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How far would those $1,200 checks go in covering increased fuel prices?

Posted by Alaska_Politics

Posted: July 22, 2008 - 11:47 am

From David Hulen in Anchorage --

UAA's Institute of Social and Economic Reseach put out a new report today that tries to calculate how much the proposed $1,200-per-resident energy-assistance checks would help Alaskans deal with rising fuel and home-heating costs.

There's not a simple answer. Energy prices and consumption varies a lot from region to region and from household to household, so it's hard to generalize. There are other variables as well, such as whether people use less gas as prices have risen.

The report's bottom line: For most households, the proposed payments wouldn't cover the real cost increases since 2006 for gasoline and home energy.

Bullet points from the report:

• Alaska households overall are paying about 70% more for home-energy and gasoline now than in 2006 and 180% more than in 2000 (assuming the same energy consumption as in 2000).

• Proposed state payments would cover increases since 2006 in combined home-energy and gasoline costs for 38% of Alaska households and would be less than increases for the other 62%.

• The poorest households in all regions are on average smaller than households with higher incomes—so their payments would be smaller.

• The proposed payments would cover recent increases in home-energy costs for almost all Anchorage households at all income levels. Natural gas prices have increased a lot—but not as much as diesel prices.

• For about half the remote rural households at all income levels, increased home-energy costs since 2006 outweigh the proposed payments.

• The proposed payments would cover increased home-energy costs for about 70% to 90% of households elsewhere in the state. Households in southcentral Alaska using natural gas have seen smaller increases, while Fairbanks and other places that rely on diesel have faced bigger increases.

Down load the four-page report here.

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39 July 23, 2008 - 8:13pm | hey_georgie_girl_98

$1200

It's going to be used as intended, fuel oil and cords of firewood. With a cool spring season and summer barely reaching 70 degrees, don't expect good weather to follow. The retailers need to stock their supply shelves and get ready for wood stove sales, cord wood sales, heating oil purchases, etc. It's been in the news that Alaskans pay the highest energy prices in the country. Thanks, Governor Palin for thinking about average Alaskans.

July 23, 2008 - 8:50pm | rfn

Retailers in smaller communities

need to exercise some caution in stocking up for winter.

People who are spending all their money keeping warm won't be buying lots of other stuff.

38 July 23, 2008 - 10:53am | broomhilda

I know it will

help my 80 year old grandpa fill up his oil tanks. He will use it instead of bitching about it.

37 July 23, 2008 - 7:55am | eldon

1200.00 x 5 = 6000.00

well if i get that all my bills will be paid till May of 09. It will help out BIG TIME.............. Maybe i can even help Exxon BP Conoco/Phillips all make more $$$$ for there Hawaii houses

36 July 22, 2008 - 11:55pm | doctoradoalfredo

1200 will help a lot

I hope that everyone gets the 1200 dollars. Even people that dd not get the PFD last year. To qualify for the PFD a resident would have to live here for a whole calendar year. So, if the resident move to Alaska in January or February of 2007, he or she will still not get a 2008 PFD. So, I think it is fair that they get the 1200 dollars because they have been also struggling with the high cost of energy bills and food high prices of Alaska. I have been here for 11 years but I still would like to see that those people get the 1200 dollars because I am not greedy.

35 July 22, 2008 - 9:02pm | coldinaK

Thats the spirit!

"People have bought houses and watched them go down in value many times. It happened to me in San Antonio and I could not sell and I was forced to move by the USAF.

There are housing markets in greater freefall then Fairbanks.

It is also true that everybody in the nation has faced cost increases. That includes down here in Anchorage by the way. You can babble all you want about degrees and percentages but the cost of living will always vary place to place.

Welcome to reality and it now time for you to grow up. It is as easy as prioritizing or moving. Life hands out bad cards all the time and the best play is to fold sometimes.

Quit whining, the government is not your nanny."

Just for clarification....how much has your natural gas gone up in price???? What did you pay for heat 2 winters ago and what will you pay for heat this winter??? Yeah its just a bad card deal and whining thats going on, and things are just soooo expensive down there in los anchorage.......Absolutely appreciate your maturity in seeing the whole picture for what it is! By the way which tv are you buying?

