Gas Costs Seen Falling by 14%, Despite Overall Heating Bill Increases
A recent forecast by the American Gas Association (AGA) predicts that households heating with natural gas will spend about 14% less this winter, down to $497 from $794 for electricity. The projection is based on milder weather and lower gas costs.
The National Energy Assistance Directors Association (NEADA), however, projects a 5.8% increase in heating costs for households using natural gas, part of an overall 8.7% rise across all fuels, with the average winter heating bill reaching $1,030.
Jason Hayes, a senior research fellow at the Heritage Foundation, attributes the pressure on natural gas to a move away from coal-fired electricity and increased demand due to electrification, electric vehicles, and data centers. He also notes that federal policy favors natural gas development while many states restrict it.