Heating bills to rise this winter, natural gas supply to hit 13-year low

Household heating bills in the United States are expected to be higher this winter (October through March) compared to last winter, according to the U.S. Energy Information Administration. The bills are expected to rise as a result of higher prices for heating fuels. Natural gas, home heating oil and electricity bills are projected to increase 5%, 20% and 3%, respectively, while propane bills are expected to be flat this year.

Temperatures this winter are expected to be similar to last winter across most of the United States, with average heating degree days rising 1%, from last winter. The 2018-2019 winter is expected to be 1% colder than last winter, similar to the average for the previous 10 winters, according to the National Oceanic and Atmospheric Administration. The Midwest is the only region to have warmer weather this winter, and propane expenditures are expected to fall in the region, which primarily uses propane as a heating source.

In the South, electric heating is the most common heating source, and heating oil is more prevalent in the Northeast than other regions. Natural gas is the most common space heating fuel in every region except the South.

By the end of October, U.S. natural gas inventories are expected to be 3.3 trillion cubic feet, the lowest level for that time of the year since 2005, according to the EIA. Also, inventories of distillate fuel and propane are projected to be less than the five-year (2013-17) average in several regions. However, fuel supplies are expected to meet winter demand.