July 22, 2008 - 9:28pm | TheSdog

My gas bill

has gone up 2-3x over the past couple of winters. My electric bill has also gone up by 50-75%. By the way, my water bill is up about 50% sice I moved into my house as well.

And Marky Mark has also ensured my property taxes have gone up and not by just a little. Of course, we all know Fairbanks did not even want to tax enough to pay for any services so nice job there.

If the grass is so much greener down here, come on down. I am not buying a new TV anytime soon but if you want one I suppose you can have one if you move.

July 23, 2008 - 5:20am | pixieteeth

My $11.50 an hour job

hasn't gone up exponentially yet.

July 22, 2008 - 10:16pm | coldinaK

2-3x what?

Whats that 2-3 X equate to for heat....... $150 a month? It cost my family $150 a month to bathe. Our property taxes are higher than yours also and in turn get very few services? Your electricity costs are almost $.10 less per KW.....lets put dollars on these % of yours. Its not even close! It may have been at one time but it hasn't been for the last 18 months. That lovely bar graph at the top of this article doesn't even come close to what true energy costs are for interior residents that live in an urban setting, not a village. Those numbers on that bar graph at the top of this article are less than half of what we are paying as opposed to 2 years ago.Heck I have paid over $2400 just in electric in the last 12 months and we are never home and they are raising our rates again???? It was half that 2 years ago. Maybe with the boom of the trans-canade gas line our homes will be worth what the Borough thinks they are worth in appraised value (a fallacy) and we will actually be able to bail out, right now thats not a viable option! C'mon Trans-Canada! If I move south it will be a lot farther south than Los Anchorage, Alaska has done such a poor job of handling this energy debacle for its residents that its beyond disheartening, and the royalty fund has how much money in it???? And with all the money the state has made on oil there gonna give each resident the equivalent of a whopping 250 gallons of heating oil.......whoopity dooo! You call it whining......I call it BS! And if you were in our shoes you would too.

July 22, 2008 - 10:40pm | TheSdog

I would have to pull my bills

but my gas bill was around $250-300 a month this winter and my electric was another $100 or so.

My property taxes were over 6K.

Not that any of that matters...

Guess what, it gets really really cold in Fairbanks in the winter. And surprise, the cost to live there goes way up if energy prices rise.

Oh, and Fairbanks is a long way from even Anchorage. It requires energy to bring things to Fairbanks. surprse again, that will increase the cost of everything you buy.

The "energy debacle" oes way beyond Alaska. You want government to be your savior. There are places you would like. Go way south and share the poverty in Cuba, I am sure they would welcome you.

Everybody hurts, you just cry more.

You choose to live in Fairbanks. You choose to continue to live in Fairbanks. Deal with it or move.

One thing the state should consider is buying some diapers for you and your mayor.

July 22, 2008 - 11:25pm | rfn

"Deal with it or move."

Thank you for that most generous offer of covering the moving expenses for those who need to relocate to Seattle-North. Also for your exceedingly generous offer to share your home with......

But we know from your past performance that you won't.

July 22, 2008 - 10:55pm | coldinaK

You must live in a big House....

way up in the hills I might add,with a view even. Well my electric bills mid winter will be what your heating (gas) bill was and my heating oil bill will be half your mortgage! (Seriously). Real estate taxes ....the same and I am gonna go on a limb and say you live in a more expensive home than I do. Call our mayor a whiner, call me a whiner... the pipeline runs by my house no more than 1/2 mile away and there are two refineries within 4 miles of my house. The rest of the U.S. dealing with the "energy debacle" doesn't have those variables I am thinking??? Nor do those states have $9 billion dollars in oil royalties sitting in the bank. Hey, theres light at the end of the tunnel I hope, they have pseudo passed Trans-canada since we began this discussion and all them big money oil employees are gonna need a place to live! C'mon Trans-Canada, thats my ticket to Cuba with good credit to boot!

July 22, 2008 - 11:11pm | TheSdog

I do not live on the Hillside and I have no great view.

And if your bills are what they say they are not half my mortgage.

More expensive home? You mean some things might be more expensive in Anchorage? That is part of my point. My house is worth the same as some of my in-laws in San Diego and Houston and how far the dollar goes vary widely. Should those with more expensive houses per square foot be given government assistance? I think not.

If you do not like a national example you could do the same thing with AK real estate you want to do with energy. Any way you slice it, it is a ridiculous argument. People make choices and they need to reap the benefits or pay the consequences of those choices.

