US Heating Bills Expected To Spike Nationwide As Gas, Electricity Costs Continue To March Higher
As Americans brave a brutal cold snap, households are facing higher heating bills this summer.
According to a report released last week by the National Energy Assistance Directors Association (NEADA), heating prices are expected to rise by 9.2% in the 2025-2026 winter vs. one year ago.
According to the NEADA analysis, electricity costs are expected to rise $12.2%, or $133 this winter, while gas prices are projected to rise 8.4% or $54. Heating oil costs are expected to remain flat, while propane should be down 1.4%, or $18 this winter.
Several factors are at play pushing retail electricity prices higher.
“Higher interest rates have increased the cost of financing power plants and transmission projects. Rising natural gas prices are pushing up electricity generation costs. At the same time, electricity demand is growing rapidly, driven in part by the expansion of data centers,” reads the report cited by Fox Business.
“Aging grid infrastructure and regional capacity constraints are adding further system costs,” the report continues. “In addition, reduced federal incentives for renewable energy have slowed new clean energy investment.”
NEADA notes that more than 210 electric and natural gas utilities have either raise rates or proposed to do so within the next two years, which amounts to roughly $85.5 billion – and continues a trend seen in recent years of average monthly residential electricity bills rising faster than average inflation.
Low and moderate-income households are of course hit the worst, as they spend between 6% and 10% of their income on energy, roughly 3-5x what higher-income households pay.
Additionally, about one-in-six households are behind on utility bills, with Americans collectively owing about $23 billion to electric and gas utilities. NEADA estimates that up to 4 million households faced utility disconnections last year, an increase of about 500,000 from 2024. -Fox Business
According to the NEADA report, “Even modest rate increases can force families to choose between paying utility bills and covering essentials such as food, rent or medicine.”
h/t Capital.news
Tyler Durden Thu, 01/29/2026 – 08:20
Source: https://freedombunker.com/2026/01/29/us-heating-bills-expected-to-spike-nationwide-as-gas-electricity-costs-continue-to-march-higher/
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