More bad news for Americans battling higher prices: Winter heating bills are about to rise

By Tami Luhby, CNN

(CNN) — This year’s winter heating bills may send a shiver down many Americans’ spine.

The cost of staying warm at home is expected to jump an average of 7.6%, to $976 this season, according to a new estimate from the National Energy Assistance Directors Association. The spike stems from increases in electricity and natural gas prices, as well as a forecast for a somewhat colder winter.

The projection comes as many consumers are still feeling the squeeze from pricier summer electric bills, as well as continued higher costs for groceries, health insurance and other essentials. At the same time, the amount of federal assistance available to help people cover their utility bills is expected to remain flat.

Just how much more Americans will have to pay this winter depends greatly on how they heat their home and where they live, according to the association.

Those who use electric heat will really feel the burn, since electricity prices are rising at twice the rate of inflation. These consumers will likely see their bills soar an average of 10.2%, to $1,205 this winter. Some 56 million households heat with electricity — many of whom live in the South, which is expected to see a spike of more than 21% for this type of heating.

Meanwhile, the roughly 60 million households who heat their homes with natural gas are projected to pay an additional 8.4%, on average, leaving them with a $693 tab. Midwesterners could see a 16.4% hike, to $698, on average.

More than 100 gas and electric utility companies have raised their rates or are proposing to do so for this year or next year, according to a recent report from the left-leaning Center for American Progress. This would affect about 81 million electric utility customers and roughly 28 million natural gas utility customers. Electricity prices are climbing because of increased demand from AI data centers and the need to upgrade grid infrastructure, among other factors.

Prior to 2021, winter heating costs were relatively stable, said Mark Wolfe, the association’s executive director. But since then, prices have spiked for electric and natural gas users by 31% and nearly 27%, respectively, with more rate increases on the horizon.

“Customers should be prepared for this being a new normal,” he said.

But those who use heating oil or propane, which together totals more than 11 million households, will likely catch a break this winter.

The cost of heating oil is expected to decline an average of 4%, to $1,455, while propane will likely drop 5%, to $1,250.

Less help available

The increase in winter heating — and summer cooling — costs comes as Congress has kept funding for federal assistance for utility bills flat at about $4 million for the past two years. Lawmakers are proposing roughly the same amount for the coming fiscal year, which starts October 1.

This divergence has prompted some states to pull back on their marketing for the Low-Income Home Energy Assistance Program, known as LIHEAP, Wolfe said.

“What I’ve seen is much less outreach going on because they don’t have enough money to serve the population that’s coming in,” he said. “If they get more people, they have to cut grants. That’s the tension going on.”

In Philadelphia, more residents are asking for help with their utility bills, said Charles Lanier, executive director of the Hunting Park Neighborhood Advisory Committee, which connects low- and moderate-income clients with energy assistance and other services. Many are struggling to afford food and other costs, and a growing number are unemployed.

“We’re busier than ever,” Lanier said, noting that many folks are hundreds — or even thousands — of dollars behind on their utility bills.

Delaware’s LIHEAP program is also bracing for a flood of requests for assistance this winter after a seeing higher-than expected need this summer, said Sofya Mirvis, chief operating officer for the Energy Coordinating Agency, a nonprofit organization that administers the state’s program.

“We are already hundreds of applications in, and the season hasn’t even started yet,” Mirvis said.

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