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Frequently Asked Questions (FAQ)
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- Why is the cost of home heating oil so high?
There are a number of factors contributing to the high cost of heating oil this season. Some of these factors include: the growing global demand for oil; the capacity for global crude production which barely exceeds demand; tight refining capacities in the U.S.; and the temporary interruption of U.S. refineries caused by hurricanes Katrina and Rita. The impact of the hurricanes compounds a longer-term global trend of an increased demand for oil. When the demand for oil nearly matches the production rate, oil prices increase. These price consequences are not unique to New Hampshire, but are felt worldwide.
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- Why are prices for other fuels like propane and kerosene so high?
- Propane is produced from both crude oil and natural gas and therefore is reflective of crude oil prices. As with all heating fuels, supply and demand effect prices as well and while propane production is not seasonal, residential demand is highly seasonal. This imbalance causes inventories to be built up during the summer months when consumption is low and for inventories to be drawn down during the winter months when consumption is much higher, causing higher prices. Extreme weather also plays a part in price, as colder weather will increase the demand for propane, again causing spikes in prices.
- Kerosene is not traded as a commodity and therefore suppliers cannot lock in prices for future kerosene delivery contracts, but must buy it in “spot” markets. Typically, spot prices are higher than futures prices. Kerosene prices are strongly influenced by demand for jet fuel, for example, and the use of kerosene as a diesel fuel additive in cold weather increases demand for kerosene supplies.
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- Why are prices for natural gas rising?
Natural gas prices, like all heating fuels prices, are determined by a number of factors. First, natural gas prices usually follow crude oil price trends - in other words, if the price of oil is high, so is the price of natural gas. Supply and demand is another factor: demand for natural gas, according to the Department of Energy, is up 3% while production is only up 1%. Many businesses have switched to using natural gas since heating oil prices have gone up, which has increased the demand. Natural gas production, as well as access to storage facilities, was also seriously halted by hurricane Katrina. Other reasons for price increases include: a depletion of older gas wells; there is no longer a surplus of natural gas as there has been in the past 10 years; and energy consumption is increasing in relation to improved economic outlook.
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- Is there price gouging?
According to the New Hampshire Attorney General’s office, there is no evidence of price gouging. However, the Attorney General’s office may investigate situations in which a particular company’s prices seem to be unusually high compared to average prices. If you feel this is the case with a particular fuel company, you may file a report on the Attorney General’s Consumer Protection Bureau website or call 271-3641.
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- Will the high prices be in effect throughout the heating season?
There is no reliable way to predict the course of fuel prices. However, the price volatility seen in recent history may continue into this heating season and potentially prices will remain high throughout the season. Weather is a major – and unpredictable – factor in determining demand, and demand influences prices. This year’s price outlook is further complicated by uncertainties regarding the petroleum industry’s rate of recovery from hurricane damage.
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- Is there anything I can do to control my heating costs this winter?
The best way to reduce fuel costs is to use less fuel. These quick tips can help reduce heating bills:
- Have an annual furnace cleaning and tune-up.
- Set your thermostat back a few degrees, especially when you are away or asleep.
- Check for adequate insulation in your attic and walls.
- Check for and seal any air leaks around doors and windows.
- Changing the filters on your forced hot air heating system on a monthly basis as well as having your burner cleaned and tuned up yearly will help it run more efficiently, therefore cutting down on the amount of fuel used. Some estimates show fuel savings to be as high as 15% or more.
You may wish to set up an automatic delivery plan. This plan ensures that you will have fuel delivered to you on a regular basis. Running out of fuel can cause damage to the household and cost extra money for necessary service calls to restart the heating system. In addition, consumers may be able to establish a bill payment plan with their heating dealer. This plan allows customers to spread their bill payments over a 12-month period, allowing you to pay a balanced amount each month.
For more tips on reducing home energy costs, energy efficient heating, home energy audits and weatherizing your home, go to the “Save Energy: Residential” page of the StayWarmNH website or to the Public Utilities Commission’s website page, Managing Your Natural Gas and Electric Utility Bills.
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- What if I become unable to pay my heating bills?
Some gas and electric utilities offer credit extensions, deferred payment plans, or other payment plans to eligible customers. Contact your utility company to see which plan would work best for your household. In addition, consumers may be able to establish a bill payment plan with their heating fuels dealer. This plan allows customers to spread their bill payments over a 12-month period, allowing you to pay a balanced amount each month.
Low-income customers may also qualify for bill assistance programs including the state Fuel Assistance Program, the Electric Assistance Program, and bill assistance programs offered by the natural gas utilities (see Question #11 for more information on natural gas utility offers).
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- What is OEP doing about the high prices of heating fuels?
OEP has no control or jurisdiction over fuel prices. Prices for deliverable fuels - heating oil, propane, and kerosene - are not regulated. OEP does encourage citizens to take measures towards protecting themselves and reducing their energy and heating bills.
OEP maintains frequent communications with terminal operators, the U.S. Coast Guard and other agencies in the region to anticipate and avoid fuel supply disruptions. Collectively, the group monitors a wide range of factors that can influence resupply. These include: weather, in-state and regional inventories, shipping issues, fuel availability from U.S. and foreign sources, price trends, and fuel demand.
For more information of reducing your energy bills, visit the “Save Energy: Residential” page of the StayWarmNH website.
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- I am a low-income household and I want to know how to apply for fuel assistance.
