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Energy Bills By Source in U.S.

Energy Rates This Holiday Season Should Be Similar to Last Year’s

With winter comes higher energy bills. Several factors contribute to this trend. Typically, from November to March, Americans perform a delicate dance between saving money and keeping pipes from freezing. For most homeowners, the main culprits of energy use in winter constitute furnaces and water heaters, especially for regions that experience colder seasonal temperatures. But the line-up doesn’t end there — one cannot ignore refrigerators, freezers, and ovens. These appliances work overtime during the season, especially with family in town and large meals to prepare. Then, throw in the power required for Christmas lights and Rudolph’s nose. Hopefully, homeowners can avoid surprising utility bills this holiday season. While unpredictability has defined the year 2020, experts project that — energy bills at least — will remain like those of 2019.

Costs explained

Oil, electricity, and natural gas predominantly heat American homes. Most of the Northern states rely on natural gas, while residents in the South (including Texas) depend on electricity. Only a few New England states employ heating oil. Worldwide, fuel costs have remained roughly the same the past few years; heating oil has dropped over fifty cents per gallon since 2018. As supply increases, demand decreases — or so states a basic tenet of Economics 101. Natural gas production has increased steadily over the last fifteen years, and prices have declined accordingly. Electricity rates have increased a touch, nationwide displaying a small nine cents per kWh increase from 2019.  Electricity rates in Texas have declined over that time. Overall, prices should remain relatively stable for winter 2020. Weather can dramatically alter these projections, however, especially if temperatures drop lower than expected and demand for heating increases.

Some extenuating circumstances should be considered. Due to the Coronavirus pandemic, many Americans spend more time at home, especially for work and school. This suggests higher use of lighting, heating, and power — an unavoidable consequence of the times. Nonetheless, fuel costs have been stunted by low demand from major industries as companies have curtailed traveling and typical functioning within the traditional office environment. Many schools have closed. These big energy users do not currently rely on the grid. As mentioned above — less demand dictates more supply available — leading to cheap energy prices. All in all, Americans have struggled to pay rent and utility bills throughout 2020, and the stability in projected energy rates this winter provides some welcomed relief.

Tips for saving

Furthermore, individuals can implement some energy-saving habits and capitalize on static energy bills. For example, consider cooking larger meals or several meals at once. When the oven is turned off, leave the door open to maximize heating in the kitchen. Only run the dishwasher or laundry machine when fully loaded. Also, remember to unplug holiday lighting before going to sleep. Televisions, laptops, and entertainment systems continue using power even when turned off. Energy-conscious individuals may want to unplug these items when not in use. For those with extra means, purchasing new, more efficient appliances can make a major dent in energy spending long-term — especially for household amenities older than twenty years. A wise consumer should also consider insulation strategies for older homes to help mitigate heating costs.

Saving opportunities don’t have to be difficult or expensive. Individuals can reach out to local electricity companies and discuss strategies and programs they offer. Consumers can leverage services to help compare electricity rates in their region as well. While 2020 has not been easy, customers will gladly receive some good news in the form of energy costs.

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