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Spotlight - Family Budget Burden for Energy Costs is on the Rise

Family budgets are increasingly strained by energy costs, some to the breaking point, a new report reveals. The results produce a sound argument for the continuation of coal as the backbone of Pennsylvania's energy policy, says Americans for Balanced Energy Choices.

ABEC points to the study showing individuals and families making less than $30,000 per year now pay nearly $1 of every $5 in their after-tax income for energy. As much as 47 percent of after-tax income is devoted to transportation and personal energy use by the poorest families.

The energy cost burden on families has doubled in the past decade. Now, only when total income exceeds $50,000 a year, do energy purchases fall to a more manageable (8 percent) factor in the family budget.

ABEC notes that coal is a significant player in helping control electricity cost inflation, while other energy costs more than doubled. In Pennsylvania, more than half of the electricity (56 percent) is coal generated.

"You must give coal credit for easing the effects of skyrocketing energy costs," said Joe Lucas, ABEC executive director. "Many families already are sacrificing to pay for their energy needs, and for lots of people it threatens to be a budget buster. That's why it's essential to keep coal in the energy mix as an efficient, affordable energy source in the future."

The ABEC study estimates that in the past decade, electric rates increased 26 percent compared to increases of 104 percent for gasoline, 125 percent for heating oil and 67 percent for natural gas across the United States.

"Taking a wrong turn on our energy policies will, even if it is inadvertent, seriously hurt many Pennsylvanians," Lucas added. "There simply is a point where individuals and families can no longer balance the essentials of food, housing, healthcare and energy costs with their take home pay."

There are 2 million Pennsylvanians who are age 65 or older. Especially at risk are those senior Pennsylvanians living on fixed incomes as well as the working poor and middle class wage earners, according to Lucas.

"As we work for energy independence and environmental improvements, we should remember that electricity, produced mainly from domestic coal, has offered the most stable price trend over the past decade," Lucas said.

To see a full copy of the report, go to the America’s Power website.

NewsClip: Op-Ed: Put Coal in Their Stocking


12/14/2007

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