AGA Expects Lower Bills for Winter
Washington, D.C. – The American Gas Association (AGA) today said that customers across the nation may see residential gas bills that are two to four percent lower than the previous winter.
“Americans are fortunate to be able to rely on natural gas knowing that the cost of heating their home will not break the family budget,” said Karen Harbert, AGA President and CEO.
During the 2019-2020 Winter Outlook event held today, AGA Managing Director of Energy Analysis Richard Meyer, and AGA Senior Analyst Brendan O’Brien presented the findings and methodology for the annual survey of AGA member utilities. The results highlighted a twenty-four percent drop in the price of natural gas compared to one year ago, an expected warmer-than-normal winter and 1.3 percent improvement in customer efficiency driven by utility energy efficiency programs and other measures.
Meyer commented at the event, “Our winter outlook shows that customers continue to benefit from the access and use of natural gas. We see record levels of natural gas production amid a low-price environment, which has been beneficial to homes and businesses. What is also evident is how America’s natural gas utilities plan and prepare for the winter heating season to ensure their customers have affordable and reliable energy supplies on the coldest days of the year when consumers need it most.”
“Based on a survey of AGA member natural gas utilities, sixty-two percent of respondents said that bills this winter will be the same or lower than last year,” said O’Brien. His presentation also noted:
- Natural gas will continue to be the lowest-cost energy option for home heating.
- EIA’s winter forecast for Henry Hub price of gas is 24 percent lower now compared to one year ago and 12 percent lower than the average winter price over past five years.
- Expectations are for a warmer-than-normal winter based on National Weather Service 2019-2020 Winter forecast (3,635 heating degree days vs 3,816).
The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 73 million residential, commercial and industrial natural gas customers in the U.S., of which 95 percent — more than 69 million customers — receive their gas from AGA members. Today, natural gas meets more than one-fourth of the United States' energy needs.