You start giving people free rides and they lose their incentive. they do not learn to change behavior and that includes moving. If you want an example with energy you need to look no futher than the poor response this country has had the last 30 years to the last energy crisis.

Now, if you wanted state money to fund alternative energy in the Fairbanks area then we can talk. Free money to crybabies...not so much.

July 22, 2008 - 11:36pm | coldinaK

Apples and Apples

I have no clue what your home costs, where it is , how big it is,or what the size of your lot is so for you and I to compare $$$ for bills is not realistic. All I am saying is that when your heating bill go's from $250 to $1,000 a month in 2 winters its quite difficult to adjust to, When your electric bill goes from $130 to $300 its difficult to adjust to......for ANYONE! Not even considering the increases in property taxes since everyone has to deal with that nationwide. How does one budget for that extra $$? In many cases that increase in energy cost is more than the disposable cash that folks had/have after they pay all their other bills that they once were able to afford. Take into consideration all the other inflationary costs that have reared their ugly heads lately ie groceries, gas at the pump, clothes, and pretty much everything we buy it has left folks cornered against a wall. I absolutely understand that Anchorage residents have seen some price hikes, but we in Fairbanks dont live in a village, this is a developed city, and what we have seen is off the charts! You could only imagine that the government body be it local or state, cant just sit back and watch all the residents backs be broken, while they sit back and predict and dictate the number of foreclosures and bankruptcies that get filed in the coming year all because people need to stay warm and want electricity in their homes. This city is is in dire straights, the people and the businesses, and I am still not sure that $1200 will do much to help, though obviously it will help some, I fear it wont be enough. Understand that these very high costs are not hurting me in the same way its hurting many, but it doesn't make paying bills any less painful as the cause for the bills is unacceptable to me and my arguments are not for fear of my survival, but for many who feel they arent being heard. I guess only time will tell.

July 23, 2008 - 2:31pm | TheSdog

The history

of the world is that if the economic environment makes a place unviable to live it goes away. The solution is to not buoy it with artificial government assistance.

Much like the villages if Fairbanks cannot sustain itself due to economic forces it should be allowed to die on the vine. It is a hit for someone to move in such a situation but life is not fair.

There are military families forced to move all the time away from a depressed area where a home they bough fell in value. The exact opposite can happen if the area booms while they are there.

I take it from your post that people have immediately stopped all entertainment activities. The movie theaters are closed? No one is bowling? No one is eating out?

It is amazing to me that with all the whining in this country a new movie set a box office record over the weekend. We are a country that has lost it priorties and the last thing the government needs to do is keep people from being forced to learn them.

July 22, 2008 - 11:43pm | rfn

Don't you just love

the fat cats whose advice to everyone is "just move"? Since they have the cash to pack up and go anywhere they want at any time it's easy for them. Easy, too, for them to just turn the heat down a little, back the Mercedes out of the garage and head off down the road. Maybe come back; maybe not. It's only money.

These are the sort of people who inspired the unfortunate turn of events in France a few years back (1789). "Let them eat cake."

They wondered why folks were so upset. But they didn't think about it very long.

July 23, 2008 - 2:33pm | TheSdog

rfn

People should not be saved from themselves all the time. Do you not believe in the purge or is it just more double talk on your part?

July 23, 2008 - 3:27pm | rfn

I believe the day

is not far off when ordinary people will decide they have had enough.

Perhaps some of the very people invited to share your home as they flee from Fairbanks. Do not treat them condescendingly; they're already upset.

But....that presumes compassion......

Again, relying upon facts not in evidence!

Silly me.

34 July 22, 2008 - 6:41pm | coldinaK

Some of you are unbelievable!

