Winter Heating Costs Set to Rise Sharply Across the U.S.
This winter, millions of Americans may face a chilling surprise in their energy bills. The cost of keeping homes warm is expected to climb by an average of 7.6%, reaching about $976 per household, according to new estimates from the National Energy Assistance Directors Association (NEADA). Rising electricity and natural gas prices, combined with forecasts for a colder winter, are driving the increase.
For many families, the timing couldn’t be worse. Households are still recovering from high summer electricity bills and ongoing financial pressure from elevated grocery, healthcare, and everyday costs. Adding to the challenge, federal funding to help families cover heating bills remains unchanged, despite growing demand for assistance.
Who Will Be Hit Hardest
The impact of higher heating costs depends largely on how families heat their homes and where they live:
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Electric heating households: Around 56 million U.S. homes rely on electric heat, and they will feel the sharpest increase. Bills are expected to soar 10.2% to an average of $1,205. Southern states, in particular, could see increases of more than 21%.
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Natural gas users: Roughly 60 million households that use natural gas may face an average 8.4% hike, with winter bills rising to about $693. Midwestern families could see even steeper increases — nearly 16.4% higher than last year.
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Heating oil and propane users: About 11 million households could see a small break. Heating oil costs are projected to fall 4% to $1,455, while propane prices may dip 5% to $1,250.
Why Prices Are Climbing
More than 100 utility companies across the country have already raised rates or plan to in the coming year, affecting tens of millions of customers. Electricity costs are being pushed higher by:
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Growing demand from AI data centers.
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The need to upgrade and modernize aging grid infrastructure.
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Rising natural gas prices used in power generation.
Since 2021, electricity costs have surged 31% and natural gas prices nearly 27%, creating what experts call a “new normal” of higher household energy expenses.
Limited Relief for Struggling Families
The Low-Income Home Energy Assistance Program (LIHEAP) — the main source of federal aid to help households with energy bills — has seen its funding stagnate at about $4 billion annually for the past two years. With no proposed increase in sight, many states are reducing outreach, fearing they won’t have enough funds to meet demand.
In cities like Philadelphia, community groups report being overwhelmed by families seeking help. “We’re busier than ever,” said Charles Lanier, who leads the Hunting Park Neighborhood Advisory Committee. “Many families are already hundreds or thousands of dollars behind on their utility bills, and they’re struggling to keep up.”
In Delaware, officials expect a wave of requests this winter after demand spiked over the summer. “We’re bracing for a flood of applications,” said Sofya Mirvis, COO of the Energy Coordinating Agency, which helps run the state’s LIHEAP program.
👉 This winter, while some households may see slight relief with heating oil or propane, most Americans — especially those relying on electricity and natural gas — should prepare for significantly higher bills. With limited federal aid and soaring utility rates, energy affordability is set to remain a pressing challenge across the country.