U.S. households could bank savings on heating costs this winter

• On 3:00 am EDT, Thursday October 1, 2009

Your heating bill could drop this winter, thanks to lower fuel prices and a forecast of slightly milder weather in many areas, according to the latest projections from the U.S. Department of Energy's Energy Information Administration. The EIA estimates that the average U.S. household will spend about $960 on heating during the October 2009-March 2010 heating season. That's a decline of $84, or 8 percent, from the 2008-2009 heating season. The biggest savings are expected for homes that heat with natural gas or propane. You can save even more money by installing and using a programmable thermostat.

Natural gas

The EIA expects that the average household that heats with gas save 12 percent this heating season, with those in the Midwest spending 15 percent less. (Check out our buyer's guide to furnaces.) A record high inventory of natural gas has resulted from a huge decrease in demand by the industrial sector and an increase in domestic production, including shale gas.

Propane

Midwesterners might see an average decrease of 21 percent while those in the West should spend only 5 percent less. One reason for the variation is that the Midwest is projected to have a winter that's about 4 percent warmer while the West could be about 4 percent colder, according to the National Oceanic and Atmospheric Administration.

Heating oil

Oil is used by only 7 percent of U.S. households, the majority of which are in the Northeast. This season, those who heat with oil could save about 3 percent, around $60. Heating oil is averaging about $2.64 a gallon, 2 cents less than last season and 67 cents less than the in 2007-2008.

Electricity

Those who heat with electricity will spend 2 percent less than last winter , an average of $20.

Essential reading

Our latest report on pellet stoves highlights the pros and cons of this alternative heat source. (Ratings are available to subscribers.) To cut energy use year-round, find out how to save up to $1,500 on your annual utility bills, read our report on solar water heaters, and learn which compact fluorescent lightbulbs top our ratings.

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