Its really sad how easily so many of you discount the concept that even if you are responsible financially that you just cant be prepared for a 400% increase in your home utility operating cost between heating oil and electricity. I also cant recall on record in any city in our country in its history facing such a rapid increase of inflation on energy??? Most of you are sitting fat and happy in Anchorage paying nothing for natural gas to heat your home and nothing per kw in electricity to keep the lights on.And have seen no increase in living costs at your HOME! Discarding for a moment the higer costs of groceries, gas at the pump, and other consumer retail purchases that have all increased in the recent year, we are talking about your HOME! That other city....Fairbanks just to the north is hurting in ways unimaginable. And telling people to suck it up or move isn't really a viable option. If you bought a home in the last 2 years in the Fairbanks/North Pole area planning to make it home for the future, you are now sitting on real estate that is worth approximately $20,000-$30,000 less than you payed for it. So selling it to move is out of the question unless you seek a foreclosure on your credit report!Telling someone that they are irressponsible for not planning and forseeing that keeping the lights on and heating their home would quadruple in 18 months doesn't fly either. So with that said, many of the Anchorage folks might buy Plasma Tv's with their whopping $1,200 but the folks in Fairbanks need some help....no matter how much money they make! Whether that help is to keep them from freezing to death or that help comes in the form of keeping them from moving out of state. The Borough and its residents need some help if its to exist. 100,000 people isn't Anchorage but its still the second largest city in this great state. I would love to read the responses in this forum if the Anchorage residents natural gas costs had quadrupled in the last 2 years and was still climbing, and if their electric bills doubled in the last 18 months and was still climbing,and if they couldn't sell their homes without going into serious debt to the tune of several 10's of thousands of dollars. I believe they would be a bit more resistant to whats happening, and would be less accepting to suggestions of moving or sucking it up. People sure are insensitive when they arent in the same pain others are! Sure would be nice if 1 rebate check payed for an entire winters worth of heat as opposed to paying for 30 days worth of heat and electric....you all enjoy your $1,200 rebates and we'll be thinking of you here up north as we ponder how to dig ourselves out of the hole we're in and continue to bother you with our whining and complaining!

July 22, 2008 - 8:47pm | TheSdog

Cry me a river

People have bought houses and watched them go down in value many times. It happened to me in San Antonio and I could not sell and I was forced to move by the USAF.

There are housing markets in greater freefall then Fairbanks.

Welcome to reality and it now time for you to grow up. It is as easy as prioritizing or moving. Life hands out bad cards all the time and the best play is to fold sometimes.

Quit whining, the government is not your nanny.

July 22, 2008 - 7:11pm | rfn

You have just inspired

a creative solution.

While the legislature is already in session, a resolution to remove the city formerly known as "Anchorage" from Alaska. Make it a protectorate or something. Maybe give it to the Canadians as a package deal with all our natural gas which they covet so dearly. Then energy relief could safely go to Alaskans without risk of the population of "New Vancouver" squandering it on TVs.

We gotta hurry, though. That bastion of Liberalism is growing like a toadstool and if we wait too long they may have a veto-proof majority in the house. Fortunately the senate doesn't work that way. When it works at all.

33 July 22, 2008 - 6:05pm | logpile

Fuel costs.

Why not subsidize the cost of fuel to the distributors?
Take the average fuel distributed per year, subsidize the cost of raw crude for the year to each of the distributers and the savings will be spread out for all to enjoy. The small businesses that use more fuel will be on the playing field as the folks that drive a Yugo. % = %.

The total cost to the consumer would only be a fraction of a dollar per gal, but it would be the same fraction for everyone.

32 July 22, 2008 - 5:28pm | gleeak

Government Handouts

As I read these comments about the $1200.00 energy assistance, I see a lot of people complaining about the government handouts. I wonder how much complaining they would do if the government gave no handouts. Take for example education. How would you feel if only the wealthy were able to educate their children? Even home school participants receive a stipend from the state. Take a look at the water you drink; clean and relatively pure from city sources. Do you think that the pitiful amount you pay for water covers the cost of building and maintaining those facilities? What about protection? We live in a relatively safe corner of the world. I have not seen bands of militia devastating neighborhoods. We do have a crime problem but nothing like many parts of the world. Take a look at our food and drugs. You can be sure that if a prescription drug is given to you, it is that drug not some kind of a sugar pill; another handout from the government. Now some will argue with me but one of the functions of the government is to promote the general welfare. Reference the preamble of the US Constitution for the script. In order to promote the general welfare, Palin wants to assist by giving a check from the surplus money of the state. While it will probably be taxable income, the money will provide some relief for many and those that do not wish to keep it simply donate it to your favorite charity. Thank you for your time.

31 July 22, 2008 - 4:35pm | transplant

Time frame?

When would this money be coming our way? I have tried to figure this out but can't seem to find anything that gives a time frame as when the checks would even be cut.

