HEATING A HOME THIS WINTER MAY COST US ALL MORE THAN IN THE PAST

ATHENS, Tenn. – Indications are that energy prices are hitting multi-year highs and that it will cost all of us more to stay warm this winter than it has over past years.

The U.S. Energy Information Administration (EIA), in its October 2021 outlook report, said that households will likely spend more on energy this winter due to the global rise in prices for heating oil, natural gas and other fuels.

“Natural gas is a commodity we are seeing cost increases with already, so we urge our customers to be ready for a more costly winter,” said AUB’s Wayne Scarbrough.

He said that natural gas costs may be around 20 to 30 percent higher than in the past.

“We always know that utility costs for households rise in the winter as we all crank up the heat.  This winter, we advise everyone to be careful when turning up the thermostat because it looks like the cost to provide natural gas and electricity will rise.

“A portion of the electricity used in the Tennessee valley is created through the use of natural gas to run turbines connected to a generator that produces electric power.  Therefore, fuel costs from TVA are likely to rise,” Scarbrough said.

Government officials who keep an eye on energy pricing estimate that households could see their bills rise by up to 54 percent to keep their homes warm if the upcoming winter is "slightly colder than last year in much of the United States."

Nearly half of U.S. households that primarily heat with natural gas are predicted to spend, on average, 30 percent more than they did last year, the EIA report stated.

Scarbrough stressed that AUB isn’t raising base natural gas rates and doesn’t want to see people have to pay more.   The cost of fuel is simply rising and that factors into what we all must pay for the commodity.

“If winter is about 10 percent colder than average, the cost to keep a home as warm as you kept last winter could go up 50 percent.  But, if the coming winter season is 10 percent warmer than average, experts say the bill still will rise by some 22 percent,” Scarbrough said.

Either way, it looks as if heating your home will go up some this winter, so the best bet is to be prepared.

About 83 cents of every dollar that AUB’s power division collects go to TVA for wholesale power.