Northeast businesses and homeowners using natural gas, heating oil, propane, and electricity for heating this winter should all see their costs drop, according to predictions made Tuesday by the U.S. Energy Information Administration and the National Oceanic and Atmospheric Administration.
The lower cost projections are based upon the NOAA’s prediction of warmer weather this season, which should lighten demand for heating fuels. However, if the weather turns out to be colder than predicted, then costs will rise, particularly with those using natural gas.
EIA actually predicts a 6.8 percent increase in the price of natural gas in the Northeast this winter, but because of an expected 9.1 percent drop in demand due to warmer weather, EIA says natural gas customers should pay about 2.9 percent less in overall costs than they did last year.
As for heating oil – which remains Connecticut’s heating fuel of choice, despite the recent push for natural gas conversions – EIA predicts a 6.4 percent drop in price nationally and a 9.6 percent drop in consumption, leading to total expenditures of about 15.4 percent less.
For propane in the Northeast, EIA predicts a 5.1 percent drop in price and a 8.6 percent drop in consumption, leading to a total expenditure decrease of 13.2 percent.
For those heating with electricity, EIA predicts prices will rise in the Northeast by 2.4 percent, but because of a 4.7 percent drop in consumption, the total expenditure will be 2.5 percent less.
