As the winter season comes around, the rising costs of home energy and heating are cause for concern.
With many families scraping by to pay their bills and basic necessities in the midst of inflation and supply shortages, WETM took a deeper look into what’s to be expected this winter season, and what’s affecting our home energy prices.

“It’s rather simple. We buy gas in the wholesale market and we pass along whatever we pay for the gas to our customers. We don’t mark it up and we’re paying two to three times for gas than what we paid last year.” Said Mike German, President of Corning Natural Gas and Electric.
“The wholesale market is a lot tighter supply and demand than it was. There’s a lot more gas being shipped in the form of LNG (liquefied natural gas) overseas and it was a relatively warm summer which means there was a lot more gas going into electric generation. So at this point in time we have less gas in storage than we had last year. Everyone is racing to refill storage and that has pushed the price up.”

If you take a look at the statistics provided by the US Bureau of Labor, you will see a consistent increase from August 2020 to August 2022.

The following bullet points are pulled directly from the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook which can be find on their website here.

  • U.S. sales of electricity to ultimate customers to rise by 2.6% in 2022
  • Renewable sources will provide 22% of U.S. generation in 2022 and 24% in 2023, up from 20% in 2021.
  • Natural gas fuels 37% of U.S. electricity generation in 2022, a share similar to 2021, and we forecast it to fall to 36% in 2023.
  • Coal-fired electricity generation in our forecast provides 21% of the U.S. total in 2022 and 19% in 2023.
  • Forecast the U.S. residential price of electricity will average 14.8 cents per kilowatthour in 2022, up 7.5% from 2021.

The EIA goes on to say “Higher retail electricity prices largely reflect an increase in wholesale power prices driven by rising natural gas prices.”