$20K in LIHEAP funds held by oil company

AREA — More than 100 customers who qualify for LIHEAP, a federal program designed to help struggling families to heat their homes, did not receive more than $21,000 in heating oil that had been paid for by the federal government, according to a statement from Maine State Housing Authority (MSHA).

"It's a horrible experience for a LIHEAP recipient to go through, particularly because federal rules prohibit MaineHousing from paying the same benefit twice," said Deb Turcotte, a spokesperson for MSHA.

A total of 106 customers were initially left in the lurch by J&W Oil, a struggling West Paris heating oil company.

"LIHEAP benefits of $21,618 are left over from last year on recipients' accounts," said Turcotte.

Of those, 62 accounts from last winter, and eight accounts from the year before remain unpaid. The remaining accounts were for amounts of less than $25, and so are not being pursued, said Turcotte.

As a result, J&W has been cut from the LIHEAP program, and is working with MSHA to pay back the LIHEAP funds.

"J&W and its attorney are in communication with MaineHousing, as the business diligently works to liquidate assets in order to pay back the LIHEAP funds, as well as make good to prepaid customers," said Turcotte.

Working single mother Tove Westleigh, a resident of Oxford with small children, brought attention to the issue when she couldn't get $800 worth of heating oil delivered for her home.

In all, MSHA works with more than 400 fuel vendors across the state.

"In any given year, some oil dealers will close or choose to no longer work with LIHEAP," said Turcotte. "They do this successfully without leaving clients in suspense about their benefits."

Last year, said Turcotte, nine oil dealers were closed out, with LIHEAP benefits successfully transferred to other dealers.

MaineHousing has recently implemented a new process designed to prevent oil dealers from leaving LIHEAP recipients without heating oil that has been paid for.

Dealers that are suspected of having problems are subject to an assessment; if there is cause for concern, they may be placed on a watch-list, which means that they are only paid post-delivery.