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NEADA Forecasts 7.6% Jump in U.S. Winter Heating Costs, Led by Electricity

NEADA points to grid upgrade costs, pricier natural gas and data-center demand as the main drivers.

Overview

  • Average household spending to heat homes is projected to rise to $976 for the 2025–2026 season, with electric heating up 10.2% to $1,205 and natural gas up 8.4% to $693.
  • Costs diverge by fuel, as heating oil and propane users are expected to see declines of about 4% and 5%, respectively.
  • Regional gaps are wide for electric heating, with increases estimated at 21.4% in the South, 19.7% in the Midwest and 18% in the West, compared with roughly 7.2% in the Northeast.
  • NEADA projects the Northeast’s overall winter heating costs will climb about 8.1%, and New York households using natural gas could pay roughly $70 more than last winter ($867 to $936).
  • NEADA warns low-income households face the toughest pressure, noting utility arrearages rose about 31% to $23.0 billion through June 2025 as electricity prices ran 6.2% higher year over year in August.