Ours will def. go toward the fuel oil for our Toyo's, we also suplement with wood. Gas is up to $5.55 a gallon here, so any and all extra money will be put to good use.

30 July 22, 2008 - 3:50pm | LeadingEdge

Dire Straits

I want my BTU. Money for nothing and your heat for free. $1200 dollars won't do crap for the people that need it the most. I'm sending mine back one way or the other and I live check to check without any type of assistance other than my tools.

29 July 22, 2008 - 3:50pm | Stags_Leap

Build the Delong Mountain Port Terminal

we should be using our surplus to build this project now...it will help us in the future.

28 July 22, 2008 - 3:21pm | Kmo

Good idea

It doesn't matter if the money is spent on fuel, electricity, food, or T.V.'s. Each person will allocate that money to their own personal needs. I doubt the net effect would be any more wasteful than if the politicians decided how to spend it, and it's the only way to provide short term relief in a timely manner.

27 July 22, 2008 - 3:08pm | Stags_Leap

Parnell

has removed Sarah Palin from his campaign ads. What say you, rfn?

July 22, 2008 - 3:10pm | rfn

If that'll help him keep

the scorecard from reading:

California 54
Alaska 0

then it's an excellent move.

Still backing Don Young's quantum leap in gasoline taxes?

July 22, 2008 - 3:19pm | Stags_Leap

Not a chance

but I do embrace the concept of Palin resigning -and allowing Parnell to finish out her term. I do think he is a significantly better option for running the day-to-day affairs of the State....and I do think he knows deep-down that Palin's TC proposal is a bad deal for all Alaskans.

July 22, 2008 - 3:22pm | rfn

So you do

support Don Young's proposed additional tax on gasoline!

Though I guess that leaves open whether it's just the plan or the person that's so appealing.

No accounting for tastes!

We do agree, then that all the plans that subvert Alaska's resources to Canada for the benefit of soul-free multi-nationals and to build industry and jobs for Canadians is a bad thing.

See, there IS hope Staggs.

July 22, 2008 - 3:49pm | Stags_Leap

you are not very smart

even my neighbor's kid -in 10th grade, recognized that Team Parnell took Young's prior comments out of context.

So I don't believe those claims for a minute. He has a record of conservatism. Parnell does not. Parnell said nothing as Palin increased taxes on the oil industry by Billions of Dollars. Parnell said nothing when Palin allowed her operating budget to increase by 23% in Year One.

July 22, 2008 - 5:25pm | rfn

You're scaring me!

Do that child's parents know about the wolverine?

I'm assuming the "he" you note is the boy mayor. Yeah, I guess he could have been more liberal but only if he were willing to totally ignore the revenue cap.

What sort of electronic surveillance do you use to be sure nothing was said about those concerns in private? After all, a Lt. Governor who is honorable would not contradict the governor in public. I'm sure he was as upset as am I about there not being massive layoffs to keep the operating budget from zooming through those union contracts that brought such big costs. I can't be sure that he also favored taxing the gross on oil instead of allowing the continuing manipulation of the "profits" based tax. Woefully inadequate, I might add (again).

But really, I feel certain Don Young is fully aware of your faithful, ongoing support for him and especially for his proposed tax on gasoline. Perhaps he has even thanked you privately...if so, you really should share it with us. Might create a good impression and win him another vote. Maybe two.

However if that commercial really was false, I must commend the actor who played Don Young and so accurately imitated his voice. Was that you?

July 22, 2008 - 4:52pm | AkBrat

sounds to me

like this parnell that you want to take over is nothing more than wet noodle. according to your wording. and you want him in charge? why? so others may push him around as easily while he sits back and "says nothing"?

*sorry to jump in boys, but i can't help myself*

July 22, 2008 - 4:52pm | rayrocks

How smart are you

to continue insisting that Begich, who raised property taxes and increased the size of municipal government 50 percent, is not a classic tax-and-spend liberal?

Perhaps your teen neighbor can explain it to you.

26 July 22, 2008 - 2:56pm | relyk

We're just bored at work and

We're just bored at work and like politicing. Don't take us to seriously.

