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Heating Costs To Fall This WinterRecession will provide some relief from heating bills | |||||||||||||
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Mark Huffman October 6, 2009
In a report Tuesday, the EIA said the average U.S. household will see its heating bill fall by eight percent, due mainly to less demand for energy from a recession-wracked economy, and a build up of energy supplies. According to the government estimate, consumers can expect heat costs to be $960 from October 1, 2009 through March 21, 2010. That's down $84 from last year. Consumers using natural gas or propane will see the biggest savings. The EIA report said it expects natural gas prices to be down 12 percent this season and propane costs down 14 percent. About 52 percent of U.S. homes are heated with natural gas while only six percent use propane. Both fuels are heavily center in the Midwest, with propone used mainly in rural areas where there are few pipelines. Even with forecasts of a colder than normal winter, natural gas use is expected to drop slightly this year and next, according to EIA. Consumers, of course, will likely use the same amount of fuel as always, but industrial users have cut usage significantly, because of the weak economy. Since consumers won't be competing with factories and businesses for the fuel, they'll pay less. Even homes using electric heat will pay less this year. The EIA report projects a two percent drop in electric heat costs -- amounting to about $20 for the season. Heating oil customers will pay about $40 less this season. Though winter forecasts have been mixed, the recent trend has been toward cooler temperatures. However, the National Oceanic and Atmospheric Administration predicts winter temperatures in the U.S. will be about one percent warmer than last year, which was one of the coldest in recent years. Report Your Experience
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