As significant rate hikes at Huntsville Utilities go into effect, many customers receiving payment assistance were also hit with a $100 surcharge.
In a customer letter circulating online, the power company was quick to blame President Donald Trump for the $100 debit that will appear on some customers' bills. While it's true that a recent executive order pausing $1 million in federal funding for the Low-Income Home Energy Assistance Program led to the charge, Alabama Department of Economic and Community Affairs (ADECA) spokesman Mark Presley said that is only a small portion of the program's funding and everyone needing assistance will still get it.
"Only a small portion of the federal funds allocated to Alabama for the Low-Income Home Energy Assistance Program (LIHEAP) are currently paused by an executive order signed by President Trump," Presley said in a statement to 1819 News. "The state received $53 million from the U.S. Department of Health and Human Services for fiscal year 2025 as part of the regular yearly allocation for the LIHEAP program. Community action agencies are currently providing emergency assistance with home heating bills to eligible households through that funding, which can range from $280-$550. There is no pause in that funding."
He continued, "The state also received a much smaller $1 million allocation for the LIHEAP program from the Infrastructure Investment and Jobs Act (IIJA) for fiscal year 2025. Under the IIJA, eligible households that receive heating assistance from the regular LIHEAP program funds also receive a supplemental award of $100 from these IIJA funds to help with home heating costs until the IIJA funds are depleted. This supplemental funding is currently paused due to President Trump's executive order titled Unleashing American Energy, and that is what is addressed in the letter from Huntsville Utilities. That executive order was separate from the memo about the overall federal funding freeze and covered energy-related funds from the IIJA, including these LIHEAP funds. ADECA is awaiting further guidance from federal agencies on how to proceed."
Huntsville Utilities reported that construction project costs had risen 30-40% since former President Joe Biden took office in 2020. To remedy this, a rate increase of 5.1% was approved last October to be spread out over 2025. In January, rates jumped 3.9%.
To connect with the story's author or comment, email daniel.taylor@1819news.com or find him on X and Facebook.
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