25 July 22, 2008 - 2:54pm | relyk

U got a truck & chainsaw

I've got a bunch of trees in my back yard that I'll be more than happy to let you haul away. Anyways you can buy firewood with 1200 bucks. Putting in a woodstove would be expensive but every home should have one in case power goes out for an extended. Agreed people living paycheck to paycheck aren't on government dime. Plenty of people making 50-60k a year living paycheck to paycheck. It's all about your lifestyle. I need the money but I'd rather it was saved for future in PFD like savings account or used on infrastructure (bridge). Giving it to teachers or police is not right, I'd rather they gave it out. End up costing alot more than 1200 if its given to union people because they will not accept a 1 time bonus, they'll hire more police officer then go whoops money is spent in first year. Then say they're underfunded the next.

24 July 22, 2008 - 2:53pm | cwurdeman

Everyone on this site makes me sick

why do we have to compare Rural Alskans and sounth central alaskans? I mean come on who cares what anyone decides to do with there money! Who are we to judge. My husband is gone 2 weeks working his ass off and I work and we are just making it. We live a normal live like every other working class family, I would like this money to help pay for my heating bill this winter and pay for gas. I just don't understand why our gas price is the way it is, it doesn't have to be this way. I think we should stop judging each other and start looking at the government and what they are doing to this wonderful place we call home! And when you start doing that then maybe there will be change!!

* love thy neighbor and friend, don't judge others*

23 July 22, 2008 - 2:46pm | arcticamy

1 year of heat paid (with $1200)

In Anc, your heat will be paid for the whole year. In Fairbanks, my heat will be paid for 2 months.

July 23, 2008 - 7:25am | dkh_aah

sorry your wrong on that statement

We all know it cost more to live in fairbanks however,my parents(senior citizens) live in the Mat Su Valley,and you are so very wrong about Anchorage or the Vally our heating bills are ALOT MORE than 100.00 a month..try 2-3 in the Winter months!! and we are not talking about extravagant homes.and not to mention ,what I know you pay more for ..electricity..and our PROPERTY TAXES are through the roof..

July 22, 2008 - 3:14pm | LeadingEdge

I grew up

in Fairbanks and if I recall correctly there is a lot of birch trees there for the taking. Build a couple of 55 gallon barrel stoves and get rid of the oil furnace.

July 22, 2008 - 8:29pm | AkBrat

well golly

you make it sound soooo easy

but lets get back to the real world for a second shall we.

for some to install a safe wood stove into their home it would cost anywhere from 1k upwards to 10k. not every home is wood stove friendly and needs modifications just to get the stove in safely.

can i borrow a few k?

July 22, 2008 - 9:29pm | LeadingEdge

but I've got an old oil drip heater in the shed that sucks down 5 gallons of stove oil a day I will give you for free. It's fairly safe and all you have to do is install the chimney pipe through your roof. I will also throw in a 250 gallon fuel tank with stand for free. It will only cost you around $600 a month to heat your home Einstein. Do the math you idiot.

July 23, 2008 - 12:17am | AkBrat

say what?

u make no sense

July 23, 2008 - 9:46am | rfn

It does make sense

if one considers only the cost of materials and fuel for a basic, non-code, uninsurable, life-threatening installation.

Would be cheaper, even, to just cut a smoke-hole in the roof and build a wood fire on some rocks on the living room floor.

Most folks don't do those things but if you look around the lakes in Wasilla you'll find a lot of that.

July 22, 2008 - 3:09pm | cjohnston

Not Even Close

You numbers are not even close.

July 22, 2008 - 2:56pm | ls69142

uhhh

wrong

22 July 22, 2008 - 2:37pm | nikkic

great idea

I think this payout will help alot of Alaskans a great deal who are struggling due to the policies of the current federal government. The price of fuel, heat, food and everything else is going up while wages remain unchanged or are going down. Also, if you have kids, I can guarantee that the fuel increases are greater than for those people who do not have children.

21 July 22, 2008 - 2:34pm | dennisj

TAXES

Why didn't the study include the effects of income taxes on the value of the $1200 assistance if it's just given to everybody as a check instead of energy assistance that is not income to the individuals.

July 22, 2008 - 2:45pm | ruralalaskan

I wish...

With our current tax system, it would be reportable income, no matter how they tried to give it to an individual. They could give it to us in beaver pelts, and it would still be taxable by the feds.

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How far would those $1,200 checks go in covering increased fuel prices?