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Low Income Home Energy Assistance Program
Division of Energy Assistance/OCS/ACF
As described below, at least five major factors affect a household's home energy
needs--climate, energy prices, energy efficiency, energy affordabilty, and health &
safety.
Climate, that is outdoor temperature, affects how much home energy is consumed;
consequently climate affects the cost of home energy. The measurement of outdoor
temperature is expressed in units of heating or cooling degree days. Degree day
is a quantitative index demonstrated to reflect demand for energy to heat or cool
houses and businesses.
The Climate Prediction Center of the
National Oceanic and Atmospheric Administration (NOAA)
collects temperature data and then calculates degree days from weather stations
across the United States. The data are then weighted by population to produce
population-weighted, degree data averages. These averages are reported weekly
at the state, regional, and national level. The averages are also compared with
population-weighted, degree data from the previous year and with a 30-year,
population-weighted average.
Using weighted heating degree data, one can determine how cold it has been in a
particular area. A heating degree day is the number of degrees for a particular
day that the average temperature falls below 65 degrees Fahrenheit. For
example, if the high temperature for a specific day was 50 degrees and the low
temperature was 40 degrees, then the average temperature would be 45 degrees.
That day would be considered to have 20 heating degree days (65-45=20).
The larger the number of heating degree days, the colder the temperature is for that day.
Using cooling degree data, one can determine how hot it has been. A cooling
degree day is the number of degrees for a particular day that the average
temperature exceeds 65 degrees Fahrenheit. For example, if the high temperature
for a specific day was 90 degrees and the low temperature was 70 degrees, then
the average temperature would be 80 degrees. That day would be considered to
have 15 cooling degree days (80-65=15). The larger the number of cooling
degree days, the hotter the temperature is for that day.
NOAA prepares the following tables: Heating Degree Days Population Weighted
Listing, and Cooling Degree Days Population Weighted Listing for the
last three weeks and last three months (see data links under Weekly Tables).
Given the increasing danger of hyperthermia, the National Weather Service has
stepped up its efforts to alert more effectively the general public and appropriate
authorities to the hazards of heat waves-- those prolonged episodes of excessive
heat/humidity. The National Weather Service has devised the
"Heat Index" (HI), sometimes referred to as the "apparent temperature." The
HI, given in degrees Fahrenheit, is an accurate measure of how hot it really
feels when the relative humidity (RH) is added to the actual air temperature.
NOAA reports news about the weather through its montly
online newsletter.
In addition, the National Weather Service has developed a comprehensive collection
of weather information.
Energy price data are
available from the U.S. Department of Energy (DOE). DOE's Energy Information
Administration publishes
current energy prices and
short-term energy outlooks about what is happening with energy prices.
Energy efficiency information
is available from DOE. Also DOE has developed a Home
Energy Saver website which provides the public with information on how to save
energy in homes.
Home energy affordability can be expressed as the percent of a household's income
spent on home energy, which is referred to as home energy burden. Overall, the
home energy bruden of low income households is greater than the home energy
burden for non low income households.
Home energy burden or costs can be reduced by:
- lowering home energy prices through competition. Currently, the United States
is undergoing the
restructuring of the electric and natural gas industry. Most proposals for
electric and natural gas restructuring involve increasing competition for the sale
of residential electricity and natural gas. Consumers then would be able to shop
among competing companies offering electricity or natural gas for sale, and
decide to buy from whomever they chose.
Will low income customers be "better off" or "worse off" as a result of
deregulating the residential electric and gas industry through increased
competition? The answer to that question will form the basis for a wide
range of future public policy decisions.
- reducing the amount paid for energy through fuel assistance subsidies. The
U.S. Department of Health and Human Services'
Low Income Home Energy Assistance Program has served as the nation's core
program for targeting home energy subsidies to low income households with
vulnerable members (the elderly, disabled, or young child) and households with
the lowest incomes and highest energy costs.
- reducing home energy consumption through energy conservation and energy
efficiency measures. The U.S. Department of Energy's
Weatherization Assistance Program
has served as the nation's core program for delivering energy conservation
and efficiency services to low income households.
Insufficient home energy also can lead to health and safety problems. Households
unable to afford sufficient home energy may try to cope with fuel shortages or
furnace breakdowns through the dangerous use of makeshift heating sources such
as unvented portable heaters, barbecue grills or gas stoves. Such households
may try to cope with hot spells by relying on fans in a home in which the windows
are closed due to fear of crime. They may also decide to eliminate or cut down
on other necessities of life, such as food or medicine, to pay their home energy
bills, causing illness or other problems. Further information is available concerning:
Top of Page
www.acf.hhs.gov/programs/liheap
Updated 6/15/04
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