The Energy Information Administration’s (EIA) Winter Fuels Outlook predicts steady heating costs for most US households due to colder temperatures and stable gas prices. This rising demand should help balance the impact of lower gas prices on revenues for Natural Gas providers.
Heating expenditures in the Midwest are expected to rise by 11% for gas and 6% for electric heating, driven by a return to normal temperatures after an unusually warm winter. The EIA forecasts a 1% increase in gas heating costs overall, with declines in the South and West. Gas utilities are dealing with lower revenues from reduced consumption, but low gas prices and rising demand at LNG terminals may balance out costs. Electric heating costs are expected to increase by 2%, with the Midwest seeing the highest rise.
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