With last week’s heat wave out west, and the return of sizzling temperatures here in Tulsa, it seems an appropriate time to look at AARP’s recent report on Summer Cooling Costs and Older Households and the importance of staying cool. As the report makes clear, turning on the air-conditioner for some families means balancing financial constraints and health concerns. AARP’s analysis is no doubt aimed to better understand the needs of households 65 or older, but the needs of older consumers living on a set income are often analogous to the needs of low-income families.
AARP reports that, over the past decade, average residential electricity costs have increased 40%, from 8.7 to 12.0 cents per kilowatt-hour. To help Americans afford the cost of heating and cooling their homes, the Low-Income Home Energy Assistance Program (LIHEAP) provides federal block grants to the states and other jurisdictions. States, however, set their own eligibility requirements and can supplement the grants with their own funds.
Most states seem to use LIHEAP funds to subsidize heating costs. The AARP report cites LIHEAP Clearinghouse data showing only 29 states, and the District of Columbia, have cooling assistance programs. Furthermore, the average grant for these cooling programs are typically less than half the amount distributed for heating assistance. (more…)