only non-profit organization in the state that raises money for energy assistance. Its programs include energy bill payment assistance for income-limited households, energy efficiency upgrades for affordable housing and energy efficiency education. Since it was founded through the Colorado Governor’s office in 1989, the organization has distributed more than $75 million to fund these programs. Energy Outreach Colorado is an independent, non-profit organization that relies on private donations, corporate contributions and foundation grants. Energy Outreach Colorado, www.EnergyOutreach.org, can be reached at 303-825-8750 or at 225 E. 16th Ave. Ste. 200, Denver, CO 80203-1612.


For more information, contact:
Peggy Hofstra
Communications Director
Energy Outreach Colorado
303 / 825-8750 x224
phofstra@energyoutreach.org