Price of oil brings worry as temps fall

As temperatures drop into the 40s at night, South Shore leaders are worried about how the high cost of heating oil will squeeze households in a state that depends heavily on this fuel.

"It's going to be devastating," said state Representative Vinny deMacedo, a Plymouth Republican. "The increase is very real."

DeMacedo is particularly concerned about the state's senior population on fixed incomes. "It puts a lot of pressure on people who rely on pension funds" - especially, he notes, in view of the stock market losses suffered by those with retirement funds.

To try to map out a response, state officials and representatives from about a dozen South Shore communities met last week in Plymouth with state Attorney General Martha Coakley, who was on a mission to assess the problem.

She said she can use her office to advocate for consumers, monitor price levels for gouging, and share information.

"Heating costs are expected to reach record levels this winter," Coakley said. Her goal was "to bring together those who are on the front lines of addressing these issues to open the lines of communications and encourage collaboration."

One important line of communication, officials said, is referring households with limited incomes to regionally administered fuel-assistance programs. Last year more than 20,000 regional households received help with fuel bills from the federally funded program. Any household whose income is less than 200 percent of the federal poverty level is eligible for the aid.

Looking ahead to the winter, the news is mixed. The price of oil has eased a bit. The state average price of heating oil dropped to $3.57 a gallon this week, according to the Executive Office of Energy and Environmental Affairs, from a high of $4.71 three months ago. But that's still much higher than the average of $2.70 per gallon at this time last year.

According to a study released by the University of Massachusetts' Donahue Institute two months ago, at least 163,000 Massachusetts households will struggle to pay heating oil bills this year. Two-thirds of those households will be headed by seniors, the study concluded.

Coakley noted Congress last month passed legislation that includes $163 million in fuel assistance for Massachusetts, a $25 million increase from last year.

However, deMacedo said that little state funding for fuel assistance can be expected, given the downturn in state finances.

Regional leaders are advocating families take seriously what Coakley called "the conservation piece," for example by seeking energy audits from utility companies. Low-income households may be eligible for audits and weatherization assistance by agencies such as the South Shore Community Action Council.

Brian Kuhn, who attended the roundtable as chairman of the Plymouth Energy Committee, said for the near term, his group will be concentrating on "how we can knock down demand." That means conservation, energy audits, and "sealing up cracks and upgrading insulation."

Some regional businesses, said Peter Forman, president of the South Shore Chamber of Commerce, are reducing office heating costs by finding creative ways to use personnel. One company turned 25 workplace positions into at-home positions.

Long-term answers may include increasing the energy supply through sustainable sources such as Hull's two wind turbines.

For the time being, however, heating oil is the fuel of choice for most homes. And even if the price drops to $3 a gallon, the average household demand of 800 gallons a season means a total cost of $2,400, said Quincy resident Larry Chretien, executive director of Mass Energy Consumers Alliance, a nonprofit company that provides discount heating oil for members through bulk buying. "That's hard money to find in January," Chretien said.

He added there are "still two months" before families face the serious bills of midwinter, and still time to put money aside.

For families who don't qualify for assistance, Chretien said, the government can still play a role. "What about the poor guy whose income is above the guidelines for fuel assistance?" Chretien asked. "What we owe them is good information."

For example, the state survey of dealers shows a range of a dollar or more per gallon, Chretien said. Consumers may find a lower price than their current dealer is offering. Some consumers may not be aware that the price has been coming down. "I wish government was better at getting the story around," he said.

For information or to apply for fuel assistance, call your regional program. For the Plymouth area, call South Shore Community Action Council at 508-747-7575. For Quincy, Braintree, Weymouth, Milton, and Hull, call Quincy Community Action Program at 617-479-8181. In the Brockton area, call Self Help Inc. at 508-588-5440.

Robert Knox can be contacted at rc.knox@gmail.com.