Voluntary Energy Assistance Programs: Community Self-Help in Action

Abstract

In recent years, the ever-widening gap belocality development, which presupposes tween income and the cost of gas and electhat community change may be pursued op tric services has become a major problem for timally through broad participation of a wide lowand marginal-income individuals and spectrum of people at the local community families. Heating costs for the individual conlevel in goal determination and action.4 Pro sumer have soared,1 resulting in an increasject HELP engages the cooperation and ser ing number of people who are unable to pay vices of several people and organizations their utility bills. Energy experts reports that from both the private and public sectors of unpaid electric and gas bills nationwide the community. It operates as a partnership amount to an estimated $500 million annualbetween social service agencies, two utility ly.2 Although the consumers and stockcompanies, and the companies' consumers, holders of the utility companies assume this The program serves elderly and disabled debt, the more disturbing consequence is the persons in the metropolitan Nashville area thousands of people who face the threat, or who need assistance in paying their heating for many the reality, of their gas or electric bills. It is funded primarily through small service or both being disconnected during donations by individual customers of the two the winter because they are unable to pay utility companies, who are given the oppor their utility bills. tunity to add $1.00 to their monthly pay In most communities, traditional social ments. In the first five years of operation, the service programs, including government amount of money contributed and dis sponsored ones, fall short of meeting this tributed to recipients has more than tripled; mounting need. In general, the trend toward however, the number of individuals and less governmental funding of social service families assisted has increased more than programs has forced communities either to ig200 percent (Table l).5 nore pressing needs or to find alternate fundNo administrative costs are taken from the ing sources. In an effort to find new ways to donations, assuring donors that every dollar fund programs, numerous suggestions and given results in direct assistance to recipients analyses have emerged. Some of these sugin need. The local American Red Cross chap gestions include expanding the use of volunter administers the program, using volunteers teers, improving managerial practices and who are trained by, and work with, members setting priorities on needs and services, buildof the Red Cross social work staff in filter ing coalitions, increasing the solicitation of viewing applicants to determine eligibility, private philanthropy and, in general, creating Collection of donations and most promotional custom-made paths to needed funds.3 efforts are conducted by the two utility com In response to the inability of certain panies. An advisory committee (comprising populations to pay their utility bills, the representatives from the utility companies, Nashville community created such a path by Red Cross, and other social service agencies developing and implementing an innovative in the city who serve the elderly and handi community self-help program, staffed pricapped) provides direction regarding policy marily with volunteers and funded exclusivedevelopment and day-to-day operation of the ly through contributions. The purpose of this program, article is to report on that program's first five years of operation and to provide a review _ . ,^ of similar voluntary energ? assistance proReview of Voluntary Energy grams around the com4 Assistance Programs The concept of voluntary energy ^ ... , . TT„T „„ assistance programs is a fairly recent one. Description of Project HELP Baltimore Fuel Fund, which began operation This voluntary energy assistance program in 1979, generally is credited with being the most closely resembles the kind of communifirst. Since that time, numerous other pro ty intervention referred to by Rothman as grams have begun operation. Through sep arate surveys to member companies, the American Gas Association and Edison Elec tric Institute report more than 100 energy assistance programs across the country.6 In reviewing these programs, a comparison will be drawn between Project HELP and other voluntary energy assistance programs using the following five criteria: (1) target group served, (2) eligibility guidelines, (3) assis tance provided applicants, (4) geographic size of programs, and (5) program funding.