Colder Winter and Higher Prices Indicate Decline in Purchasing Power for Poor Families

NEADA projects that national average cost of home heating will increase from $783 in 2017 to $861 this winter. This is the highest price since 2014-15 when prices bottomed out at $725 for the cost of home heating.

Est. Home Heating Costs (2009-10 to 2017-18)

Winter Heating Season Natural Gas Electricity Heating Oil Propane All Fuels
2009-10 $698 $873 $1,552 $1,642 $863
2010-11 $680 $885 $1,966 $1,845 $893
2011-12 $571 $843 $1,757 $1,587 $795
2012-13 $607 $895 $2,113 $1,536 $849
2013-14 $677 $956 $2,353 $2,378 $965
2014-15 $641 $960 $1,852 $1,756 $885
2015-16 $519 $896 $993 $1,181 $725
2016-17 $575 $906 $1,248 $1,423 $783
2017-18 $634 $965 $1,506 $1,676 $861
% Change 2016-17
to 2017-18
10.3% 6.5% 20.7% 17.8% 9.9%

By fuel type, increases are as follows, propane from $1,423 to $1,676, heating oil from $1248 to
$1,506, natural gas from $575 to $634 and electricity $906 to $965.

Est. Average % of Home Heating Purchased with LIHEAP (FY 10- FY 18)

Fiscal Year Natural Gas Electricity Heating Oil Propane All Fuels
2010 81.4% 65.1% 36.6% 34.6% 65.9%
2011 82.3% 63.3% 28.5% 30.3% 62.7%
2012 82.9% 56.1% 26.9% 29.8% 59.5%
2013 74.4% 50.5% 21.4% 29.4% 53.2%
2014 66.9% 47.4% 19.2% 19.0% 46.9%
2015 69.9% 46.7% 24.2% 25.5% 50.6%
2016 86.4% 50.0% 45.2% 38.0% 61.8%
2017 78.0% 49.5% 35.9% 32.2% 57.2%
2018 70.7% 46.5% 29.8% 27.3% 52.1%

The current program appropriation for LIHEAP provides no automatic additional funding when
prices increase reducing the program’s purchasing power. Price increases this winter will
effectively reduce the program’s purchasing power by $330 million. As a result, the program
will only be able to cover 52% of the cost of home heating down from 57.2% in 2016-17 and
61% in 2015-16.

Est. Households Served & Average Grant (FY 10- FY 18)

Appropriation Households Average
Fiscal Year (in thousands) (in thousands) Grant
2010 $5,100,000 7,361 $568
2011 $4,700,000 6,884 $560
2012 $3,471,672 6,016 $473
2013 $3,255,436 5,910 $452
2014 $3,424,436 6,200 $453
2015 $3,390,000 6,200 $448
2016 $3,390,000 6,071 $458
2017 $3,390,000 6,071 $458
2018 (House/Senate) $3,390,000 6,071 $458

Note: Households #’s for FY 2017 are based on FY 2016 reports and state surveys
Source: Prices based on December 2017 Short Term Energy Outlook, Energy Information Adm & State LIHEAP Surveys