An extended period of winter cold is exacerbating already surging heating costs across the United States, following nearly $31 billion in electric and gas rate increases requested by utilities last year -- roughly double the total requested in 2024.
Those rate increases could affect 81 million Americans, according to a new report from Powerlines, a nonprofit organization. Electricity prices have been climbing for years, rising nearly 40 since 2021, while piped natural gas prices increased by 11 last year, the report found.
According to the Powerlines report, electric and gas prices are now among the fastest-growing contributors to inflation.
While electricity and natural gas prices have been rising over the long term, demand has surged this winter due to intense and long-duration cold. A new AccuWeather analysis shows heating demand running 115 to 150 of historical averages across parts of the eastern and central U.S. affected by persistent cold and winter storms from Jan. 15 through Feb. 8.
"More than half of all Americans are likely to see elevated heating costs tied to this deep freeze. Furnaces and heat pumps have been running nearly nonstop to keep homes, apartments and businesses warm amid this bitter cold," AccuWeather chief meteorologist Jonathan Porter said. "Some people are dealing with sticker shock from heating bills that are significantly higher compared to this time last winter."
