By TUX TURKEL

Staff Writer

Record high oil prices and a desire to be prepared for potential fuel shortages this winter are prompting the state government to develop an energy emergency management plan.

Gov. John Baldacci said Friday that he is setting up an energy task force to help coordinate state resources.

Fuel shortages or price spikes during the heating season could lead Baldacci to declare energy emergencies and take steps needed to protect public welfare, such as opening shelters and monitoring price gouging.

In summarizing his plan, Baldacci sought a balance between promising action and recognizing state government's limited ability to influence global markets. "While there are a number of things we can do, we cannot solve our country's dependence on foreign oil ourselves," he said.

A propane shortage last winter, caused largely by a railroad strike in Canada, caught Maine off guard and forced dealers to ration deliveries. That led Baldacci to ask members of his administration, including John Kerry, the state's energy director, to meet this summer with oil dealers, terminal operators and other officials who could play key roles during a fuel emergency. Kerry will lead the new task force.

The state is making other efforts to ease the burden of high fuel prices this winter. Among them:

n The Public Utilities Commission is releasing an additional $400,000 for weatherization and efficiency measures for low-income homeowners.

n The Keep ME Warm program is providing kits that include efficient light bulbs, weather stripping and window insulation through Community Action Programs.

n Every Friday for six weeks, starting with the Friday after Thanksgiving, residents will be able to ride many local bus lines for free. The goal is to encourage greater use of mass transit.

n An unspecified number of gas stations will begin selling fuel blended with 10 percent ethanol. Ethanol is available in Massachusetts and southern New Hampshire. State taxes aside, the fuel's wholesale price is now 11 cents a gallon cheaper than that of the winter gasoline sold in Maine, according to the Maine Oil Dealers Association.

Baldacci also asked Maine's congressional delegation to keep pushing for increased federal funding from the Low-Income Home Energy Assistance Program.

In a related development, Sen. Olympia Snowe, R-Maine, said Friday that she had asked the federal Office of Management and Budget to immediately release $20 million that remains in emergency funds.

Last year, the program gave more than 46,000 households an average benefit of $588. The need is greater now, and legislative leaders said this week that it's likely the state will have to supplement the federal money.

But state government can't do much to get at the core of the energy crisis in Maine -- high heating oil prices. The statewide average price for heating oil hit $3.11 a gallon last week, 92 cents higher than at the same time last year. Kerosene rose to $3.51.

Eight of every 10 Mainers heat their homes with oil or kerosene. They consume roughly 427 million gallons a year, according to the latest information compiled by the state energy office. By comparison, propane, natural gas, wood and electricity each accounted for less than 6 percent of the state's home heating fuel in 2003, the most recent year for which data is available.

"Most of the problem with high prices is something we can't adjust," said Jamie Py, executive director of the 250-member oil dealers group.

Dealers are dreading a winter in which many customers will have trouble paying their bills and filling their tanks, Py said. Dealers already offer payment plans and expect to lose money in hardship cases.

"But there's only so far they can go and stay in business," he said.

State laws and rules give consumers and oil dealers specific rights regarding delivery and prices.

In the face of a potential supply shortage, the governor can declare an "abnormal market disruption." That makes price gouging illegal. He also can act during a spike in prices.

Dealers also have protections. They can, under certain circumstances, charge extra for unscheduled deliveries, as long as they divulge the amount and the reason. They also can charge a $5 penalty when an order doesn't fill at least 50 percent of the tank or 100 gallons, whichever is less.

In preparing for an energy emergency, officials are trying to get a better understanding of the state's petroleum supply chain and maintain communication with suppliers. Those contacts proved critical last year, when officials realized that as much as 70 percent of Maine's propane supply came by rail from Canada. Communication is especially important for keeping tabs on heating oil delivery, which is vulnerable to weather and shipping disruptions.

A major terminal operator who met with Kerry said his company fills its oil tanks before winter and tops them off as demand dictates.

Andy Lynch, a spokesman for Sprague Energy, said the company's terminal in South Portland can hold 46 million gallons of heating oil and kerosene, and 40,000 gallons of pure biofuel, which is blended for bioheat.

A typical barge shipment of heating oil is between four and nine million gallons. For competitive reasons, Lynch declined to say how many days' supply the terminal keeps in storage. He said the facility is well supplied.

"We are more than willing to work with the government in any way," he said.

Kerry said such partnerships will be critical in an emergency, and in helping the government anticipate possible problems. "We're trying to do everything in our power to make sure no one goes without heat."