BATH, UNITED KINGDOM – FEBRUARY 28: Electrical pylons carry electricity cables across fields on February 28, 2023 near Bath, England. (Photo by Matt Cardy/Getty Images)
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If you thought your utility bills last winter were bad, they could be even worse this coming winter. Electricity costs have risen by an average of 6.5% nationwide since last year, according to the U.S. Energy Information Administration. If you live in New York, your rates have risen by 13%, while folks in Louisiana have seen an increase of over 14%. In fact, 13 states across the country have seen electricity rates rise by more than 10% in the last year, and those rates are expected to continue to rise through at least 2026. Last year, the story of skyrocketing energy bills pointed to cold temperatures and rising natural gas prices as the culprit; the story this year is that it won’t have to be as cold for your bills to be as high, because the prices are simply higher this year than last. That also means that another cold winter could bring significant price shocks, exceeding those of last winter.
The news is not all bad, according to the EIA we have been able to restore our natural gas storage levels to the five-year average. High natural gas prices last year were driven by cold temperatures depleting our storage levels, and there were concerns we would not be able to restore it for this winter, but with record natural gas production levels, we have. Natural gas provides the fuel that generates 40% of our electricity. If we don’t experience the cold temperatures we had last year, natural gas prices are not expected to return to those levels this winter. With the unpredictable weather patterns that come with climate change, anything is possible when it comes to that.
Other factors could have an impact on natural gas prices this winter as well. Record liquified natural gas exports could put a strain on domestic supplies. Another reason we were able to restore inventory levels this summer is that multiple LNG terminals were undergoing maintenance, which caused our exports to drop significantly during the critical summer months when we want to build that inventory of gas. Those record exports will be happening again this winter when prices are the most volatile. LNG exports this year are up by 22% over last year, according to the commodities intelligence firm Kpler.
Prepare Yourself
In the spring, I gave you some tips on how to prepare your home for summer weather, so it only made sense to do the same for winter. If you live in the south, you may think you don’t need to do some of these things, and that’s understandable. I will remind you that places in Florida last winter had nearly ten inches of snow in a day.
· Inspect your furnace or heat pump; this should be done every fall. Replace filters if necessary.
· Make sure you check your safety devices, like carbon monoxide detectors and smoke alarms.
· Check the weatherstripping on your windows and doors or use caulk to seal leaks. You can also use curtains or window film to slow down air flow.
· If you can add insulation to attics or walls, especially attics, as they are a massive source of energy loss.
· If you have a fireplace, you might have your chimney swept if needed.
· Insulate any exposed water pipes
· If you have a generator, you may consider having it checked, or if you can get one.
· Make sure you have plenty of batteries and flashlights.
· Keep blankets, water, and non-perishable food handy.
· Clean your gutters; this will prevent ice buildup.
Some of you are thinking that this seems early, but it’s not. Time is going to fly by, and it will be forgotten about, at least that’s what happens at my house. With energy prices rising as they are, it’s more important than ever to find ways to save.