Nearly $1 in $4 of Income Goes to Buy Energy

New Study Reveals Impacts on 2.4 Million PA Households

HARRISBURG, Pa., March 24 /PRNewswire/ -- It is not just the poorest
households who are struggling to pay their energy bills or who are affected by
government energy policies, says Americans for Balanced Energy Choices (ABEC).
A new study(1) reveals individuals and families making less than $50,000
per year will pay 22 percent of their after-tax income for energy, double the
burden of just a decade ago. That means 2.4 million households in
Pennsylvania are using nearly $1 of every $4 in net earnings for energy, with
energy costs now approaching the proportion for housing.
Poorest families suffer the most, using more than half (54 percent) of
their after-tax income for transportation and personal energy, such as home
heating and lighting. It is only when families earn more than $50,000 a year
that energy purchases become a manageable part of the family budget, dropping
to just 9 percent of after-tax income.
Energy prices have increased almost 19 percent in the past year.(2) To
compound the household budget problem, food prices have gone up more in the
past year than they have in nearly 20 years, including an 18 percent increase
in milk prices and a more than 30 percent hike in egg prices. (2)
"Part of the inflation in food costs is being attributed to encouragement
of ethanol as an alternative fuel, which may be helping drive up prices for
animal feed and some foods consumed by people," notes Joe Lucas, ABEC
executive director. "This is an example of how energy policy can affect other
parts of our economy and the family budget."
"That's why ABEC is fighting to keep coal a part of the mix of our energy
resources. It is much more affordable as a source of electricity compared to
natural gas or oil, which can cost much more to produce each kilowatt hour of
electrical power."
Since 2001 the increases in the costs of fuels for electricity are:
-- 201 percent for oil
-- 80 percent for natural gas
-- 48 percent for coal

In Pennsylvania, more than half of the electricity (56 percent) is coal
generated, compared to the national average of 50 percent, helping keep the
state's average price of electricity per kilowatt hour at less than the
national average.
For consumers, the increases in the costs of their energy sources since
2001 have been: -- 166 percent for heating oil
-- 123 percent for gasoline
-- 44 percent for natural gas
-- 27 percent for electricity

"As we work for energy independence and environmental improvements, we
should remember that electricity, produced mainly from domestic coal --
including coal from Pennsylvania -- has offered the most stable price over the
past decade," Lucas noted.
"One can only imagine what would happen to electricity prices and the
total energy cost burden if ill-considered public policy drives unnecessary
inflation in the cost of coal."
ABEC is crossing the nation, taking its message to urban, rural and
suburban areas, that coal needs to remain one of our energy fuels to keep
energy as affordable as possible for homes and businesses.
ABEC supports cleaner and more efficient coal technologies, with Lucas
pointing out that the industry has reduced emissions by a third even though
coal use has doubled during the past 30 years.
Americans for Balanced Energy Choices is a non-profit, non-partisan group
that promotes a dialogue with community leaders across the nation to discuss
balancing America's growing demand for electricity with the need to protect
the environment. ABEC counts more than 150,000 members nationwide, with 9,000
living in Pennsylvania. Because of its prominence in the nation's energy mix,
electricity from coal is a major focus of the dialogue. The Web site is
http://www.americaspower.org.
(1) $100 Oil Crushes American Family Budgets, March 2008 To see a full
copy of the report, go to http://www.americaspower.org.
(2) United States Department of Agriculture, Consumer Price Index
SOURCE Americans for Balanced Energy Choices

Cathy Coffey of Americans for Balanced Energy Choices, +1-703-302-1221, or
+1-703-597-6275, ccoffey@balancedenergy.org; or Tom Meinert of WJG&A for
Americans for Balanced Energy Choices, +1-412-281-5555, tmein@w-j-green.com