INDIANAPOLIS (AP) — Indiana has a record $106 million ready to help low-income residents pay their heating bills this winter as higher heating costs and a slumping economy are expected to make it an especially difficult season for many.

"Cold days are coming. High bills are coming," Gov. Mitch Daniels said Monday. "We want to make sure that Hoosiers are assisted."

The $106 million in aid includes $103.7 million in federal assistance — about double the $51.8 million basic grant received for last winter. The state also has $2.5 million remaining from a contingency fund last year.

The total amount of aid this heating season could increase if the federal government gives Indiana more contingency money or other funding, said Sherry Seiwert, executive director of the Indiana Housing and Community Development Authority, which oversees the state's Energy Assistance Program.

The aid could be especially important this winter since Vectren North, Citizens Gas and the Northern Indiana Public Service Co. all expect gas prices to be higher this season. Citizens, for example, told its 266,000 Indianapolis-area customers to expect to pay $939 for average use from November through March, compared to $781 they would have spent over the same five months last season.

Aid is available to those earning 150 percent of the federal poverty level, a sliding scale based on the number of people in a household. To qualify for the program, a family of four would have to earn $31,800 or less, while a single person would have to have an income of $15,600 or less.

Daniels said more people may qualify for the program this year because of the declining economy. Last winter, the program helped more than 159,000 residents.

The amount of aid for those who qualify is also expected to go up from about $320 last winter to about $360 per household this winter, Seiwert said.

That's not a lot of money compared to overall winter heating bills, but it's an improvement, said Ed Gerardot, executive director of the Indiana Community Action Association, a network of community agencies that process applications for the program.

"Last year, the average benefit covered utility costs for about a month," Gerardot said. "This will be a little bit better."

The aid is paid directly to the utility, acting as a credit on a household's account. A utility cannot shut off heat to people in the program from Dec. 1 through March 15, giving low-income residents extra security even if they cannot pay their bill.

Daniels is urging low-income residents to apply for energy assistance now — before cold weather strikes — by contacting their local community action agencies.

"We're encouraging Hoosiers who qualified last year or think they will qualify this year not to wait to come and make an application, establish their eligibility so that when cold weather and high bills get here, we're helping from day one," Daniels said.

Advocates say all Indiana consumers — not just those who qualify for government assistance programs — should start preparing now for higher bills this winter. That can mean getting homes ready for winter, reducing energy use or signing up for budget billing to spread the cost of heating over the entire year.

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For more information:

Toll-free number: 1800-872-0371

Energy Assistance Program: http://www.in.gov/ihcda/2523.htm

Indiana Community Action Association: www.incap.org