Contact your local Community Action Agency (CAA) to determine whether or not you are eligible for fuel assistance. Eligibility and benefits for the Fuel Assistance Program is determined by gross household income (total income, including rent, tips, dividends, and all wages or salary, before deductions), number of household members, and vulnerability to heating costs. Eligibility for Fuel Assistance usually can be determined during one appointment. Homeowners and renters, including renters whose heat is included in rent, are eligible to apply.
Community Action Agency telephone numbers:
Community Action Program Belknap-Merrimack Counties Inc. in Concord: 225-6880
Rockingham Community Action Inc. in Portsmouth: 1-800-639-3896
Southern NH Services in Manchester: 1-800-322-1073
Southwestern Community Services in Keene: 1-800-529-0005
Strafford County Community Action in Dover: 749-1334
Tri-County Community Action in Berlin: 1-888-842-3835
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- I make too much money to qualify for fuel assistance. Is there any other assistance to help with my fuel bill?
Please be sure to complete the application for the Fuel Assistance Program (FAP) with your local Community Action Agency (CAA). A complete application is the only way to determine eligibility for FAP. The income guidelines for FAP are currently established at 185% of the federal poverty guidelines (FPG) but may be increased if funds are available this program year. IT IS IMPORTANT TO FULLY COMPLETE THE FAP APPLICATION.
If your application is complete and your household is not eligible for FAP, the CAA can provide you with information regarding other resources for assistance including town/city welfare and assistance from local churches and charities including the Salvation Army. Electric utility customers may be eligible for the Electric Assistance Program. Another source of assistance is available through the Department of Health & Human Services: Temporary Assistance for Needy Families Program (TANF), which provides cash assistance to families with dependent children through either the Family Assistance Program or the New Hampshire Employment Program. Call the TANF program at 603-271-4238 or 800-852-3345 x4238.
If you are not in an emergency situation there are some other options you might explore. Try first working with your fuel dealer to set up a budget payment plan. Most dealers understand how fuel prices are affecting customers and may be willing to help.
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- Are there any assistance programs for natural
gas customers?
KeySpan Energy Delivery and Northern Utilities now offer a discount program for eligible low-income customers in New Hampshire. You are eligible for these programs if you or a member of your household qualify for any of the following programs: Fuel Assistance; Electric Assistance Program; Supplemental Security Income; Women, Infants and Children; Commodity Surplus Foods (for women, infants and children); Elderly Commodity Surplus Foods; Temporary Aid to Needy Families; Housing Choice Voucher (Section 8); Head Start; Aid to Permanently and Totally Disabled; Aid to the Needy Blind; Old Age Assistance; and Food Stamps.
Fuel Assistance recipients do not need to apply. You will be automatically enrolled in the program when your gas utility is notified about your fuel assistance benefit.
Customers of KeySpan Energy Delivery and Northern Utilities who believe they qualify should contact their gas company directly, either KeySpan at 1-800-262-4111 or Northern Utilities at 1-800-552-3044.
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- I’m interested in learning about the Weatherization Assistance Program. How do I find out if I’m eligible and where do I apply?
The Weatherization Program is a program designed to assist low-income households in implementing energy efficient measures in order to promote energy conservation. Eligibility and benefits for the Weatherization Assistance Program is determined by gross household income (total income, including rent, tips, dividends, and all wages or salary, before deductions), number of household members, and vulnerability to heating costs. Eligibility for Weatherization Assistance usually can be determined during one appointment. Homeowners and renters, including renters whose heat is included in rent, are eligible to apply. Contact your local Community Action Agency (CAA) for eligibility requirements and application procedures.
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- What if I am not eligible for the Weatherization program?
If you are not eligible for Weatherization Program Assistance, contact your utility company, as some companies will perform energy audits for certain customers for little or no fee. OEP also has information to aid you in conducting your own Home Energy Audit. If you prefer to hire a professional to conduct an energy audit or provide weatherization services, listings of available contractors can be found at the NH Residential Energy Performance Association website.
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- I live in a rental unit and my landlord won’t help with weatherizing my home. What can I do to lower my fuel bill?
Some tips for saving money can be found on DOE’s Energy Efficiency and Renewable Energy website page: For Renters Only: Saving Energy in Your Apartment.
If you are in a low-income household and feel you need legal assistance in dealing with your landlord contact:
New Hampshire Legal Assistance
Manchester - 1-800-562-3174
Portsmouth - 1-800-334-3135
Littleton - 1-800-548-1886
Claremont - 1-800-562-3994
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- I’m behind in my heating utility payments. Will my heat be shut off?
During the winter months, there is increased protection for customers of natural gas, electric and steam utilities. While customers can still be disconnected if they fail to make payments on their gas, electric or steam bills, it is more difficult to be disconnected in the winter time.
From November 15 to March 31, a utility company may not disconnect a customer’s service:
- If the customer does not use electric service for heating and the balance owed for service provided is less than $225;
- If the customer does not use gas service for heating and the balance owed for service provided is less than $125;
- If the customer has electric, gas, or steam heat, the utility may not disconnect service if the balance owed for service provided is less than $450.
Utilities must seek commission approval before disconnecting the service of residential customers known to be 65 years or older and customers with a known financial hardship.
Customers with medical emergencies have additional protection from disconnection at any time of the year. If you or someone in your family has a medical condition, which would be adversely impacted by the disconnection of your utility service, contact your utility.
For complete information regarding Winter Disconnection Rules, go to the Public Utilities Commission website or call the Consumer Assistance Line at 1-800-852-3793.
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