Home heating costs: Going up, up and up?

Energy experts cite expected increase

Oct. 19, 2022

Take your pick—10 percent, 17 percent or even 28 percent.

Whichever you choose, one thing is certain: home heating costs are already on the rise across the U.S. with expectations of a blustery winter.

The U.S. Energy Information Administration (EIA) in its 2022-23 Winter Fuels Outlook anticipates consumers could be paying anywhere from five percent to 28 percent more for heat, depending on where they live.

“Cold weather raises the amount of energy required to keep a house at a specific temperature,” notes the EIA. “Because cold weather raises demand and could cause supply disruptions, it can cause energy prices to rise, which could be more severe during a time of low-fuel inventories.”

In an Oct. 8 national news segment that cited Michigan experiencing its first snowfall of the season, Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), shared several factors contribute to the uptick.

“It was a very hot summer, so electric companies drew down on supplies of natural gas,” explained Wolfe. “On top of that, the OPEC countries decided to reduce the supply.”

The NEADA projects that families could pay 17.2 percent more for home heating costs this winter, making it increasingly unaffordable for millions of lower-income families.

Supply and demand are creating the perfect winter storm in which a cold winter will provide additional challenges on constrained energy supplies.

“No one wants heating supply interrupted when they need it the most,” said Kate Houchard, CMRP, Enbridge’s new area manager in the Great Lakes region.

“Thankfully, the Line 5 pipeline remains a reliable source of energy, and we intend to keep it that way by placing it in a tunnel below the lakebed in the Straits.”

More than 55 percent of Michigan and 65 percent of the Upper Peninsula rely on propane produced from Line 5 for home heat.

“With Enbridge’s plans to construct the Great Lakes Tunnel to house a replacement section of Line 5, we will enhance safety and environmental protections,” said Houchard.

“Equally important, Michiganders and the region can continue to receive the essential heat and energy on which they rely.”