Keeping your home warm during the winter months, particularly for those with low or fixed incomes, can be a major financial burden. For Mainers who rely on natural gas or electricity to heat their homes, last year was especially difficult, with sharp increases in supply costs. But this year, natural gas price forecasts look much more favorable, which will result in lower electricity prices.
Last month, the U.S. Energy Information Agency (EIA) projected that the average U.S. household using natural gas for home heating will pay 21% less in 2024 than in 2023. Here in Maine, many electricity customers will see an even greater reduction in their bills thanks to state regulators approving a new reduced standard offer supply rate, reflecting the lower cost of natural gas, which is used to generate electricity. The cost of the supply rate makes up about 60% of an electricity bill.
The other 40% of an electricity bill is collected by the utility company responsible for electricity transmission and distribution. Because the supply portion of the bill makes up such a large percentage of electricity costs, this newly negotiated rate will result in meaningful savings for Mainers this winter. The Maine Public Utilities Commission, which regulates electric, gas, telephone and water utilities, approved a 2024 standard offer rate for Central Maine Power customers that will deliver a savings of about $30 per month for an average household.
However, the U.S. EIA also found that the price of oil is up by 8% this year. According to the agency, threefifths of Maine’s households use fuel oil as their primary energy source for home heating, a larger share than any other state. Fortunately, here in Maine, we have lots of resources to help folks afford to heat their homes.
This year, the Legislature voted to invest in more heating assistance, increasing funding for the Low-Income Assistance Program (LIAP) from $15 million to $22.5 million. Anyone who qualifies for LIAP will also qualify for the Home Energy Assistance Program (HEAP), which helps folks pay for heating fuel. These programs are available to homeowners and renters. Opportunity Alliance handles HEAP applications for Cumberland County. To get started on your application, give them a call at 207-553-5900. For more information, visit the income eligibility guidelines page on their website.
To help get financial aid to those who need it, last month the Department of Health and Human Services (DHHS) began sending letters to 67,000 Maine residents eligible for LIAP with information on how to receive financial assistance. If you don’t receive a letter in the mail and need assistance, fill out this online form to have your eligibility evaluated.
If you’re looking to upgrade your heating system to be more energy efficient but cost is a barrier, Efficiency Maine Trust (EMT) is a great resource. Their Weatherization Program provides grants to eligible homeowners and property managers for home energy-efficiency upgrades. They also offer rebates for everything from heat pump installation to improving your home’s insulation.
This session, Senate President Troy Jackson is introducing a bill that could help reduce barriers for homeowners who want to utilize EMT’s whole-home heat pump rebate. Some folks are anxious about the program’s emphasis on utilizing heat pumps to heat the entire home and relegating oil furnaces or boilers to emergency backup status in order to receive the largest rebate. As a state, we have set ambitious goals for heat pump adoption, including having 115,000 homes use wholehome heat pump systems by 2030. While we move towards this goal, it’s critical that Mainers are able to experience lower heating costs, safety and warmth along the way.
When we return to Augusta in January, I will continue to work with my colleagues in the Legislature to make sure folks have the resources and support they need to stay warm this winter. As always, please feel free to contact me at maureen.terry@legislature.maine.gov.
Rep. Maureen “Mo” Terry, D-Gorham, is serving her fourth term in the Maine House of Representatives. She is the House majority leader, where she serves as head of the Democratic caucus. Outside of her legislative work, Rep. Terry is a chef and small business owner. Contact her at maureen.terry@legislature.maine.gov.