Homeowners' electricity bills are expected to rise this winter due to a variety of factors, according to an outlook report released by the U.S. Energy Information Administration.
The average electricity bill is forecasted to rise approximately 4% starting in November until March 2026, to a total of about $1,130 nationally.
About 43% of homes in the U.S., primarily in the South, are heated with electricity. The EIA estimates the total cost on average in the South will rise to about $1,030.
Electricity costs have been on the upswing this year with experts citing factors such as higher expenses from natural disasters like storms and wildfires, higher natural gas prices, higher retail electricity prices, growing insurance prices, and more infrastructure demands, such as a growing appetite for electric cars and appliances and AI data center use.
In some areas like Virginia, where many AI data centers are located, estimated electricity and power costs have increased as much as 267% per month, according to one analysis from Bloomberg.
For other households not powered by electricity, costs are expected to drop or remain about the same.
People whose homes are heated with natural gas, the most common type, should expect to pay about the same as last winter, at about a national average of $640, while people whose homes are heated with heating oil will likely see an 8% decrease to a national average of about $1,390 due to lower crude oil prices.
For homes heated with propane, mostly in rural communities, homeowners should look forward to a 9% decrease to a national average of about $1,210 in costs this year, as propane prices have dropped.
