The credit union then decided to create a loan designed just for members who wanted to install alternative sources of heat. The loan has a $3,500 limit at 5% for three years. The loan can only be used to install alternative heating, such as pellet stoves, wood boilers and enhancements to heating services because, as Hensler said, they did not want members paying off fuel costs for three years. The County FCU has since expanded the loan to be used for other energy sources such as mini-windmills and solar panels.

"A lot of members have already made purchases with the loan and have had their units installed, so the volume is starting to slow down," Hensler said.

The County FCU still offers its $2,000 maximum fuel assistance loan for members who need a loan just to pay for heating costs.

Originally Hensler said the credit union planned to cap its fuel assistance loan portfolio at $150,000, but the credit union saw that it was closing in on the cap too fast and increased the cap to $250,000. Right now Hensler said that their portfolio is at approximately $220,000.

"The fuel assistance loan and alternative heating loan were offered to members and nonmembers and one of the things I was very impressed by was the amount of new members the program brought in to the credit union," Hensler said.

Personal Care America Federal Credit Union in Trumbull, Conn., has taken a slightly different approach from offering members assistance in the form of a loan. At the end of August, the credit union implemented what it calls the home energy liquidity plan. The plan offers members an option to take out a loan to help pay for heating costs and the option to open a savings account and develop a savings plan. The savings account will earn a dividend rate one percentage point higher than the traditional 12-month share certificate.

President/CEO John Keet said the credit union surveyed local oil programs to help members protect costs and develop a plan to put a certain amount of money aside a month into their H.E.L.P savings account. Keet said that they are also planning on sending out notifications and letters to members with H.E.L.P savings accounts letting them know if they are not saving enough based on calculations of projected heating costs.

"Our intent is to get folks to set up paying on a budget and keep members away from borrowing money with credit cards and payday lending to gain the benefit of saving and paying as the bills come in," Keet said.

The savings account is strictly for use of energy costs, Keet explained. Members must provide proof of energy use in order to deduct funds from the account.

"Unfortunately, I don't see these high prices as a temporary thing," Keet said. "This plan shows that we're expecting to help out our members for the long haul. Personally, I paid $2.25 a gallon for oil in 2007, and now I'm at $4.20. Even someone budgeting on a regular basis is coming up short."

Taconnet Federal Credit Union in Winslow started offering an oil heating loan in June of 2006 due to the increasing price of oil. The loan at that time was for $2,500 for one year at a 5% rate. However, the credit union has also increased the limit because of the continued increase in oil prices for this year. Taconnet is now offering the loan with a $4,000 maximum for one year at 5%.

Lisa Lachance, a loan officer at Taconnet, said that when it increased the maximum on the oil heating loan this year it had members coming in wanting to use the loan to purchase pellet stoves and pellets as well.

"We have probably done about 12 loans this year, and our branch office in Skowhegan has done two," Lachance said. "I'm not sure if you saved any money this year by booking in with an oil company, because the prices have come down since June and July, but who knows; they will probably go back up. Some of our members just wanted to feel safe knowing they have their oil for the winter."

Sebasticook Valley Federal Credit Union in Pittsfield expanded its 0% energy loan program last year. They first offered the 0% APR financing loan for $2,000, payable over a 12-month term, but this year the CU upped the loan maximum to $3,000.

"We wanted to make the loan more attractive and $2,000 just doesn't go very far when it comes to heating your home now," said Kelley Carter, vice president of operations at Sebasticook.

In Massachusetts, Fitchburg Federal Credit Union started offering a heating loan for up to $2,500 with a rate set at 5% to be paid by Sept. 30, 2009 that can be used for any source of heat. President/CEO Barbara Goodwin said that so far the credit union has received a good response and members are applying for it just in case.

After seeing a study that Massachusetts consumers could expect to spend $4.45 billion for gas and oil heat in 2009, a $469 million increase over 2008, Leominster Credit Union in Leominster, Mass., also decided to offer special low-interest heating loans to members.

John Murphy, president of the Maine Credit Union League, said that Maine credit unions have always offered an energy-assistance type loan. According to the league, this year about two-thirds of the state's credit unions are offering low- or no-interest loans to help members heat their homes.

"Credit unions take a great deal of pride in saying that they will lend for any worthwhile purpose, and there is no more worthwhile purpose than to keep your family warm," Murphy said. "We've been in tough economic times before but now the economy and the high cost of heating has created the perfect storm."

[email protected]