Midwest homeowners with electric heat may see a chilling 20% increase in bill
For those who like to crank the thermostat up during the winter, a new report showing data for the Midwest and other parts of the country says you should be prepared for a much higher price tag this season if you have electric heat.
Friday's report from the National Energy Assistance Directors Association says that on average, heating costs will increase by more than 7.5% from last winter across the country, from $907 to $976. However, officials with NEADA say homeowners with electric heat are expected to see an even higher increase.
The average price last winter was $1,093, and this year, NEADA projects that same average cost to be $1,205. That's an increase of $112, or 10.2%.
The association says electrical bill increases are due to the construction of large data centers, the rising cost of natural gas as well as maintaining and upgrading the electrical grid.
The report went on to break down estimated winter heating costs by region by using regional temperature and price projections. In the Midwest, electric heat users on average spent $1,251 last winter, according to the report, which projects this winter to cost $1,498. That's an increase of $246, or nearly 20%.
Meanwhile, natural gas users in the Midwest should see an average increase of $99, while propane users should see an increase of about $5. Those are increases of 16.4% and 0.5% from last winter, respectively.
Since the winter of 2021-2022, NEADA says the average winter heating cost has risen by 31% for electric users and 26.5% for those who use natural gas.
According to NEADA, roughly 21 million households are behind on energy bills. Nationally, 3 million homes had their energy shut off in 2023, and another 3.5 million followed suit in 2024. This year, that number could reach 4 million.
In Minnesota, a state law known as the Cold Weather Rule prevents utility services from being shut off from Oct. 1 to April 30, while the Extreme Heat Law makes sure electricity isn't turned off when temperatures reach excessive heat levels. However, to make sure your service isn't disconnected, a payment plan must be made and agreed upon by the user and the utility company. A payment plan can be set up at any time during the Cold Weather Rule season.
Note: The above video first aired on Sept. 15.