Sen. John Mannion, D-Syracuse, is pictured in the Senate chambers. Submitted photos

A Central New York lawmaker wants the state to kick in $3 million and create new programs to help blunt higher home heating costs this winter.

State Sen. John Mannion, D-Syracuse, introduced S.9574 last week to authorize the New York State Energy Research and Development Authority (NYSERDA) to create a temporary middle income Home Energy Assistance Program and suspend some taxes on home heating fuels.

The U.S. Energy Information Administration is projecting the average cost of home heating with natural gas from October through March to increase to $931 (28%). Cost increase for heating oil are expected to be $2,354, an increase of 27%, $1,359, an increase of 10%, and $1,668 for propane, a 5% increase. If it’s a colder winter, natural gas heating costs could increase as much as 51%, with higher average costs for heating oil (37%), electricity (20%) and propane (36%). The agency is assuming inflation will average between 6% and 7% this winter compared to last winter.

The EIA analysis noted higher forecast energy expenditures are the result of higher fuel prices, combined with higher heating demand because of a forecast of slightly colder weather than last winter.

On average, Energy Information Agency officials expect wholesale commodity natural gas prices to be higher this winter compared with last winter, which leads to higher prices for both natural gas and electricity in the retail market. Natural gas prices rose sharply earlier this year because consumption growth outpaced production growth in the first half of 2022. Strong demand growth resulted from growing liquefied natural gas (LNG) exports as well as a new market dynamic driving strong domestic natural gas demand: limited natural gas-to-coal switching in the electric power sector.

Wholesale price changes affect residential prices for natural gas and, particularly, electricity prices over relatively longer periods because these costs are incorporated into regulated rates. Even with this lag, increases in spot commodity prices over the past year are pushing up retail prices this winter. The Henry Hub natural gas spot price on September 30 was $6.40 per million British thermal units (MMBtu), which is 36% higher than last winter’s average. These price increases contribute to our forecast that residential natural gas prices this winter will be 22% higher than last winter and that residential electricity prices will be 6% higher than last winter.

“Due to inflation and the rising cost of heating oil, New York residents are struggling to make ends meet and afford to heat their homes this winter,” Mannion wrote. “Liberty Utilities located in Upstate New York warned their customers that they will see an average increase of $150 a year due to the rising price of heating oil and National Grid predicted that customers will pay about $263 more than last year which is a 39% increase. Many New Yorkers simply cannot afford such an increase and will have to make painful choices between paying for necessities like food or paying for heat this winter. This is especially concerning for aging New Yorkers who are on a fixed income and residents in upstate New York who are impacted by harsh winter weather conditions.”

Mannion wants to create a temporary middle income HEAP program that would include fuel oil, coal, wood, wood pellets, propane, natural gas, electricity, steam, kerosene and any other fuel when used for residential heating purposes. It would apply any household earning 165% of the area median income or less or has an income no more than the average survival budget for the county, adjusted for the size of the household. The program would expire on April 1, 2024.

“This bill will help middle-income New Yorkers who are not eligible for HEAP find financial help to heat their households,” Mannion wrote in his legislative justification. “The Middle-Income Home Energy Assistance Program will also help Asset Limited, Income Constrained, Employed

(ALICE) families get the help they need to heat their homes this winter. Thirty-one percent of households in New York state are ALICE households, which is twice as many households that live below the federal poverty line.”