U.S. households face a colder December and higher heating bills this season. NEADA estimates average winter heating costs of about $995—roughly $84 more than last year—and warns heating costs could rise 9.2% over the next three months. Residential electricity prices are at decade highs and electric-heated homes may pay around $1,233 this winter versus about $704 for natural gas homes. NEADA estimates roughly 4 million households could be at risk of power shutoffs, citing rising demand from AI data centers and grid repair costs as additional price drivers.
Heating Bills Could Top $1,000 This Winter: Why Costs Are Rising and Who's Most At Risk
A power transmission line behind homes in a residential neighborhood in Columbus, Ohio, on Tuesday. (Brian Kaiser / Bloomberg via Getty Images)
As winter approaches, many U.S. households face a colder season and significantly higher home heating expenses. A new analysis from the National Energy Assistance Directors' Association (NEADA) warns that average household heating costs from mid-November through March could reach about $995—roughly $84 more than last winter.
Colder Forecast, Bigger Bills
The National Oceanic and Atmospheric Administration (NOAA) projects December's average temperature will be about 8% colder than the mean of the last 10 Decembers. Colder weather raises demand for heating, which directly increases monthly utility bills for most households.
Why Prices Are Rising
NEADA's report highlights several contributing factors:
- Higher Residential Electricity Prices: Residential electricity costs are at their highest levels in a decade, and the average monthly electric bill has already climbed about 10% this year.
- Fuel Mix Matters: Households that rely on electric heat face much steeper bills—NEADA projects average electric-heated winter costs of about $1,233, compared with roughly $704 for homes heated with natural gas.
- Growth In Electricity Demand: Rising demand from artificial-intelligence data centers has pushed up wholesale electricity prices in some regions. A Bloomberg analysis found wholesale rates near AI data centers have surged roughly 267% over the past five years.
- Aging Grid And Infrastructure Costs: Investment and maintenance to repair America's aging electric grid also add to consumer prices.
Who’s Vulnerable
NEADA cautions that many households are already struggling to keep up with utility bills. The group estimates about 4 million households could be at risk of power shutoffs this winter if costs continue to rise and assistance remains insufficient.
"Energy is not a luxury—it is a necessity," said Mark Wolfe, NEADA's executive director. "No family should lose power because they cannot afford rising utility bills."
Practical Steps For Consumers
Households worried about bills can consider practical strategies to lower costs and reduce risk of loss of service:
- Check eligibility for federal, state, and local energy assistance programs and apply early.
- Seal drafts, improve insulation, and use programmable thermostats to reduce heating needs.
- Compare rates and consider energy-efficiency upgrades or weatherization programs offered by utilities or community organizations.
- Contact your utility proactively if you expect difficulty paying to arrange payment plans or assistance to avoid disconnection.
While the colder forecast is a clear driver of higher heating expenses, the combination of elevated electricity prices, increased demand from new data centers, and infrastructure costs are amplifying the impact on consumers—particularly those who rely on electric heating.
This article was adapted from reporting originally published on NBCNews.com and summarizes findings from NEADA and NOAA, with supplemental analysis referenced from Bloomberg.
