Two of the state’s largest utilities are warning of higher heating bills this winter as natural gas prices have more than doubled since earlier this year. Natural gas has been relatively cheap for years, but prices have surged due to lower supplies and rising demand worldwide.
The price to buy natural gas has spiked from $2.62 per million British thermal unit earlier this year to between $5 and $6 since late September, according to the Energy Information Administration.
In the agency’s winter fuels outlook, the EIA expects nearly half the nation’s households that use natural gas will spend between 22 and 50 percent more on average, depending on whether the winter is colder or warmer than normal. Homes that use propane for heating could see costs rise between 29 and 94 percent depending on the severity of winter weather.
The state’s largest electric and natural gas utility, We Energies, warns the cost to heat homes could go up by $25 per month for residential customers based on a typical winter. Wisconsin Public Service customers could pay $40 more per month.