Heating costs expected to rise this winter, experts say. Here are ways to save.

How to lower utility bills amid expected rise in costs this winter

Karissa Nguyen says she feels the squeeze of higher energy costs every winter, and this year will be no different.

"Our house isn't bigger, nothing has shifted, and the price still keeps going up," said Nguyen.

The National Energy Assistance Directors Association expects winter average costs for gas heat to increase by 16% and 20% for electricity. Mark Wolfe is the group's executive director. 

"Electricity is going up because, one, they use natural gas to create electricity," said Wolfe. "Then also, many utilities are rebuilding the grid. That's the wires and the poles that get the electricity to your home. It's very expensive. Then, of course, data centers are using a lot of electricity."

Minnesota's largest energy supplier, Xcel Energy, is currently seeking approval for a new round of rate increases. Under the proposed plan, Xcel is asking for a 9.6% increase in 2025, followed by a 3.6% hike in 2026.

With energy demand and costs continuing to rise, households are looking for practical ways to save.

"The first thing I'd do is tune up your furnace. The second is to close the flue in your fireplace. That's like having an open window. It just pulls heat out of the house. The third thing I think is what people often don't realize. Every one degree you can turn down your furnace at night saves you up to 2% on your energy bill," said Wolfe.

For Nguyen and her family, heating is one cost that's impossible to avoid.

"We live in Minnesota. It's freezing. We have to keep the heat on, so just biting that bullet and just living with it. Kind of sucks," said Nguyen.

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