Staff Writer

Many Mainers are struggling to keep warm this year as the price of oil continues to rise.

The number of applicants for heating assistance is on the rise this year, said Dan Simpson, manager of public information for the Maine State Housing Authority, which oversees the Low Income Home Energy Assistance Program (LIHEAP).

 “Due to the price of oil and cold weather, there are many if not more than last year,” Simpson said.

In 2010 the program provided $52.8 million in assistance for approximately 62,000 Maine homeowners.

This year the program has awarded $49.4 million to more than 40,000 households in the state, with average benefits that range from $553 to $829.

Simpson said he expects that figure to reach 64,000 homeowners by the end of the application period in April.

A family of four must earn no more than $44,100 to be eligible for LIHEAP assistance. However the average income of recipients is $13,000 to $14,000, typically elderly people who live alone on a fixed income.

Simpson said many people begin the application process as early as possible so they can receive benefits by the time winter arrives. The application period begins July 1 and ends April 30.

Simpson said approximately 80 percent of residents in Maine use oil or kerosene to heat their homes.

LIHEAP works with 10 community action agencies throughout the state to process benefit applications.

One of these is Portland-based People’s Regional Opportunity Program (PROP), which handles all Cumberland County applications.

Roger Bondeson, vice president of housing and energy services for PROP, said applications for LIHEAP have increased steadily over the years and he expects 2011 to be no different.

“We’ve seen a double-digit increase over the past two winters,” Bondeson said.

In 2008, the number of applications for the program numbered 4,500. In 2009, that figure was 5,600 and last year it increased to 6,500.

By the end of last December, Bondeson had received 3,495 applications for benefits through LIHEAP, and he expects to receive more than 6,500 by the application deadline in April. He said approximately 85 percent of those who apply qualify for benefits through the program.

Bondeson said the increase is in part because  more people are either unemployed or working for less money in a tougher economy. The benefit is awarded once a year for eligible applicants.

“This year fuel and oil are going back up again, inching closer to where it was in 2008,” Bondeson said.

Bondeson said LIHEAP was never intended to fully pay for residents’ fuel costs and worries the rising price of oil and kerosene, currently averaging $3.23 and $3.61 a gallon, respectively, will not translate into significant benefits.

“The benefit people receive doesn’t go very far,” Bondeson said. “Even if the average benefit goes up to $833, that only comes down to about 262 gallons, which is barely one tank. A typical home has a 275-gallon tank.”

Last year the price of oil was $2.74 in January. He said worldwide demand by developing countries such as China have contributed to the increase in price, in addition to other factors.

“As we learn there is a crisis somewhere that might affect production, price goes up even more,” Bondeson said.

Bondeson said residents shouldn’t depend on LIHEAP to pay for all of their home heating. Although this winter has proven to be colder than years past, he does not foresee the cost of energy decreasing any time soon.

“Growing up in Aroostook County, this winter is a little more typical in my mind. It’s just the cost of energy that keeps going up,” Bondeson said.

“People are struggling to find work and when they find work it doesn’t pay much,” he said.

In addition, Bondeson said nearly half the people who apply for help through LIHEAP are elderly and on a fixed income. He said costs can sometimes amount to 14 to 15 percent of a person’s budget.

Bondeson said he encourages all homeowners to take part in some form of weatherization to improve comfort and warmth and save money.

In addition to adding insulation, he said homeowners can wrap the perimeter of their basement in a material called Rigid Foam, found at local hardware stores and use air sealant to ensure air doesn’t escape through other hard-to-reach places.

Bondeson said homeowners must be mindful of heating expenses and plan accordingly by saving whatever money they can.

“The trends in national budget are not looking good,” Bondeson said. “As difficult as things have been this winter, people need to think about planning for the next.”

Although federally funded programs such as LIHEAP exist to provide relief for those in need, some still need more help to make ends meet.

One form of relief comes from Citizens Energy Co. of Boston. By partnering with CITGO and more than 2,500 dealers throughout New England, it offers a one-time voucher to deliver 100 gallons of free oil or kerosene for those who are eligible.

Brian O’Connor, spokesman for Citizens Energy, said the company has been inundated with calls at its customer service center. He said increases in the price of oil, drops in temperature and limited funds from fuel assistance programs have contributed to the influx of calls.

“It’s kind of the perfect storm of negative impacts hitting people who struggle even when it’s not cold,” O’Connor said.

According to the company website, the program is designed for those who don’t meet LIHEAP requirements but still need help heating their homes. The program is in its sixth year for Maine residents and networks throughout New England.

O’Connor said the proportion of calls from Maine residents usually is a bit higher than other states, because of residents’ dependency on oil.

“We always receive a heavy call volume, but Maine is sort of the highest concentration of oil heat users,” O’Connor said.

Vicky Edgerly, Biddeford’s general assistance administrator, said the city offers oil assistance for those in need who may not qualify for benefits from LIHEAP.

“More people are applying who are homeowners,” Edgerly said. “People under foreclosure or people who lost their job and are still not finding work. The oil bills come in and they just can’t do it.”

Edgerly said residents must demonstrate a need for relief by providing statements from bills and pay stubs that show they have been keeping up with payments yet can’t afford to heat their homes.

“These are people who may have a quarter tank and know they can’t make it to the next paycheck,” Edgerly said.

She said LIHEAP benefits take time to process and if residents are not quick to act they can be left out in the cold.

“People come to us when they’re waiting,” Edgerly said.

She said if a resident is eligible the city will call a local dealer and pay the vendor. Edgerly said residents many times only need assistance in an emergency and she encourages residents to set up oil payment plans with their supplier as early as summer to ensure heat for winter.

“Even families that are working are just struggling with these cold snaps. It’s been so cold people are going through oil faster than anticipated,” Edgerly said.

Staff Writer Dan Aceto can be reached at 282-4337, ext. 237.