Heating Costs Expected to Increase this Winter
According to an October 13 NBC news story, utility companies are already raising rates across the country, and are expected to raise them more this winter than usual. This is causing consumers and the assistance programs many rely on to prepare for a costly winter:
- Residents are going into debt to pay their bills, speaking out at community forums and overwhelming relief organizations with applications.
- Advocacy groups are sharing energy conservation tips, appealing to donors and challenging rate hikes in court.
The next few months will determine how far such efforts can go in helping customers make it through the winter.
How Much More will it Cost to Heat Your Home?
If you use:
- Natural gas: 28 percent
- Heating oil: 27 percent
- Electricity: 10 percent
- Propane: 5 percent
A representative for Appalachian Power said the monthly bill for the average residential customer in Virginia using 1,000 kilowatt-hours will go from $123.33 to about $157.00 by the end of December.
About 60% of the regional hike is related to higher fuel costs, the representative said.
While heating source vary across the U.S., customers’ energy costs are rising in many places.
What Duke Energy Customers can Expect
Duke Energy customers in Indiana recently saw a 7 percent hike after a temporary 16 percent increase this summer.
Most utility companies point out that they don’t profit directly from selling energy itself, and many cite the same factors in seeking rate hikes:
- revenue lost during the pandemic
- inflation raising the cost of materials and infrastructure and
- the war in Ukraine squeezing energy markets around the world
In early October, the OPEC+ alliance cut oil production by 2 million barrels per day, adding to the problem.
Some 17 percent of U.S. households have either missed a utility bill or paid it late, a Bank of America/CivicScience survey found in September. The share jumped to 25 percent among households earning less than $50,000 a year.
And according to the National Energy Assistance Directors Association, which represents state directors of the Low Income Home Energy Assistance Program, known as LIHEAP, the bottom 20 percent of U.S. earners are already set to spend more than 23 percent of their incomes on this year’s energy bills — up from 21 percent in 2020.
Overall, this group forecasts residential heating costs will be higher this winter than in any year since 2013.
What can You do About it?
The Department of Energy recommends treating the whole house’s energy components as an interdependent system including
- insulation,
- air sealing,
- appliances and
- other elements that cut energy use and enhance comfort.
Check with your local government to see if you can take advantage of subsidies for upgrades.
If redesigning your home heating and cooling system isn’t an option, Energy.gov has several other tips for reducing your energy bills, shared by NEWSNATION:
- Keep your thermostat as low as is comfortable and even lower while sleeping or when gone
- Clean/replace furnace air filters per the furnace manufacturer’s suggestions
- Clean registers, radiators and baseboard heaters to keep them open
- Eliminate trapped air from hot-water radiators. If you are not sure how to do this, there are a number of Cincinnati HVAC contractors