As winter tightens its grip on Minnesota, the federal government shutdown freezes critical funding for the state’s Energy Assistance Program (EAP), nationally known as LIHEAP, leaving thousands of households uncertain about future heat bill payments.
The Minnesota Department of Commerce said each year the state receives $125 million in federal funds to help low-income households cover heating costs. The state said it normally receives 90% of the funding by early November.
“We do not have funds to distribute to all of the households who would normally receive that assistance for this coming heating season,” said Lissa Pawlisch, with the Minnesota Department of Commerce. “That includes both their primary heating needs and emergency repairs.”
Around 125,000 households and roughly 300,000 Minnesotans rely on the program annually. 25,000 households depend on propane or other delivered fuels, which are not protected under Minnesota’s Cold Weather Rule.
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“This could be your neighbor, your cousin, your grandma,” Pawlisch said. “We all know how important heat is to feel safe and comfortable.”
The Department of Commerce said it has asked electric and natural gas utility companies to be flexible with customers who are in the program.
“We’ve heard from a number of utilities who are willing to be patient and help support their households getting on those payment plans and avoid disconnecting them for lack of payment right now. But that hasn’t been universal, and we understand that there is just a real challenge for any household facing these increased bills and not knowing what they’re going to do moving forward,” Pawlisch said.
Minnesota Power, which serves approximately 150,000 customers in northeast Minnesota, is among the utilities stepping up to help. About 8,000 to 10,000 of its customers apply for energy assistance each year.
“We are putting a stay on disconnections for those customers while this is all being sorted out,” said Tina Koecher, director of customer experience operations at Minnesota Power. “That includes customers who were approved for energy assistance last year or have a pending application.”
Koecher said the company is also offering a special pay plan for federal employees affected by the shutdown.
“They just need to give us a call and let us know they are impacted,” she said. “We’ll work with them on a payment plan that fits their budget and waives late fees.”
In addition to honoring the Cold Weather Rule, which requires customers to set up payment plans from Oct. 1 through April 30, Minnesota Power is encouraging customers to reach out early to explore options.
“These balances will still be there,” Koecher said. “So we want to make sure customers, whatever happens with energy assistance and when we come out of Cold Weather Rule protections, are set up for success with whatever balance they may have accrued over these cold winter months.”
She said reaching out to customer service is an important step.
“If a customer has a balance that’s feeling unattainable, we’ll work with them,” Koecher said. “That could be a payment plan, a rate discount, or a referral to other assistance sources.”
Xcel Energy, which serves customers across Minnesota, said it is also monitoring the situation closely.
“We are actively tracking impacts to energy assistance programs from recent federal actions,” the company said in a statement. “We offer affordability programs to customers when they need assistance with their energy bills, however they are contingent on state funding availability, which comes from federal dollars through the Low Income Energy Assistance Program.”
Xcel Energy said it does not currently have an agreement in place with the Minnesota Department of Commerce to secure LIHEAP funds due to federal budget cuts earlier this year. However, the company is working with the state to keep customers enrolled in affordability programs until funding is secured.
“We encourage customers to reach out to us so we can help them set up pay arrangements,” the statement said. “We have a long history of supporting our customers in need. Last year, about 63,000 Xcel Energy customers received approximately $33.1 million in energy assistance.”
The company also reminded customers of the Minnesota Cold Weather Rule. Customers who contact Xcel for protection can establish payment plans capped at 10% of household income and may qualify for additional energy efficiency and conservation programs.
The Department of Commerce said, despite the funding delay, applications for energy assistance are still being accepted. Pawlisch urged residents to apply now to ensure they’re ready when funds begin to flow. A family of four could earn up to $71,999 annually and qualify to receive financial assistance with energy bills.
“We’re glad to see people are still signing up,” she said. “It means we’ll be ready to support them as soon as those dollars flow.”
Both Pawlisch and Koecher emphasized simple, low-cost steps to conserve energy, such as sealing windows and doors, lowering thermostats when away, and avoiding space heaters when possible.
“So we all have that experience that you start the winter, and the first time you turn on your heat in the winter, you suddenly realize, ‘Oh, no, my furnace is broken.’ Or something is amiss,” Pawlisch said. “Without these funds, those households are now in jeopardy of not having resources to actually get those systems fixed.”
Applications for energy assistance are still being accepted, despite the funding delay. Pawlisch urged residents to apply now to ensure they’re ready when funds begin to flow.
“We’re glad to see people are still signing up,” she said. “It means we’ll be ready to support them as soon as those dollars flow.”
Pawlisch said as of last week, about 80,000 households had applied. Pawlisch said the worst-case scenario is concerning.
“That people will be cold. That people won’t be able to heat their homes,” he said.
