Unaffordable Energy Bills Highlighted in Michigan

Michigan Governor Jennifer M. Granholm proclaimed the week of February 21 as "Keep Michigan Warm Week," and urged residents to donate to voluntary energy assistance funds such as the statewide THAW (The Heat and Warmth Fund ).

"No single public or private entity, state and federal government included, has the resources to meet our State's ever growing need for energy assistance," said Michigan Family Independence Agency (FIA) Director Marianne Udow, who presented the proclamation. "The purpose of Governor Granholm's proclamation is to call attention to the mounting problem and to encourage all citizens to give generously to the many local programs providing this vital assistance."

At the same time, THAW issued the results of a study showing that the number of Michigan households facing unaffordable energy bills has reached crisis proportions. THAW's “Home Energy Affordability Gap” study found that more than 180,000 Michigan households with incomes 50 percent below the federal poverty level pay 38 percent of their income to keep heat and lights on in their homes. "This is nearly seven times higher than the maximum energy burden of six percent considered affordable by housing professionals," said Kathleen Walgren, THAW’s executive director.

According to THAW, the total statewide Home Energy Affordability Gap has increased 32 percent from $453 million in 2002 to $598 million in 2004. Since 2001, the gap has increased more than 75 percent, primarily as a result of skyrocketing natural gas prices. Four out of five homeowners in Michigan heat with natural gas.

The federal LIHEAP and some $40 million made available annually by the Michigan Public Service Commission through the Low Income and Energy Efficiency Fund are not enough to address the state’s low-income energy needs, according to THAW's press release.

THAW is also sponsoring or participating in a number of fundraising events this winter, including the statewide Walk for Warmth, the Night of Warm Hearts Gala, and Heat the Streets. For more information about the Michigan Home Affordability Gap and THAW’s fundraisers, visit the THAW website.

Source: THAW

Page Last Updated: December 7, 2005