New CEA Analysis: Misguided Energy Policies Would Force Families to Spend $154 Billion More This Winter
Natural gas, propane users projected to save $2 billion
Electricity costs surge 4% while natural gas prices decline
HOUSTON – Consumer Energy Alliance (CEA), the leading energy and environmental advocate for families and businesses, today released its latest analysis, “Heat or Eat: How Rising Electricity Prices Threaten Affordable Winter Heating,” revealing that American consumers would pay a staggering $154.2 billion more to keep their homes warm if “electrify everything” policies were put in place.
The analysis finds that homes heated with natural gas or propane are projected to save $2 billion this winter compared to homes heated by electricity, which will pay $4 billion more this year. According to the U.S. Energy Information Administration’s Winter Fuels Outlook, natural gas prices are expected to average $642 monthly, while electricity is projected to increase 4% to $1,133 per month.
“As families gather for the holidays, many American households struggle to afford basic needs, while higher prices are forcing some to have to choose between heating their homes or putting food on the table,” Consumer Energy Alliance President David Holt said. “Yet some policymakers keep pushing these misguided policies, and are now trying to blame others for the higher electricity prices their restrictive energy policies helped create. American consumers should be wary of repackaged policies that limit affordable, reliable energy being sold as a way to save costs.”
The Biden Administration published a notice in fall 2024 showing electricity costs more than three times as much as natural gas for home heating. If forced to switch to all-electric power this winter, families currently using natural gas would see a $137.4 billion increase, propane users would face an $8.8 billion increase, and consumers relying on heating oil would see an $8.0 billion increase.
These cost increases would disproportionately impact vulnerable populations. In 2022, low-income households spent 17.8% of their income on energy, while Black households spent 10% more than the national average and Hispanic households spent 42% more than the national average.
“The choice between holiday meals and keeping a home warm disproportionately affects those who can least afford it,” Holt said. “Over half of the states have wisely passed legislation protecting consumers from energy bans, recognizing that access to affordable, reliable heating is an essential need, not a convenience.”
Click here to read the report.
About Consumer Energy Alliance
Consumer Energy Alliance (CEA) is the trusted voice advocating for affordable, reliable, and cleaner energy solutions that benefit all Americans. Representing families, farmers, small businesses, distributors, producers, and manufacturers, CEA champions sensible, balanced policies that support economic growth and environmental resiliency; and ensures families and businesses are a vocal part of the nation’s energy dialogue. Every day, we work to inspire practical, responsible solutions that meet America’s energy needs while protecting the environment for generations to come.