QUINN ANNOUNCES "HEAT HELP" PLAN TO KEEP HEAT ON THIS WINTER FOR MORE THAN 300,000 NATURAL GAS CUTOMERS IN NEED

CHICAGO - Today, Lt. Governor Pat Quinn joined with Rep. Marlow Colvin (D-Chicago) and dozens of community leaders to propose major reforms to the Low Income Home Energy Assistance Program (LIHEAP) which serves 300,000 households in Illinois.  LIHEAP households are elderly and low-income households which struggle to pay their heating bills every year. 

 

            Quinn announced the Illinois Affordable Energy Plan (IAEP).  This grassroots initiative aims to reduce the number of utility disconnections for LIHEAP households and also makes energy more affordable.  The initiative includes a Percentage of Income Plan which stabilizes the customer's utility bills.  Customers who voluntarily sign up for the Percentage of Income Plan would be required to complete a weatherization curriculum, and no more than 10% of their income would be assessed to pay heating bills.  

 

Ohio, Pennsylvania, New Jersey and Nevada already have working models of the Percentage of Income Plan in place.

 

According to the Center on Budget and Policy Priorities, the average American family spends about 5% of household income on energy, but the typical low-income family spends as much as 20% of its income on energy. 

 

            About 60,000 low-income Illinois households are disconnected from heat or electric during the year because low-income households must pay so much of their income for energy.

 

"Home heating costs could rise by 70% this year and Illinois residents everywhere are bracing themselves for a back-breaking winter," Quinn said.  "The Illinois Affordable Energy Plan is a responsible and economical way to make sure that no one is left out in the cold."

 

            The Illinois Affordable Energy Plan includes a creative hedging insurance component for participants to contain costs and prevent price volatility on natural gas purchases.

           

More than 30 community organizations from all across the state are backing the Illinois Affordable Energy Plan.