This content was fueled by the American Gas Association.
A continuation of last year’s “La Niña” weather pattern means Americans may face another colder-than-average winter heating season this year. Cold weather can mean increased energy consumption for the average American household as families turn up the heat and prepare comforting meals to stay warm. Despite the chill, natural gas remains the most cost-effective option for home heating and cooking according to the U.S. Energy Information Administration.
The choices families make when heating their homes matter more than ever, with utility bills and reliability front of mind during a cold winter. Today, 75% of adults view natural gas as the most reliable source of home heating. While electricity and other heating fuels may face higher costs this year, natural gas bills are expected to be 8% lower this winter than the prices consumers faced during the similar weather of the 2022-2023 winter season, according to the American Gas Association.
Natural gas expenditures make up just 1.1% of all annual household expenses for the average American household, according to the Bureau of Labor Statistics and the Energy Information Administration. The average family will pay $867 a year for natural gas, three times less than what they’ll need to budget for gasoline ($2,449), half of expected electricity bills ($1,763), and less than cell phone service ($1,270).
Energy efficiency has reduced natural gas consumption per customer through natural gas utility programs and other measures that lead to tighter buildings and improved appliances, according to AGA. Efficiency lowers customer bills and enables utilities to meet the needs of a growing customer base by serving more homes with less energy each year. While electric bills have remained roughly flat over time when adjusted for inflation, households that heat with natural gas have seen their costs decline.
Energy demand is growing due to the reshoring of manufacturing and the increasing use of new technologies, including data centers, and accelerated customer growth. Simultaneously, concern about rising electricity prices has sparked a public discourse around the cost of utility bills. Fortunately, the increased demand for natural gas has been met by increased supply, energy efficiency gains, and robust domestic pipeline and storage infrastructure, which have allowed the industry to keep pace with growth and set the stage for continued affordability and reliability for American consumers this winter.
As cold weather approaches, natural gas drilling is up 22% compared to year-ago levels, according to Baker Hughes, and working inventories for U.S. natural gas storage are above the five-year average, according to the U.S. Energy Information Administration. This signals that U.S. natural gas supplies are in a strong position for the winter heating season.
The key value of the natural gas system is its ability to deliver vast sums of energy to meet seasonal and peak demands. Today, the U.S. natural gas system delivers nearly four times more energy on the coldest day than the electric system does during its peak. Moreover, natural gas utilities have over a century of experience undertaking operational planning and preparation for extreme or emergency conditions.
To prepare for severe winter events and ensure consumer energy reliability, natural gas utilities often acquire a significant portion of their natural gas months in advance, utilizing physical and financial mechanisms, including natural gas storage, to help ensure reliability. Since supply and demand can be unpredictable, utilities work to limit their customers’ exposure to sharp increases in natural gas prices while providing cost-effective energy services.
Despite this and the comparatively low prices of U.S. natural gas compared to other heating sources, some customers may still struggle to pay their natural gas bills this winter. In states in the northeast, government policies have prevented development of natural gas infrastructure, forcing a reliance on liquid natural gas imports instead of pipelines. In some instances, state policies have contributed to increasing costs or added taxes to natural gas bills.
Whether a family lives in one of these jurisdictions or a jurisdiction that is focused on ensuring customers have access to affordable energy, cold weather can take its toll on winter bills. “Natural gas utilities are part of the communities they serve and work hard every day to put customers first, ensuring they have the energy they need when they need it most,” said AGA President and CEO Karen Harbert. “Several energy assistance programs are available – including weatherization assistance to make sure your house is winter ready.”
Natural gas utilities offer and participate in a multitude of energy assistance programs to help customers in need. The Low Income Home Energy Assistance Program (LIHEAP) provides energy cost and weatherization assistance to low-income households with federal funding administered at the state and local level. Additionally, utilities may offer budget billing, weatherization assistance, payment plans, or prohibit service disconnections during the winter heating season.
“The natural gas industry puts our customers and communities first, and we are proud to be the most affordable source of energy for American families,” said Harbert. “In the natural gas industry, we plan all year long for extreme challenges to our system because quite simply our customers come first.”
About the American Gas Association
The American Gas Association represents more than 200 local energy companies committed to the safe and reliable delivery of clean natural gas to more than 74 million customers throughout the nation.
