Fill up during summer, when prices are low: Gov. Walker requests flexibility for propane assistance

MADISON (WITI) -- Governor Scott Walker is urging President Barack Obama and the U.S. Department of Health and Human Services to allow Wisconsin to distribute funding from its Low Income Housing Energy Assistance (LIHEAP) program starting July 1st, so that propane customers can fill their tanks during the summer while prices are lower.

“We are not asking for an increase in federal funding, but rather the flexibility as to how those funds are spent,” said Governor Walker.  “If President Obama grants our request, Wisconsinites receiving LIHEAP funding could purchase 15 percent more propane now, before cold weather sets in and the propane demand rises, which can ultimately increase the price.”

Governor Walker requested that Wisconsin be able to distribute federal LIHEAP funds starting in July, rather than waiting until October, which is when the federal government distributes LIHEAP funding to the states at the start of its fiscal year.

This will allow customers to purchase more fuel at a lower price during the summer months, while potentially saving Wisconsin’s heating assistance program as much as $1 million.

Currently, the average propane retail price is $1.78 per gallon compared to an average of $3.04 per gallon that customers paid at the end of February 2014.

Representatives from the propane industry have indicated to Governor Walker they support this request to President Obama, and believe that spreading out the demand for propane would enhance their customer service capabilities year round.

Attached is a copy of Governor Walker’s letter to President Obama and Secretary Sebelius.

Wisconsin’s Home Energy Assistance Program (WHEAP), which receives the federal funding, helps approximately 225,000 Wisconsin households annually.

During the past winter, Governor Walker and his Administration took steps to help alleviate the effects the propane shortage on residents who use propane to heat their home or business.

This includes a propane “swap” between the state, We Energies, and Madison Gas and Electric.

The utilities provided 110,000 gallons of propane to serve low-income customers.

The state recently replenished its propane supply by purchasing the fuel in the off-season at lower wholesale prices, saving $78,000.